Europe Agricultural Machinery Market is expected to grow at a CAGR of 5.1% during the forecasting period 2020-2027.

The Europe Agricultural Machinery Market was valued XX USD Mn in 2019 and is expected to grow at a CAGR of 5.1% during the forecasting period (2020-2027) to reach  USD XXMn by 2027

The Europe agriculture equipment market is experiencing a high demand for such machines owing to the growing adoption of automated technologies. Countries including Italy, Germany, and France are moving toward automation and adopting several smart industrial solutions for manufacturing processes. Moreover, labor shortage in the region is also a factor, which is driving the adoption of mechanized products in farms. 

These machines are performing several farm activities with maximum accuracy and productivity, thereby encouraging the farmers to implement the mechanized technologies in their agricultural processes.  The agriculture equipment market is anticipated to witness a high rise in the production capacity with competitors embracing advanced methods of manufacturing. The subsidies and financial assistance available towards purchase of tractors and other agricultural machinery is supporting the growth of Hungarian agricultural machinery market. The huge price of raw material is a significant restraint to the agriculture machinery market in Europe as high prices are a severe threat to vendor margins.  The cost of primary raw materials used in the manufacturing of agricultural utility vehicles such as steel, rubber, and iron have increased significantly over the past few years. 

Market Dynamics

Drivers

• Financial assistance and subsidies for mechanization in Agriculture 
• Increasing wages of agricultural labour across European Union
• Increasing demand for post-harvest mechanization
• Increasing adoption of used agricultural machinery across European Union

Restraints

• High cost of machines
• Inadequate maintenance and after-sales support

Financial assistance and subsidies for mechanization in Agriculture

The subsidies and financial assistance available towards purchase of tractors and other agricultural machinery is supporting the growth of Hungarian agricultural machinery market. The ministry of Agriculture in Europe provides state subsidies of 50% on the interest for loan used on purchase of agricultural machinery. The growing need for producing agricultural products and the rising awareness towards potential benefits of mechanization in farming practices is motivating the farmers and growing communities towards use of tractors and combine harvesters. Thus is supporting the sales of agricultural machinery in the country  The economic growth in the country is driving the agriculture sector to be more efficient and productive, in turn resulting in higher sales of agricultural machinery and end-products. Moreover, agricultural machinery is one of the leading and stable sectors of the rapidly growing Hungarian leasing market. The member companies of leasing association leveraged HUF 82 billion in agricultural machinery in 2018

The Hungarian Association of Agricultural Machinery Manufacturers (MEGOSZ) formed for the promotion of agricultural, forest and food industrial machines manufacturers is providing research, production, and distribution assistance to producers, thus supporting the sales of domestic players. According to MEGOSZ, the net sales of agricultural machinery in the country reached HUF 148.2 billion in 2017, of which HUF 121.7 billion representing export sales

Competitive Landscape

The agricultural machinery market in Europe is consolidated with top 3 companies occupying over 60% share of the total market in 2018.  CNH Industrial N.V., AGCO Corporation, and Deere & Company are the major players in the market

CNH offers its CASE and New Holland tractor brands in the Hungarian market.  New product launches, acquisitions, partnerships and business expansions are the key strategies adopted by leading players in the Europe agriculture machinery market.

Leading players are expanding their product lines and introducing new products for various applications using new generation technologies such as IoT, GPS and Cloud Connect. Industry players are expanding their businesses' reach to the global regions to increase their sales. Companies are undergoing partnerships to expand technology offering and reduce operating costs and also to launch new products in the developing regions in Europe.

Companies are investing in improved technologies in order to offer Flexible and efficient agriculture machinery. Companies are focusing on providing quality products and improved after sales services to be competitive in the market.

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