Europe Agricultural Machinery Market is segmented By Type (Tractors, Subsoilers, Cultivators, Loaders, Balers, Sprayers, Combine Harvesters, Others) By Automation (Manual, Semi-automatic, Automatic) By Distribution Channel (Company Stores, Hypermarkets/Supermarkets, Specialty Stores, Others) By Application (Land Development & Seed Bed Preparation, Sowing & Planting, Weed Cultivation, Plant Protection, Harvesting & Threshing, Post-harvest & Agro Processing, Others) By Country (U.K., Germany, France, Italy, Spain, Rest of Europe) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Market Overview
Europe Agricultural Machinery Market reached US$ 34.12 billion in 2022 and is expected to reach US$ 47.41 billion by 2031, growing with a CAGR of 4.2% during the forecast period 2024-2031.
The demand for various types of agricultural machinery for various agricultural practices such as harvesting, planting, and others is rising among farmers in Europe as they perform effectively in less time, and also provide precision data regarding crop and soil health, which helps in increasing the overall agricultural productivity.
In addition, many manufacturing companies' R&D plans to strategically focus on developing agricultural products. For instance, in April 2023, Bosch BASF Smart Farming and AGCO Corporation are developing and commercializing smart spraying technology on Fendt Rogator sprayers, and jointly develop additional new features. This technology will be available in Europe in 2024.
The tractor of agricultural machinery accounts for a significant share of the European agricultural machinery market. Furthermore, manufacturing companies present in Germany leading to develop and launch innovative products that help contribute to the growth of Europe's agricultural machinery market.
Market Scope
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Metrics |
Details |
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CAGR |
4.2% |
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Size Available for Years |
2022-2031 |
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Forecast Period |
2024-2031 |
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Data Availability |
Value (US$) |
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Segments Covered |
Type, Automation, Distribution Channel, Application, and Country |
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Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
Rising Demand For Advanced Agricultural Equipment
Farmers are increasingly embracing advanced agricultural machinery, specifically designed to boost efficiency and productivity in farming operations. These machines incorporate precision farming and automation technologies, which enable the farmers to monitor and manage agricultural activities with greater effectiveness.
In addition, manufacturing companies are rapidly producing innovative products to expand their portfolios. For instance, in October 2023, International Tractors (ITL), a tractor manufacturing company launched Series C will be available for European markets and also series N will cater to markets including Europe, U.S., Africa and South America regions. The Companies launching their products at the global level will propel significant sales growth of the companies during the forecast period.
Rising in Farm Mechanization
The rising trend in farm mechanization is a significant growth of the agricultural machinery market. Farm mechanization involves the adoption of various machinery and equipment such as tractors, plows, harvesters, and others. The automation of machinery enhances the efficiency of farming operations.
Furthermore, companies are developing advanced machinery to expand their portfolio with innovative features of products. For instance, in February 2024, International Tractors, a player in the tractor manufacturing industry launched a lineup of 10 advanced heavy-duty 'Tiger' tractors ranging from 40 – 75 HP. These tractors were designed in Europe.
High Cost of Machines
The high cost of agricultural machinery can significantly restrain the agricultural machinery market. Agricultural machinery requires a substantial initial investment, maintenance, and operating expenses which could limit the adoption rate for smaller farmers. In addition, major developing countries face inflation rates that constrain investment in high production volumes.
Moreover, supplying (importing) machines is also challenging for developing countries due to high import prices and currency limitations, which limit the adoption of this machinery in developing countries. For instance, according to the International Trade Centre, Romania, a developing country in the European region, experienced a 20.52% decrease in the import of agricultural tractors in 2022, with a value of 28.66 million US$ compared to 34.54 million US$ in 2021.
Segment Analysis
The European agricultural machinery market is segmented based on type, automation, distribution channel, application, and by country.
Increase in Effective Machinery Market
The tractor segment accounts for the largest share of the European agricultural machinery market, as they are highly versatile machines that can be utilized for various agricultural tasks, such as plowing, planting, and others. As they perform more effectively than manual labor. Also, they are equipped with advanced technologies, which helps in precision farming. Hence, such factors can help in driving the market growth.
In addition, agricultural equipment-producing companies are launching innovative tractor equipment. For instance, in November 2023, the Monarch Tractor MK-V announced that it was making its Agritechnica premiere, marking the MK-V's first appearance at a significant agricultural trade event in the European market.
Geographical Penetration
Manufacturing Companies Initiatives
Germany and France have been a dominant force in the European agricultural machinery market and their significance has only grown in the post-2020 era. Farmers in this region are highly adopting this automated agriculture machinery, as they perform a wide range of tasks more effectively, with less duration of time. Therefore, such factors can help contribute the market growth.
In addition, manufacturing companies are launching their new products as per the demand from the farmers in the region. For instance, in November 2023, VST Tillers Tractors Ltd company launched three new electric tractors including its 929 EV, 932 DI with Stage V engine, and 929 with HST transmission. The company showcased these innovative machines under the Fieldtrac brand, at Agritechnica in Hanover, Germany. Moreover, France is the 4th largest exporter of agricultural tractors as per the ITC, exported by France with a value of 16 million US$ in 2022, which increased by 50% for the 2021- 2022 financial year.
Competitive Landscape
The major global players in the market include AGCO Corporation., CNH Industrial N.V., Deere & Company., Kubota Europe SAS., Yanmar Holdings Co., Ltd., CLAAS KGaA mbH, MTZ-HOLDING, ZETOR TRACTORS a.s., Bernard Krone Holding SE & Co. KG, and LEMKEN GmbH & Co. KG.
COVID-19 Impact Analysis
The pandemic disrupted global supply chains, leading to delays in the production and delivery of agricultural machinery, including tractors. Factory closures, transportation restrictions, and logistical challenges caused disruptions in the availability of tractor components and equipment. This resulted in delays in fulfilling orders and increased lead times for tractor manufacturers, impacting market operations and sales.
Key Developments
- In February 2023, Kverneland AS, a subsidiary of Kubota Corporation acquired B.C. TECHNIQUE AGRO-ORGANIQUE SAS is a wholly owned subsidiary. BCT is a company that manufactures agricultural machine equipment known as implements.
- In November 2023, the first completely electric, driver-optional, connected tractor in the world, the Monarch Tractor MK-V, announced that it made its Agritechnica premiere, marking the MK-V's first appearance at a significant agricultural trade event in the European market.
- In November 2023, International Tractors Limited (ITL) and Yanmar companies are collaborated to strengthen the European agriculture market’s product portfolio, network & service capabilities to serve customer needs. This strategic partnership is poised to substantially broaden the market reach for both brands.
Why Purchase the Report?
- To visualize the European agricultural machinery market segmentation based on type, automation, distribution channel, application, and country as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of cement market-level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as Excel consisting of key products of all the major players.
The Europe agricultural machinery market report would provide approximately 45 tables, 48 figures and 211 Pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
