Europe Agricultural Machinery Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 42.03 Billion |
| Market Size (2029) | USD 49.22 Billion |
| CAGR (2024 - 2029) | 3.20 % |
| Market Concentration | High |
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*Disclaimer: Major Players sorted in no particular order |
Europe Agricultural Machinery Market Analysis
The Europe Agricultural Machinery Market size is estimated at USD 42.03 billion in 2024, and is expected to reach USD 49.22 billion by 2029, growing at a CAGR of 3.20% during the forecast period (2024-2029).
Agriculture in the European Union was traditionally labor-intensive, characterized by many seasonal immigrant workers working on farm fields in the member states. However, the shortage of skilled labor increased mechanization rates in European countries, which boosted the sales of agricultural machinery in the region. According to the World Bank, employment in agriculture has reduced from 4.32% in 2020 to 3.99% in 2022 in the European Union. Other factors aiding the growth are the shrinking area of arable land and the declining availability of fresh water, which increases the demand for farm mechanization in European countries. Tractor sales drive the growth of the European agricultural machinery market. According to the National Authorities of Europe, 215,000 tractors were registered across Europe in 2022, with under 165,200 of these being agricultural tractors. Besides this, key players in the industry are launching new types of machinery with advanced technologies to bring more efficiency and ease to farming operations in the region. For instance, in 2022, John Deere & Co. introduced a new operator-less tractor for tilling the field, addressing the challenge of labor shortages in the region.
Europe Agricultural Machinery Market Trends
Shortage of Skilled Labor
Agriculture in Europe has traditionally relied on seasonal immigrant workers who worked on farms in various member states. However, rural households are attracted to cities due to more work opportunities, higher wages, and better living conditions, leading to a rapid rise in rural-to-urban migration. For instance, the rural population in Spain decreased from 19.4% in 2019 to 18.7% in 2022. Additionally, the heavy workload involved in farming has led to many individuals lacking interest in the field. This has further compounded the shortage of farm labor in the region. As per the World Bank, employment in agriculture reduced from 4.32% in 2020 to 3.99% in 2022 in the European Union. The labor shortage in European agriculture has led to a significant shift towards mechanization and automation. Tractors, one of the essential agricultural machinery, have witnessed enormous growth potential in the market. Farmers in the region increasingly prefer purchasing high-end tractors to work on larger fields as part of their effort to improve crop yields and boost farm efficiencies.
Germany Dominates the Market
Germany is a major market for agricultural machinery and implements in Europe. Due to its precision and innovative engineering, the country is one of the world's biggest exporters of agricultural machinery. It is also one of the largest manufacturers and consumers of agri-machinery in Europe.
Tractors are the primary power source for agricultural machinery in Germany. AGCO Corporation is a leading company in the tractor market, selling brands such as Massey Ferguson and Valtra Inc. Market players are introducing innovative machinery to encourage farm mechanization. For instance, in 2022, Case IH launched a new LB 424 XLD large square baler model that produces extra-dense 120 cm*70 cm bales, up with a 10% increase in density, which improves bale quality, handling, and rotor cutter.
German farmers receive an annual subsidy from the European Union to invest in modern machinery, which can otherwise be expensive. This subsidy enables them to carry out farm operations more efficiently. However, due to a shift in workforce preference from farm-oriented activities to allied sectors, the demand is rising for agricultural machinery to perform labor-intensive agricultural operations.
Europe Agricultural Machinery Industry Overview
The agricultural machinery market in Europe is consolidated and driven primarily by the presence of many global players. Same Deutz-Fahr, John Deere, CNH Industrial, CLAAS KGaA mbH, and AGCO Corporation are some prominent players holding a major share in the agricultural machinery market in Europe. The companies operating in the market aim to strengthen their presence through product features, pricing, quality, scale of operations, and technological innovations.
Europe Agricultural Machinery Market Leaders
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CLAAS KGaA mbH
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Deere & Company
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AGCO Corporation
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CNH Industrial NV
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Same Deutz-Fahr
*Disclaimer: Major Players sorted in no particular order
Europe Agricultural Machinery Market News
- November 2023: CNH Industrial NV unveiled CR11 New Holland combine at Agritechnica '23. Its 775-horsepower C16 engine powers 2x24-inch rotors, while the 567-bushel (20,000-liter) grain tank ensures ample storage capacity. With a rapid six bushels (210 liters) per second unload rate, the CR11 minimizes grain loss.
- November 2023: Yanmar Co. Ltd partnered with International Tractors Limited (ITL) to strengthen the product portfolio, network & service capabilities to serve customer needs. Through the extensive network of both companies, this strategic partnership was poised to broaden the market reach for both brands substantially. ITL and Yanmar aimed to provide unparalleled customer service & technologically advanced products across Europe by harnessing their collective expertise and resources.
- September 2023: John Deere and Yara partnered and improved fertilizer efficiency and crop yields through a combination of Yara’s agronomic expertise and John Deere’s Precision Technology. This collaboration provided farmers with data-driven recommendations, optimized nutrient use, and maximized productivity.
Europe Agricultural Machinery Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Shortage of Skilled Labor
4.2.2 Government Support to Enhance Farm Mechanization
4.3 Market Restraints
4.3.1 Heavy Initial Procurement Cost and High Expenditure on Maintenance
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Tractors
5.1.1.1 Less than 50 HP
5.1.1.2 50 to 100 HP
5.1.1.3 100 to 150 HP
5.1.1.4 Above 150 HP
5.1.2 Plowing and Cultivating Machinery
5.1.2.1 Plows
5.1.2.2 Harrows
5.1.2.3 Cultivators and Tillers
5.1.2.4 Other Equipment
5.1.3 Irrigation Machinery
5.1.3.1 Sprinkler Irrigation
5.1.3.2 Drip Irrigation
5.1.3.3 Other Irrigation Machinery
5.1.4 Harvesting Machinery
5.1.4.1 Combine Harvesters
5.1.4.2 Forage Harvesters
5.1.4.3 Other Harvesting Machinery
5.1.5 Haying and Forage Machinery
5.1.5.1 Mowers
5.1.5.2 Balers
5.1.5.3 Other Haying and Forage Machinery
5.1.6 Other Types
5.2 Geography
5.2.1 Germany
5.2.2 France
5.2.3 United Kingdom
5.2.4 Spain
5.2.5 Italy
5.2.6 Russia
5.2.7 Rest of Europe
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 CLAAS KGaA mbH
6.3.2 Deere & Company
6.3.3 Lely France
6.3.4 CNH Industrial NV
6.3.5 Kubota Corporation
6.3.6 AGCO Corporation
6.3.7 Same Deutz-Fahr
6.3.8 Yanmar Co. Ltd
6.3.9 Kuhn Group
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Europe Agricultural Machinery Industry Segmentation
Agricultural machinery is used to perform farming operations such as harvesting, plowing, irrigation, and planting. For the purpose of this report, machinery used in agricultural operations has been considered. The report does not cover machinery used for industrial and construction purposes or multi-purpose tractors, machinery, and equipment used for farming and non-agricultural operations.
The European agricultural machinery market is segmented by type (tractors, plowing and cultivating machinery, harvesting machinery, irrigation machinery, haying and forage machinery, and other types) and geography (Germany, Italy, United Kingdom, France, Spain, Russia, and the Rest of Europe). The report offers market size and forecast in terms of value in USD for the above segments.
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Europe Agricultural Machinery Market Research FAQs
How big is the Europe Agricultural Machinery Market?
The Europe Agricultural Machinery Market size is expected to reach USD 42.03 billion in 2024 and grow at a CAGR of 3.20% to reach USD 49.22 billion by 2029.
What is the current Europe Agricultural Machinery Market size?
In 2024, the Europe Agricultural Machinery Market size is expected to reach USD 42.03 billion.
Who are the key players in Europe Agricultural Machinery Market?
CLAAS KGaA mbH, Deere & Company, AGCO Corporation, CNH Industrial NV and Same Deutz-Fahr are the major companies operating in the Europe Agricultural Machinery Market.
What years does this Europe Agricultural Machinery Market cover, and what was the market size in 2023?
In 2023, the Europe Agricultural Machinery Market size was estimated at USD 40.69 billion. The report covers the Europe Agricultural Machinery Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Europe Agricultural Machinery Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Agricultural Equipment in Europe Industry Report
Statistics for the 2024 Agricultural Equipment in Europe market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Agricultural Equipment in Europe analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Agricultural Equipment Market in Europe Report Snapshots
