Europe Agricultural Tractors Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 15.47 Billion |
| Market Size (2029) | USD 19.66 Billion |
| CAGR (2024 - 2029) | 4.90 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Europe Agricultural Tractors Market Analysis
The Europe Agricultural Tractors Market size is estimated at USD 15.47 billion in 2024, and is expected to reach USD 19.66 billion by 2029, growing at a CAGR of 4.90% during the forecast period (2024-2029).
- The European agricultural tractors market has grown substantially in recent years, fueled by various factors. Technological advancements like precision farming and automation have allowed farmers to enhance efficiency and productivity. The growing emphasis on sustainability and environmental issues has also increased demand for eco-friendly tractors. Moreover, as farms across Europe consolidate, there is a rising need for larger and more powerful tractors to manage the heavier workloads.
- France, Germany, Italy, and the United Kingdom are among the largest markets for tractors in the European Union, together representing about 60% of agricultural tractor registrations within the region in 2023, according to the European Agricultural Machinery Association (CEMA). In the United Kingdom, tractor registrations are a key indicator of the domestic agricultural machinery market. Tractors and accessories make up nearly half of farmers' expenditures in terms of value. Like other European nations, France has been at the forefront of agricultural mechanization, accounting for around 23% of all agricultural tractors registered in the region in 2023, highlighting its significant role in the European market.
- Factors such as increasing total tractor productivity in farming, reducing post-harvest loss, adding value to agricultural raw materials, and improving the quality of agricultural products are driving the market in the region. The government of France has formulated programs to aid and finance the purchase of agricultural machinery and equipment, including tractors. These factors, coupled with government policies to promote agricultural exports, aid the growth of agriculture mechanization and the adoption of tractors in the country.
Europe Agricultural Tractors Market Trends
Rising Farm Labor Costs Are Driving the Market for Tractors
Agriculture in the European Union has traditionally been labor-intensive, relying heavily on seasonal immigrant workers across the member states' farm fields. However, according to Eurostat, the European agricultural workforce steadily declined by 3.5% between 2019 and 2023, resulting in approximately 7.6 million full-time workers in the sector as of 2023. The average rate of decline in agricultural labor across the European Union was 2.6% per year.
During the same period, hourly wages for agricultural labor in the European Union increased by about 12%, reaching USD 34.4 per hour in 2023. This wage increase is partly due to the decreasing number of smaller family farms, which traditionally relied on family labor at lower costs. Additionally, significant advancements in machinery and technology have reduced the demand for manual labor, thereby intensifying the labor shortage and driving up wages for the remaining workforce.
The German Association of Agricultural Employers (GLFA) reported a substantial decline in the number of seasonal immigrant laborers in Germany during peak harvest periods in recent years. This labor shortage has led to the implementation of a pilot project, enabling German farmers to hire workers from Western Balkan countries. Consequently, rising wage rates promote farmers adopting mechanization in their operations.
France is Leading the Market
France has become a key player in the European agricultural tractors market, with its tractor production accounting for approximately 23% of the total European output in 2023. Moreover, agricultural tractor preregistrations in the country increased by about 1.8% in 2023 compared to the previous year.
Several factors have driven France's success in this market. The country's extensive agricultural lands require efficient and powerful machinery, leading to a steady demand for tractors. Additionally, France's adoption of modern farming practices has increased the need for tractors with advanced technologies like GPS guidance and precision farming tools.
France's focus on sustainability and environmental impact has also shaped the market. Farmers are increasingly looking for tractors with lower emissions, better fuel efficiency, and features that reduce their environmental footprint. This trend aligns with the country’s broader environmental goals. As France advances in modern farming methods, the demand for agricultural tractors is projected to grow during the forecast period.
Europe Agricultural Tractors Industry Overview
The European agricultural tractors market is consolidated, with a few major players dominating the market. The key players in the market are Deere & Company, CLAAS KGaA mbH, CNH Industrial NV, AGCO Corporation, and Kubota Corporation. Product innovations, partnerships, and expansions are the prime strategies followed by these companies to increase their market share and improve their production capabilities using modern technologies. These companies are investing heavily in R&D and launching tractors that cater to the needs of farmers in this region.
Europe Agricultural Tractors Market Leaders
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Deere & Company
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CLAAS KGaA mbH
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CNH Industrial NV
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AGCO Corporation
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Kubota Corporation
*Disclaimer: Major Players sorted in no particular order
Europe Agricultural Tractors Market News
- June 2024: John Deere launched the 6M tractor series in Europe, offering models ranging from the compact 6M 95 to the powerful 6M 250. These tractors come with 4.5 or 6.8-liter engines, delivering up to 20 additional horsepower with intelligent power management (IPM).
- March 2024: John Deere introduced the 5M tractor series, featuring advanced PowrQuad PLUS and Power8 transmissions with integrated AutoTrac functionality in the dashboard. The series includes the new 5M 130 model, which offers up to 135 horsepower, expanding the range of higher-power options.
- December 2021: SDF and DEUTZ expanded their longstanding partnership, which began in the 1980s. The agreement includes a long-term supply deal for DEUTZ engines, covering both sub-4 liter and above-4 liter engines, including the TCD 4.1, 6.1, and 7.8 models.
- December 2020: AGCO introduced the Challenger MT800 Series track tractors, featuring new engine and transmission options, an improved track and chassis system, additional hydraulic and hitch configurations, and a redesigned, user-friendly cab.
Europe Agricultural Tractor Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption 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
4.3 Market Restraints
4.4 Industry Attractiveness - 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 By Horsepower
5.1.1 Less Than 40 HP
5.1.2 40 to 99 HP
5.1.3 100 to 150 HP
5.1.4 151 to 200 HP
5.1.5 Above 200 HP
5.2 By Geography
5.2.1 Germany
5.2.2 United Kingdom
5.2.3 France
5.2.4 Spain
5.2.5 Italy
5.2.6 Russia
5.2.7 Poland
5.2.8 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 CNH Industrial NV
6.3.4 AGCO Corporation
6.3.5 Kubota Corporation
6.3.6 Mahindra & Mahindra Ltd
6.3.7 Tractors and Farm Equipment Limited
6.3.8 SDF SpA
6.3.9 Argo Tractors SpA
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Europe Agricultural Tractors Industry Segmentation
An agricultural tractor is a vehicle designed to deliver a high tractive effort to haul a trailer or machinery at slow speeds. The report does not cover other agricultural machinery and attachments for tractors. Tractors used for industrial and construction purposes are also excluded from the study.
The European agricultural tractors market is segmented by horsepower into less than 40 HP, 40 to 99 HP, 100 to 150 HP, 151 to 200 HP, and above 200 HP. The market is segmented by geography into Germany, the United Kingdom, France, Spain, Italy, Russia, Poland, and Rest of Europe. The report offers the market sizing in terms of volume (units) and value (USD).
| By Horsepower | |
| Less Than 40 HP | |
| 40 to 99 HP | |
| 100 to 150 HP | |
| 151 to 200 HP | |
| Above 200 HP |
| By Geography | |
| Germany | |
| United Kingdom | |
| France | |
| Spain | |
| Italy | |
| Russia | |
| Poland | |
| Rest of Europe |
Europe Agricultural Tractor Market Research FAQs
How big is the Europe Agricultural Tractors Market?
The Europe Agricultural Tractors Market size is expected to reach USD 15.47 billion in 2024 and grow at a CAGR of 4.90% to reach USD 19.66 billion by 2029.
What is the current Europe Agricultural Tractors Market size?
In 2024, the Europe Agricultural Tractors Market size is expected to reach USD 15.47 billion.
Who are the key players in Europe Agricultural Tractors Market?
Deere & Company, CLAAS KGaA mbH, CNH Industrial NV, AGCO Corporation and Kubota Corporation are the major companies operating in the Europe Agricultural Tractors Market.
What years does this Europe Agricultural Tractors Market cover, and what was the market size in 2023?
In 2023, the Europe Agricultural Tractors Market size was estimated at USD 14.71 billion. The report covers the Europe Agricultural Tractors Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Europe Agricultural Tractors Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Europe Tractor Industry Report
Statistics for the 2024 Europe Tractor market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Tractor analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
