Europe Agricultural Tractor 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 |
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Europe Agricultural Tractor 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).
- Germany, the United Kingdom, and France are some of the biggest markets for tractors in the European Union. In the United Kingdom, tractor registrations are an important indicator to determine the strength of the domestic market for agricultural machinery. In terms of value, the sales of tractors and accessories account for almost half of the farmer's expenditure. Like other European nations, France has been a pioneer in mechanizing the agriculture sector, and it is an important part of the European market.
- Factors such as increasing total factor 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.
- Over the long term, the increasing adoption of farm mechanization and technology trend is expected to drive the market. Precision farming and increasing farm technology adoption to boost production are driving the demand for tractors. The growing number of farm training programs promoting the use of agricultural machinery on a wide scale is also driving the tractor industry in the region.
Europe Agricultural Tractor Market Trends
Rising Farm Labor Cost is Driving the Market for Tractors
Agriculture in the European Union has traditionally been a labor-intensive sector, with more seasonal immigrant workers working on farm fields in the member states. According to Eurostat, the European agricultural workforce has steadily declined by 35% over the last decade, with the workforce projected to drop to 7.9 million in 2030. Several factors have contributed to this declining trend, including a decrease in smaller family farms and significant growth in machinery and technology. However, an acute shortage of farm labor has surfaced in the region's farm fields.
According to the German Association of Agricultural Employers (GLFA), the number of seasonal immigrant laborers in Germany during the peak harvest times fell drastically in the last few years, which further led the way to a pilot project model, enabling German farmers to hire workers from Western Balkan countries till 2020. Thus, a shortage of farm labor is leading to a rise in wage rates, allowing farmers to adopt farm mechanization.
With the availability of advanced technology, coupled with the declining availability of farm labor, farmers are shifting toward using tractors in agriculture, as they aid in saving time and resources, decrease costs, and enhance productivity.
Germany is Leading the Market
Germany is one of the largest markets for agricultural tractors in Europe. Germany is s a pioneer in technological development and has a diverse industrial base. The production of tractors saw a remarkable upsurge over the past few years. Thus, Germany has become one of the leaders in producing agricultural machinery in Europe, which signifies its dominance in the agricultural tractors market. The country generates more than 27% of agricultural machinery and equipment components manufactured in Europe.
Agricultural tractors accounted for 93% of the overall German tractors market in 2021. Germany is the leading tractor exporter in Europe in terms of unit sales. Due to the booming domestic market, the export ratio over the past few years has been steady at 50-60%.
According to the European Agricultural Machinery Association, there was an increase of 5% in the preregistrations of tractors in 2020 compared to the previous year. The sales of the tractors reflected a positive trend. The farmers in the country are increasingly adopting above 50 HP tractors, as they have an improved operator's comfort level and aid in increasing the productivity of the farm work, which is leading to the market's growth.
Europe Agricultural Tractor 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 innovation, partnership, and expansion 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 Tractor Market Leaders
Deere & Company
CLAAS KGaA mbH
CNH Industrial NV
AGCO Corporation
Kubota Corporation
*Disclaimer: Major Players sorted in no particular order
Europe Agricultural Tractor Market News
- December 2021: A strategic partnership between SDF and DEUTZ was expanded. Both companies have a successful business partnership that began in the 1980s. The companies have reached an agreement for a long-term supply agreement to provide both the sub-4 and above-4 liter range engines and the DEUTZ TCD 4.1, 6.1, and 7.8 engines.
- December 2020: AGCO introduced the Challenger MT800 Series track tractors, which boast new engine and transmission combinations, an enhanced track and chassis system, more hydraulic and hitch options, and a redesigned operator-friendly cab.
- September 2020: Fendt, a global brand of AGCO Corporation, introduced the Fendt 900 Vario MT Series track tractors, which deliver a high level of track tractor performance, ride comfort, and operating efficiency.
- July 2020: Deere & Company launched rugged, heavy-duty compact utility tractors. The 3D Series compact utility tractors offer a powerful, affordable, and easy-to-use solution in agriculture.
Europe Agricultural Tractor 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
4.3 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 Horsepower
5.1.1 Less Than 40 HP
5.1.2 40-99 HP
5.1.3 100-150 HP
5.1.4 151-200 HP
5.1.5 Above 200 HP
5.2 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
6.3.10 MTZ Serviss
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Europe Agricultural Tractor 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, 40-99 HP, 100-150 HP, 151-200 HP, and above 200 HP. The market is segmented by geography into Germany, the United Kingdom, France, Spain, Italy, Russia, Poland, and the rest of Europe. The report offers the market sizing in terms of volume in units and value in USD million.
| Horsepower | |
| Less Than 40 HP | |
| 40-99 HP | |
| 100-150 HP | |
| 151-200 HP | |
| Above 200 HP |
| 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 14.75 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.
