| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 9.66 Billion |
| Market Size (2030) | USD 11.09 Billion |
| CAGR (2025 - 2030) | 2.80 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Europe Utility Tractor Market Analysis
The Europe Utility Tractor Market size is estimated at USD 9.66 billion in 2025, and is expected to reach USD 11.09 billion by 2030, at a CAGR of 2.80% during the forecast period (2025-2030).
Agricultural machinery adoption in Europe shows steady growth. The increasing mechanization levels and higher grower incomes in developing countries drive the demand for utility tractors, which are well-suited for farm activities. France, Germany, Italy, and the United Kingdom constitute the largest tractor markets in the European Union, accounting for approximately 60% of agricultural tractor registrations in 2023, as reported by the European Agricultural Machinery Association (CEMA). The pressure to improve agricultural land productivity is projected to continue, encouraging farmers and land operators to invest in agricultural machinery, including utility tractors.
Utility tractors serve as general-purpose machines in the region's agricultural sector. These compact versions of agricultural tractors support various farming operations. Their high functionality, competitive pricing, user-friendly features, and minimal space requirements have contributed to increased sales. The tractors perform tasks such as plowing and equipment operation through power drive systems. They are primarily used in small- and medium-sized farms and specialty agricultural operations, including dairy, livestock, orchards, and vineyards.
Utility tractors are designed for small farms and hobby farmers with limited acreage. The prevalence of small farms increases the use of utility tractors with less than 50 HP. According to the European Parliamentary Research Service (EPRS), the average farm size in European countries is 16 hectares, smaller than other developed nations. The affordability of utility tractors compared to larger models makes them accessible to farmers. With over 10 million small farms in Europe as of 2022, according to Eurostat, these cost-effective tractors contribute significantly to segment growth.
European Union agriculture has historically depended on seasonal immigrant workers. However, Eurostat reports that agricultural labor hourly wages increased by approximately 12%, reaching USD 34.4 per hour in 2023. The German Association of Agricultural Employers (GLFA) noted a significant decrease in seasonal immigrant laborers during peak harvest periods in recent years.
Hay and forage production, diverse crop cultivation, and the use of farming equipment such as tillers and mowers drive utility tractor demand. The requirement for intercultural soil preparation and tillage to improve crop quality and yield necessitates utility tractor usage across the region. Regional initiatives are anticipated to support market growth throughout the forecast period.
Europe Utility Tractor Market Trends
Shortage of Labor in the Agriculture Sector
The agricultural sector across the region faces a significant decline in workforce numbers, resulting in an annual labor shortage crisis. Educated youth show reluctance toward physically demanding agricultural work. The trend toward urbanization, improved living standards, and diverse job opportunities in cities continues to draw rural populations away from farming activities, increasing the demand for utility tractors. The labor shortage situation has intensified due to the physically demanding nature of farming work. According to World Bank data, agricultural employment in the European Union decreased from 4.32% in 2020 to 3.99% in 2022. This decline, combined with rising labor costs, has prompted farmers to adopt mechanization solutions, including utility tractors.
European agriculture's labor challenges have accelerated the transition to mechanization and automation. Countries like Spain and Italy, facing acute seasonal labor shortages due to aging rural populations and strict immigration policies, have increased their investment in agricultural machinery. Farm training programs that emphasize agricultural machinery usage further support the utility tractor market growth. Manufacturers are responding with technological innovations to address labor requirements. For example, in November 2023, Tractors and Farm Equipment Limited (TAFE) showcased Electric Compact tractors and advanced utility tractors with HVAC cabins at Agritechnica 2023 in Hanover, Germany.
The development of advanced tractor technology has driven the adoption of utility tractors, particularly in the 50 to 100 HP segment. Manufacturers are developing utility tractors with autonomous capacities to meet increasing demand. In November 2023, Kubota introduced the MR 1000 Agri Robo 100 HP tractor, which features both autonomous and manual operation modes, helping farmers address labor shortages and maintain operational precision during day and night. The ongoing farm labor shortage across the region continues to drive agricultural mechanization, supporting the projected growth of the utility tractor market during the forecast period.
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France is the Largest Market in the Region
Agricultural machinery usage in France continues to expand steadily. The increasing mechanization of France's agricultural sector, combined with higher farmer incomes, drives the utility tractor market's growth. According to the U.N. Department of Economic and Social Affairs, France's population increased from 66.4 million in 2023 to 66.6 million in 2024. The need to improve agricultural land productivity to support the growing population is anticipated to persist during the forecast period, encouraging farmers and land operators to invest in agricultural machinery, including utility tractors.
Small-scale farmers typically use tractors under 50 HP, which offer compact size and versatility for most agricultural operations. Agriculture remains one of France's key economic sectors, with the country maintaining food self-sufficiency in cereal crops, meat, fruit, and vegetables. Primary crops include sugar beet, wheat, maize, barley, rice, oats, grapes, and potatoes. According to FAOSTAT, France's grape production increased from 6.19 million metric tons in 2022 to 6.21 million metric tons in 2023. The cultivation of these diverse crops requires various machinery, including utility tractors, to support the market's growth.
Government financial support strengthens the utility tractor market. In 2022, the French government provided USD 10 billion (EUR 9 billion) in grants to the agricultural community for purchasing automation machinery, including tractors. The Conveyor Equipment Manufacturers Association (CEMA) in France reported that agricultural tractor registrations increased by 2% in 2023, reaching 36,396 units compared to 35,731 units in 2022. Data from CEMA positions France as a major tractor market, with 34,865 units registered in 2022, surpassing Germany (28,705 units), Italy (20,212 units), the United Kingdom (13,017 units), and Spain (9,286 units).
The presence of major manufacturers such as Deere & Company, AGCO Corporation, and Kubota Corporation strengthens France's utility tractor market. The market is anticipated to maintain its growth trajectory during the forecast period, supported by government initiatives, manufacturer innovation, and increased emphasis on food security.
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Europe Utility Tractor Industry Overview
The Europe Utility Tractor Market is consolidated, with major players such as Deere & Company, CNH Global NV, CLAAS KGaA mbH, Kubota Corporation, and AGCO Corporation. The players are investing in new products and improvisation of products, partnerships, expansions, and acquisitions for business expansions.
Europe Utility Tractor Market Leaders
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Deere & Company
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CNH Global NV
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CLAAS KGaA mbH
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Kubota Corporation
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AGCO Corporation
- *Disclaimer: Major Players sorted in no particular order
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Europe Utility Tractor Market News
- November 2023: Yanmar introduced the SA222 (22HP) tractor at the 2023 Agritechnica exhibition in Hannover, Germany. The Yanmar SA222 is powered by a fuel-efficient and emissions-compliant Yanmar engine developing 22HP at a rated 3,000 rpm to deliver a top speed of 14 km/h.
- November 2023: Tractors and Farm Equipment Limited launched electric compact tractors, advanced utility tractors with HVAC cabins, and next-gen modular smart farming solutions at Agritechnica 2023 in Hannover, Germany.
- August 2023: CNH Industrial brand New Holland Agriculture launched the first all-electric utility tractor with autonomous features- T4 Electric Power, which offers efficient field operations.
Europe Utility Tractor Industry Segmentation
Utility tractors can be described as low- to medium-horsepower-sized machines with or without a cab that has the capability of using several different attachments and implements. The Europe Utility Tractor Market is segmented by Geography (Germany, United Kingdom, France, Spain, Italy, and the Rest of Europe). The report offers market size and forecasts in terms of value (USD) for all the above segments.
| Geography | Germany |
| United Kingdom | |
| France | |
| Spain | |
| Italy | |
| Rest of Europe |
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Europe Utility Tractor Market Research FAQs
How big is the Europe Utility Tractor Market?
The Europe Utility Tractor Market size is expected to reach USD 9.66 billion in 2025 and grow at a CAGR of 2.80% to reach USD 11.09 billion by 2030.
What is the current Europe Utility Tractor Market size?
In 2025, the Europe Utility Tractor Market size is expected to reach USD 9.66 billion.
Who are the key players in Europe Utility Tractor Market?
Deere & Company, CNH Global NV, CLAAS KGaA mbH, Kubota Corporation and AGCO Corporation are the major companies operating in the Europe Utility Tractor Market.
What years does this Europe Utility Tractor Market cover, and what was the market size in 2024?
In 2024, the Europe Utility Tractor Market size was estimated at USD 9.39 billion. The report covers the Europe Utility Tractor Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Europe Utility Tractor Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Europe Utility Tractor Industry Report
Statistics for the 2025 Europe Utility Tractor market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Utility Tractor analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
