Germany Farm Equipment Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 9.60 Billion |
| Market Size (2029) | USD 11.5 Billion |
| CAGR (2024 - 2029) | 3.10 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Germany Farm Equipment Market Analysis
The Germany Agricultural Machinery Market size is estimated at USD 9.60 billion in 2024, and is expected to reach USD 11.5 billion by 2029, at a CAGR of 3.10% during the forecast period (2024-2029).
The farm equipment market in Germany has experienced steady growth, fueled by technological advancements, productivity demands, and supportive policies. Throughout the study period, agricultural land in Germany has been on the decline. For instance, Statistisches Bundesamt noted a decrease from 16.6 million hectares in 2022 to 16.5 million hectares in 2023. This reduction in agricultural land drives the need for higher productivity, thereby boosting market growth.
German farmers benefit from annual subsidies provided by the European Union, which help offset the high costs of modern machinery and enhance farm operation efficiency. According to the EU's agricultural policy, farmers receive a subsidy of 300 Euros (approximately USD 315.4) per hectare. In the 2022 EU budget year, a study by the German Economic Institute found that nearly 270,000 farms in Germany received about 6.9 billion euros. Diesel subsidies account for 5% of the total subsidies granted to German farmers. Thus, the need for increased productivity, combined with growing export potential and available subsidies, propels market growth.
Germany Farm Equipment Market Trends
Growing Demand for German Tractors Internationally
- Tractors in Germany primarily power agricultural machinery. The strong agricultural sector and increasing demand for efficient farming equipment drive this segment. The market features various tractor types, including compact, utility, and specialized models. High-horsepower tractors suit large-scale operations, while compact models are ideal for small farms and vineyards. Germany is the world's largest exporter of agricultural machinery and a top manufacturer and consumer. According to the ITC trade map, tractor exports rose from 11.2 billion in 2022 to 13.8 billion in 2023. German-manufactured machinery's precision and innovative engineering enhance export growth, boosting the segment's expansion.
- Leading brands such as Claas, Fendt, John Deere, and Deutz-Fahr dominate the market, offering diverse models backed by robust after-sales support. Renowned for their innovative edge, German manufacturers integrate cutting-edge features, including precision farming technology, GPS-guided systems, and automation. Notably, Fendt unveiled a prototype of its hydrogen-powered tractor at the German Hydrogen Summit in February 2023. This tractor is a key component of the H2Agrar project, which explores the technical prerequisites for establishing a hydrogen infrastructure in agriculture. To gauge hydrogen consumption and technical needs, the project will deploy these tractors across two agricultural test farms in the Haren region. Such advancements bolster efficiency and mitigate environmental impact. In Germany, the tractor segment benefits from robust demand, technological strides, and supportive government initiatives, pointing towards a promising growth trajectory.
Rising Shortage of Labour
- Germany's agricultural sector has long depended on seasonal immigrant workers. Yet, with urbanization and rising living standards, many rural families are drawn to cities by broader job prospects. Coupled with the demanding nature of farming, this has led to dwindling interest in the field and a pronounced labor shortage. Data from Statistisches Bundesamt reveals a slight dip in agricultural employment in Germany, from 557,000 in 2022 to 554,000 in 2023. This labor crunch in European agriculture has catalyzed a notable pivot towards mechanization and automation. As the pool of willing agricultural workers shrinks, farmers are turning to machinery investments to maintain productivity. This trend is underscored by the surging demand for premium farming equipment.
- Moreover, cutting-edge agricultural machinery not only boosts farm efficiency but is also crucial in meeting the surging global food demand. Market growth is being propelled by innovations in automated machinery. A case in point: Kubota unveiled its MR 1000A Agri Robo KVT at Agritechnica 2023 in Germany. This model boasts both remote-controlled manual operation and autonomous capabilities. Such advancements in automated machinery are proving instrumental in mitigating the labor shortfall in Germany's agriculture. As farmers continue to seek enhanced crop yields and operational efficiencies, this trend is poised to drive further market expansion.
Germany Agricultural Machinery Industry Overview
The market studied is highly consolidated, with a few major players occupying a key market share. This can be attributed to the crop growers' preference for big brands when it comes to machinery for assurance of quality and after-sales services offered by the major companies. Renowned players like Deere & Company, AGCO Corporation, CNH Industrial N. V., KUBOTA Corporation, and Mahindra & Mahindra Ltd are significant players in the German agricultural machinery market. New product launches, partnerships, and acquisitions are the major strategies adopted by the leading companies in the market in Germany.
Germany Agricultural Machinery Market Leaders
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Deere & Company
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AGCO Corporation
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CNH Industrial N.V.
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KUBOTA Corporation
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Mahindra and Mahindra
*Disclaimer: Major Players sorted in no particular order
Germany Agricultural Machinery Market News
- January 2024: CNH Industrial has allocated EUR 150 million (USD 163 million) to enhance its manufacturing operations and support the development of New Holland's latest combined harvester. The company announced a comprehensive redesign of its assembly line and logistics area at the production facility. Additionally, CNH Industrial plans to implement a wireless, automated system, enabling the simultaneous assembly of different models on the same production line.
- November 2023: VST Tillers Tractors Ltd, a prominent player in the farm equipment manufacturing sector, unveiled three innovative tractor models at AGRITECHNICA 2023 in Hanover, Germany. The showcased models are the 929 EV, the 932 DI equipped with a Stage V engine, and the 929 featuring an HST transmission. Notably, the 929 EV stands out as the result of three years of dedicated research and testing by the company's R&D team.
- September 2023: Fendt, a German tractor manufacturer, has launched an upgraded version of its electric e100, starting limited sales in Germany, Norway, and The Netherlands. The first e100 model, initially based on the 200P series, has been transformed into a narrow track version, now featuring an enhanced front PTO.
German 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 Increasing Labour Shortage
4.2.2 Rising Technological Advancements by Key Players
4.2.3 Government Support to Enhance Farm Mechanization
4.3 Market Restraints
4.3.1 High Initial Investments
4.3.2 Security concerns in Modern Farming Machinery
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 Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Tractors
5.1.1.1 Horse Power
5.1.1.1.1 Less than 40 HP
5.1.1.1.2 40 to 100 HP
5.1.1.1.3 101 to 150 HP
5.1.1.1.4 Above 150 HP
5.1.1.2 Type
5.1.1.2.1 Compact Utility Tractors
5.1.1.2.2 Utility Tractors
5.1.1.2.3 Row Crop Tractors
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 Plowing and Cultivating Machinery
5.1.3 Planting Machinery
5.1.3.1 Seed Drills
5.1.3.2 Planters
5.1.3.3 Spreaders
5.1.3.4 Other Planting 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 Irrigation Machinery
5.1.6.1 Sprinkler Irrigation
5.1.6.2 Drip Irrigation
5.1.6.3 Other Irrigation Machinery
5.1.7 Other Types
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 AGCO Corporation
6.3.2 CLAAS KGaA mbH
6.3.3 Deere & Company
6.3.4 CNH Industrial N.V.
6.3.5 Kuhn Group
6.3.6 Kubota Corporation
6.3.7 Mahindra & Mahindra Ltd.
6.3.8 Lemken GmbH & Co. KG
6.3.9 Nexat GmbH
6.3.10 Yanmar Co.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Germany Farm Equipment Industry Segmentation
Agricultural machinery is defined as machinery used in farming and other agricultural activities such as plowing, planting, harvesting, irrigation, mowing etc. The German agricultural Machinery market is Segmented by Type (Tractors, Plowing and Cultivating Machinery, Planting Machinery, Harvesting Machinery, Haying and Forage Machinery, Sprayers, Irrigation Machinery, and Other Types). The report offers the market size in value terms in USD for all the abovementioned segments.
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German Agricultural Machinery Market Research FAQs
How big is the Germany Agricultural Machinery Market?
The Germany Agricultural Machinery Market size is expected to reach USD 9.60 billion in 2024 and grow at a CAGR of 3.10% to reach USD 11.5 billion by 2029.
What is the current Germany Agricultural Machinery Market size?
In 2024, the Germany Agricultural Machinery Market size is expected to reach USD 9.60 billion.
Who are the key players in Germany Agricultural Machinery Market?
Deere & Company, AGCO Corporation, CNH Industrial N.V., KUBOTA Corporation and Mahindra and Mahindra are the major companies operating in the Germany Agricultural Machinery Market.
What years does this Germany Agricultural Machinery Market cover, and what was the market size in 2023?
In 2023, the Germany Agricultural Machinery Market size was estimated at USD 9.30 billion. The report covers the Germany Agricultural Machinery Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Germany Agricultural Machinery Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Agricultural Machinery in Germany Industry Report
Statistics for the 2024 Agricultural Machinery in Germany market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Agricultural Machinery in Germany 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 Machinery Market in Germany Report Snapshots
