Germany Agricultural Tractor Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 4.90 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Germany Agricultural Tractor Market Analysis
Germany's agricultural tractor machinery market is projected to register a CAGR of 4.9% during the forecast period.
- The two-wheel-drive segment accounted for more than 85% of the overall tractor market. The 50-100 HP segment accounted for the largest market share and is expected to grow at a CAGR of 5.04% (by volume) during the forecast period.
- According to the European Agricultural Machinery Association (EAMA), there was an increase of 5% in the pre-registrations of tractors in 2019 compared to the previous year. The sales of the tractors reflected a positive trend. Also, according to The Mechanical Engineering Industry Association (VDMA), in 2019, farmers and other custom operators bought around 570 more agricultural tractors resulting in a 2.6% increase in sales compared to 2018. The sub-50 horsepower compact sector contributed more to the tractor market growth in 2019, selling 730 units. This results in the growth of the market.
- The biggest tractor markets in the European Union are Germany and France. The country generates more than 27% of the agricultural machinery and equipment components manufactured in Europe. Thus, Germany has become one of the leaders in producing agricultural machinery in Europe, which signifies its dominance in the agricultural tractors market. With the availability of advanced technology, coupled with the declining availability of farm labor, the farmers are shifting toward using tractors in agriculture, as they save time and resources, decrease costs, and enhance productivity.
- Market players are also launching web-based applications to connect better with consumers and increase their market penetration. Deutz-Fahr launched the mySAME and myDEUTZ-FAHR apps in Germany in 2019 to provide information on the new products and interact directly with the manufacturers. Owing to the dominance of the country in agricultural technology and the growing sales of tractors, the market is anticipated to grow during the forecast period.
Germany Agricultural Tractor Market Trends
This section covers the major market trends shaping the Germany Agricultural Tractor Market according to our research experts:
Increasing Agricultural Labour Cost
- Germany is Europe's largest tractor market. The two biggest agricultural tractor markets in Europe - Germany and France, account for almost four agricultural tractors out of 10 registered in Europe. Agriculture tractors accounted for 93% of the overall German tractors market in 2021.
- With approximately 80% share, tractors are Germany's largest segment of agriculture equipment in terms of revenue. In addition, in terms of unit sales, Germany is the largest exporter of tractors across Europe. The number of tractors manufactured in Germany accounts for over two-thirds of the total number of tractors manufactured in Europe.
- The German economy achieved excellent growth in 2021. The growth rate is expected to sustain in 2023, supported by the rising employment rate and a monetary policy stance that will continue to support domestic demand. Consequently, 2022 is expected to witness a healthy increment of 4.5% in real GDP growth.
- The Government of Germany's schemes and initiatives to facilitate credit and improve agriculture-related operations are the major drivers contributing to the growth of the overall value chain in the German agricultural sector.
- Germany spent USD 1.4 billion of its official development assistance (ODA) on agriculture in 2021, making it the prime Organization for Economic Cooperation and Development (OECD) and Development Assistance Committee (DAC) donor to agriculture in real terms.
- Agriculture was one of the strategic priorities of the former Development Minister of Germany, Gerd Muller, who launched 'ONE WORLD - No Hunger,' a special initiative on food and nutrition security as well as rural development in 2014, which will most likely be carried forward in this legislative period (2021-2025) under the new Development Minister Svenja Schulze.
Germany is the largest market in Europe
- Germany is the largest market for agricultural tractors in Europe. The country generates more than 27% of agricultural machinery and equipment components manufactured in Europe. Farmers are increasingly adopting agricultural mechanization as a substitute for manual labor with a more cost-effective, easily available, and more efficient means of agricultural operations.
- As a result, they are shifting toward autonomous tractors to save time and resources, which in turn, is increasing farm productivity and per-acre yield of crops. Thus, Germany has evolved to be one of the leaders in producing agricultural machinery in Europe, which signifies its dominance in the agricultural tractors market.
- In terms of sales, the emphasis is on tractor production at a share of around 40%, with a further focus on the power segment above 120 HP. Due to the booming domestic market, the export ratio in the last few years has been steady at 70-75%.
- Owing to the demand from farmers, there has been an increase in investments in autonomous tractors in the country. For instance, in 2020, Germany-based Amathaon Capital invested in autonomous tractor startup AgXeed to develop and commercialize autonomous agricultural machinery in the country.
Germany Agricultural Tractor Industry Overview
Germany agricultural tractor machinery market is a consolidated market, with the major players holding a significant market share in 2022. Deere & Company, CNH Industrial, Agco Corporation, Kubota GmbH, and Claas KGaA mbH are the major players in the country. The companies are competing to gain a major market share by adopting various business strategies such as product launches, expansion, mergers and acquisitions, and investments in R&D.
Germany Agricultural Tractor Market Leaders
Deere & Company
AGCO Corporation (Fendt)
CLAAS KGaA mbH
CNH Industrial
KUBOTA (Germany) GmbH
*Disclaimer: Major Players sorted in no particular order
Germany Agricultural Tractor Market News
- December 2022: The Straddle tractor concept from New Holland Agriculture, a global brand of CNH Industrial, won the gold medal for "Excellent Product Design" at the German Design Awards 2023. The German Design Council (GDC) gives this prestigious award to products that display outstanding innovation and a seamless marriage of form and function. New Holland collaborated with the internationally renowned design firm Pininfarina to create the Straddle tractor concept. The tractor is intended to address the challenging constraints posed by narrow vineyards, known for producing high-quality, high-value wines from grapes grown in rows less than 1.5 meters wide, often on steep slopes.
- March 2022: According to data from the country's road vehicle registrations authority analyzed by Verband Deutscher Maschinen- und Anlagenbau (VDMA), the German engineering industry trade body, the country's farmers and custom operators bought a couple short of 24,800 units of tractors
Germany Agricultural Tractor Market Report - Table of Contents
1. INTRODUCTON
1.1 Study Assumptions & 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 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 Horse Power
5.1.1 Less than 50 HP
5.1.2 51-100 HP
5.1.3 101-150 HP
5.1.4 Above 150 HP
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 CLAAS Group
6.3.2 Deere & Company
6.3.3 Mahindra & Mahindra Ltd
6.3.4 CNH Industrial NV
6.3.5 AGCO Corporation
6.3.6 Kubota Corporation
6.3.7 Tractors and Farm Equipment Limited
6.3.8 Valent Biosciences Corporation
6.3.9 FMC Corporation
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Germany Agricultural Tractor Industry Segmentation
An agricultural tractor is a vehicle specifically designed to deliver a high tractive effort at slow speeds for the purposes of hauling a trailer or machinery.
Germany agricultural tractor market is segmented by horsepower (below 50 HP, 51-100 HP, 101-150 HP & Above 150 HP).
The report offers market estimation and forecasts in value (USD million) for the above-mentioned segments.
| Horse Power | |
| Less than 50 HP | |
| 51-100 HP | |
| 101-150 HP | |
| Above 150 HP |
Germany Agricultural Tractor Market Research FAQs
What is the current Germany Agricultural Tractor Market size?
The Germany Agricultural Tractor Market is projected to register a CAGR of 4.90% during the forecast period (2024-2029)
Who are the key players in Germany Agricultural Tractor Market?
Deere & Company, AGCO Corporation (Fendt), CLAAS KGaA mbH, CNH Industrial and KUBOTA (Germany) GmbH are the major companies operating in the Germany Agricultural Tractor Market.
What years does this Germany Agricultural Tractor Market cover?
The report covers the Germany Agricultural Tractor Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Germany Agricultural Tractor Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
German Agricultural Tractor Industry Report
Statistics for the 2024 German Agricultural Tractor market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. German Agricultural Tractor analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
