Europe Agricultural Machinery Market Size (2024 - 2029)

The European agricultural machinery market is experiencing growth driven by increased mechanization due to a shortage of skilled labor and the need for efficient farming solutions. This shift is further supported by the reduction in arable land and the declining availability of fresh water, which heighten the demand for farm mechanization. Tractor sales are a significant contributor to the market's expansion, with new technologically advanced machinery being introduced to enhance farming efficiency.

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Market Size of Europe Agricultural Machinery Industry

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Europe Agricultural Machinery Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 42.03 Billion
Market Size (2029) USD 49.22 Billion
CAGR (2024 - 2029) 3.20 %
Market Concentration High

Major Players

Europe Agricultural Machinery Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Europe Agricultural Machinery Market Analysis

The Europe Agricultural Machinery Market size is estimated at USD 42.03 billion in 2024, and is expected to reach USD 49.22 billion by 2029, growing at a CAGR of 3.20% during the forecast period (2024-2029).

Agriculture in the European Union was traditionally labor-intensive, characterized by many seasonal immigrant workers working on farm fields in the member states. However, the shortage of skilled labor increased mechanization rates in European countries, which boosted the sales of agricultural machinery in the region. According to the World Bank, employment in agriculture has reduced from 4.32% in 2020 to 3.99% in 2022 in the European Union. Other factors aiding the growth are the shrinking area of arable land and the declining availability of fresh water, which increases the demand for farm mechanization in European countries. Tractor sales drive the growth of the European agricultural machinery market. According to the National Authorities of Europe, 215,000 tractors were registered across Europe in 2022, with under 165,200 of these being agricultural tractors. Besides this, key players in the industry are launching new types of machinery with advanced technologies to bring more efficiency and ease to farming operations in the region. For instance, in 2022, John Deere & Co. introduced a new operator-less tractor for tilling the field, addressing the challenge of labor shortages in the region.

Europe Agricultural Machinery Industry Segmentation

Agricultural machinery is used to perform farming operations such as harvesting, plowing, irrigation, and planting. For the purpose of this report, machinery used in agricultural operations has been considered. The report does not cover machinery used for industrial and construction purposes or multi-purpose tractors, machinery, and equipment used for farming and non-agricultural operations.

The European agricultural machinery market is segmented by type (tractors, plowing and cultivating machinery, harvesting machinery, irrigation machinery, haying and forage machinery, and other types) and geography (Germany, Italy, United Kingdom, France, Spain, Russia, and the Rest of Europe). The report offers market size and forecast in terms of value in USD for the above segments.

Type
Tractors
Less than 50 HP
50 to 100 HP
100 to 150 HP
Above 150 HP
Plowing and Cultivating Machinery
Plows
Harrows
Cultivators and Tillers
Other Equipment
Irrigation Machinery
Sprinkler Irrigation
Drip Irrigation
Other Irrigation Machinery
Harvesting Machinery
Combine Harvesters
Forage Harvesters
Other Harvesting Machinery
Haying and Forage Machinery
Mowers
Balers
Other Haying and Forage Machinery
Other Types
Geography
Germany
France
United Kingdom
Spain
Italy
Russia
Rest of Europe
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Europe Agricultural Machinery Market Size Summary

The European agricultural machinery market is experiencing a notable transformation driven by increased mechanization and automation due to labor shortages in the agricultural sector. Traditionally reliant on seasonal immigrant workers, the region has seen a decline in agricultural employment, prompting a shift towards advanced machinery to maintain productivity. Factors such as the reduction of arable land and limited fresh water availability further amplify the need for efficient farming solutions. Tractors play a pivotal role in this market, with significant sales contributing to the overall growth. The introduction of innovative machinery, such as operator-less tractors and advanced balers, underscores the industry's commitment to enhancing farm efficiency and addressing labor challenges.

Germany stands out as a key player in the European agricultural machinery market, known for its precision engineering and substantial export capabilities. The country benefits from European Union subsidies, enabling farmers to invest in modern machinery despite high costs. This financial support, coupled with a shift in workforce preferences towards non-agricultural sectors, drives the demand for sophisticated agricultural equipment. The market is characterized by the presence of global giants like John Deere, AGCO Corporation, and CLAAS KGaA mbH, who leverage technological innovations and strategic partnerships to strengthen their market position. Recent collaborations and product launches highlight the ongoing efforts to optimize agricultural practices and meet the evolving needs of European farmers.

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Europe Agricultural Machinery Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Shortage of Skilled Labor

      2. 1.2.2 Government Support to Enhance Farm Mechanization

    3. 1.3 Market Restraints

      1. 1.3.1 Heavy Initial Procurement Cost and High Expenditure on Maintenance

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Suppliers

      2. 1.4.2 Bargaining Power of Buyers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Type

      1. 2.1.1 Tractors

        1. 2.1.1.1 Less than 50 HP

        2. 2.1.1.2 50 to 100 HP

        3. 2.1.1.3 100 to 150 HP

        4. 2.1.1.4 Above 150 HP

      2. 2.1.2 Plowing and Cultivating Machinery

        1. 2.1.2.1 Plows

        2. 2.1.2.2 Harrows

        3. 2.1.2.3 Cultivators and Tillers

        4. 2.1.2.4 Other Equipment

      3. 2.1.3 Irrigation Machinery

        1. 2.1.3.1 Sprinkler Irrigation

        2. 2.1.3.2 Drip Irrigation

        3. 2.1.3.3 Other Irrigation Machinery

      4. 2.1.4 Harvesting Machinery

        1. 2.1.4.1 Combine Harvesters

        2. 2.1.4.2 Forage Harvesters

        3. 2.1.4.3 Other Harvesting Machinery

      5. 2.1.5 Haying and Forage Machinery

        1. 2.1.5.1 Mowers

        2. 2.1.5.2 Balers

        3. 2.1.5.3 Other Haying and Forage Machinery

      6. 2.1.6 Other Types

    2. 2.2 Geography

      1. 2.2.1 Germany

      2. 2.2.2 France

      3. 2.2.3 United Kingdom

      4. 2.2.4 Spain

      5. 2.2.5 Italy

      6. 2.2.6 Russia

      7. 2.2.7 Rest of Europe

Europe Agricultural Machinery Market Size FAQs

The Europe Agricultural Machinery Market size is expected to reach USD 42.03 billion in 2024 and grow at a CAGR of 3.20% to reach USD 49.22 billion by 2029.

In 2024, the Europe Agricultural Machinery Market size is expected to reach USD 42.03 billion.

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