German Agricultural Machinery Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 3.80 % |
| Market Concentration | High |
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*Disclaimer: Major Players sorted in no particular order |
German Agricultural Machinery Market Analysis
The German agricultural machinery market is projected to register a CAGR of 3.8% during the forecast period.
Germany is one of Europe's largest markets for agricultural machinery and implements, supported by the large turnover for this industry in the country. The country is one of the world's largest exporters of agricultural machinery and the largest manufacturer and second-largest consumer of agri-machinery in Europe. German agricultural machinery is preferred worldwide because of its superior precision and innovative engineering. Germany is one of Europe's top destinations for FDIs in agricultural, construction, and mining machinery. These factors adequately drive the market in the country. Hence, 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 operation. Tractors, the primary power source for driving agricultural machinery, have thus seen a phenomenal rise in sales in the country.
German Agricultural Machinery Market Trends
Decrease in Farm Labour
- Germany is known for its advanced technology and engineering expertise, and these skills have been applied to various industries, including agriculture. German agricultural practices are often characterized by efficiency, precision, and sustainability. The use of cutting-edge technology and a well-trained workforce have made it possible to increase yields, reduce waste, and optimize the use of resources such as water and fertilizer.
- According to a United Nations Statistics Division (UNSD) report, Germany was one of the top five importers of agricultural machinery from the United States in 2021. German farmers also receive a subsidy from the European Union annually for farm investment. This enables them to invest in modern machinery that is otherwise expensive. Additionally, there is a constant shortage of labor-intensive agricultural operations in India due to the changing workforce preference from pure farm-oriented activities to allied sectors.
- Rapid urbanization is also one of the primary reasons for the increase in farm mechanization, as the workforce in agriculture is decreasing and moving to urban areas. For instance, according to the latest World Bank data, the percentage of people employed decreased for several years. Thus, the labor shortage is anticipated to drive and increase the demand for farm equipment over the coming years. The above factors are substantially driving the country's agricultural machinery market.
Tractors dominate the Market
- Tractors are the leading segment in agricultural machinery in terms of revenue and quantities sold in Germany in the past five years. The trend is projected to continue during the forecast period. Germany has evolved to be one of the leaders in producing agricultural machinery in Europe, which signifies its dominance in the agricultural tractors market. Regarding 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%. Tractors are further sub-segmented into five segments: less than 25 HP, 25-50 HP, 51-100HP, 100- 175 HP, and greater than 175 HP. Tractors with high horsepower account for a relatively higher market share when compared to small- and medium-sized tractors, owing to their prices and requirements in the fields. Germany was also one of the major exporters of tractors globally in 2021.
- AGCO Corporation is one of the leading companies in the tractors market in Germany, which sells brands like Massey Ferguson and Valtra Inc. Hence, 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 operation. Tractors, the primary power source for driving agricultural machinery, have thus seen a phenomenal rise in sales.
German 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 Indian agricultural machinery market. New product launches, partnerships, and acquisitions are the major strategies adopted by the leading companies in the market in Germany.
German 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
German Agricultural Machinery Market News
- December 2022: Case IH launched a new LB 424 XLD large sqaure baler model that produces extra-dense 120cm*70cm bales, up with a 10% increase in density, which improves bale quality, handling, and rotor cutter.
- October 2022: Case IH launched two new Farmall A model tractors (90 A (90 hp) and 100 A (100 hp)), ideal for applications such as hay, livestock, seeding, spraying, fertilizing, and transport.
- March 2022: Deere has launched See & Spray Ultimate, which enables targeted spraying of non-residual herbicides on weeds among corn, soybean, and cotton plants.
- September 2021: John Deere introduced a new small-size H423 harvester head and large-size H425 and H425HD models.
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
- 4.3 Market Restraints
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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
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5.1 Tractors
- 5.1.1 Less than 40 HP
- 5.1.2 40 to 100 HP
- 5.1.3 101 to 150 HP
- 5.1.4 Above 150 HP
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5.2 Equipment
- 5.2.1 Plows
- 5.2.2 Harrows
- 5.2.3 Rotovators & Cultivators
- 5.2.4 Seed & Fertilizer Drills
- 5.2.5 Fertilizer Spreaders
- 5.2.6 Land Levelers
- 5.2.7 Other Equipment
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5.3 Sprayers
- 5.3.1 Field Crop Sprayers
- 5.3.2 Orchard Sprayers
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5.4 Harvesting Machinery
- 5.4.1 Combine Harvesters
- 5.4.2 Forage Harvesters
- 5.4.3 Other Harvesting Machinery
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5.5 Haying & Forage Machinery
- 5.5.1 Mowers & Conditioners
- 5.5.2 Balers
- 5.5.3 Tedders & Rakes
- 5.5.4 Other Haying and Forage Machinery
6. COMPETITIVE LANDSCAPE
- 6.1 Most Adopted Strategies
- 6.2 Market Share Analysis
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6.3 Company Profiles
- 6.3.1 Agrale S.A
- 6.3.2 AGCO Corporation
- 6.3.3 CLAAS KGaA mbH
- 6.3.4 Deere & Company
- 6.3.5 CNH Industrial N.V.
- 6.3.6 Kubota Corporation
- 6.3.7 Mahindra & Mahindra Ltd.
- 6.3.8 Yanmar Co.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityGerman Agricultural Machinery Industry Segmentation
Agricultural machinery is defined as machinery used in farming and other agricultural activities.
The Germany agricultural machinery market has been segmented by type (tractors, plowing and cultivating machinery, planting machinery, harvesting machinery, haying and forage machinery, sprayers, irrigation machinery, and others).
The market sizing has been done in value terms in USD for all the abovementioned segments.
| Tractors | Less than 40 HP |
| 40 to 100 HP | |
| 101 to 150 HP | |
| Above 150 HP | |
| Equipment | Plows |
| Harrows | |
| Rotovators & Cultivators | |
| Seed & Fertilizer Drills | |
| Fertilizer Spreaders | |
| Land Levelers | |
| Other Equipment | |
| Sprayers | Field Crop Sprayers |
| Orchard Sprayers | |
| Harvesting Machinery | Combine Harvesters |
| Forage Harvesters | |
| Other Harvesting Machinery | |
| Haying & Forage Machinery | Mowers & Conditioners |
| Balers | |
| Tedders & Rakes | |
| Other Haying and Forage Machinery |
German Agricultural Machinery Market Research FAQs
What is the current Germany Agricultural Machinery Market size?
The Germany Agricultural Machinery Market is projected to register a CAGR of 3.80% during the forecast period (2024-2029)
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?
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 Intelligence™ 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.
