The Europe Agricultural Equipment Market was valued at US$ 45.12 Billion in 2023, and will grow to US$ 65.84 Billion by 2032, with a CAGR of 4.29% from 2024 to 2032. Growing agricultural mechanization in conjunction with a rise in farmer income is anticipated to be the main driver of growth. It is also assumed that favorable weather for food production and government assistance, such as loan forgiveness programs, will promote market expansion for farmers across all income levels. More technologically sophisticated agricultural robotics are expected to have stronger growth possibilities. Examples include autonomous tractors and drones that fly to assist farmers in producing food at low costs to meet the rising need for food.
Despite this challenge, the many benefits offered by modern agricultural equipment - such as reduced labor costs, higher production, and better crop quality - continue to fuel the need for these innovative solutions. Inflation also has an effect on the European market for agricultural equipment. Growing farm labor costs have led to an increase in the popularity of agricultural machinery. It is anticipated that this trend would persist, driving further market expansion. The introduction of government subsidies and incentives to encourage farmers to adopt modern equipment is a significant accelerator for market expansion.
This strategy's primary components in the European agricultural equipment sector are Internet of Things (IoT) devices and data analytics. Over 10 million IoT devices were projected to be installed on farms throughout Europe in 2022. These gadgets, which can be anything from soil sensors to cameras placed on drones, collect enormous volumes of data that, when examined, can give farmers useful information. Because of the precision that these technologies allow, farmers can minimize waste and guarantee ideal crop growth by, for example, applying precisely the right amount of fertilizer to a particular area of a field. In addition, the Food and Agriculture Organization (FAO) projects that by 2050, there will be a 70% rise in world food demand, which presents a significant issue for Europe. Optimizing agricultural output is necessary to meet this demand, and precision agriculture provides a workable answer. Smart farming practices have produced a 20% rise in yields over the past ten years in countries like the Netherlands, where farming is both an art and a science.
In Germany, tractors are the main source of power for agricultural machines. Leading the tractor industry with companies like Massey Ferguson and Valtra Inc. is AGCO Corporation. Innovative machinery is being introduced by market players to promote farm mechanization. For example, in 2022, Case IH introduced the LB 424 XLD large square baler model, which increases bale quality, handling, and rotor cutter performance by producing extra-dense 120 cm*70 cm bales with up to a 10% density increase.
The European Union provides German farmers with an annual subsidy to help them invest in modern machinery, which can be costly otherwise. They are able to operate their farms more profitably thanks to this subsidy. However, the need for agricultural machinery to carry out labor-intensive agricultural tasks is growing as a result of a change in workers' preferences from farm-oriented occupations to allied sectors.
Agricultural Equipment Market Overview
Any machinery, instrument component, or equipment accessory that is primarily intended for use in agriculture is considered agricultural equipment. 'Agricultural equipment' is any equipment utilized in the production of plants, animals, horticulture, or floriculture. The primary driver of the agricultural machinery market's growth in Europe is the growing need for efficient, modern farming equipment. New agricultural equipment is crucial since farmers are placing a stronger priority on more sustainable practices and larger harvests. A large variety of equipment is available in this sector, including ploughs, tractors, planters, harvesters, and irrigation systems. These segments are growing significantly due to the adoption of smart agricultural practices and ongoing technological advancements. It is imperative to acknowledge the challenges posed by the increasing expenses of automation.Despite this challenge, the many benefits offered by modern agricultural equipment - such as reduced labor costs, higher production, and better crop quality - continue to fuel the need for these innovative solutions. Inflation also has an effect on the European market for agricultural equipment. Growing farm labor costs have led to an increase in the popularity of agricultural machinery. It is anticipated that this trend would persist, driving further market expansion. The introduction of government subsidies and incentives to encourage farmers to adopt modern equipment is a significant accelerator for market expansion.
Growth Factors in the Agricultural Equipment Industry
The Spread of Precision Agriculture and the Rise of Smart Farming
The introduction of cutting-edge technology is driving a dramatic shift in the European agricultural equipment sector. The quick uptake of smart farming methods - precision agriculture being especially significant - is driving this change. By combining tradition and innovation, precision agriculture uses technology to increase farming production and efficiency, drastically altering the landscape of European agriculture. Precision agriculture's alluring promise of higher yields, lower input costs, and improved sustainability is what's causing this explosion.This strategy's primary components in the European agricultural equipment sector are Internet of Things (IoT) devices and data analytics. Over 10 million IoT devices were projected to be installed on farms throughout Europe in 2022. These gadgets, which can be anything from soil sensors to cameras placed on drones, collect enormous volumes of data that, when examined, can give farmers useful information. Because of the precision that these technologies allow, farmers can minimize waste and guarantee ideal crop growth by, for example, applying precisely the right amount of fertilizer to a particular area of a field. In addition, the Food and Agriculture Organization (FAO) projects that by 2050, there will be a 70% rise in world food demand, which presents a significant issue for Europe. Optimizing agricultural output is necessary to meet this demand, and precision agriculture provides a workable answer. Smart farming practices have produced a 20% rise in yields over the past ten years in countries like the Netherlands, where farming is both an art and a science.
Sustainability imperative
Another important factor influencing the European agriculture equipment industry is the increased focus on environmental stewardship and sustainability. Growing awareness of resource depletion, soil degradation, and climate change has led to an increase in demand for technology that helps farmers implement more sustainable agricultural methods. Farmers in Europe are looking for equipment and technology that would help them use less chemicals, maintain healthier soil, and conserve water more effectively. In an effort to reduce greenhouse gas emissions and reliance on fossil fuels, agricultural equipment is also shifting toward renewable energy sources, such as electric tractors and solar-powered irrigation systems. The adoption of environmentally friendly equipment in Europe is further driven by government initiatives, legislation, and incentives supporting sustainable agriculture.Germany Agricultural Equipment Market Overview:
In Europe, Germany is a significant market for farm equipment and supplies. The nation exports more agricultural machinery than any other country in the globe thanks to its inventive and precise engineering. It is also among the biggest producers and users of agricultural machinery in Europe.In Germany, tractors are the main source of power for agricultural machines. Leading the tractor industry with companies like Massey Ferguson and Valtra Inc. is AGCO Corporation. Innovative machinery is being introduced by market players to promote farm mechanization. For example, in 2022, Case IH introduced the LB 424 XLD large square baler model, which increases bale quality, handling, and rotor cutter performance by producing extra-dense 120 cm*70 cm bales with up to a 10% density increase.
The European Union provides German farmers with an annual subsidy to help them invest in modern machinery, which can be costly otherwise. They are able to operate their farms more profitably thanks to this subsidy. However, the need for agricultural machinery to carry out labor-intensive agricultural tasks is growing as a result of a change in workers' preferences from farm-oriented occupations to allied sectors.
Europe Agricultural Equipment Company Overview
Some of the industry leaders seen in the Europe Agricultural Equipment Market Includes John Deere, AGCO, CLAAS KGaA, First Tractor Company Limited, Kubota Corporation.Europe Agricultural Equipment Market News
- In November 2023, At Agritechnica '23, CNH Industrial NV debuted the CR11 New Holland combine. Its 2x24-inch rotors are powered by a 775-horsepower C16 engine, and a 20,000-liter (567-bushel) grain tank provides enough storage space. The CR11 reduces grain loss with an unload rate of six bushels (210 liters) per second.
- In November 2023, in order to better meet client needs, Yanmar Co. Ltd. and International Tractors Limited (ITL) joined to expand the product line, network, and service capabilities. With this strategic alliance, both brands stood to gain a significant increase in market reach because to their vast networks. Together, ITL and Yanmar wanted to use their combined resources and experience to offer the most cutting-edge goods and unmatched customer service throughout Europe.
- In September 2023, by combining Yara's agronomic knowledge with John Deere's precision technology, the two companies increased crop yields and fertilizer efficiency. Through this partnership, farmers were able to enhance productivity, optimize nutrient use, and receive advice based on data.
- In January 2023, the revolutionary prototype tractor known as the T7 Methane Power was introduced by the well-known agricultural equipment manufacturer New Holland. This state-of-the-art tractor offers enhanced economy and extended fill times with its liquefied gas option. The T7 Methane Power tractor has four times the fuel capacity of its T6 compressed natural gas (CNG)-powered predecessor. New Holland is transforming the agriculture sector and providing farmers with a more efficient and sustainable means of meeting their demands with this technical innovation.
European Agricultural Tractors Market by Horsepower - Market breakup in 5 viewpoints:
- Agricultural tractors > 120 hp
- Agricultural tractors 100-120 hp
- Agricultural tractors 80-99 hp
- Agricultural tractors 50-79 hp
- Agricultural tractors < = 49 hp
Soil working, sowing and fertilizing equipment Market - Market breakup in 5 viewpoints:
- Soil working equipment (ploughs, harrows, cultivators, etc.)
- Sowing equipment
- Mineral or chemical fertilizer spreaders
- Manure spreaders
- Other soil working or cultivation machines, equipment, machinery
European Market of Harvesting Equipment - Market breakup in 3 viewpoints:
- Combine harvesters
- Self-propelled forage harvesters
- Other harvesting equipment
Garden and forestry machinery Market- Market breakup in 4 viewpoints:
- Lawnmowers
- Forestry equipment
- Chainsaws H
- Hedge trimmers, lawn shears, electric lawn edging shears
Livestock Equipment Market - Market breakup in 4 viewpoints:
- Livestock watering, feeding and rearing equipment
- Feed preparation machines and equipment
- Milking machines
- Other livestock equipment
Haymaking Equipment Market - Market breakup in 2 viewpoints:
- Mounted or Trailed
- Others haymaking
Irrigation and Crop Protection Equipment Market - Market breakup in 4 viewpoints:
- Sprayers, mounted or trailed
- Portable sprayers, with or without motor
- Mechanical irrigation systems
- Other crop protection sprayers
Agricultural trailers and semi-trailers Market
Machines for cleaning and sorting agricultural products Market
Country - Market breakup in 25 viewpoints:
Europe
- France
- Germany
- Italy
- United Kingdom
- Poland
- Austria
- Netherlands
- Finland
- Romania
- Denmark
- Hungary
- Portugal
- Ireland
- Lithuania
- Greece
- Croatia
- Estonia
- Latvia
- Luxembourg
- Rest of Europe
European Hay-Making Machine Market
- France
- Germany
- Italy
- United Kingdom
- Poland
- Austria
- Netherlands
- Finland
- Romania
- Denmark
- Hungary
- Ireland
- Lithuania
- Greece
- Croatia
- Estonia
- Latvia
- Luxembourg
- Rest of Europe
Country - Custom Data for Hay Making Machines Market - All Countries covered in 9 viewpoints:
- Rakes
- Bale Wrappers
- Tedders
- Mowers
- Mower-conditioner
- Unspecified hay making Equipments
- Round Balders
- Square balers
- Loader Wagons
- France
- Germany
- Italy
- United Kingdom
- Poland
- Austria
- Netherlands
- Finland
- Romania
- Denmark
- Hungary
- Portugal
- Ireland
- Lithuania
- Greece
- Croatia
- Estonia
- Latvia
- Luxembourg
- Rest of Europe
The key players have been covered from 4 viewpoints:
- Overviews
- Key Person
- Recent Developments & Strategies
- Product Portfolio & Product Launch in Last 1 Year
- Revenue
Company Analysis:
- John Deere
- AGCO
- CLAAS KGaA
- First Tractor Company Limited
- Kubota Corporation
Table of Contents
1. Introduction2. Research Methodology3. Executive Summary5 Europe Agricultural Equipment Market7 Europe Agriculture Equipment by Machine Parts14 Balers and pick-up balers16 Agricultural trailers and semi-trailers Market17 Machines for cleaning and sorting agricultural products Market
4. Market Dynamics
6 Europe Agriculture Equipment Market Share Analysis
8 European Agricultural Tractors Market by Horsepower
9 Soil working, sowing and fertilizing equipment Market
10 European Market of Harvesting Equipment
11 Garden and forestry machinery Market
12 Livestock Equipment Market
13 Haymaking Equipment Market
15 Irrigation and Crop Protection Equipment Market
18 By Country - Europe Agriculture Equipment Market
19 Market and Volume - European Hay-Making Machine
20 Porter’s Five Forces
21 SWOT Analysis
22 Key Players Analysis
Companies Mentioned
- John Deere
- AGCO
- CLAAS KGaA
- First Tractor Company Limited
- Kubota Corporation
Methodology
In this report, for analyzing the future trends for the studied market during the forecast period, the publisher has incorporated rigorous statistical and econometric methods, further scrutinized by secondary, primary sources and by in-house experts, supported through their extensive data intelligence repository. The market is studied holistically from both demand and supply-side perspectives. This is carried out to analyze both end-user and producer behavior patterns, in the review period, which affects price, demand and consumption trends. As the study demands to analyze the long-term nature of the market, the identification of factors influencing the market is based on the fundamentality of the study market.
Through secondary and primary researches, which largely include interviews with industry participants, reliable statistics, and regional intelligence, are identified and are transformed to quantitative data through data extraction, and further applied for inferential purposes. The publisher's in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. These analytical tools and models sanitize the data & statistics and enhance the accuracy of their recommendations and advice.
Primary Research
The primary purpose of this phase is to extract qualitative information regarding the market from the key industry leaders. The primary research efforts include reaching out to participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions. The publisher also established professional corporate relations with various companies that allow us greater flexibility for reaching out to industry participants and commentators for interviews and discussions, fulfilling the following functions:
- Validates and improves the data quality and strengthens research proceeds
- Further develop the analyst team’s market understanding and expertise
- Supplies authentic information about market size, share, growth, and forecast
The researcher's primary research interview and discussion panels are typically composed of the most experienced industry members. These participants include, however, are not limited to:
- Chief executives and VPs of leading corporations specific to the industry
- Product and sales managers or country heads; channel partners and top level distributors; banking, investment, and valuation experts
- Key opinion leaders (KOLs)
Secondary Research
The publisher refers to a broad array of industry sources for their secondary research, which typically includes, however, is not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Patent and regulatory databases for understanding of technical & legal developments
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic new articles, webcasts, and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecasts
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 310 |
| Published | August 2024 |
| Forecast Period | 2023 - 2032 |
| Estimated Market Value ( USD | $ 45.12 Billion |
| Forecasted Market Value ( USD | $ 65.84 Billion |
| Compound Annual Growth Rate | 4.2% |
| Regions Covered | Europe |
| No. of Companies Mentioned | 5 |
