Europe Agricultural Equipment Market to Hit Valuation of USD 49.9 Billion by 2032 | OEM control Over 52% Market Share Says Astute Analytica
Europe's agricultural equipment market is booming, driven by rising demand for precision farming and sustainable solutions. Key players include established giants and innovative European manufacturers, all vying for a share of this rapidly modernizing sector.
New Delhi, April 09, 2024 (GLOBE NEWSWIRE) -- According to the report, the europe agricultural equipment market is projected to reach a market valuation of US$ 49.9 billion by 2032 from US$ 32.9 billion in 2023 at a CAGR of 4.75% during the forecast period 2024-2032.
Europe is witnessing a significant uptake in agricultural technology. France leads the way in adoption, resulting in the country's status as the fastest-growing agricultural equipment market. Precision farming technologies have experienced a substantial 20% surge between 2018 and 2022, reflecting a strong need for increased yields within European agriculture. Underscoring the move towards sustainable electrification, sales of electric tractors in Europe reached 5,000 in 2021, with projections showing a threefold increase to 15,000 by 2026. Germany dominated as Europe's leader in terms of agricultural equipment sales volume in 2018, with France, Italy, the UK, Poland, and Spain following closely behind.
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A rapidly growing population demands greater agricultural productivity, driving the adoption of modern, innovative equipment. Precision agriculture solutions, such as GPS guidance, drones, and sensor-based monitoring, have proven instrumental in increasing yields and promoting sustainable farming practices. Additionally, government support and grants offered in countries like France have propelled advancements in equipment modernization. The necessity to reduce reliance on manual labor, compounded by labor shortages, has incentivized the use of mechanized products on numerous European farms.
*Emerging Trends and Challenges in Europe Agricultural equipment market*
The European agricultural equipment market is evolving rapidly, characterized by the integration of cutting-edge technologies and the swift embrace of smart farming approaches. IoT-based smart farming is at the forefront of these trends, facilitating remote monitoring and control of farm operations, as well as enhanced data collection and analysis. The electrification of agricultural machinery, evidenced by the projected tripling of electric tractor sales between 2021 and 2026, signals a decisive shift towards technologically advanced and sustainable solutions.
It’s important to note that unique regulations, traditions, and environmental conditions might influence how agricultural technologies are adopted in Europe compared to other parts of the world. Further, literature often emphasizes large-scale farming adoption, leaving specific research needs for the prevalent small-scale agriculture sector across many European regions. Additionally, recent adverse weather conditions across the EU have negatively impacted yield projections for various crops.
Backed by the Common Agricultural Policy's efforts to foster sustainable and competitive production practices, the EU is poised to maintain its standing as a net exporter and a vital contributor to global food security. Although a small decrease in total agricultural land in the EU is anticipated from 2019 to 2030, an uptick in land designated for protein crops, fodder, and oilseeds is expected. Notably, a potential surge in plant-based diets across the EU could significantly reshape the meat and dairy markets, along with crop markets and environmental factors, over the coming decade. To meet rising demands for soybeans for human consumption, the EU could see a 5% increase in its own production by 2030.
*Key Findings in Europe Agricultural equipment market *
Market Forecast (2032) US$ 32.9 billion
CAGR 4.75%
By Type Harvesting and Trashing Equipment (54.2%)
By Sales Channel OEM (52.0%)
Top Trends · Smart Farming Adoption: Integration of IoT, sensors, and data analytics for precision agriculture.
· Electrification of Machinery: Rising demand for electric tractors and other sustainable equipment.
· Focus on Automation: Development of autonomous robots and drones for agricultural tasks.
Top Drivers · Need for Increased Productivity: Population growth necessitates higher yields, driving equipment adoption.
· Government Support and Incentives: Subsidies and programs promote the modernization of farming practices.
· Focus on Sustainability: Demand for equipment that reduces environmental impact and improves efficiency.
Top Challenges · High Upfront Costs: Advanced technologies and sustainable equipment can be expensive for farmers.
· Skilled Labor Shortage: Need for trained operators to utilize complex precision farming tools.
· Varying Regulations Across Europe: Differences in policies and standards can create adoption hurdles.
*Harvesting Trashing Equipment Dominate Europe Agriculture Market, Control 54.2% Market Share*
Harvesting and threshing equipment are essential tools for efficiently collecting and separating crops from the field. Key examples include combine harvesters, which revolutionized harvesting by combining reaping, threshing, and winnowing grain crops; forage harvesters, dedicated to efficiently harvesting forage crops; and threshers, which separate edible grain from inedible parts. Demand for these types of equipment is surging across Europe due to factors like the continent's extensive croplands – France alone boasts roughly 29 million hectares of arable land. The need to cater to both small-scale farms and larger agricultural operations drives the adoption of these efficient machines. In 2022, harvesting and threshing equipment commanded over 54.20% of the European agricultural equipment market revenue. Furthermore, this segment is projected to witness the highest CAGR (5.2%) of all equipment types. Agriculturally developed countries like France and Germany, with their medium-scale farms and intensive practices, exhibit high levels of farm mechanization, fueling the demand for harvesting and threshing solutions.
Germany stands out as the country with the highest demand for harvesting equipment within Europe, solidifying its role as a major market leader in the agricultural equipment sector. France leads the charge in the adoption of agricultural technology across Europe, contributing directly to its position as the fastest-growing market for agricultural equipment. Other notable markets include Italy, the UK, Poland, Spain, and other European countries following in the footsteps of the leading nations, Germany and France.
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*Market Leaders and Landscape of Europe Agricultural equipment market, OEM control Over 52% Market Share*
The European agricultural equipment industry features some dominant players. The "big four" full-line manufacturers – Agco, CNH Industrial, Claas, and John Deere – hold a strong presence with significant market share. Several prominent European manufacturers also shape the landscape. Kuhn Group stands as the largest European manufacturer of field equipment, having expanded its position through strategic acquisitions. Companies like DeLaval (dairy equipment), Krone and GEA Farm Technologies (forage harvesting and farm management), and Lely Group (dairy focus) have found success with specialized offerings. Additional notables include Grimme (potato and sugar beet harvesting), Exel Industries (crop protection), and manufacturers like Amazone, Horsch, Pottinger, Lemken, and Vaderstad.
Technological innovation is transforming the agricultural equipment market. New Holland's development of a methane-powered tractor demonstrates a shift towards alternative fuel sources. Precision farming technologies, such as GPS-guided tractors and drones, are becoming increasingly widespread. Moreover, government subsidies support the agricultural industry's growth by facilitating the purchase of essential machinery and seeds.
Some key competitors with major European operations include CLAAS KGaA mbH, Deere & Company, Kubota Corporation, AGCO Corporation, and CNH Industrial NV. Others like Lely France, Same Deutz-Fahr, Yanmar Co. Ltd, and Kuhn Group also play crucial roles within the market. Many of these companies operate globally, with production facilities in Belgium, the Czech Republic, France, Ireland, the Netherlands, and the UK. They focus on manufacturing energy-efficient, high-tech equipment like harvesters, tractors, and balers. Companies like Deere & Company have large global workforces and significant investments in factories outside of Europe, including China.
Technological advancements, coupled with government support, are propelling the European agricultural equipment market towards increased efficiency, sustainability, and productivity across the agricultural sector. Manufacturers are placing emphasis on animal and farmer welfare, equipment safety, and quality. The industry offers a wide range of products, including various types of tractors, combine harvesters, seeding and tillage implements, grain storage, and even protein production systems. Companies are innovating within dairy production, introducing solutions like milking robots and automated systems. A prime example is AGCO Corporation, boasting a portfolio of over 25 brands and committed to investments in its global operations.
*Government Fundings Program Favoring Growth of Europe Agricultural equipment market *
*United Kingdom*
· *Program:* Farming Equipment and Technology Fund (FETF) 2023
· *Purpose:* Grants for equipment/technology improving productivity, animal welfare, sustainability
· *Funding:* £1,000 to £25,000 per theme
· *Administering Body:* Rural Payments Agency on behalf of Defra
*Georgia*
· *Program:* FAO and EU Grants
· *Purpose:* Increase competitiveness, create jobs, support food supply
· *Funding:* Grants from USD $1,000-$150,000, cover up to 60% of equipment costs
· *Focus:* Tractors, machinery, improvements in various agricultural sectors
· *Context:* Part of the ENPARD program for rural economic development
*European Union*
· *Program:* Common Agricultural Policy (CAP)
· *Purpose:* Supports farmers, productivity, stable food supply
· *Components:* Income support, market measures, rural development
· *Funding:* European Agricultural Guarantee Fund (EAGF) + European Agricultural Fund for Rural Development (EAFRD)
· *Evolution:* Shift towards environmental focus alongside production support
· *Rural Development Measures*
· *Purpose:* EU countries can apply for EAFRD funding
· *Focus:* Contribute to EAFRD priorities, may include equipment purchases
· *Additional Funding Opportunities*
· *Horizon Europe, Single Market Programme:* Support agricultural innovation
· *ESF+:* Funding for improving rural employment conditions
*Performance and Impact*
· *2021 CAP Stats:*
· 5.8 million farmers received direct payments
· 366,000 young farmers supported
· Environmental targets met through contracts
· 2.1 million beneficiaries in vocational agricultural training
*Criticisms and Reforms*
· *Criticisms:* Favoring large-scale agriculture, complex subsidies
· *Reforms:* Focus on organic farming, eco-schemes, more autonomy for member states in allocations
*Europe Agricultural Equipment Market Key Players*
· AGCO Corporation
· Agromaster
· APV GmbH
· Bellota Agrisolutions
· CLAAS KGaA mbH
· CNH Industrial N.V.
· Deere & Company
· Escorts Limited
· Fliegl Agro-Center GmbH
· HORSCH Maschinen GmbH
· ISEKI & Co.
· J C Bamford Excavators Ltd
· KUBOTA Corporation
· KUHN SAS
· LEMKEN GmbH & Co. KG
· Mahindra & Mahindra Ltd
· Mascar SpA
· Maschio Gaspardo S.p.A
· MaterMacc S.p.A
· Morris Equipment Ltd
· Quivogne CEE GmbH
· Other Prominent Players
*Key Segmentation:*
*By Type*
· Soil Cultivation Machinery
· Planting Machinery
· Fertilizing & Pest Control Machinery
· Irrigation Equipment
· Harvesting & Threshing Equipment
*By Sales Channel*
· OEMs
· Aftermarket
*By Region*
· Northern Europe
· Norway
· Sweden
· Denmark
· Finland
· Iceland
· United Kingdom
· Ireland
· Lithuania
· Latvia
· Estonia
· Rest of Europe
· Germany
· France
· Italy
· Spain
· Poland
· Russia
· Others
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*About Astute Analytica*
Astute Analytica is a global analytics and advisory company which has built a solid reputation in a short period, thanks to the tangible outcomes we have delivered to our clients. We pride ourselves in generating unparalleled, in depth and uncannily accurate estimates and projections for our very demanding clients spread across different verticals. We have a long list of satisfied and repeat clients from a wide spectrum including technology, healthcare, chemicals, semiconductors, FMCG, and many more. These happy customers come to us from all across the Globe. They are able to make well calibrated decisions and leverage highly lucrative opportunities while surmounting the fierce challenges all because we analyze for them the complex business environment, segment wise existing and emerging possibilities, technology formations, growth estimates, and even the strategic choices available. In short, a complete package. All this is possible because we have a highly qualified, competent, and experienced team of professionals comprising of business analysts, economists, consultants, and technology experts. In our list of priorities, you-our patron-come at the top. You can be sure of best cost-effective, value-added package from us, should you decide to engage with us.
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CONTACT: Vipin Singh
BSI Business Park, H-15,Sector-63, Noida- 201301- India
Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World)
Email: sales@astuteanalytica.com
Website: https://www.astuteanalytica.com/