
Study Period | 2019 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Size (2025) | USD 43.34 Billion |
Market Size (2030) | USD 50.73 Billion |
CAGR (2025 - 2030) | 3.20 % |
Market Concentration | High |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
Europe Agricultural Machinery Market Analysis
The Europe Agricultural Machinery Market size is estimated at USD 43.34 billion in 2025, and is expected to reach USD 50.73 billion by 2030, at a CAGR of 3.20% during the forecast period (2025-2030).
The European agricultural machinery industry is experiencing significant transformation driven by changing demographic patterns and urbanization trends. The rural population has been steadily declining across European countries, with Spain witnessing a decrease from 19.4% in 2019 to 18.7% in 2022, reflecting a broader regional shift toward urbanization. This demographic transition has fundamentally altered the agricultural landscape, pushing the sector toward greater mechanization and agricultural automation. The increasing challenges of weed management and crop protection have become critical concerns, with the European Parliamentary Research Service reporting that weeds cause potential yield losses of 30% in wheat, 40% in rice, and 26% in soybeans across the European region, highlighting the urgent need for advanced agricultural technology solutions.
The industry is witnessing a remarkable shift toward precision agriculture and smart farming equipment technologies. Major agricultural machinery manufacturers are introducing sophisticated equipment with advanced features to enhance farming efficiency. In November 2023, CNH Industrial unveiled the CR11 New Holland combine, featuring a powerful 775-horsepower C16 engine, 2x24-inch rotors, and a substantial 567-bushel grain tank capacity, demonstrating the industry's commitment to technological advancement. These innovations are transforming traditional farming practices, enabling farmers to achieve higher productivity while optimizing resource utilization.
The market is experiencing a notable trend toward sustainable and environmentally conscious farming practices. Agricultural machinery manufacturers are increasingly focusing on developing equipment that aligns with environmental sustainability goals. This shift is evidenced by the growing adoption of electric and autonomous machinery, as demonstrated by CNH Industrial's New Holland Agriculture brand launching the first all-electric utility tractor with autonomous features in 2023. The industry is also witnessing strategic collaborations aimed at enhancing farming efficiency, such as the partnership between John Deere and Yara in September 2023, which focuses on improving fertilizer efficiency and crop yields through integrated technology solutions.
The European agricultural machinery sector is characterized by continuous innovation in equipment design and functionality. In July 2023, CLAAS launched two compact tractor series, AXOS 230 and 240, specifically designed for mixed and specialty crop farms, featuring advanced technical capabilities in performance, power transmission, and comfort. This trend toward specialized machinery reflects the industry's response to diverse farming needs and varying agricultural conditions across European regions. The market is also witnessing increased attention to user-friendly interfaces and ergonomic designs, making advanced farm equipment more accessible to a broader range of farmers while maintaining high performance standards.
Europe Agricultural Machinery Market Trends
Shortage of Labor in the Agriculture Sector
The European agricultural sector is experiencing a significant transformation due to the increasing shortage of farm labor, which has become a critical driver for agricultural machinery adoption. As rural households are attracted to urban areas due to better living conditions and diverse job opportunities, there has been a notable decline in the agricultural workforce. According to World Bank data, employment in agriculture in the European Union decreased from 4.32% in 2020 to 3.99% in 2022, highlighting the growing labor crisis in the sector. This trend is further exemplified by countries like Spain, where the rural population has decreased from 19.4% in 2019 to 18.7% in 2022, demonstrating the ongoing rural-to-urban migration pattern.
The labor shortage has compelled farmers to seek mechanized solutions to maintain productivity levels and ensure efficient farm operations. The heavy workload associated with farming activities, coupled with the younger generation's diminishing interest in agricultural pursuits, has created a substantial gap in workforce availability. This situation has particularly affected seasonal agricultural operations, where the shortage of immigrant workers has become increasingly pronounced. As a response, farmers are increasingly investing in advanced agricultural automation and autonomous farm equipment, such as high-end tractors and automated systems, to compensate for the reduced labor force while simultaneously improving operational efficiency and crop yields.
Government Support to Enhance Farm Mechanization
European governments have implemented various supportive measures and financial incentives to accelerate the adoption of agricultural machinery, recognizing its crucial role in maintaining agricultural productivity. In 2022, the UK government introduced a significant 25 million pound grant scheme for Agri-Tech businesses as part of DEFRA's farming investment fund, aimed at enhancing productivity through mechanization. The scheme offers substantial grants ranging from USD 43,760 to USD 625,145, enabling farmers and growers to invest in robotics and advanced agricultural technology. Similarly, the French government has demonstrated strong support by offering a grant worth USD 10 billion (Euro 9 billion) to assist the agricultural sector in purchasing automated equipment to replace manual labor.
These government initiatives are complemented by broader support mechanisms through the Common Agricultural Policy (CAP) and various national programs. The financial assistance provided helps farmers overcome the initial high investment costs associated with agricultural machinery acquisition, making modern farming equipment more accessible to a wider farming community. The support extends beyond direct financial aid to include technical assistance, training programs, and infrastructure development, creating a comprehensive framework for agricultural mechanization. These initiatives have proven particularly effective in encouraging smaller and medium-sized farms to adopt modern farm equipment, contributing to overall sector modernization.
Rising Technological Advancements by Key Players
The agricultural machinery market in Europe is witnessing a significant transformation driven by continuous technological innovations from key industry players. In 2023, major manufacturers have introduced groundbreaking products incorporating advanced technologies to enhance farming efficiency and productivity. For instance, CLAAS launched two compact tractor series, AXOS 230 and 240, specifically designed for advancement in parts of Europe, featuring sophisticated technical capabilities related to performance, power transmission, and comfort. Similarly, KUHN introduced the PZ 1000 series of drum mowers with improved features such as front, rear, and triple mowers, demonstrating the industry's commitment to technological advancement.
The integration of artificial intelligence, precision agriculture equipment, and automation features in agricultural machinery represents a significant leap forward in farming practices. Manufacturers are focusing on developing equipment that not only replaces manual labor but also provides enhanced efficiency and precision in agricultural operations. For example, John Deere developed a new operator-less tractor in 2023 to address labor shortage challenges, while CNH Industrial launched the Patriot 50 Series sprayer and Trident 5550 combination applicator, offering improved efficiency and accuracy through advanced technology. These innovations enable precise decision-making in cultivation, optimize resource utilization, and contribute to sustainable farming practices, making them increasingly attractive to European farmers seeking to modernize their operations.
Segment Analysis: Type
Tractors Segment in Europe Agricultural Machinery Market
The tractors segment dominates the European agricultural machinery market, accounting for approximately 49% of the total market value in 2024. This significant market share is attributed to tractors being the primary power source for driving various agricultural machinery in the region. The segment's dominance is reinforced by the increasing adoption of advanced technology tractors, with features like precision farming capabilities and autonomous operations. Major manufacturers like John Deere, AGCO Corporation, and CNH Industrial are continuously introducing innovative tractor models with improved efficiency and technological integration. The segment's strong position is further supported by government initiatives and subsidies across European countries that encourage farmers to invest in modern machinery, particularly in countries like Germany and France where there is a high demand for high-end tractors to work on larger fields.

Irrigation Machinery Segment in Europe Agricultural Machinery Market
The irrigation equipment segment is projected to experience the fastest growth rate of approximately 4% during the forecast period 2024-2029. This accelerated growth is primarily driven by increasing water scarcity concerns and the need for efficient water management solutions across European agriculture. The segment's growth is further propelled by the rising adoption of precision irrigation equipment systems, particularly in water-stressed regions of Southern Europe. Modern irrigation equipment systems, including drip and sprinkler irrigation, are gaining popularity due to their ability to reduce water wastage by up to 90% compared to traditional irrigation methods. The segment is also benefiting from technological advancements such as smart irrigation equipment systems integrated with sensors and automation capabilities, which are increasingly being adopted by European farmers to optimize water usage and improve crop yields.
Remaining Segments in Europe Agricultural Machinery Market
The other significant segments in the European agricultural machinery market include harvesting machinery, plowing and cultivating equipment, and haying and forage machinery. The harvesting machinery segment plays a crucial role in the market, particularly in major cereal-producing countries, while tillage equipment remains essential for soil preparation and crop establishment. The haying and forage machinery segment serves the region's substantial livestock industry, supporting feed production. These segments are experiencing continuous technological advancement with the integration of precision farming technologies and automation features. The market also includes various other types of agricultural machinery such as sprayers, spreaders, and specialized equipment for different crop types, collectively contributing to the comprehensive mechanization of European agriculture.
Europe Agricultural Machinery Market Geography Segment Analysis
Agricultural Machinery Market in Germany
Germany stands as the cornerstone of Europe's agricultural machinery market, commanding approximately 24% of the total market value in 2024. The country's dominance stems from its position as one of the world's biggest exporters of agricultural machinery and one of the largest manufacturers in Europe. German agricultural machinery is renowned worldwide for its precision engineering and innovative technology. The country's robust manufacturing ecosystem is supported by leading companies like AGCO Corporation, which sells prominent brands such as Massey Ferguson and Valtra Inc. German farmers benefit from annual subsidies from the European Union to invest in modern farm equipment, enabling them to carry out farm operations more efficiently. The agricultural sector's transition towards smart farming practices has further strengthened Germany's position, with manufacturers introducing innovative machinery equipped with artificial intelligence-based tools for precise decision-making in cultivation. The country's focus on developing sustainable and environmentally friendly agricultural equipment aligns with its commitment to reducing environmental impact while maintaining high productivity levels.
Agricultural Machinery Market in United Kingdom
The United Kingdom's agricultural machinery market is experiencing remarkable growth, projected to expand at approximately 5% CAGR from 2024 to 2029. The country's agricultural sector has been actively integrating advanced agricultural technology into its operations, with the government focusing on farm mechanization to enhance productivity while reducing environmental impact. The development of precision farming technologies has significantly improved harvest quality, yield, and productivity in the region. The Environment Agency's identification of irrigation prospects as 'moderate to poor' in various regions has driven the adoption of high-tech irrigation equipment, particularly in areas with low rainfall. The country's commitment to sustainable farming practices has led to increased investment in innovative agricultural technologies, with 70-80% of new agricultural machinery and harvesters being equipped with precision farming technology. This technological transformation has been particularly crucial in addressing the ongoing shortage of farm labor, as farmers increasingly turn to automated solutions to maintain productivity levels. The market's growth is further supported by government initiatives and water management grants for horticultural and arable businesses.
Agricultural Machinery Market in France
France's agricultural machinery market reflects the country's position as a major agricultural powerhouse in Europe. The nation's self-sufficiency in food supplies, including cereal crops, meat, fruits, and vegetables, has created a robust demand for diverse agricultural implements. The market is characterized by strong government support for agricultural mechanization, with significant emphasis on automated equipment for agricultural tasks. Market players such as Kuhn Group, ARGO Tractors SPA, and AGCO Corporation have been instrumental in driving market growth through the development of modern and innovative agricultural machinery. The country's focus on precision agriculture has led to the adoption of advanced technologies in farming equipment, particularly in areas such as crop-specific machines and automated systems. French farmers are increasingly embracing sophisticated machinery that offers enhanced efficiency and precision in various agricultural operations, from field preparation to harvesting. The market's evolution is further supported by the growing trend toward sustainable farming practices and the integration of digital technologies in agricultural operations.
Agricultural Machinery Market in Italy
Italy's agricultural machinery market demonstrates a strong focus on technological advancement and efficiency in farming operations. The country has established itself as an active participant in the import-export market for various types of machinery, particularly in segments such as harrows and cultivators. Italian manufacturers have developed expertise in producing specialized equipment, such as semi-mounted plows suitable for high-powered tractors. The market is characterized by a growing emphasis on precision farming technologies and sustainable agricultural practices. Italian farmers are increasingly adopting mechanized solutions to address the challenges of rising labor costs and the need for improved productivity. The country's agricultural machinery sector benefits from its strategic position in Europe, maintaining strong trade relationships with key markets such as Romania, Germany, France, and Austria. The industry's focus on developing products with independent vertical movement and adjustable features demonstrates Italy's commitment to innovation in agricultural tools manufacturing.
Agricultural Machinery Market in Other Countries
The agricultural machinery market in other European countries, including Spain, Russia, and various Eastern European nations, demonstrates diverse growth patterns and unique market characteristics. These markets are influenced by their specific agricultural needs, climatic conditions, and government support mechanisms. Spain's market is characterized by its focus on modernizing irrigation infrastructure and optimizing water usage, while Russia leverages its position as a major agricultural producer to drive machinery demand. Eastern European countries are showing increasing interest in advanced farming technologies and mechanization. The Nordic countries, including Sweden, are adapting their agricultural machinery to cope with specific climatic challenges. Countries like Poland, Belgium, and Austria are focusing on developing their agricultural machinery sectors while addressing challenges related to energy costs and market dynamics. The varying levels of agricultural development and mechanization across these regions create diverse opportunities for market growth and technological advancement in the agricultural machinery sector.
Europe Agricultural Machinery Industry Overview
Top Companies in European Agricultural Machinery Market
The European agricultural machinery market is characterized by intense innovation and strategic developments from major players like Deere & Company, AGCO Corporation, CLAAS Group, and CNH Industrial. Companies are heavily investing in developing advanced technologies such as autonomous tractors, precision agriculture equipment, and electric/hybrid machinery to meet evolving farmer needs. The industry has witnessed numerous strategic partnerships focused on smart farming technologies, particularly in areas like automated spraying systems and precision agriculture. Manufacturing facilities are being expanded and modernized across Europe to increase production capacity and incorporate automation. Players are also strengthening their distribution networks through exclusive partnerships and focusing on after-sales service excellence to maintain a competitive advantage. The market demonstrates strong product development activities with regular launches of new machinery featuring enhanced efficiency, sustainability features, and digital integration capabilities.
Consolidated Market with Strong Global Players
The European agricultural machinery market exhibits a highly consolidated structure dominated by established global manufacturers with extensive manufacturing and distribution capabilities. These major players leverage their substantial R&D resources, established brand equity, and comprehensive product portfolios to maintain market leadership. The market shows a mix of global conglomerates offering full-line equipment solutions and specialized manufacturers focusing on specific machinery segments. Regional players maintain significance in certain geographic markets through their understanding of local farming needs and established dealer networks.
The industry has experienced notable merger and acquisition activities aimed at technology acquisition and market expansion. Companies are particularly targeting acquisitions of technology startups specializing in automation, robotics, and precision farming solutions. Strategic partnerships between established manufacturers and technology companies are becoming increasingly common, especially for developing electric and autonomous machinery solutions. The market also sees collaboration between manufacturers and agricultural input providers to create integrated farming solutions, indicating a trend toward ecosystem-based offerings.
Innovation and Service Excellence Drive Success
Success in the European agricultural machinery market increasingly depends on manufacturers' ability to integrate advanced technologies while maintaining product reliability and cost-effectiveness. Incumbent players must focus on developing comprehensive digital solutions, expanding their service offerings, and strengthening their dealer networks to maintain market position. Companies need to balance innovation with practical functionality, ensuring new technologies address real farming challenges while remaining accessible to different farmer segments. Environmental sustainability has become a critical factor, with successful manufacturers needing to demonstrate clear commitments to reducing environmental impact through their product offerings.
For emerging players and market contenders, success lies in identifying and exploiting specific market niches while building strong service capabilities. Companies must develop specialized expertise in areas like precision farming, autonomous operations, or specific crop segments to differentiate themselves. The ability to provide excellent after-sales support and maintain strong relationships with farming communities is crucial for gaining market share. Regulatory compliance, particularly regarding emissions and safety standards, continues to shape product development and market entry strategies. The market shows relatively low substitution risk due to the essential nature of agricultural machinery, but manufacturers must remain vigilant about evolving farming practices and changing customer preferences.
Europe Agricultural Machinery Market Leaders
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CLAAS KGaA mbH
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Deere & Company
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AGCO Corporation
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CNH Industrial NV
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Same Deutz-Fahr
- *Disclaimer: Major Players sorted in no particular order

Europe Agricultural Machinery Market News
- November 2023: CNH Industrial NV introduced a new line of harvesters the CR11 New Holland combine at Agritechnica 2023 in Germany. The combine features a 775-horsepower C16 engine that powers two 24-inch rotors. The machine's 567-bushel (20,000-liter) grain tank provides storage capacity, while its unload rate of six bushels (210 liters) per second reduces grain loss.
- November 2023: Yanmar Co. Ltd partnered with International Tractors Limited (ITL) to strengthen the product portfolio, network & service capabilities to serve customer needs. ITL and Yanmar aimed to provide unparalleled customer service & technologically advanced products across Europe by harnessing their collective expertise and resources.
- September 2023: John Deere and Yara partnered and improved fertilizer efficiency and crop yields through a combination of Yara’s agronomic expertise and John Deere’s Precision Technology. This collaboration provided farmers with data-driven recommendations, optimized nutrient use, and maximized productivity.
Europe 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
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4.2 Market Drivers
- 4.2.1 Shortage of Skilled Labor
- 4.2.2 Government Support to Enhance Farm Mechanization
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4.3 Market Restraints
- 4.3.1 Heavy Initial Procurement Cost and High Expenditure on Maintenance
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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 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Type
- 5.1.1 Tractors
- 5.1.1.1 Less than 50 HP
- 5.1.1.2 50 to 100 HP
- 5.1.1.3 100 to 150 HP
- 5.1.1.4 Above 150 HP
- 5.1.2 Plowing and Cultivating Machinery
- 5.1.2.1 Plows
- 5.1.2.2 Harrows
- 5.1.2.3 Cultivators and Tillers
- 5.1.2.4 Other Equipment
- 5.1.3 Irrigation Machinery
- 5.1.3.1 Sprinkler Irrigation
- 5.1.3.2 Drip Irrigation
- 5.1.3.3 Other Irrigation Machinery
- 5.1.4 Harvesting Machinery
- 5.1.4.1 Combine Harvesters
- 5.1.4.2 Forage Harvesters
- 5.1.4.3 Other Harvesting Machinery
- 5.1.5 Haying and Forage Machinery
- 5.1.5.1 Mowers
- 5.1.5.2 Balers
- 5.1.5.3 Other Haying and Forage Machinery
- 5.1.6 Other Types
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5.2 Geography
- 5.2.1 Germany
- 5.2.2 France
- 5.2.3 United Kingdom
- 5.2.4 Spain
- 5.2.5 Italy
- 5.2.6 Russia
- 5.2.7 Rest of Europe
6. COMPETITIVE LANDSCAPE
- 6.1 Most Adopted Strategies
- 6.2 Market Share Analysis
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6.3 Company Profiles
- 6.3.1 CLAAS KGaA mbH
- 6.3.2 Deere & Company
- 6.3.3 Lely France
- 6.3.4 CNH Industrial NV
- 6.3.5 Kubota Corporation
- 6.3.6 AGCO Corporation
- 6.3.7 Same Deutz-Fahr
- 6.3.8 Yanmar Co. Ltd
- 6.3.9 Kuhn Group
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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 (Less than 50 HP, 50-100 HP, 100-150 HP, and >150 HP), plowing and cultivating machinery (plows, harrows, cultivators and tillers, and other equipment), harvesting machinery (combine harvesters, forage harvesters, and other harvesting equipment), irrigation machinery (sprinkler irrigation, drip Irrigation, and other irrigation machinery) haying and forage machinery (mowers, balers, and other 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 |
Europe Agricultural Machinery Market Research Faqs
How big is the Europe Agricultural Machinery Market?
The Europe Agricultural Machinery Market size is expected to reach USD 43.34 billion in 2025 and grow at a CAGR of 3.20% to reach USD 50.73 billion by 2030.
What is the current Europe Agricultural Machinery Market size?
In 2025, the Europe Agricultural Machinery Market size is expected to reach USD 43.34 billion.
Who are the key players in Europe Agricultural Machinery Market?
CLAAS KGaA mbH, Deere & Company, AGCO Corporation, CNH Industrial NV and Same Deutz-Fahr are the major companies operating in the Europe Agricultural Machinery Market.
What years does this Europe Agricultural Machinery Market cover, and what was the market size in 2024?
In 2024, the Europe Agricultural Machinery Market size was estimated at USD 41.95 billion. The report covers the Europe Agricultural Machinery Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Europe Agricultural Machinery Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Our Best Selling Reports
Europe Agricultural Machinery Market Research
Mordor Intelligence provides a comprehensive analysis of the agricultural machinery and farm equipment sector. We leverage decades of expertise in agricultural industry research. Our extensive report covers the complete spectrum of agricultural equipment. This includes traditional tractors and combine harvester systems, as well as advanced agricultural robotics and agricultural drones. The analysis also examines agricultural implements, harvesting machinery, and agricultural sprayers. Additionally, it explores emerging trends in agricultural technology and agricultural automation.
Stakeholders gain valuable insights through our detailed examination of precision agriculture equipment and smart farming equipment developments. The report, available as an easy-to-download PDF, provides an in-depth analysis of irrigation equipment, tillage equipment, and livestock equipment markets. Our research also covers planting equipment, seeding equipment, and crop protection equipment. Furthermore, it explores innovations in autonomous farm equipment. The comprehensive coverage includes agricultural attachments and emerging applications of agricultural tools. This delivers actionable intelligence for industry participants seeking to understand market dynamics and technological advancement opportunities.