Market Trends of Europe Agricultural Machinery Industry
This section covers the major market trends shaping the Europe Agricultural Machinery Market according to our research experts:
Increase in Demand for Mechanization
The European region is witnessing an increase in its integration with technology over the past few years in order to support sustainable agricultural practices in the region. For instance, The UK government is focusing on increasing farm mechanization to produce more with less impact on the environment. Tractors, being one of the essential agricultural machinery, have witnessed a huge growth potential in the market. Farmers in this region are increasingly keen on purchasing high-end tractors to work on larger fields as part of their effort to improve crop yields and boost farm efficiencies.
According to CEMA Statistics, in 2021, the total number of agricultural tractor (greater than 50 HP) registrations was reported to be 162,377 as compared to its registrations of 140,604 in 2020. Also, the fastest-growing markets by country in 2021 for agriculture tractors were Austria and Belgium, which recorded 33% and 12% growth, according to CEMA. Therefore, the increased mechanization will help in the growth of agricultural machinery in the region.
France Dominates the Market
France has been a pioneer in mechanizing the agricultural sector. It is an important country in the European market. Factors such as increasing total factor productivity in farming, reducing post-harvest loss, adding value to agricultural raw materials, and improving the quality of agricultural products are driving the market in the country.
With well-equipped farm technology and higher levels of mechanization adoption, France witnessed a high yield from field crops and is able to cope with the growing agricultural demand in the country and its export commitments. Despite the recent cuts in subsidies, the French agricultural community still receives EUR 9 billion (over USD 10 billion), per year, through the EU's Common Agricultural Policy (CAP).
France led the market in 2021, 36,053 tractors were registered in 2021 and an increase of 9.9% during the period between 2020 and 2021. According to Axema, in 2021, agricultural machinery manufacturers received increased orders from farmers benefiting from high crop prices due to a shortage of labor, easy availability of loans, and shortening replacement cycles. John Deere holds the majority market share in agricultural tractors in France, followed by New Holland and Fendt.
