Market Trends of France Agricultural Machinery Industry
This section covers the major market trends shaping the France Agricultural Machinery Market according to our research experts:
Large-scale Agricultural Production is Driving Mechanization
- Farming is one of France's most important industries. The country is self-sufficient in all food supplies, such as cereal crops, meat, fruit, and vegetables. The major agricultural crops grown in France include sugar beet, wheat, maize, barley, rice, oats, and potatoes. According to Crop Trust (France), in 2020, nearly 93% of the farms, out of 500,000 farms in France, were middle-range and large-scale projects.
- This rapid urbanization would lead to increased market demand for agricultural products such as crops, cereals, pulses, etc., which require more labor than other crops. In turn, this would eventually increase the demand for machinery. The heavy demand for food crops would result in the increased production of beet, wheat, maize, barley, rice, oats, and potatoes, which require machine tillage for effective productivity. According to Food and Agriculture Organization Corporate Statistical Database (FAOSTAT), the production volume of Maize increased by 13.42 million metric tons in 2020 from 12.85 million metric tons in 2019.
- In accordance with the recent approval by the French parliament, a new large-scale reform was framed regarding the country's agriculture and food policy. The reform's primary focus is on improving France's agriculture and food policies, focused primarily on improving agricultural production. The trends shifted toward using a smaller number of higher-powered machines, with an increased focus on the country's export potential. Thus, improved government support, increased interest in improving agricultural productivity, and improved farm structures boosted the demand for agricultural machinery in France.
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Tractors Lead the French Agricultural Machinery Market
- Tractors accounted for nearly 30% of the French agricultural machinery market. Factors like scarce human resources for farm labor, easy credit availability and fund access, moderate penetration, and shortening replacement cycles are encouraging indicators of the demand for tractors and farm equipment. In 2020, around 89,105 tractors were registered across Europe.
- Among these, 68,831 are agricultural tractors, the rest being quads, telehandlers, or other equipment. In France, after a satisfactory year in 2020, despite line stoppages and partial factory closures, 2021 saw renewed growth with an increase of 9.9% (+3,256) in new tractors registered. The green space tractor category is the one that has progressed the most, with a growth of 47.1% (+2,136). Registrations of standard tractors increased by 2.7% in 2021, reaching 24,543 units.
- Furthermore, the increasing trend of the use of tractors in the fields by France people instead of manual labor or animals has led to increased sales of tractors in this country. To expand agricultural production in this country and improve food security, the French government is also framing policies to modernize agriculture to fight against climate change. All these factors have specified mechanization in agriculture as a very vital measure. Tractor, which forms the base of farm mechanization, is the most important segment in the agri-equipment market. All these factors are driving the tractor market in France.
