Germany Agricultural Tractor Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Germany Agricultural Tractor Market is Segmented by Horse Power (Below 50 HP, 51-100 HP, 101-150 HP & Above 150 HP).

Market Snapshot

tractors in germany
Study Period: 2016 - 2026
Base Year: 2020
CAGR: 4.9 %

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Market Overview

Germany Agricultural Tractor Machinery Market is projected to register a CAGR of 4.9% during the forecast period (2020-205). Germany accounted for 24% of the European agricultural tractor machinery market in 2017. Increasing Farm Mechanization Rates, Increasing Cost of Farm Labor, Shorter Replacement Cycle of Tractors are some of the major driving factors for the market. According to a survey conducted by Fendt (AGCO Corporation) in 2017, Fendt, Kubota, Deutz, New Holland Agriculture, John Deere, and Claas are some of the most popular brands sold in Germany. According to The Mechanical Engineering Industry Association (VDMA), in 2019 farmers and other custom operators bought around 570 more agricultural tractors resulting in 2.6% increase in sales compared to 2018. The sub-50 horsepower compact sector contributed more to the tractor market growth in 2019 with a sale of 730 units.

Scope of the report

The report defines the market in terms of end-users, who procure tractors for application in agricultural production only. The end-users include farmers and institutional buyers operating in the agriculture and allied production. Germany Agricultural Tractor Machinery Market is Segmented by Horse Power (Below 50 HP, 51-100 HP, 101-150 HP & Above 150 HP). 

Horse Power
Less than 50 HP
51-100 HP
101-150 HP
Above 150 HP

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Key Market Trends

Increasing Agricultural Labour Cost

According to EUROSTAT, the hourly wages of agricultural labor were USD 34.9 in 2016, which has increased to USD 39.9 in 2019, a 14.3 increase in the past three years since 2016. The cost of farm labor has a direct relationship with the percentage of the total population of a country employed in agriculture, considering simple demand-supply economics. At a micro level, the impact has been felt in terms of an increase in labor costs and the need for improving the productivity of the already scarce labor. Hence, farmers are increasingly adopting agricultural mechanization as a substitute for manual labor with a more cost-effective, easily available, and more efficient means of agricultural operation. Tractors being the primary source of power for driving agricultural machinery have thus seen a phenomenal rise in terms of sales in these countries.

wages in germany

Germany is the largest market in Europe

Germany is the largest market for agricultural tractors in Europe. The production of tractors saw a remarkable upsurge at an average of 12% in the three years, till 2015. The country generates more than 27% of agricultural machinery and equipment components manufactured in Europe. Thus, Germany has evolved to be one of the leaders in producing agricultural machinery in Europe, which signifies its dominance in the agricultural tractors market. In terms of sales, the emphasis is on tractor production at a share of around 40%, with a further focus on the power segment of above 120 HP. Due to the booming domestic market, the export ratio in the last few years has been steady at between 70-75%. As per CEMA (Conveyor Equipment Manufacturers Association), the average size of a new tractor sold in Germany for the agricultural purpose during 2015, was around 155 HP, and every fifth tractor had more than 200 HP of engine power.

Europe tractors market

Competitive Landscape

Germany agricultural tractor machinery market is a consolidated market with the major players holding a major market share in 2019. Deere & Company, CNH Industrial, AGCO Corporation, KUBOTA (Germany) GmbH, and CLAAS KGaA mbH are the major players in the country. The companies are competing to hold and gain a major share in the market by adopting various business strategies such as product launch, expansion, mergers and acquisitions, and investments in R&D. 

Table of Contents


    1. 1.1 Study Assumptions & Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry


    1. 5.1 Horse Power

      1. 5.1.1 Less than 50 HP

      2. 5.1.2 51-100 HP

      3. 5.1.3 101-150 HP

      4. 5.1.4 Above 150 HP


    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 CLAAS Group

      2. 6.3.2 Deere & Company

      3. 6.3.3 Mahindra & Mahindra Ltd

      4. 6.3.4 CNH Industrial NV

      5. 6.3.5 AGCO Corporation

      6. 6.3.6 Kubota Corporation

      7. 6.3.7 Tractors and Farm Equipment Limited

      8. 6.3.8 Valent Biosciences Corporation

      9. 6.3.9 FMC Corporation


  8. 8. IMPACT OF COVID-19

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Frequently Asked Questions

The Germany Agricultural Tractor Market market is studied from 2016 - 2026.

The Germany Agricultural Tractor Market is growing at a CAGR of 4.9% over the next 5 years.

Deere & Company, AGCO Corporation (Fendt), CLAAS KGaA mbH, CNH Industrial , KUBOTA (Germany) GmbH are the major companies operating in Germany Agricultural Tractor Market.

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