Published: March 2022 | Report Code: 12270 | Available Format: PDF | Pages: 550
The Western European agricultural machinery market generated an estimated $37,189.4 million revenue in 2021, and the market size will advance at a CAGR of 3.4% during 2022–2030. Moreover, the Central European agricultural machinery market generated an estimated $12,489.2 million revenue in 2021, and the market size will advance at a CAGR of over 4.3% during 2022–2030. The key factors driving the market are the high rate of farm mechanization, rising preference for agricultural machinery, increasing cost of farm labor, and advancing technology.
Agriculture has long been a labor-intensive industry in Europe. However, as individuals migrate to metropolitan regions, the employment rates in this sector have dropped over time. Farmers are increasingly using agricultural technology to replace manual labor, since the former is a more cost-effective, readily available, and efficient way of farming. Labor costs are also increasing due to a shortage of agricultural laborers, France was short of about 200,000 workers until the end of May 2020, while Spain had a shortfall of 70,000 to 80,000. Italy needs about 250,000 seasonal workers, while the U.K. normally receives 70,000 to 80,000 over the season and Germany 300,000, which will likely to boost the demand for agricultural machinery.
For instance, according to the German Association of Agricultural Employers (GLFA), the number of short-term, contractual immigrant laborers in Germany during peak harvest seasons has decreased dramatically in recent years. Therefore, labor shortage and the improved productivity through mechanization have led to the growth in agriculture machinery demand.
COVID-19 has had a substantial impact on practically every major industry throughout the world, including agriculture. Farmers are experiencing a lack of agricultural inputs, such as seeds, fertilizers, and insecticides, as a result of the global trade disruptions. As a result of the COVID-19 pandemic, the demand for agricultural and farm equipment has declined. In the European agricultural machinery market, Germany is one of the highest-revenue-generating countries. The agricultural productivity of the country declined dramatically in 2020 as a result of COVID-19.
Moreover, even in 2021, the COVID-19 situation in the U.K. did not normalize, which could result in a drop in the adoption of agricultural equipment in the country. However, the market is expected to recover in the coming year. Similarly, France and Italy, which are huge farm and agricultural equipment markets, have faced the adverse effects of COVID-19, thus impacting agricultural production. The situation in these countries has improved, but not sufficiently to aid market expansion.
In 2021, the tractor category accounted around 40% shares in the Western European agricultural machinery market as tractors allow farmers to work on larger areas of land and pull heavy machines.
Germany has been a pioneer in mechanizing the agriculture sector, which is why it is the largest country in the Western European agricultural machinery market, with a revenue share of around 40% in 2021. Moreover, the Central European agricultural machinery market is dominated by the Netherlands, with a revenue share of around 25% in 2021. The market in these regions is being driven by the need to boost farming productivity, reduce post-harvest loss, add value to agricultural raw materials, and enhance the quality of agricultural products. Moreover, these countries are two of the largest exporters of agricultural products in the world, which is, in part, credited to the strong practice of mechanized farming.
To gain a competitive edge, major players in the market are announcing partnerships, product launches, and expansions. For instance,
The western and central Europe agricultural machinery market report offers comprehensive market segmentation analysis along with market estimation for the period 2015-2030.
Based on Machinery Type
The biggest trend in the agricultural machinery market of Europe, especially in its western and central parts, is precision farming.
Tractors dominate the Central European agricultural machinery industry, based on type.
The agricultural machinery market in Western Europe is dominated by Germany.
The Central European agricultural machinery industry is driven by the lack of farm workers, increasing food demand, and rising farm labor costs.
Players in the agricultural machinery market of Western Europe are introducing advanced equipment and acquiring machinery component and technology companies.
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