Western and Central Europe Agricultural Machinery Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Western and Central Europe Agricultural Machinery Market Size

Western and Central Europe Agricultural Equipment Market Trends and Growth Drivers

Precision Farming Is Biggest Trend in European Agriculture Sector

• In the recent years, a surge in the consumption of food and vegetables has been seen, especially in Europe due to major shifts in dietary patterns.
• This has coincided with the increasing efforts to raise awareness on the importance of fresh produce consumption over the last few years.
• Increasing farm production currently faces several challenges in the region, such as, declining number of people directly involved in agricultural and farming activities and reduction in net yields due to increasing varieties of herbicide-tolerant weed.
• Precision agriculture methods and smart tractors will be required to increase the yield and combat the present challenges.
• Precision farming systems and services include farm labor management, irrigation management, yield monitoring, field mapping, crop scouting, inventory management, financial management, and weather forecasting.
• The rising inclination toward precision farming will drive the demand for advanced tractors, thus benefitting the market.

Technological Advancements in Machinery Are Biggest Driver for Market

• The European agriculture faces prominent problems of climate inconsistency and increased local competition in key export markets.
• As a result, the European Agriculture has been adopting innovative techniques, such as increased use of data science, automation, communication technologies, along with modern agricultural machineries, including tractors, harvesters, and irrigation machineries.
• European farmers have been gradually becoming tech-savvy and adoption of GPS software products and tractors equipped with telematics are anticipated to spur sales of agriculture machinery over the forecast years.
• Furthermore, the growing usage of cost-cutting strategies for designing advanced farm equipment is projected to offer key growth opportunities players.
• European innovators have already been producing leading digital technologies and advanced farm machineries across a diverse range of applications in agriculture.
• Such innovations include virtual fencing technology, sensor and artificial intelligence-based microclimate forecasting systems, cloud-based applications for farm management machineries, including automated tractors, remote controlled power tillers, and combine harvesters.
• Tractors equipped with technologies, such as Global Positioning System (GPS), for vehicle and row tracking help capitalize on increased agricultural yield.

Volatile commodity Prices Pose Challenges for Market Players

• Europe has witnessed declining prices for agricultural products such as rice, wheat, maize, and sugar from 2013.
• Europe is the one of the leading global producers of sugar beet, accounting for an estimated 50% of the global production.
• Also, Europe scrapped the sugar quota in September 2017 and farmers had to reposition themselves to explore new markets.
• The scrapping of limits on sugar beet production boosted net exports and will help large-scale farmers.
• However, small- and medium-scale farmers who sold their produce to sugar producers are expected to face the heat in the coming years.
• This could lead to low purchases from farmers, thus hurting their income and ability to invest in tractors or related agriculture machinery.
• The decline in the prices of agricultural commodities coupled with the declining or stagnating growth rate could result in farmers being less willing to invest in new machinery, especially tractors.

Western and Central Europe Agricultural Equipment Industry Analysis

Tractors Hold Largest Shares in Both Regions

In 2024, the tractor category accounts for around 40% revenue share in Western Europe and 35% share in Central Europe, based on type. This is because tractors allow farmers to work on larger areas of land and pull heavy machines. Models with various power ratings are available for work of different degrees and fields of different areas. Moreover, an array of plowing and other tools can be connected to them, making farming easier and the machines versatile. Additionally, the large treads of their tires make navigating rough terrain and loose soil easy.

We have analyzed the following types:

• Tractors (Largest Category and Fastest-Growing Category [Western Europe])
  • Compact utility
  • Utility
  • Row crop
• Ploughing and Cultivating
  • Plough
  • Harrow
  • Cultivator and tiller
• Planting
  • Seed drill
  • Planter
  • Spreader
• Harvesting (Fastest-Growing Category [Central Europe])
  • Combine harvester–thresher
  • Forage harvester
• Haying and Forage
• Irrigation Machinery

Regional Analysis

Germany Dominates Western Europe Market

Germany is the largest country in the Western European agricultural machinery market, with a revenue share of around 50% in 2024. The market in the country 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.

The following countries have been covered in Western Europe:

• Germany (Largest Country Market)
• Italy
• France
• Spain (Fastest-Growing Country Market)
• U.K.
• Others

Netherlands Holds Largest Share in Central Europe

• The Netherlands holds the largest share in the Central European agricultural machinery market, of 30%.
• The country is one of the largest exporters of agricultural produce, including meats and vegetables, in the world.
• More than 50% of its total land is engaged in farming; however, arable land is steadily declining.
• As more land is taken up by homes and cities, there will be pressure to produce more from what remains, thus driving mechanization in the farming sector.

The following countries have been covered in Central Europe:

• Netherlands (Largest Country Market)
• Austria
• Belgium & Luxembourg (Fastest-Growing Country Market)
• Poland
• Czech Republic
• Hungary
• Switzerland
• Others

Western and Central Europe Agricultural Machinery Market Share

Market Nature - Consolidated

The Western and Central European agricultural machinery market is consolidated because a number of large players with extensive and customizable portfolios have been operating for a long time. This has also given them economies of scale, allowing them to up their production, while decreasing OPEX. The companies also have wide distribution channels, enabling them to access the customer base with ease. Further, because such large and specialized machined require a high capital investment in R&D and manufacturing, small players usually find it difficult to enter this domain.

Western and Central Europe Agricultural Machinery Market News

• In February 2024, Deere & Company launches its new C-Series air cart line. Consisting of six models that help increase seeding-time quality, productivity, and accuracy.
• In February 2024, Deere & Company launched four models under its new S7 Series of combine harvesters. The models come with a choice of two EPA Tier-4 compliant engines, which offer a maximum power ranging from 367 hp/274 kW to 617 hp/460 kW.
• In January 2024, CNH International N.V. announced an investment of EUR 150 million in its New Holland Harvesting Center of Excellence in Zedelgem, Belgium to expand R&D and manufacturing capabilities for its next-generation CR11 combine harvester.
• In January 2024, Kubota Corporation exhibited its new agricultural concept vehicle at the CES®2024 held in Las Vegas. The autonomous electric tractor exhibited at the event charges from 10% to 80% in 6 minutes.