Europe Agricultural Machinery Market Growth Forecast | 2031

Report Description

Europe Agricultural Machinery Market Outlook 2031:

The Europe agricultural machinery market size was valued at USD 2.29 Billion in 2022 and is projected to reach USD 5.40 Billion by 2031, expanding at a CAGR of 10% during the forecast period 2023 - 2031. The growth of the market is attributed to the increasing mechanization of various farming activities.

The agricultural machinery industry produces and maintains tractors, machineries, and equipment used in agriculture. The introduction of new subsidies to the farmers and loan schemes for adapting modern methods is significantly driving the growth of the market. The recent development in farm mechanization for irrigation and harvesting of crops are responsible for increasing agricultural yields andhelping in keeping the labor costs low.

Government efforts to bring in farmers to the industrial fold by assuring timely assistance with crop seeds, fertilizers, and right prices for the crops, has influenced the agricultural industry drastically.

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Farm monitoring platforms have gained prominence with the evolution of IoT projects in farming and agriculture sector. The efficient use of data owing to the technological advancement for improving farming practice has drastically changed the traditional methods of farming.

Additionally, the increasing adoption of farm control monitoring system for allowing farmers to have overall control of their equipment have helped farmers in multiple ways. The livestock monitoring and control of rain gauges and irrigation gates have helped in saving resources and excessive maintenance costs.

The COVID-19 pandemic had a significant impact on the growth of various industries including agricultural industry. The outbreak of coronavirus disease had witnessed world-wide lockdowns. The stringent regulations had affected the supply chain of agriculture equipment and foiled the plans of various procurements for cultivation. Therefore, the pandemic situation has hampered the growth of the agricultural machinery market.

Agricultural Machinery Market Trends, Drivers, Restraints and Opportunities

• Increasing farm labor costs and consequent growing adoption of agricultural machinery are the major factor propelling the market expansion during the projected period.
• Provision for low-interest rates on loans and investment grants are estimated to contribute to the market expansion during the forecast period.
• Increasing technological development in agricultural machinery is estimated to positively influence the market growth in the coming years.
• High cost of agricultural equipments in emerging economies is expected to hamper the market growth during the projected timeline.
• Government support for the development of farming activities and provision for various agricultural subsidies are expected to create numerous opportunities for the market growth during the forecast period.

Scope of Agricultural Machinery Market Report

The report on the Europe agricultural machinery market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Europe Agricultural Machinery Market Segment Insights

Tractors segment is anticipated to register at a significant CAGR

On the basis of types, the agricultural machinery market is segmented into tractors, equipment, irrigation machinery, harvesting machinery, and haying & forage machinery. The tractors segment is further segregated into below 50 HP, 50 to 100 HP, 100 to 150 HP, and above 150 HP. The equipment segment is divided into harrows, cultivators & tillers, plows, and others.

The irrigation machinery segment is further categorized as drip irrigation, sprinkler irrigation, and others. The harvesting machinery segment is classified as forage harvesters, combine harvesters, and others.

The haying & forage machinery segment is further segmented into balers, mowers & conditioners, and others. The tractors segment is anticipated to register a significant CAGR during the forecast period owing to the increasing farm mechanization in the region.

Moreover, the increasing keen on purchasing high-end tractor, efforts to improve the crop yield, and improved farm efficiencies are some of the major factors expected to fuel the growth of the market segment in the coming years.

On the other hand, the equipment segment is projected to boost the growth of the market segment during the projected period due to rising demand for smart equipment that are capable of providing accurate metrics on soil quality and vital parameters for a good harvest.

Furthermore, the increasing product launches, rising initiatives by equipment manufacturers, and growing demand for technological advancement are key factors that are expected to grow the market segment at a rapid pace in the projected timeline.

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Germany market is anticipated to constitute a key market share

In terms of geography, the Europe  market is classified as the UK, Germany, Italy, France, Spain, Russia, Poland, and Rest of Europe. Germany market is anticipated to constitute a key share of the market during the projected period owing to the availability of engineering expertise and incorporation of technical ingenuity to develop the agricultural sector.

Moreover, the rising industrial investment for sustainable development and profitability in the agricultural field is expected to boost the market growth during the forecast period.

On the other hand, the market of the UK is anticipated to exhibit a robust CAGR during the forecast period due to the increasing government support for farmers in the form of loan waivers, credit finance, and subsidized loans.

Furthermore, the large-scale adoption of advanced agricultural equipments owing to the growing implementation of precision farming is projected to spur the market growth in the upcoming years.