Europe Farm Tractor Market 2024-2030

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    1. The EU has adopted a series of seven directives over the past two decades to address emissions from non-road engines. Current EU regulation of emissions from these engines consists of various annexes that have been amended eight times since adoption in 1997
    2. COVID-19 is still causing major disruption which is impacting the agricultural machinery industry in the form of multiple shocks with on the one hand immediate and continuous disruption of production sites and of international value chains and on the other hand a sizeable drop in demand.
    3. In Germany, purchasing interest remains higher than in the previous year. However, purchasing interest could be hampered by the uncertain situation and the effects of new lockdowns in the course of the Corona pandemic. The expected overall average harvest in 2020 could also dampen the mood
    4. In Italy, the first half of 2020 closed with a sharp decline in tractor registrations of 18% compared to the same period last year. After opening with a slight decrease (-3.7% in January and February), 2020 saw a drastic worsening with the progress of the pandemic, followed by a reduction of many production activities.
    5. Farmers and contractors may have less options to choose from, as manufacturers may not be able to produce all the machines using transition engines as originally planned.
    6. European farmers and contractors compete with other producers who face lower environmental requirements, and it remains to be seen if they can all afford the cost linked with the additional compliance



    The Europe farm tractor market is at the forefront of the bloc’s export. The bloc accounts for almost 54% of the world’s imports and 64% of the world’s export of agricultural machinery. The sector employs almost 170k people and includes 7k industrial firms contributing nearly $47 Billion annually





    • Less than 40 HP
    • 41 to 100 HP
    • More than 100 HP


    Europe Farm Tractor Market By Country/Region

    • UK
    • Italy
    • Spain
    • Germany
    • France
    • Eastern Europe
    • Scandinavian countries




    One of the most important reason is rising farm labor costs owing to shortage of migrant workers. According to the German Association of Agricultural Employers (GLFA), there is a steep decline in the number of seasonal immigrants labour during the peak harvest period in Germany.


    infographic: Europe Farm Tractor Market, Europe Farm Tractor Market Size, Europe Farm Tractor Market trends and forecast, Europe Farm Tractor Market Risks, Europe Farm Tractor Market report

    A shortage of farm labor is giving way to rise in wage rates which is expediting the process of adoption of tractors. A reason for the labor shortage can be attributed to rapid urbanization, which is promoting migration to cities.


    The same rapid urbanization is also boosting the agricultural sector, which in turn is boosting the tractor market. According to some publications, the global urban population has grown by 1.98% between 2016 and 2017, resulting in increased demand for food.



    Another important factor can be the technological advancements that are revolutionizing the farming and agricultural processes such as precision farming or autonomous tractors. Replacement of existing machinery with advanced machines is expected to fuel the growth.


    The autonomous tractors which is currently discussed as a concept in the board meetings are expected to significantly increase productivity and efficiency while driving down the costs of labor.


    Apart from these factors, the Tractor Mother Regulation which came into effect from 1st January 2018 significantly fuelled the rapid advancement and innovation in the European Farm Tractor market. The regulation mandates stringent safety norms for farm tractors such as TMR, diesel emission norms and ABS.



    The forecasted growth can be hindered due to the high taxes and import tariffs imposed by different countries on agricultural equipment. For example, the Republic of Turkey imposed a 21% duty on agricultural machineries imported from non-EU countries in 2017.



    Another unaccounted huge business disruption occurred due to the prolonged COVID-19 pandemic which will severely deter the forecasted growth. The fact is evident from Mahindra & Mahindra’s (one of the largest players in the European tractor market) April 2020 sales figure, which showed a decline of almost 95% as compared to the month’s sales figure of the previous year (exported 56 tractors in April,2020 against 1057 in the same month in 2019).


    One of the important reason for the development of the agricultural sector in European Union was due to the protection that the sector enjoyed on account of the Europe’s trade bloc since the 1960s. But those protections are gradually getting reduced due to factors such as declining rural population, the sector’s smaller contribution to the European Union’s economy and reforms to the common agricultural policy. There has been a constant push to include agriculture in Free Trade Agreements which will make the sector more competitive due to cheaper imports.  


    But with advanced and innovative agricultural machineries including tractors, this threat can be converted into an opportunity. This is what the European Agricultural Machinery Association (CEMA) is trying to attain through AgriTech 2030. It focusses on 3 key areas as listed below –

    1. Maximising the agricultural machinery industry’s contribution to Highly Productive, Competitive and Sustainable Farming Models with improved safety standards
    2.  Bringing the European framing sector to the forefront of digital and precision agriculture
    3.  Strengthening Europe’s Industrial and Technological leadership in advanced farm equipment




    The industry including OEMs, distribution centres, etc. should adapt to new strategy in order to emerge out successfully in the new normal –

    1. Globalization to Localization – In the pre-COVID era the world was a global market, but the pandemic has largely shifted this scenario due to wide scale supply chain disruptions, nationwide lockdowns and restrictive trade policies.
    • Governments across the world are now more concerned about narrowing their trade deficits. Hence in the post-COVID era, at least for some period of time “producing local and consuming local” can be the new strategy for business.
    • According to estimates, from December 2020 till Q3 2021, the farm tractor market will register a stable growth because of localization. By Q3-Q4 2023, the industry can be expected to reach the pre-COVID level growth rate.


          2. Rental Business – Due to the disruption in cash flows caused by COVID-19, it will be a bit difficult for the farmers to afford a tractor                for the next few years.

    • Hence a shared platform for farm tractors will prevail in the next 2 or 3 years. It could be a huge opportunity for the dealers tying up with financial institutions in offering a ‘pay as you use’ or ‘rent to buy’ option.



    According to a statement from Kubota Corporation, the company will be the first Japanese producer to offer electric tractors in Europe. A small number of Kubota’s LXe-261 compact electric tractors are available in Europe, where the region is actively working to become carbon neutral.


    Local governments in Europe will have access to a long-term rental programme for the LXe-261. Being able to operate an electric tractor for extended periods of time has been a major challenge. A large-capacity battery that can deliver a quick one-hour charge and an average of 3–4 hours of continuous use is included with the LXe-261.


    In response to the usage requirements of local customers identified through the LXe-261 tractor trails, rapid charging during lunch is provided for afternoon use after the batteries have been depleted during the morning shift.


    In a virtual launch event, New Holland Agriculture presented its new flagship T7 Heavy Duty (HD) tractor to the European press. The event, titled “Intelligent farming all ways,” highlighted the brand’s commitment to making the benefits of intelligent farming technologies widely available to farmers as well as its vision of agriculture 4.0.


    The brand-new Horizon Ultra cab and cutting-edge PLM Intelligence features of the new T7 HD provide a superior working experience while maintaining the tractor’s powerful performance, exceptional agility, and outstanding versatility.


    It is perfect for contractors looking for a boost to their comfort, efficiency, and productivity while juggling multiple field and transportation applications.


    FT 6080 Pro and FT 6090 Pro Farmtrac tractors in the 80 and 90 HP categories will debut simultaneously in Italy and Mexico at EIMA, the International Exposition of Machinery for Agriculture and Gardening, Bologna, and at Expo Agroalimentaria Guanajuato, Irapuato, respectively.


    Farmtrac, one of the world’s top tractor manufacturers, is based in Poland. These new FT 6080 Pro and FT 6090 Pro tractors are technological marvels with excellent value for farmers all over the world. They are in line with Farmtrac’s pedigree of traditional, straightforward, and effective farm machines.



    The European Tractor market consists of some of the dominant players such as Deere & Company, CNH Industrial, Kubota, etc. which have higher share in the market. The leading vendors focus on aftersales service for increasing brand loyalty and driving growth.

    • CNH industrial– The Dutch tractor manufacturer offers 3 brands in European market. It has a manufacturing facility in Italy for low horsepower tractors. Larger tractors are produced in UK based facility. CNH has been pushing precision farming and technology is accessible through 2 brands, New Holland and Case IH.
    • Deere and Company– The American tractor manufacturer is one of the top selling tractor brands in Europe region. It offers small medium and large tractors with varied range of horsepower along with farm management solutions, combines, balers, front loaders etc. Deere is preparing to achieve global excellence with huge focus on European market.
    • AGCO– TheAmerican farm machinery manufacturer sold under brand names Massey Ferguson, Challenger, Valtra and Fendt. Fendt is the leading manufacturer in Germany. Ferguson tractors are available in varied horsepower, from 38 HP to 400 HP.
    • KUBOTA– This Japanese manufacturer is a leading vendor of medium and low horsepower farm tractor segment with various offerings in 60 Hp to 170 HP range. It has a huge distribution network across Europe and large market base in Spain, Italy, Netherlands, UK and France. KUBOTA Corporation announced in 2018 that it will invest USD 64 million in a new development and research centre for tractors in Europe. They have a vision to enhance sales and expand business outreach in the European region.

    Other prominent players in the European market are Argo Tractors, Carraro, Lovol Arbos Group.




    1. What is the average cost per Europe Farm Tractor Market right now and how will it change in the next 5-6 years?
    2. Average cost to set up a Farm Tractor Market in Europe?
    3. How many Europe Farm Tractor Market are manufactured per annum globally? Who are the sub-component suppliers in different regions?
    4. What is happening in the overall public, globally?
    5. Cost breakup of a Europe Farm Tractor Market and key vendor selection criteria
    6. Where is the Europe Farm Tractor Market  manufactured? What is the average margin per equipment?
    7. Market share of Europe Farm Tractor Market manufacturers and their upcoming products
    8. The most important planned Europe Farm Tractor Market in next 2 years
    9. Details on network of major Europe Farm Tractor Market and pricing plans
    10. Cost advantage for OEMs who manufacture Europe Farm Tractor Market in-house
    Sl no Topic
    1 Market Segmentation
    2 Scope of the report
    3 Abbreviations
    4 Research Methodology
    5 Executive Summary
    6 Introduction
    7 Insights from Industry stakeholders
    8 Cost breakdown of Product by sub-components and average profit margin
    9 Disruptive innovation in the Industry
    10 Technology trends in the Industry
    11 Consumer trends in the industry
    12 Recent Production Milestones
    13 Component Manufacturing in US, EU and China
    14 COVID-19 impact on overall market
    15 COVID-19 impact on Production of components
    16 COVID-19 impact on Point of sale
    17 Market Segmentation, Dynamics and Forecast by Geography, 2024-2030
    18 Market Segmentation, Dynamics and Forecast by Product Type, 2024-2030
    19 Market Segmentation, Dynamics and Forecast by Application, 2024-2030
    20 Market Segmentation, Dynamics and Forecast by End use, 2024-2030
    21 Product installation rate by OEM, 2024
    22 Incline/Decline in Average B-2-B selling price in past 5 years
    23 Competition from substitute products
    24 Gross margin and average profitability of suppliers
    25 New product development in past 12 months
    26 M&A in past 12 months
    27 Growth strategy of leading players
    28 Market share of vendors, 2024
    29 Company Profiles
    30 Unmet needs and opportunity for new suppliers
    31 Conclusion
    32 Appendix
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