The Europe planting machinery market is estimated to grow at a CAGR of 6.35% to reach US$18.911 billion in 2028 from US$12.286 billion in 2021.
The high rate of farm mechanization, growing consumer preference for planting equipment, the rising cost of farm labor, and developing technology are the main market drivers increasing the region’s planting machinery market demand. Further, due to the increase in agricultural technologies in the region, the planting machinery market in Europe is found to be at a high maturity stage. The demand in developing nations like Belarus and Romania is growing due to the influencing of planting machinery sales in Europe including a lack of farm labor, high farm revenue, farm consolidation, and widespread tractor use. Further, the rising R&D operations for the development of unique and cost-effective agricultural planting equipment are also fueling the growth environment.
Growth Drivers
The European region has increased its technological integration to support regional agricultural practices that are sustainable. For instance, to produce more while having less of an impact on the environment, the UK government is concentrating on boosting farm mechanization. One of the most important pieces of planting equipment is tractors which offer tremendous market potential. As part of their efforts to increase crop yields and farm efficiencies, farmers in this region are becoming increasingly eager to invest in expensive tractors to work on wider fields. For instance, the overall number of agricultural tractor registrations was 230,000 in 2021, an increase of 17% from 2020, according to CEMA Statistics. Additionally, according to CEMA, Austria, and Belgium had the fastest-growing agricultural tractor markets in 2021, with growth rates of 33% and 12%, respectively. Therefore, the region's growing use of agricultural gear will be aided by increased mechanization.
About half of the income of farmers in the area comes from subsidies from the European Union, which has a direct impact on the sales of planting machines in the area. Due to government subsidies, the countries in the region with advanced farming technology and higher levels of mechanization have seen high yields from field crops and can address domestic agricultural product demand as well as their export schedules. Government organizations across Europe have provided farmers with a variety of aid options, including loans, subsidies, and easy payment plans for the acquisition of better planting machinery and other equipment. For instance, the French government receives $10 billion (EUR 9 billion) in EU subsidies to help agricultural laborers buy planting machinery and cutting-edge software that may automate many of the traditional agricultural activities.
The data on agricultural land as a percentage of land area in the United Kingdom reveals a relatively stable trend from 2018 to 2021. The values show a marginal fluctuation, with percentages ranging from 71.714% in 2018 to 72.422% in 2021. The substantial agricultural land area suggests a strong foundation for agricultural activities, including crop production. As farmers strive for increased efficiency and productivity, the demand for advanced planting machinery is likely to rise. With a significant share of agricultural land, the UK offers a promising market for planting machinery manufacturers and suppliers. This steady allocation of land for agriculture provides stability and opportunities for innovation and technological advancements in the planting machinery sector, contributing to the growth of the UK in the broader European market.
The United Kingdom's robust agricultural industry provides a solid foundation for growth, with farmers seeking modern planting machinery to enhance productivity and optimize crop yields. Moreover, rapid advancements in planting machinery technology, such as precision seeding and automated systems, have driven the adoption of innovative solutions, making the UK market attractive for advanced planting machinery. According to a report published by the United Nations in 2021, the utilization of large-scale management practices has the potential to enhance the efficiency of agricultural machinery power in the United Kingdom. The study indicates that the agricultural machinery power utilization in the UK ranges from 0.75 to 1.05 kW/ha. This finding suggests that the adoption of advanced planting machinery in the UK market can contribute to improved power efficiency, thus serving as a growth factor in the European planting machinery market.
Furthermore, the establishment of the UK Agriculture Policy Collaboration Group (PCG) facilitates joint decision-making, better-designed market support schemes, and rapid responses to changing conditions, providing a conducive environment for growth in the planting machinery market. The PCG enables policy coordination, communication, stakeholder engagement, and information sharing, fostering innovation and investment in the sector. These collaborations and other alliances in the region are expected to propel the plant machinery market.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Market Size Value in 2021 | US$12.286 billion |
| Market Size Value in 2028 | US$18.911 billion |
| Growth Rate | CAGR of 6.35% from 2021 to 2028 |
| Base Year | 2021 |
| Forecast Period | 2023 – 2028 |
| Forecast Unit (Value) | USD Billion |
| Segments Covered | Machinery Type, Design, Crop Type, and Geography |
| Regions Covered |
United Kingdom, Germany, France, Spain, Others |
| Companies Covered | AGCO Corporation., Buhler Industries Inc., Great Plains Manufacturing, Inc., Deere & Company, Kuhn Group, Kverneland AS, New Holland Agriculture (CNH Industrial), Visser Horti Systems, Kinze Manufacturing, Hardi International A/S |
| Customization Scope | Free report customization with purchase |
Segmentation: