The Report Covers Europe Agricultural Machinery Market, and It is Segmented by Horsepower (Less Than 40 HP, 40 To 99 HP, 100 To 150 HP, 151 To 200 HP, and Above 200 HP) and Geography (Germany, United Kingdom, France, Spain, Italy, Russia, Poland, and Rest of Europe). The Report Offers the Market Size in Terms of Volume (units) and Value (USD).

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Europe Agricultural Tractor Machinery Market Size 2025-2029

The agricultural tractor machinery market in Europe size is forecast to increase by USD 7.42 billion at a CAGR of 5.7% between 2024 and 2029.

The agricultural tractor machinery market is experiencing significant growth due to the increasing demand for food production and the implementation of advanced technologies such as artificial intelligence (AI), semiconductors, big data, and sensors in farm equipment. These technologies enable precision farming practices, including GPS and telematics, which enhance the efficiency and productivity of agricultural machinery. The adoption of digital solutions in tractor engines and precision agriculture techniques is transforming the industry. However, the lack of technically skilled farmers poses a challenge to the widespread implementation of these technologies. The integration of AI and sensor technology in agricultural machinery is revolutionizing the industry, allowing for real-time monitoring of farm conditions and optimizing the use of fertilizers and other resources.

Education and training programs are essential to equip farmers with the necessary skills to operate and maintain these advanced machines effectively. Overall, the agricultural tractor machinery market is poised for growth as it embraces digitalization and technological innovation to meet the demands of modern farming practices.

What will be the Size of the Market During the Forecast Period?

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The agricultural tractor machinery market encompasses a diverse range of equipment essential for modern farming operations. Compact tractors, particularly popular among small farms, represent a significant segment of this market. Notable trends include the integration of telematics for remote monitoring and management, addressing labor shortages through automation and AI applications, and the emergence of electric and driverless tractors. These advancements are driven by the increasing adoption of machine learning algorithms, big data, and computing power in agriculture. However, regulatory scrutiny over environmental impact and safety concerns, as well as supply chain disruptions and inventory level management, pose challenges.

Additionally, the transition to electric infrastructure and the potential for product substitutes, such as robotic technology, further shape the market's direction. Despite these complexities, the agricultural tractor machinery market continues to evolve, underpinned by the ongoing need for efficient, sustainable, and technologically advanced farming solutions.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Application

  Farm
  Landscape garden
  Others


Type

  Wheel tractor
  Crawler tractor


Fuel Type

  Diesel
  Electric/hybrid
  Petrol/gasoline
  Alternative fuel


Geography

  Europe

    France
    Germany
    Italy
    UK

By Application Insights

The farm segment is estimated to witness significant growth during the forecast period. The European Agricultural Tractor Machinery Market is driven by the farm segment due to the need for efficient farming solutions. Factors influencing this demand include agricultural practices, farm size, economic conditions, and government policies. Larger farms necessitate powerful and versatile tractors to manage larger areas and heavier workloads, leading to the preference for high-horsepower wheel tractors with advanced features. This trend contributes to the growth of the farm segment in the European Agricultural Tractor Machinery Market. Additionally, technological advancements, such as the integration of telematics, precision farming technologies, and autonomous tractors, are transforming farming operations. Environmental regulations and the adoption of greener technologies, such as electric and ICE tractor engines, are also shaping market dynamics.
Farmers, particularly those with smaller operations, are increasingly turning to compact tractors and rental options to optimize resources and reduce operational costs. Despite these opportunities, challenges such as inventory levels and supply chain disruptions persist, requiring effective resource management and weather pattern monitoring. The Agricultural Tractor Machinery Market is expected to witness significant growth due to these trends and the increasing focus on farm productivity and agricultural output.

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Market Dynamics

Our Europe Agricultural Tractor Machinery Market researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A hol

The Europe Agricultural Machinery Market Report is Segmented by Type (Tractors, Plowing and Cultivating Equipment, Irrigation Machinery, Harvesting Machinery, and More), and Geography (Germany, France, United Kingdom, Italy, Spain, Russia, and Rest of Europe). The Market Forecasts are Provided in Terms of Value (USD).

From 2018 to 2019, the market value of manual tractors was much higher than that of autonomous tractors in Europe. The market value forecasts for 2020 and 2026, show that manual tractors continue to outperform autonomous tractors. In 2026, the market value for manual tractors is expected to be about **** billion U.S. dollars.

Europe Agricultural Equipment Market is projected to reach USD 47.7 billion by 2031, growing at a CAGR of 4.75% from 2023-2031.

The Agricultural Tractors Market Report is Segmented by Engine Power (less Than 40 HP, 40 HP To 99 HP, 100 HP To 175 HP, and Above 175 HP), Type (Orchard Tractors, Row-Crop Tractors, and Other Types), and Geography (North America, Europe, Asia-Pacific, South America, and Africa). The Report Offers Market Size and Forecasts in Terms of Value (USD) for all the Above Segments.

The European agricultural tractor machinery market, valued at €22.29 billion in 2025, is projected to experience robust growth, driven by several key factors. Increasing demand for efficient and technologically advanced farming solutions across various applications – including farmlands and landscape gardening – fuels market expansion. The rising adoption of precision agriculture techniques, incorporating GPS-guided tractors and automated systems, enhances productivity and reduces operational costs, further stimulating demand. Furthermore, favorable government policies promoting agricultural modernization and technological advancements in tractor design, such as improved fuel efficiency and enhanced safety features, are contributing to market growth. The market segmentation, encompassing wheel and crawler tractors across various applications, presents diverse growth opportunities for manufacturers. Leading players like Deere & Company, AGCO, and CNH Industrial are strategically focusing on innovation, strategic partnerships, and expansion into new markets to maintain their competitive edge. While challenges such as fluctuating fuel prices and the potential impact of economic downturns on farmer investment exist, the overall market outlook remains positive, projecting a consistent Compound Annual Growth Rate (CAGR) of 5.25% from 2025 to 2033. The European market is geographically diverse, with significant contributions from major economies like the United Kingdom, Germany, France, and Italy. These nations demonstrate strong agricultural sectors and a high adoption rate of modern farming technologies, contributing to a substantial market share. However, the growth trajectory isn't uniform across all segments. The demand for wheel tractors is likely to remain dominant, although crawler tractors are expected to see increased adoption in specialized applications like intensive farming or challenging terrains. Competition within the market is intense, with established players continually investing in research and development to introduce advanced features and improve machine efficiency. The strategic focus remains on providing customized solutions that cater to the diverse needs of European farmers and landscaping businesses, contributing to the sustained growth and evolution of the European agricultural tractor machinery market.

The Europe agricultural tractors market attained a volume of 157.79 Thousand Units in 2024. The industry is expected to grow at a CAGR of 1.60% during the forecast period of 2025-2034 to attain a volume of 184.93 Thousand Units by 2034.

Europe Agricultural Tractor Market size was valued at USD 12 Billion in 2024 and is projected to reach USD 16 Billion by 2032 growing at a CAGR of 4.0% from 2026 to 2032.Europe Agricultural Tractor Market DynamicsThe key market dynamics that are shaping the Europe agricultural tractor market include:Key Market Drivers:Farm Size Consolidation: In accordance to the European Commission's Farm Structure Survey, the average farm size in the EU increasing by 16.4% from 2010 to 2023, reaching 17.4 hectares. Based on Eurostat data, farms larger than 100 hectares, which account for only 3.1% of all EU farms, now manage more than 53% of total agricultural land, necessitating significant mechanization investment.Sustainable Farming Initiatives: The European Environment Agency reported that agriculture must reduce greenhouse gas emissions by 36% by 2030 in order to meet EU climate targets. According to the European Commission's Farm to Fork strategy implementation report, USD 29.90 Billion has been allocated for sustainable farming subsidies in 2021-2027.

The global tractors market, valued at $67.09 billion in 2025, is poised for substantial growth. While the exact CAGR is unspecified, considering the strong influence of agricultural mechanization and infrastructure development globally, a conservative estimate places the Compound Annual Growth Rate (CAGR) between 4% and 6% for the forecast period of 2025-2033. This growth is driven by several key factors. Rising global food demand necessitates increased agricultural productivity, fueling demand for efficient tractors. Furthermore, the ongoing shift towards large-scale farming and the adoption of precision agriculture technologies are key drivers. Government initiatives promoting agricultural modernization in developing economies also contribute significantly to market expansion. Segment-wise, wheeled tractors currently dominate the market due to their versatility and suitability for diverse applications. However, crawler tractors are expected to witness notable growth due to increasing demand from construction and infrastructure projects. Geographically, Asia-Pacific, particularly China and India, are expected to be major contributors to market growth due to their vast agricultural land and expanding economies. However, factors such as high initial investment costs for tractors and fluctuating fuel prices could act as restraints. Key players like John Deere, AGCO, CNH Industrial, and Kubota are expected to continue dominating the market through technological advancements, strategic partnerships, and expansion into new markets. The market is segmented by tractor type (wheeled and crawler), application (agriculture and non-agricultural), and region. North America and Europe currently hold significant market share, driven by advanced agricultural practices and high per-capita income. However, rapid economic growth and agricultural development in regions such as Asia-Pacific and South America are expected to lead to a shift in market dynamics over the forecast period, making these regions increasingly important growth hubs. The competition within the market is intense, with both established players and emerging manufacturers vying for market share through innovation in technology, efficient distribution networks, and targeted marketing strategies. The future of the tractor market is intertwined with the global food security narrative, and continued technological improvements will shape the market's trajectory in the coming years.

The Europe Agriculture Tractor Market was valued more than USD 4.5 billion in 2023 due to replacement demand for aging equipment

Agricultural machinery wholesalers’ revenue is driven by wider economic conditions, agricultural incomes, government subsidies and technological advancements. Sales of machinery and equipment sales are largely dictated by the performance of the agricultural sector. Structural trends like farm consolidation and the shift toward larger, more sophisticated equipment have shaped demand in recent years. Revenue is expected to climb at a compound annual rate of 2.7% over the five years through 2025 to €132.5 billion, including a 0.9% rise in 2025. Agricultural machinery requires significant capital investment, which, for many small or independent farms, is only possible because of government subsidies. Agricultural support is falling across the EU and other European countries, like the UK, depressing many farmers’ budgets. Many smaller farms have shut up shop, with family-run, independent ventures giving way to larger farms expanding their presence. Meanwhile, adverse weather and economic conditions, including elevated interest rates and geopolitical tensions, have weakened investment in machinery in the three years through 2025. According to the European Agricultural Machinery Association, in 2024, the number of agricultural tractor registrations fell to their lowest level since 2014, with three consecutive years of decline. Despite the economic headwinds facing farmers, sales of agricultural machinery have remained resilient, with farmers keen to purchase the latest lines with autonomous and precision systems integrated into the machines. The enhanced productivity of these machines has made them must-haves, boosting sales. Still, wholesalers’ profitability has suffered from rising operating costs and intense competition, both internally and from direct-to-consumer sales from manufacturers. To raise profit, wholesalers have turned to offering value-added services like financing options and technical support. Looking ahead, the green revolution and falling agricultural support will be the key drivers of the industry’s performance. The green revolution and expansion of organic farming will spark demand for eco-friendly vehicles across Europe, with farmers keen to meet environmental targets. However, the capital required for these new machines will be hard to come by, with agricultural budgets falling across many European countries. Meanwhile, farm consolidation will likely continue, with the average farm size expanding, forcing wholesalers to tailor solutions to these clients. Revenue is anticipated to swell at a compound annual rate of 5.1% over the five years through 2030 to reach €170.2 billion.

In the European Farm Tractor Market, the EU has adopted a series of seven directives over the past two decades to address emissions from non-road engines.

United Kingdom is expected to dominate the European agriculture tractor market

The Europe & CIS Tractor market was valued at 15.23 Billion in 2024 and is expected to reach USD 20.46 Billion by 2030 with a CAGR of 5.04%.

The global agricultural tractors market, currently valued at approximately $XX million (estimated based on available CAGR and market trends), is projected to experience steady growth, with a Compound Annual Growth Rate (CAGR) of 3.73% from 2025 to 2033. This expansion is driven by several key factors. Firstly, the increasing global population necessitates higher agricultural output, boosting demand for efficient farming machinery like tractors. Secondly, technological advancements, such as the integration of precision farming techniques and automation, are improving tractor efficiency and productivity, thereby fueling market growth. Furthermore, favorable government policies promoting agricultural modernization and mechanization in developing economies are significantly contributing to market expansion. The market is segmented by drive type, with two-wheel drive and all-wheel drive tractors catering to diverse farming needs and terrains. Major players like Deere & Company, CNH Industrial, and Kubota Corporation are leading the market, employing various competitive strategies including product innovation, mergers and acquisitions, and geographic expansion to maintain market share. However, certain restraints are anticipated to moderate market growth. Fluctuating commodity prices, coupled with the high initial investment cost of tractors, can deter farmers, particularly smallholder farmers in developing regions, from adopting this technology. Furthermore, environmental concerns related to emissions and fuel consumption are prompting the development of more sustainable solutions, which may temporarily affect the market trajectory until these technologies become mainstream. Regional growth varies, with North America and Europe currently holding significant market shares due to established agricultural practices and advanced farming technologies. However, Asia-Pacific, particularly India and China, is anticipated to witness substantial growth in the coming years due to expanding agricultural land and increasing government support for agricultural modernization. The competitive landscape is highly fragmented, with numerous established players and emerging companies vying for market share, leading to intense competition and a constant push for innovation.

In 2015, John Deere held the greatest share of the sales volume of tractors in the European market. **** percent of all tractors sold in Europe that year were produced by this American Corporation. John Deere was followed by the FIAT-controlled company New Holland with **** percent of the European tractor market share.

CNH and AGCO held together almost ** percent of the European market for tractors in 2015

Even if John Deere on its own controlled **** percent of the market in 2015, it is important to notice that New Holland, Case IH and Steyr together accounted for **** percent of the market share in 2015. These three companies all belong to the Case New Holland Group (CNH). Tractor manufacturers Challenger, Fendt, Massey Ferguson and Valtra, on the other hand, are held by the American agricultural equipment manufacturer AGCO. If this AGCO Group is taken into account, John Deere is pushed to the third position. AGCO would then hold **** percent of the market share with **** percent for Case New Holland, AGCO’s net income for 2015 was *** million dollars. John Deere registered alone 1941 millions of dollars .

John Deere net income also stems from a diversification of products and business segments

John Deere registered a net income that was more than double of the two AGCO ad CNH conglomerates put together. The reason behind this could be John Deere’s diversified range of products and sources of income. In 2018, the company recorded 792 millions of U.S. dollars in operating profit. John Deere also increases its net income by producing and selling construction machinery. In 2017, its sales of construction equipment were valued at around **** billion dollars.

Europe Agricultural Equipment Market was valued at USD 38.15 Billion in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 4.16% through 2029.

The global agricultural tractors market is poised for significant growth, projected to reach a market size of $150 billion by 2025. While the precise CAGR (Compound Annual Growth Rate) is not provided, considering the strong market drivers such as increasing global food demand, technological advancements in tractor design (e.g., precision farming technologies, automation), and government initiatives supporting agricultural modernization, a conservative estimate of a 5% CAGR from 2025 to 2033 is reasonable. This would indicate substantial market expansion over the forecast period. Key market segments include two-wheel drive and four-wheel drive tractors, catering to diverse farming needs and scales of operation. The distribution channels are segmented into online and offline retail, reflecting the evolving landscape of agricultural equipment sales. Leading manufacturers like AGCO, CNH Industrial, Deere & Company, Kubota, and others compete intensely, driving innovation and efficiency improvements within the sector. Regional variations are expected, with North America, Europe, and Asia-Pacific anticipated to be major market contributors due to established agricultural sectors and supportive government policies. Restraints to growth include fluctuating commodity prices, high initial investment costs for advanced tractors, and varying levels of technological adoption across different regions. The market's future trajectory will be significantly influenced by the adoption of precision agriculture technologies, which enhance efficiency and reduce resource waste. Furthermore, the increasing focus on sustainable agricultural practices will likely drive demand for tractors with lower environmental impact. The ongoing expansion of e-commerce platforms for agricultural equipment will also reshape the distribution landscape. The competitive landscape will remain dynamic with existing players investing in research and development and potentially new entrants emerging with innovative solutions. Overall, the agricultural tractor market presents a compelling investment opportunity driven by long-term trends in global food security and technological advancements. This comprehensive report provides an in-depth analysis of the global agricultural tractors market, a sector currently valued at approximately $100 billion and projected for significant growth. We delve into market dynamics, competitive landscapes, and future trends, offering invaluable insights for stakeholders across the value chain. This report uses data and estimates informed by industry knowledge and research to provide a comprehensive overview.

The global agricultural tractor market, currently exhibiting a Compound Annual Growth Rate (CAGR) of 2.43%, presents a significant opportunity for stakeholders. Driven by factors such as increasing global food demand, rising arable land under cultivation, and the growing adoption of precision farming techniques, the market is projected to experience steady growth throughout the forecast period (2025-2033). Technological advancements, including the integration of GPS, automation, and data analytics into tractor designs, are further fueling market expansion. The market is segmented by tractor type (e.g., two-wheel drive, four-wheel drive, articulated) and application (e.g., crop farming, livestock farming, orchard farming), each segment exhibiting unique growth trajectories influenced by regional agricultural practices and technological adoption rates. While challenges such as fluctuating raw material prices and stringent emission norms pose some restraints, the overall market outlook remains positive. The leading companies in the agricultural tractor market – including AGCO Corp., CLAAS KGaA mbH, CNH Industrial NV, Deere and Co., Escorts Ltd., Kubota Corp., Kverneland AS, Mahindra & Mahindra Ltd., SDF SpA, and Tractors and Farm Equipment Ltd. – are employing various competitive strategies, such as product innovation, strategic partnerships, and geographic expansion, to maintain their market share and capitalize on emerging opportunities. Consumer engagement initiatives focusing on technological advancements, sustainability, and cost-effectiveness are gaining traction, influencing purchasing decisions. Regional variations in market dynamics are evident; North America and Europe currently hold substantial market share, but rapid growth is anticipated in the Asia-Pacific region, driven by increasing agricultural mechanization in countries like India and China. This presents opportunities for both established players and new entrants in the market. Analyzing these regional trends, alongside advancements in technology and consumer preferences, is crucial for effective market penetration and future growth.