Dublin, Feb. 16, 2026 (GLOBE NEWSWIRE) — The “Europe Agriculture Equipment Market Research Report 2026-2031” report has been added to ResearchAndMarkets.com’s offering.
The Europe Agriculture Equipment Market was sized at 249,096 Units in 2025, and is projected to reach 271,753 Units by 2031, rising at a CAGR of 1.46%
The agriculture equipment market in Europe is competitive and dominated by both global and strong domestic manufacturers. Companies like John Deere, CNH Industrial, AGCO & Kubota hold a significant share of the market. The industry features a mix of well-established global brands and regional players. As international companies continue to strengthen their presence, smaller regional manufacturers may face challenges competing with these larger, well-resourced companies.
At AGRITECHNICA 2025, a clean-sheet, fully electric tractor makes its debut in Europe. This innovative tractor delivers approximately 130 horsepower and features modular battery packs, highlighting John Deere’s commitment to low-emission powertrain solutions for European farms facing stringent emissions and sustainability regulations.
Kubota announced a strategic partnership with Norwegian ag-tech start-up Kilter to pilot and promote the AX-1 ultra-precise weeding robot in Europe, a fully autonomous spraying robot that uses AI for highly accurate weed control in vegetable crops. Deere & Company, CNH Industrials & CLASS dominate the European agriculture equipment market. These players thrive on innovation in the agriculture equipment market. They are increasingly investing in developing advanced Agri machinery technology for precision farming and machine automation.
EUROPE AGRICULTURE EQUIPMENT MARKET REGIONAL ANALYSIS
France accounted for the highest market size and is projected to grow at a CAGR of 1.45% through 2031, supported by government initiatives to support farming activities. In 2024, prices for agricultural equipment experienced a sharp increase of over 6.5%. This rise in prices can be attributed to rising inflation, although prices are expected to decrease in 2025.
Germany is the second-largest market in the European region, following France. It serves as a manufacturing hub for agricultural equipment in Europe. However, demand for agricultural equipment has been negatively affected by a labor shortage and subdued investment in the agriculture sector. Italy ranks as the third-largest market in Europe, after France and Germany. In 2026, the market is anticipated to recover, bolstered by incentive schemes and restocking efforts by dealers following a prolonged period of decline.
Spain represents the fastest-growing region during the forecast period, driven by a higher farm mechanization rate and growing investment in agriculture sector. Poland, while accounting for a smaller market size, is projected to grow at a CAGR of 1.22% due to by rising production costs, farm financial pressures and geopolitical uncertainties that dampened investment.
EUROPE AGRICULTURAL EQUIPMENT MARKET TRENDS
Use of Digital Channels for Agriculture Equipment Sales
In Europe, the digital sales channels for agricultural equipment have evolved rapidly as farmers increasingly research, compare, and transact online instead of relying solely on traditional dealerships. This shift is driven by greater digital savviness among users, broader internet access, and a growing demand for simplified cross-border buying and selling.
The overall trend is toward greater online transparency, digital negotiation, and integrated service, making buying and selling farm equipment more efficient across Europe’s diverse markets.
Rising Focus on Compact& Electric Agriculture Equipment
In 2025, the growing trend of electric and compact agricultural equipment in Europe reflects a strong shift toward sustainable, efficient, and flexible farm machinery. This trend is driven by stringent EU emissions standards, government incentives for zero-emission equipment, and farmers’ demand for lower operating costs and less environmental impact, especially on smaller and mid-sized farms.
Europe is expected to remain a key region for electrification and compact equipment adoption, with Germany, France, Italy, the UK, and the Netherlands leading the transition toward greener agricultural practices.
Overall, electrification and compact design in agriculture are reshaping Europe’s equipment market by enabling zero-emission, quieter, and cost-effective alternatives that align with sustainability goals and operational flexibility.
EUROPE AGRICULTURAL EQUIPMENT MARKET DRIVERS
Government Policy and Credit Support System
In 2025, government policies and credit support systems are essential drivers of demand for agricultural equipment in the European market. Public funding and financing incentives help reduce the high upfront costs of modern machinery, promote mechanization, and support sustainable farming practices.
The European Union’s Common Agricultural Policy (CAP) provides direct income support, grants, and rural development funding aimed at improving productivity and farm viability across member states.
These policies, combined with flexible financing options from banks and rural credit institutions, are expanding access to advanced agricultural equipment, leading to higher adoption rates across Europe’s diverse farming sector.
Increased Farm Mechanization
In 2025, the growing trend of farm mechanization is significantly driving demand for agricultural equipment in Europe. As labour becomes increasingly scarce and costly, many farmers are turning to machinery to bridge the gap. This shift enhances efficiency and reduces reliance on manual labour. Overall, mechanization in Europe farming accelerates the demand for agricultural equipment.
Overall, the growing mechanization of European farms – driven by labour dynamics, policy support, and technological advancements – is expanding the demand for various agricultural equipment, ranging from traditional tractors to smart, automated machinery.
INDUSTRY RESTRAINTS
Growing Demand for Second-Hand Equipment
In 2025, the increasing demand for second-hand agricultural equipment in Europe is significantly impacting the sales of new agricultural machinery. Many farmers, particularly smaller operations or those facing financial difficulties, are opting for used tractors, harvesters, and implements due to the substantial cost savings they offer compared to new equipment.
This trend has become especially pronounced amid economic uncertainty, high interest rates, and tight farm budgets, leading buyers to postpone large investments in new machines and instead turn to more affordable pre-owned options.
Overall, the vibrant second-hand segment meets the demand for affordable machinery, but it also constrains new equipment sales, particularly among cost-sensitive farmers in Europe.
Labor Shortage Restricts Demand for Agriculture Equipment
In 2025, labor shortages in agriculture are increasingly viewed as a significant constraint on the demand for agricultural equipment in the European market.
While a lack of workers may accelerate mechanization in some cases, ongoing shortages, particularly of skilled operators and seasonal labor can hinder investment in new machinery, as farmers struggle to effectively utilize advanced equipment without adequate human support.
Overall, labor shortages in Europe restrict the ability of farms to adopt advanced agricultural machinery, as investment returns hinge on having enough qualified operators. Shortage of agriculture labor is expected to restrict the sales of agriculture equipment in the European market.
IMPACT OF TARIFF
- The local manufacturing of agricultural equipment is also impacted by the implementation of tariffs on raw materials imported into the European market from other countries. High tariffs imported raw materials such as iron, steel, rubber, aluminium and glass. The US government presently have 50% tariff rates on steel and aluminium imports from other countries.
EUROPE AGRICULTURE EQUIPMENT MARKET SEGMENTATION INSIGHTS
- The agricultural machinery market is dominated by tractors, which are projected to hold the largest market share in 2025. This segment is expected to grow at a CAGR of 1.26%. Other agricultural equipment, such as mowers, windrowers, and balers, will collectively account for a significant market share in 2025.
- Within the land preparation equipment segment, tillers and ploughs are key players, holding substantial market shares in 2025. This entire segment is anticipated to expand at a CAGR of 1.37% by 2031.
- In the seedling and planting sector, planters are expected to lead, capturing a market share of over 24%% in 2025. This segment is projected to show significant growth by 2030.
- Self-propelled harvesters hold a significant position within Europe agricultural equipment market. Their popularity stems from several advantages, including faster harvesting speeds, suitability for high-capacity farms, reduced labor dependency, and minimized crop loss due to precise cutting mechanisms. In the broader harvesting equipment segment, self-propelled harvesters are forecast to account for the market share in 2025.
- The demand for planting and transplanting equipment is strengthening as farmers increasingly prioritize uniformity and input efficiency. Innovations such as row-by-row seed singulation, electric meters, and retrofit precision kits enable operators to achieve yield improvements without requiring complete system overhauls, offering an attractive solution when capital investment is limited.
KEY QUESTIONS ANSWERED
- How big is Europe agriculture equipment market?
- Which region dominates the Europe agriculture equipment market share?
- What is the growth rate of the Europe agriculture equipment market?
- What are the significant trends in the Europe agriculture equipment market?
- Who are the key players in European agriculture equipment market?
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 147 |
| Forecast Period | 2025 – 2031 |
| Estimated Market Value in 2025 | 249096 Units |
| Forecasted Market Value by 2031 | 271753 Units |
| Compound Annual Growth Rate | 1.4% |
| Regions Covered | Europe |
Key Company Profiles
- AGCO
- CNH Industrial
- John Deere
- Kubota
- Mahindra & Mahindra
Other Prominent Company Profiles
- Yanmar
- Same Deutz-Fahr
- Class
- Kioti
- ISEKI
- Lovol Tractors
- YTO Group
- Zoomlion
- Krone
- KUHN Group
- TYM Corporation
- EXEL Industries
- Amazone
- HORSCH Maschinen GmbH
- Pottinger Landtechnik GmbH
- LEMKEN GmbH & Co. KG
Segmentation by Equipment Type
Land Preparation
Agriculture Tractor
Seedling & Planting
- Transplanters
- Planters
- Seed Drillers
Plant Protection
Harvesting
- Tractor-Mounted
- Self-Propelled
Other Equipment
Geography
Germany
- France
- Italy
- UK
- Spain
- Poland
- Rest of Europe
For more information about this report visit https://www.researchandmarkets.com/r/73e24k
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world’s leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
- European Agriculture Equipment Market
