Europe Agricultural Tractors Market Report and Forecast 2025-2034
Description
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 Tractors Market Growth
Rising preference for sustainable tractors, favourable government policies and subsidies for agricultural development, and integration of advanced features such as GPS tracking into tractors are some of the crucial drivers for growth of the Europe agricultural tractors market.
The rising global population and the need to enhance food production have led farmers to adopt tractors that can deliver greater efficiency and higher outputs. Moreover, there is also a gradual shift towards electric and hybrid tractors, which contribute to sustainable agriculture by reducing emissions, minimising noise levels, and lowering operational expenses.
Telematics technology is creating new Europe agricultural tractors market opportunities as it gathers and sends real-time data which plays a crucial role in improving fleet management, scheduling maintenance, monitoring field status, and ultimately boosting the efficiency of agricultural operations. For instance, farmers can make informed decisions regarding irrigation, fertilisation, and pest control by collecting data on soil moisture levels, temperature, and other environmental factors.
Key Trends and Recent Developments
Increased agricultural output, growing adoption of smart and sustainable electric tractors as well as introduction of robotics in agriculture sector is increasing the Europe agricultural tractors market value.
June 2024
Mahindra and Mahindra, plans to expand its operations in Europe by 2025. The objective is to double its international business in the next three years by capitalizing on its newly launched Oja tractor range in the international markets. Oja was developed by M&M in collaboration with Japan-based Mitsubishi Agriculture Machinery Company.
March 2024
Monarch Tractor, the company which developed the world’s first fully electric, autonomous, and smart MK-V tractors, is planning to expand its market in Europe. The company exhibited its MKV tractors in France as well as Germany during 2023 and received a positive response for the same. In March 2024, the company organized a pan-Europe demonstration of the tractors with an aim to showcase its sustainable and smart technologies across numerous European farms.
March 2024
Italy-based company New Holland unveiled its fully electric T3 tractors with an overall battery capacity of 75 kWh in a famous agricultural fair in Turkey. The tractor is compact, lightweight, and operates with 800 volts of high voltage electrical power. With two motors to drive the wheels, hydraulic, and power take-off respectively, the T3 tractors also feature a smart robotic transmission system which changes gears electronically. The tractors range is a gamechanger in terms of sustainability as well as efficiency.
September 2022
Kubota, a leading tractor manufacturer in Japan launched its electric tractors In Europe, being the first Japanese company to do so. The electric tractors LXe-261 are highly compact and sustainable, helping the company achieve its carbon neutrality targets. Moreover, the tractors are also equipped with high-capacity battery, fast charging, and a continued operational duration of around three to four hours. They are ideal for lawn mowing, hauling, and other associated activities in the agricultural field.
Increased Agricultural Output Driving Market Demand
The European Union accounts for one of the largest agricultural productions in the world. According to the official statistical organization of the European Union, the value of total agricultural output in the region was estimated at EUR 537.1 billion. This value is expected to grow in the coming years driving growth of the Europe agricultural tractors industry.
Growing Adoption of Electric Tractors Supporting the Market
Growing concerns over environmental sustainability and national carbon emission reduction targets of European nations have increased the preference for electric tractors among farmers. Key players such as Monarch, New Holland, and Kubota which account for major agricultural tractors market share in Europe. They are manufacturing efficient electric tractors with high capacity and maximized operational output to meet their growing demand.
Introduction of AI and Robotics is Creating New Market Opportunities
Growing technological advancements have created new agricultural tractors demand with smart AI, automation, and robotic based equipment. Industry leaders are increasingly investing in research and development of such technologies eyeing future growth. For instance, Danish agrotech company Agrointelli had delivered UK’s first commercially available robotic tractor in 2021 to be operated on Suffolk farm with a built-in robot to evenly distribute weight across four wheels and autonomous GPS mapping enabling it to follow pre-programmed planned routes.
Small Farms Create New Demand for Compact and Lightweight Tractors
Europe’s maximum agricultural output arrives from small farmlands which have highly mechanized management systems. Since the conventional tractors are too large for such farms, farmers are increasingly preferring compact and lightweight alternatives. For instance, the Oja series of tractors, manufactured by Mahindra and Mahindra (M&M), expected to be launched in European market during 2025, is in high demand due to its lightweight and compact features. Other market players like Kubota and Solis Tractors have also launched their compact and lightweight tractor series catering to the new demand.
Europe Agricultural Tractors Industry Segmentation
“Europe Agricultural Tractors Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:
Market Breakup by Engine Power:
Less Than 40 HP
41 to 100 HP
More Than 100 HP
Market Breakup by Type:
Orchard Tractors
Row-Crop Tractors
Others
Market Breakup by Propulsion:
Electric
ICE
Market Breakup by Country:
United Kingdom
Germany
France
Italy
Others
Europe Agricultural Tractors Market Share
Based on propulsion, the market is divided into electric and ICE. The ICE tractors account for a substantial market share as these tractors have been the foundation of agricultural mechanisation for years and farmers are more familiar with them compared to the electric tractors. Additionally, ICE tractors generally provide greater power and longer operating time between refuels when compared to current electric models, boosting segment growth.
Leading Companies in the Europe Agricultural Tractors Market
The market players are readily focused on developing green tractors due to the rising carbon emissions related to farming.
Kubota Corp.
CNH Industrial N.V.
Deere & Co.
Yanmar Holdings Co., Ltd.
AGCO Corp.
SDF S.p.A (DEUTZ-FAHR)
Daedong Corporation
Mahindra And Mahindra Ltd.
Argo Tractors S.p.A
CLAAS KGaA GmbH
Others
Europe Agricultural Tractors Market Growth
Rising preference for sustainable tractors, favourable government policies and subsidies for agricultural development, and integration of advanced features such as GPS tracking into tractors are some of the crucial drivers for growth of the Europe agricultural tractors market.
The rising global population and the need to enhance food production have led farmers to adopt tractors that can deliver greater efficiency and higher outputs. Moreover, there is also a gradual shift towards electric and hybrid tractors, which contribute to sustainable agriculture by reducing emissions, minimising noise levels, and lowering operational expenses.
Telematics technology is creating new Europe agricultural tractors market opportunities as it gathers and sends real-time data which plays a crucial role in improving fleet management, scheduling maintenance, monitoring field status, and ultimately boosting the efficiency of agricultural operations. For instance, farmers can make informed decisions regarding irrigation, fertilisation, and pest control by collecting data on soil moisture levels, temperature, and other environmental factors.
Key Trends and Recent Developments
Increased agricultural output, growing adoption of smart and sustainable electric tractors as well as introduction of robotics in agriculture sector is increasing the Europe agricultural tractors market value.
June 2024
Mahindra and Mahindra, plans to expand its operations in Europe by 2025. The objective is to double its international business in the next three years by capitalizing on its newly launched Oja tractor range in the international markets. Oja was developed by M&M in collaboration with Japan-based Mitsubishi Agriculture Machinery Company.
March 2024
Monarch Tractor, the company which developed the world’s first fully electric, autonomous, and smart MK-V tractors, is planning to expand its market in Europe. The company exhibited its MKV tractors in France as well as Germany during 2023 and received a positive response for the same. In March 2024, the company organized a pan-Europe demonstration of the tractors with an aim to showcase its sustainable and smart technologies across numerous European farms.
March 2024
Italy-based company New Holland unveiled its fully electric T3 tractors with an overall battery capacity of 75 kWh in a famous agricultural fair in Turkey. The tractor is compact, lightweight, and operates with 800 volts of high voltage electrical power. With two motors to drive the wheels, hydraulic, and power take-off respectively, the T3 tractors also feature a smart robotic transmission system which changes gears electronically. The tractors range is a gamechanger in terms of sustainability as well as efficiency.
September 2022
Kubota, a leading tractor manufacturer in Japan launched its electric tractors In Europe, being the first Japanese company to do so. The electric tractors LXe-261 are highly compact and sustainable, helping the company achieve its carbon neutrality targets. Moreover, the tractors are also equipped with high-capacity battery, fast charging, and a continued operational duration of around three to four hours. They are ideal for lawn mowing, hauling, and other associated activities in the agricultural field.
Increased Agricultural Output Driving Market Demand
The European Union accounts for one of the largest agricultural productions in the world. According to the official statistical organization of the European Union, the value of total agricultural output in the region was estimated at EUR 537.1 billion. This value is expected to grow in the coming years driving growth of the Europe agricultural tractors industry.
Growing Adoption of Electric Tractors Supporting the Market
Growing concerns over environmental sustainability and national carbon emission reduction targets of European nations have increased the preference for electric tractors among farmers. Key players such as Monarch, New Holland, and Kubota which account for major agricultural tractors market share in Europe. They are manufacturing efficient electric tractors with high capacity and maximized operational output to meet their growing demand.
Introduction of AI and Robotics is Creating New Market Opportunities
Growing technological advancements have created new agricultural tractors demand with smart AI, automation, and robotic based equipment. Industry leaders are increasingly investing in research and development of such technologies eyeing future growth. For instance, Danish agrotech company Agrointelli had delivered UK’s first commercially available robotic tractor in 2021 to be operated on Suffolk farm with a built-in robot to evenly distribute weight across four wheels and autonomous GPS mapping enabling it to follow pre-programmed planned routes.
Small Farms Create New Demand for Compact and Lightweight Tractors
Europe’s maximum agricultural output arrives from small farmlands which have highly mechanized management systems. Since the conventional tractors are too large for such farms, farmers are increasingly preferring compact and lightweight alternatives. For instance, the Oja series of tractors, manufactured by Mahindra and Mahindra (M&M), expected to be launched in European market during 2025, is in high demand due to its lightweight and compact features. Other market players like Kubota and Solis Tractors have also launched their compact and lightweight tractor series catering to the new demand.
Europe Agricultural Tractors Industry Segmentation
“Europe Agricultural Tractors Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:
Market Breakup by Engine Power:
Less Than 40 HP
41 to 100 HP
More Than 100 HP
Market Breakup by Type:
Orchard Tractors
Row-Crop Tractors
Others
Market Breakup by Propulsion:
Electric
ICE
Market Breakup by Country:
United Kingdom
Germany
France
Italy
Others
Europe Agricultural Tractors Market Share
Based on propulsion, the market is divided into electric and ICE. The ICE tractors account for a substantial market share as these tractors have been the foundation of agricultural mechanisation for years and farmers are more familiar with them compared to the electric tractors. Additionally, ICE tractors generally provide greater power and longer operating time between refuels when compared to current electric models, boosting segment growth.
Leading Companies in the Europe Agricultural Tractors Market
The market players are readily focused on developing green tractors due to the rising carbon emissions related to farming.
Kubota Corp.
CNH Industrial N.V.
Deere & Co.
Yanmar Holdings Co., Ltd.
AGCO Corp.
SDF S.p.A (DEUTZ-FAHR)
Daedong Corporation
Mahindra And Mahindra Ltd.
Argo Tractors S.p.A
CLAAS KGaA GmbH
Others
Table of Contents
115 Pages
- 1 Executive Summary
- 1.1 Market Size 2024-2025
- 1.2 Market Growth 2025(F)-2034(F)
- 1.3 Key Demand Drivers
- 1.4 Key Players and Competitive Structure
- 1.5 Industry Best Practices
- 1.6 Recent Trends and Developments
- 1.7 Industry Outlook
- 2 Market Overview and Stakeholder Insights
- 2.1 Market Trends
- 2.2 Key Verticals
- 2.3 Key Countries
- 2.4 Supplier Power
- 2.5 Buyer Power
- 2.6 Key Market Opportunities and Risks
- 2.7 Key Initiatives by Stakeholders
- 3 Economic Summary
- 3.1 GDP Outlook
- 3.2 GDP Per Capita Growth
- 3.3 Inflation Trends
- 3.4 Democracy Index
- 3.5 Gross Public Debt Ratios
- 3.6 Balance of Payment (BoP) Position
- 3.7 Population Outlook
- 3.8 Urbanisation Trends
- 4 Country Risk Profiles
- 4.1 Country Risk
- 4.2 Business Climate
- 5 Global Agricultural Tractors Market Overview
- 5.1 Key Industry Highlights
- 5.2 Global Agricultural Tractors Historical Market (2018-2024)
- 5.3 Global Agricultural Tractors Market Forecast (2025-2034)
- 5.4 Global Agricultural Tractors Market Breakup by Region
- 5.4.1 North America
- 5.4.2 Europe
- 5.4.3 Asia Pacific
- 5.4.4 Latin America
- 5.4.5 Middle East and Africa
- 6 Europe Agricultural Tractors Market Overview
- 6.1 Key Industry Highlights
- 6.2 Europe Agricultural Tractors Historical Market (2018-2024)
- 6.3 Europe Agricultural Tractors Market Forecast (2025-2034)
- 7 Europe Agricultural Tractors Market by Engine Power
- 7.1 Less Than 40 HP
- 7.1.1 Historical Trend (2018-2024)
- 7.1.2 Forecast Trend (2025-2034)
- 7.2 41 to 100 HP
- 7.2.1 Historical Trend (2018-2024)
- 7.2.2 Forecast Trend (2025-2034)
- 7.3 More Than 100 HP
- 7.3.1 Historical Trend (2018-2024)
- 7.3.2 Forecast Trend (2025-2034)
- 8 Europe Agricultural Tractors Market by Type
- 8.1 Orchard Tractors
- 8.1.1 Historical Trend (2018-2024)
- 8.1.2 Forecast Trend (2025-2034)
- 8.2 Row-Crop Tractors
- 8.2.1 Historical Trend (2018-2024)
- 8.2.2 Forecast Trend (2025-2034)
- 8.3 Others
- 9 Europe Agricultural Tractors Market by Propulsion
- 9.1 Electric
- 9.1.1 Historical Trend (2018-2024)
- 9.1.2 Forecast Trend (2025-2034)
- 9.2 ICE
- 9.2.1 Historical Trend (2018-2024)
- 9.2.2 Forecast Trend (2025-2034)
- 10 Europe Agricultural Tractors Market by Country
- 10.1 United Kingdom
- 10.1.1 Historical Trend (2018-2024)
- 10.1.2 Forecast Trend (2025-2034)
- 10.2 Germany
- 10.2.1 Historical Trend (2018-2024)
- 10.2.2 Forecast Trend (2025-2034)
- 10.3 France
- 10.3.1 Historical Trend (2018-2024)
- 10.3.2 Forecast Trend (2025-2034)
- 10.4 Italy
- 10.4.1 Historical Trend (2018-2024)
- 10.4.2 Forecast Trend (2025-2034)
- 10.5 Others
- 11 Market Dynamics
- 11.1 SWOT Analysis
- 11.1.1 Strengths
- 11.1.2 Weaknesses
- 11.1.3 Opportunities
- 11.1.4 Threats
- 11.2 Porter’s Five Forces Analysis
- 11.2.1 Supplier’s Power
- 11.2.2 Buyer’s Power
- 11.2.3 Threat of New Entrants
- 11.2.4 Degree of Rivalry
- 11.2.5 Threat of Substitutes
- 11.3 Key Indicators for Demand
- 11.4 Key Indicators for Price
- 12 Trade Data Analysis (HS Code – 871)
- 12.1 Major Exporting Countries
- 12.1.1 By Value
- 12.1.2 By Volume
- 12.2 Major Importing Countries
- 12.2.1 By Value
- 12.2.2 By Volume
- 13 Competitive Landscape
- 13.1 Supplier Selection
- 13.2 Key Global Players
- 13.3 Key Regional Players
- 13.4 Key Player Strategies
- 13.5 Company Profiles
- 13.5.1 Kubota Corp.
- 13.5.1.1 Company Overview
- 13.5.1.2 Product Portfolio
- 13.5.1.3 Demographic Reach and Achievements
- 13.5.1.4 Certifications
- 13.5.2 CNH Industrial N.V.
- 13.5.2.1 Company Overview
- 13.5.2.2 Product Portfolio
- 13.5.2.3 Demographic Reach and Achievements
- 13.5.2.4 Certifications
- 13.5.3 Deere & Co.
- 13.5.3.1 Company Overview
- 13.5.3.2 Product Portfolio
- 13.5.3.3 Demographic Reach and Achievements
- 13.5.3.4 Certifications
- 13.5.4 Yanmar Holdings Co., Ltd.
- 13.5.4.1 Company Overview
- 13.5.4.2 Product Portfolio
- 13.5.4.3 Demographic Reach and Achievements
- 13.5.4.4 Certifications
- 13.5.5 AGCO Corp.
- 13.5.5.1 Company Overview
- 13.5.5.2 Product Portfolio
- 13.5.5.3 Demographic Reach and Achievements
- 13.5.5.4 Certifications
- 13.5.6 SDF S.p.A (DEUTZ-FAHR)
- 13.5.6.1 Company Overview
- 13.5.6.2 Product Portfolio
- 13.5.6.3 Demographic Reach and Achievements
- 13.5.6.4 Certifications
- 13.5.7 Daedong Corporation
- 13.5.7.1 Company Overview
- 13.5.7.2 Product Portfolio
- 13.5.7.3 Demographic Reach and Achievements
- 13.5.7.4 Certifications
- 13.5.8 Mahindra And Mahindra Ltd.
- 13.5.8.1 Company Overview
- 13.5.8.2 Product Portfolio
- 13.5.8.3 Demographic Reach and Achievements
- 13.5.8.4 Certifications
- 13.5.9 Argo Tractors S.p.A
- 13.5.9.1 Company Overview
- 13.5.9.2 Product Portfolio
- 13.5.9.3 Demographic Reach and Achievements
- 13.5.9.4 Certifications
- 13.5.10 CLAAS KGaA GmbH
- 13.5.10.1 Company Overview
- 13.5.10.2 Product Portfolio
- 13.5.10.3 Demographic Reach and Achievements
- 13.5.10.4 Certifications
- 13.5.11 Others
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