The Western European agricultural machinery market was valued at over $35 billion in 2021, which is expected to advance at a CAGR of 3.4% from 2022 to 2030. Similarly, the Central European agricultural machinery market accounted for more than $10 billion in 2021, and it will rise at a CAGR of 4.3% during 2022−2030. The need to expand the existing farm production capability gives chances for enterprises wishing to enter the agriculture industry of Europe, thus resulting in increasing agricultural equipment sales across the continent in the long run.
In Europe, agriculture has always been a labor-intensive business. However, as people relocate to urban areas, the employment rate of the sector decreases. Farmers are increasingly turning to advanced technology to replace physical labor, as the latter is more cost-effective, accessible, and efficient. Due to a lack of agricultural workers, labor expenses are rising. France was short of roughly 200,000 people till the end of May 2020, while Spain was short of 70,000 to 80,000. Italy requires roughly 250,000 seasonal laborers, compared to 70,000 to 80,000 in the U.K. and 300,000 in Germany, which would increase the demand for agricultural machinery.
Germany is a pioneer in mechanizing agriculture, which is why it held the largest share in the Western European agricultural machinery market in 2021, of roughly 40%. Furthermore, the Netherlands dominated the Central European agricultural machinery market, with a share of roughly 25% in 2021. The want to increase farming productivity, add value to agricultural raw materials, minimize post-harvest loss, and improve the quality of agricultural products is driving the market in these regions. Furthermore, these countries are the world's top exporters of agricultural goods owing to the widespread use of automated farming.
Major Western and Central European agricultural machinery market participants are announcing alliances, new launches, and expansions to acquire a competitive advantage. For example, Deere & Company presented its completely autonomous tractor for increasing agricultural productivity, at CES 2022 in January 2022. It includes a Deere 8R tractor, a TruSet-enabled chisel plow, a GPS navigation system, and other modern features. In addition, Yanmar Holdings Co. Ltd. introduced a new agricultural solution for winemakers in October 2021: a vineyard robot that offers a variety of benefits, including increased production, greater safety, adaptability, and savings.
Hence, the market is expected to grow in the coming years because of a lack of agricultural laborers and a need to increase agricultural productivity to feed the increasing population.
