The growing demand for agricultural products such as grains, vegetables, fruits, and pastures, animal husbandry, is creating a global need for innovative agriculture equipment in the market. The presence of such vast area of arable and crop land is expected to drive the European market of tractors along with other agriculture equipment and products. The vendors, capitalizing on the finance schemes and offers, pushed tractor sales to clear their inventories in the European market. Countries such as France, Italy, Spain, and Germany are the largest producers thereby, driving the demand for tractors in the European market. Factors such as increasing total factor productivity in farming, reduction in post-harvest loss, value addition to the agricultural raw materials, and better quality of agricultural products are driving the market in this region.

The tractors market in Europe is projected to produce volumes of around 350 thousand units by 2023, growing at a CAGR of more than 5% during 2018-2023.

The key four players operating in the tractors market in Europe are discussed in detail below:

1.    Deere & Company

John Deere is one of the bestselling tractors in Europe. The company offers small, medium, and large tractors which are differentiated on the basis of power across Europe. The company also offers agriculture management solutions, balers, combines, front loaders and other equipment which are operated using tractors to increase the productivity of the farms. The company also offers training before seasons to efficiently operate these machines as well as back up products in case of machinery failure during the season.

Key Strategy: John Deere is trying to achieve global pre-eminence in agricultural equipment and a global presence in agricultural equipment to eventually grow into a fully-integrated enterprise.

2.    CNH Industrial

CNH offers tractors under three brands in the European market which includes New Holland, Case IH, and Steyr. Case IH Optum 300 and Steyr 4145 machines were the winners for tractors of the year award in 2017. Europe headquarters of New Holland is located in Turin, Italy. Italy also has production facilities for low horsepower tractors and specialty products. The production center for medium and high power New Holland machines is located in Basildon, UK.

Key Strategy: CNH is focusing on increasing trend of precision farming, and the technology is made available through its two agriculture brands, New Holland and Case IH.

3.    AGCO

In Europe, AGCO tractors are primarily sold under the brand names Massey Ferguson, Fendt, and Valtra. The Massey Ferguson products are sold in various horsepowers, from 38 HP to 400HP. Fendt is one of the leading vendors of sales in Germany and sold an estimated of 5,774 units in the German market. The sales of its Challenger brand tractors in Europe were mainly in the UK with 43 units.

Key Strategy: AGCO is expanding their presence into new geographies such as Africa, China, and Brazil that naturally are ideal growth markets going forward their demographics and accompanying food demand.

4.   Kubota

Kubota is one of the leading vendors in the low and medium horse power segment in Europe. In Europe, Kubota offers tractors in the power range of 60 to 170 hp. The M7001 series is available in three variants of 130, 150, and 170 hp and they also have the power boost of 20, 20, and 5 hp, respectively. The company has a network of 650 distributors across Europe, and the major Kubota markets are France, Spain, Netherlands, Italy, and the UK. The company has set up an innovative production facility in Europe and had a production capability of 1,500 tractors per annum.

Key Strategy: Kubota is accelerating the development of the agriculture machinery market in countries such as India and China.

The other prominent player in the market is SDF, Class, Argo Tractors, Lovol Arbos Group, Carraro, and Tumosan.

View Arizton's Full Report On Tractor Market in Europe 2023

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