The Germany agricultural equipment market witnessed shipments of 61,613 units in 2022. The shipments are expected to reach 75,912 units in 2028, growing at a CAGR of 3.54% during the forecast period. The country has witnessed a massive increase in farm mechanization, both in terms of agricultural and industrial productivity, over the past four decades, driven by the technological renaissance. Farmers who planned to invest in agricultural machinery in the future fast-tracked their investment plans due to the expectation of very high inflation and low value of financial instruments. Meanwhile, only a few new model vehicles are available in the second-hand market, positively impacting the Germany agricultural equipment market.
- Germany has over 83.3 million food consumers and is the largest food market in Europe. The country witnessed a massive increase in farm mechanization in terms of agricultural and industrial productivity.
- The penetration and adoption of farm mechanization practices across Germany drive the sale of new farm equipment. Agricultural implements are the major product categories of the organized agriculture market in Germany.
- The Germany agricultural equipment market grew by 3.1% in 2022 from 2021. The increase in crop production and agricultural equipment sales was due to the favorable climate in 2022.
- German government plans schemes and initiatives to facilitate credit and improve agriculture-related operations, which will contribute to the growth of the overall value chain of the industry.
MARKET TRENDS & OPPORTUNITIES
Use of Energy-efficient Agricultural Equipment
The positive agriculture project aims to improve the living conditions of those in the agricultural supply chain and provide essential equipment sustainably. This aim joins an already announced objective to reduce total greenhouse gas (GHG) emissions by 40% by 2030 and zero emissions by 2040. The adoption of energy-efficient agricultural equipment will enable the fulfillment of these objectives.
High Local Production Capacities in Germany
Germany has a large domestic agricultural equipment manufacturing base. There are more than 20 manufacturing plants that supply equipment for both domestic and international markets. Further, the availability of a cost-competitive and skilled labor force, competitive power and fuel rates, and a favorable tax regulatory system for the industry have all contributed to a favorable economic backdrop for production investments.
INSIGHTS BY EQUIPMENT TYPE
The tractor equipment type has the highest demand in the Germany agricultural equipment market, holding a share of more than 47%. The demand for high-power tractors is largely driven by medium and large-scale farmers and government institutions that focus on rental services, as many farmers in the country have more than ten hectares of land. Furthermore, Germany, a leader in the automotive and engineering industries, will likely be at the forefront of such technological advancements. Several companies and startups are working on developing electric and sustainable agricultural machinery, including electric tractors, to cater to the increasing demand for eco-friendly solutions in agriculture. An electric tractor launch in Germany could be expected to offer benefits such as reduced emissions, lower operating costs, and potentially improved efficiency through precision agriculture technologies. These tractors may also integrate advanced features like telematics, autonomous capabilities, and smart farming solutions.
INSIGHTS BY APPLICATION TYPE
Post Harvesting application type has accounted for the largest Germany agricultural equipment market share, accounting for more than 37% in 2022. Farmers use post-harvest machinery and equipment to transform themselves into more producer-cum-processor with the help of post-harvest technologies appropriate for cost, time, and labor savings toward enhancement of quality and marketability to their production by value addition and reducing post-harvest costs.
John Deere, CNH Industrial, and AGCO dominated the German agricultural equipment market with an industry share of over 40% in 2022. These brands have adopted several strategies to gain traction in the industry. The industry has many established players that provide their products in open fields, vineyards, and others. The industry competition is expected to intensify further during the forecast period with increased product/service expansions, technological innovations, and mergers & acquisitions. Arizton believes global players will grow by partnering on a technology-sharing basis with regional or local players in the future.
Recent Developments in the Germany Agricultural Equipment Market
- In March 2023, John Deere announced MY24 updates for its 7, 8, and 9 Series Tractors lineup that will help prepare them for the future of precision agriculture.
- AGCO launched the latest Fendt 700 Vario series tractors in August 2022, featuring an upgraded powertrain with VarioDrive transmission and Fendt iD low engine speed concept. This new generation aims to enhance efficiency and productivity for customers.
- In June 2022, The CLAAS AXION 900 series of large tractors for contractors and big farms, the new AXION 900 series, is equipped as standard with the updated, continuously variable ZF Terramatic transmission.
- John Deere launched the new electric variable transmission (EVT) for select 8 Series Tractors and a new JD14X engine for 9 Series in March 2022.
- Massey Ferguson launched the MF 6S series tractors in February 2022. This machine provides up to 180 HP with advanced technology.
WHY SHOULD YOU BUY THIS REPORT?
This report is among the few in the market that offer outlook and opportunity analyses forecast in terms of:
- Market Size & Forecast Volume (Units) 2020–2028
- Segmentation by Equipment Type
- Segmentation by Application Type
- Major current and upcoming projects and investments
- Competitive intelligence about the economic scenario, advantages in Germany, industry dynamics, and industry shares
- Value chain analysis
- SWOT analysis
- Latest and innovative technologies
- Import and export analysis
- COVID-19 impact analysis of the market
- Company profiles of major and other prominent vendors
- Market shares of major vendors