Europe Planting Machinery Market - Growth, Trends and Forecasts (2019 - 2024)

Market Overview

The growing need and recent developments to automate the agriculture sector inthe region is driving the demand for planting machinery. Planting machinery is a part of farm mechanization equipment. After the addition of tractors and combine harvesters in farm automation, planting machinery further automate subsequent tasks in the farms, thereby inducing the growth of the market in the region.

Planting machinery offers solutions to crop farmers to sow the seeds. Despite tractors and combine harvesters being used widely, globally, planting machinery use is in the nascent stages and is in succession to tractors to reduce manual intervention in agriculture. Apart from increasing efficiency, mechanization in planting helps in increasing precision agricultural practices.

The European planting machinery market was observed as a high maturity stage becuase of the rise in the number of agricultural innovations in the region. Rising demand in developing countries like Romania and Belarus fuels the planting machinery market in the region. The scarcity of farm labor, high farm income, farm consolidation and widespread usage of tractors are the factors driving the sales of planting machinery in Europe.

Scope of the Report

For the purpose of this report, the planting machinery used in agricultural operations has been considered. The report does not cover planting machinery used for industrial and construction purposes, or multi-purpose tractors, used for both agricultural and non-agricultural operations. The report contains a detailed analysis on various parameters of the Europe planting machinery market. The market has been segmented, based on machinery type, design and geography.

Key Market Trends

High Government Subsidies For Farm Mechanization

According to the Guardian, under the EU’s common agricultural policy (CAP) in 2017, farm subsidies more than USD 6.3 million was provided. Farmers in the region are highly dependent on European Union subsidies, for about half their income, which directly relates to the revenue of the planting machinery market in the region. The countries in the region with well equipped farm technology and an adoption of higher levels of mechanization, has witnessed a high level of yield from field crops, and is able to cope with the growing agricultural demand in the country, and its export commitments due to the subsidies provided by the government. In spite of the recent cuts in subsidies, the French agricultural community still receives EUR 9 billion (over USD 10 billion), per year, through the EU’s Common Agricultural Policy (CAP). The French farming community that receives these subsidies is powerful, and effectively represented, by the country’s primary main agriculture union, the FNSEA. This union has become even more aggressive, in recent years, to avoid being outflanked by a new competitor, Confédération paysanne, a radical rural organization.

Continued agricultural subsidies and strong farm unions will continue to contribute to the overall agriculture growth in the region, along with the growth of planting machinery, in the region.

Increasing Usage of Planting Machinery in France

The French planting machinery segment was valued at USD 112.8 million in 2017, and is estimated to witness a CAGR of 3.2% during the forecast period. In France, the production of seeders, planters, and transplanters increased significantly in the recent past. However, the production of fertilizers and precision seeders witnessed a declining trend. According to the IHS Maritime & Trade and the AXEMA, France is the sixth largest exporter of planting machinery across the world, and exported plant machinery worth EUR 60.3 million in 2017. Planters in France are used for those seeds that are larger in size and cannot be planted by using the usual seed drills. Furthermore, it helps to improve cropping frequency, which, in turn, provides increased seed planting and seed/fertilizer placement accuracies. According to UN Comtrade Database, in 2016, the major importers of French planters were Spain, the United Kingdom, Belgium, and Germany, however, it imported planters from Germany, Belgium and Italy in the same year.

Competitive Landscape

The European Planting Machinery market is moderately fragmented with major global occupying almost 35% of the market. Companies are not only competing based on product quality and promotion but also focused on strategic moves to hold larger market shares. The major companies dominating the European planting machinery market for its products, services, and continuous product developments are Deere & Company, Agco Corporation, Buhler Industries Inc, New Holland Agriculture (CNH Industrial), Visser Horti Systems, Kuhn Group among others.

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