France Agricultural Machinery Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

France Agricultural Machinery Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The French agricultural machinery market was valued at USD 6,080 million in 2018, and it is likely to witness a CAGR of 3.2% during the forecast period (2022-2027).

In France, tractor registrations fell by 20% in the first half of 2020. Compared to the same half of the previous year with landscaped tractors, the drop is a little less impressive (-15%). Due to the COVID-19 pandemic, the agriculture machinery industry in France had faced several challenges related to production facilities, and fast-changing consumer demand and behavior forced industrial players to find new solutions for the development of businesses.

The demand for tractors decreased nearly by 20%. Hence, the overall tractor market value was lower in the country compared to 2016. However, the sales in the second half were strong in the country. Thus, by the end of the year, tractor sales increased nearly by 3%, in terms of units, in the French market. In France, nearly all manufacturers expected to increase their sale prices in response to supply chain pressures and industry associations. Factoring in production headwinds, farm machinery sales in France are expected to rise by 5-7% this year to around USD 7.8 billion after being stable in 2020 during a volatile year marked by factory stoppages during lockdowns and an upturn in farmer demand.

France has one-third of all agricultural land in Europe. The major agricultural crops grown in France include sugar beet, wheat, maize, barley, rice, oats, and potatoes. According to Crop Trust (France), nearly 93% of the farms, out of 500,000 farms in France, are middle-range and large-scale projects. According to FAOSTAT, the area harvested under major field crops in France was 9.4 million hectares in 2020, which declined in productivity compared to 2019 at 9.7 million hectares due to the pandemic and increased moderately at a CAGR of 0.75%. In accordance with the recent approval by the French parliament, a new large-scale reform was framed regarding the country’s agriculture and food policy. The major focus of the reform is on the improvement of France’s agriculture and food policies, focused primarily on the improvement of agricultural production. The trends shifted toward the use of a smaller number of higher-powered machines, with an increased focus on the country’s export potential. Thus, the improved government support, increased interest in improving agricultural productivity, and improved farm structures are boosting the demand for agricultural machinery in France.

Tractors accounted for nearly 30% of the French agricultural machinery market. Factors like scarce human resources for farm labor, easy credit availability and fund access, moderate penetration, and shortening replacement cycles are encouraging indicators of the demand for tractors and farm equipment. In 2020, some 89,105 tractors were registered across Europe. Among these, 68,831 are agricultural tractors, the rest being quads, telehandlers, or other equipment. In France, tractor registrations fell by 20% in the first half of 2020 compared to the same half of the previous year due to the COVID-19 pandemic. For landscape tractors, the drop is a little less (-15%). The number of tractor registrations in 2020 was about an average of the last decade. Total registrations of agricultural tractors in 2019 were 13,563, which was high compared to 2020 with 11012. In France, agriculture tractors significantly dropped by about -18.81% in 2020.

The French agricultural machinery market is highly consolidated, with the top six companies accounting for about 85% of the market share. Companies operating in the French agricultural machinery market are focusing on increasing their market shares, primarily through acquisitions and investments in R&D, along with optimization of the supply chain.

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