The agricultural machinery market - France

The global agricultural equipment market has seen notable growth, with the French market in particular demonstrating robust health. In 2021, France's market for agricultural equipment reached a value of 7.6 billion euros, a significant increase with a 5.37% annual growth rate. Factors bolstering this growth included favorable agricultural conditions, inflation affecting raw materials like steel, and government subsidies facilitating equipment purchases.

Analysis of Agricultural Equipment Demand in France: A Flourishing Sector Amid Rising Food Needs and Technological Advancements

The agricultural equipment market in France is experiencing healthy growth, capitalizing on the country's long-standing position as an agricultural leader in Europe. With agricultural advancements dating back to the 19th century, France has continued to evolve, now harnessing modern technologies to meet the increasing demands of a growing population and the challenges of diminishing arable land.  France has positioned itself as a key player, being the third-largest producer of agricultural equipment in Europe and the world's fifth-largest exporter.

The driving force behind the expansion of this market is the agricultural sector itself. As of 2021, there are between 350,000 and 400,000 farms in France, which have seen a reduction in number but an expansion in size, engulfing an average of around 69 hectares each. These farms, inclusive of livestock and horticultural operations, generate the primary consumer base for agricultural equipment. The production value of French agriculture soared to over 75 billion euros in 2021––a notable increase from the previous year, with crop production taking a sizable portion of over 60%. These burgeoning figures depict not only an increase in agricultural output but concurrently, a growing demand for agricultural equipment. The most popular machinery includes tractors, harvesters, and soil working tools, which together account for 60% of the agricultural equipment sales. Furthermore, numerous innovative solutions are being adopted to bolster farming operations, including drones, self-driving tractors, and technologically advanced harvesting machines, showing a burgeoning interest visible in rising Google search trends.

Governmental support has further stimulated the market. The "agricultural, food, and forestry transition" stimulus plan allocated over 200 million euros, driving forward equipment investment projects and presumably boosting domestic production as well. Additionally, French agriculture cooperatives known as CUMAs have demonstrated an investing trend toward agricultural machinery, thus echoing the optimism in the sector.

The landscape of this market extends beyond farms. France's production output is geared not only toward domestic use but also caters to international markets, with exports making up two-thirds of the production. The country's export prowess renders it among the top global players. However, the market is not without its challenges—the recent Ukrainian crisis, for example, threatens to disrupt trade dynamics and raw material supplies, possibly affecting future growth trajectories.

Distinguishing the Titans of agricultural equipment: A Look into Market Leaders and Innovators

The agricultural equipment industry is defined by a few prominent players that hold substantial influence over market dynamics. These companies, often referred to as the 'Big Three,' along with several national giants and innovative firms, are the mainstays of technological advancement, production prowess, and market leadership within the sector.

• Deere & Company: As one of the most recognizable names in the industry, Deere, often known by its brand name John Deere, has established itself as a paragon of quality and innovation. The company's green and yellow machinery is ubiquitous in fields across the globe, with a product line that includes renowned tractors, harvesters, and a variety of technologically advanced equipment suited for all kinds of agricultural operations.
  
  
• CNH Industrial: Another heavyweight in the industry is CNH Industrial, known for its two main brands, Case IH and New Holland Agriculture. Their product offerings span across a broad spectrum, including tractors, combine harvesters, and hay and forage equipment. Their global footprint and commitment to sustainability are evident in their approach to machinery manufacturing.
  
  
• CLAAS: With its origins in Germany, CLAAS is synonymous with high-performing combine harvesters and a range of agricultural machinery that includes tractors, forage harvesters, and baling presses. Their focus on efficiency and comfort has garnered them a steadfast reputation among farming communities.
  
  
• On the national stage, Exel Industries is a significant player known for its specialization in precision spraying equipment. Aimed at improving the efficiency of crop protection, they play a crucial role in supporting sustainable farming practices.
  
  
• Another jewel of national acclaim is Pellenc, which has carved out a niche in the market for vineyard and winemaking equipment. They have expanded their reach by offering innovative solutions in various sectors, including olive and fruit tree cultivation.
  
  
• Beyond these giants, the industry witnesses burgeoning advancements in areas like agricultural robotics. As farms move towards increased automation and precision, companies are investing in developing cutting-edge robots that streamline operations, such as robotic milking systems and autonomous tractors. These robotic technologies are setting the stage for a new era in agriculture, further disrupting the market and offering new opportunities for growth and efficiency.

Taken together, these companies represent the vanguard of agricultural equipment. Their strategic importance cannot be overstated; they shape the future of farming with their continued commitment to innovation, adaptation to emerging challenges in agriculture, and responsiveness to the market's evolving demands.

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 25/06/2021

Summary and extracts

List of charts

• The size of the farm equipment market
• Volume share of the farm electrical equipment market
• Breakdown of agricultural equipment sales by product family
• The new agricultural equipment market
• Distribution of land use
• Average annual expenditure per farm
• CUMA investment value
• Number of French farms by main production output
• French agricultural production
• Breakdown of aid requested by type of equipment
• Evolution of interest in "agricultural equipment" research
• Queries related to the term "agricultural equipment
• Tractor production market share (standard and specialty)
• Revenue share by machine equipment
• Industry, business and employment
• Price index for agricultural inputs
• Trend in the rate of robotization of milking on French farms
• Agricultural equipment exports, imports and trade balance
• Main countries to which France exports
• Main countries exporting to France
• Commodity prices before and since the war in Ukraine