United Kingdom Agricultural Machinery Market is projected to grow at a CAGR of 6.1% during the forecast period (2020-2025).
- Increse in farm labour costs, Favorable government policies supporting the purchase of agricultural machinery and Rise in technological development in agricultural machinery are some of the factors driving the market growth for agricultural machinery in the country.
- Kubota Corporation, Deere & Company and Same Deutz-Fahr are some of the major players who are operating in this market.
Key Market Trends
Rising Farm Labor Costs
Agriculture in the United Kingdom has traditionally been a labor-intensive sector characterized by a higher number of seasonal immigrant workers working on farm fields in the member states. However, an acute shortage of farm labor has currently surfaced on the farm fields in the country. This is quite reflected through the total percentage of employment in agriculture falling drastically from 1.25 in 2014 to 1.13 in 2019, as reported in the World Bank database. The farm labor crunch witnessed in the United Kingdom following the Brexit policy has further raised the wage rate in the country. Thus, the shortage of farm labor is giving way to rise in wage rates, thereby allowing the farmers to adopt farm mechanization in the region.
Tractors Dominate the Market
United Kingdom's agricultural sector has witnessed an increase in its integration with technology over the past few years in order to support sustainable agricultural practices in the country. The U.K government is focusing on increasing farm mechanization to produce more with less impact on the environment. Tractors being one of the essential agricultural machinery has witnessed a huge growth potential in the U.K market. Farmers in this region are increasingly keen on purchasing high-end tractors to work on larger fields, as part of their effort to improve crop yields and boost farm efficiencies. According to AEA Statistics, In 2019 the total number of agricultural tractors (Greater than 50 HP) registrations is reported to be 12,333 as compared to its registrations of 12,102 in 2018. John Deere, AGCO Corporation and CNH Industrial NV are some of the major tractor manufacturers in the country. These players have extensive distribution network and wide range of tractor machinery which gave them a competitive edge over other players in the region.
CLAAS KGaA mbH, Deere & Company, CNH Industrial NV and Kubota Corporation are some of the major players who are operating in this market. These players are investing heavily in R&D activities and are launching agricultural machinery that caters to the needs of the farmers in this region.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support