Farmers' evolving needs, new tech, and rising competition reshape the EU farm machinery industry

In the coming decade, the farm machinery industry is set to evolve significantly, driven by trends in markets, technology, and competition.

ŸMarkets: Farmers’ challenges are evolving, particularly those that agricultural machinery addresses, driven among other factors by ongoing farm consolidation and government policies. Moreover, the EU’s agricultural market is maturing, pushing EU manufacturers to seek growth abroad.

ŸTechnology: Innovations such as sensors, variable‑rate technologies, robotics, drones, and artificial intelligence (AI) are gradually becoming mainstream in agriculture, increasing the technological sophistication of farm machinery.

ŸCompetition: Competitive pressure is intensifying, as Asian manufacturers increasingly offer high‑quality machinery at attractive prices. In addition, traditional farm machinery companies face growing competition from startups developing smart‑farming technologies and robotics.

Industry players must reconsider their role in this changing playing field. In this paper, we will discuss the main drivers that are changing the industry, options for strategic company positioning, and the future industry landscape in the EU.