The recovery of the agricultural machinery market in Europe during 2017-2018
NEW YORK, Sept. 11, 2019 /PRNewswire/ --
Market Overview
The Europe agriculture tires market is expected to register a CAGR of 5.37%, during the forecast period, 2019-2024.
Read the full report: https://www.reportlinker.com/p05815039/?utm_source=PRN
The recovery of the agricultural machinery market in Europe during 2017-2018, after a slump in 2016, aided in driving the demand for agriculture tires. The demand for seed drills, fertilizer spreaders, and plant protection equipment has increased all over Europe, specifically in growing markets like France, Romania, Ukraine, and Poland.
Owing to a number of economic and environmental factors (direct and indirect impact on the environment due to different production methods, and subsidies provided by the European Union to the farmers), high farm consolidation activities in the last few years, affected the agricultural machinery market to a significant extent, especially in Europe, driving the demand for agricultural tires. The degree and effect of consolidation, however, varies from country to country, by timing and intensity. In countries, such as the United Kingdom and Germany, farms with more than 1,000 hectares, on an average, cover 20% of the utilized agricultural area in the country. On the contrary, in countries, such as the Netherlands and Finland, the average size of a farm is 150 hectares. Therefore, the demand for high capacity sophisticated fertilizing machinery is more in countries, such as Germany, the United Kingdom, and France. Farm consolidation necessitates the use of fertilizing and planting machinery, to obtain sufficient and proper fertilizing of the crops in larger land structures, thereby, facilitating the demand for agricultural tires.
Scope of the Report
The European agricultural tires market has been segmented by application type, sales channel type, and geography.
Key Market Trends
Increasing Demand for Replacement Tires
The replacement tire segment is expected to constitute a majority of the share in the European tire market, due to the inherent demand from the aftermarket segment. The market is characterized by a significant amount of research and development in the tire manufacturing process, driven by the presence of the largest agricultural machinery and equipment research in the region. Also, the increasing adoption of modern farming techniques with agricultural machinery and using suitable tire size and pattern for specific crops is expected to drive the growth of the agricultural tire market in the region during the forecast period.
Replacement/Aftermarket agricultural tires are cost-effective compared to OEM tires. Due to its cheaper price, aftermarket agricultural tires are widespread in the market. Despite being less innovative, consumers opt for this category due to its ease of availability and customized selection. In the case of OEM tires, after the warranty expiration, it is difficult for farmers to buy them due to the higher price and absence of a wide range of tire portfolio. The tires can be bought both online and through retail stores. Price fluctuation may drastically either vary depending on the quantity ordered/purchased online or retail stores.
Germany is the Largest Market in Europe
Germany is the largest exporter of agricultural machinery, the largest manufacturer of agricultural machinery, and the second largest consumer of agricultural machinery across the globe. The high ability and sophisticated design of machinery coupled with high production efficiency and machining precision are driving the demand for agricultural machinery in the country. Germany's agricultural machinery manufacturing industry output accounts for 10% of the global output and the machinery exports from Germany accounted for more than 70%.
During the first half of 2017, German agricultural industry has witnessed a 7% growth in the turnover for machinery and tractor manufacturers. This increase was mainly contributed by the developments in forage crop harvesting equipment and demand for combine harvesters and tractors.
Agricultural tractor sales in the European region decreased by 12% to reach 177,000 units in 2018 when compared to 2017. A total of 177,000 tractors were registered across the country in 2018, of which 39,784 were under 50 hp, 137,503 tractors were above 50 hp. The decline was due to a pre-registration of a high number of tractors during December 2017 due to the introduction of a new law in January 2018 for tractors. Manufacturers had to sell the tractors with the previous technical requirements before the law was implemented. On the other hand, all the pre-registered tractors, which were sold in 2018 were considered under the 2017 registration figures. Despite this decline, tractor sales are expected to witness a positive trend over the forecast period.
Thus, based on the aforementioned developments, and recovery of the agricultural sector in the country, the demand for agricultural tires are expected to witness growth in the coming years.
Competitive Landscape
Major players in the European agricultural tire market are Bridgestone, Michelin, Continental, ATG tires, Goodyear, etc. Other companies in the industry include Mitas, Nokian, etc. To maintain market dominance, major companies are focusing on product innovation and customization, to keep the overall product line, with robust offerings to the Europe agricultural tire market.
Camso in 2019 has launched all-purpose bias agriculture tires, the MPT 732 with latest tread compounds, void guards that increase puncture and impact resistance for the European market. This new product is available in eight different sizes.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client's requirements
- 3 months of analyst support
Read the full report: https://www.reportlinker.com/p05815039/?utm_source=PRN
About Reportlinker
ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.
__________________________
Contact Clare: [email protected]
US: (339)-368-6001
Intl: +1 339-368-6001
SOURCE Reportlinker
Share this article