EMEA Industrial Machinery Market Size - By End Use, By Operations, By Distribution Channel, Forecast, 2025 - 2034

EMEA Industrial Machinery Market Size

The EMEA industrial machinery market size was estimated at USD 152.9 billion in 2024. The market is expected to grow from USD 158.1 billion in 2025 to USD 225.1 billion in 2034 at a CAGR of 4%.
 

The evolving market is experiencing notable progress which is influenced by numerous aspects molding the area’s farming, infrastructure development, smart packaging, and manufacturing industries. The increasing mechanization in farming operations becomes a key contributor, as rising population demand for higher agricultural productivity. Farmers are increasingly adopting tractors, harvesters, irrigation systems and precision farming tools to improve efficiency, reduce costs and enhance crop yield. This increasing use of agriculture machinery boosts the market of EMEA industrial machinery market. According to Statista, it is projected that the revenue of wholesale of agricultural machinery, equipment and supplies in Germany will amount to approximately 17.50 billion U.S. Dollars by 2025.
 

Simultaneously, growth of construction is driving the market of industrial machinery in EMEA. Escalating infrastructure spending by governments and private sectors across Europe, the Middle East and Africa is fueling demand for heavy construction machinery. Emerging economies in the Middle East and Africa prioritizing infrastructure projects like transportation networks, urban development, and other large-scale projects, this further boosts the demand for industrial machinery which is used in construction.
 

The raising adoption of smart packaging accelerates the EMEA industrial machinery market expansion in food, beverage, and pharmaceutical industries. Manufactures are investing in automated packaging machinery and AI-driven quality control packaging to cater consumer demand for sustainable and convenient products. Additionally, the growth of the manufacturing sector drives the need for automated and robotic industrial machinery. The rise of customized manufacturing and the demand for high-quality machinery in industries further supports market expansion of industrial machinery.
 

EMEA Industrial Machinery Market Trends

Technological advancement and sustainability initiatives are witnessing significant growth of industrial machinery in EMEA. Energy-efficient machinery is gaining popularity as it consumes low energy and results in reduce operating cost and minimize environmental impact. Additionally, strict government regulations push manufactures to develop eco-friendly machinery. For instance, in 2023, AGCO Corporation launched the first battery-electric tractor, the Fendt e107 V Vario, and the award-winning CORE75 AGCO Power engine, which can run on hydrotreated vegetable oil. These are examples of shift towards green technology.
 

The use of composites, ceramics, and high-strength metal to improve machine performance, durability and energy efficiency, becomes preferred choice of manufactures while adopting innovative materials. These materials offer lighter weight, higher strength, and enhanced resistance to wear and corrosion, ensuring longer operational lifespans and reduced maintenance costs.
 

Furthermore, additive manufacturing (3D printing) technology helps to create complex components with minimal waste, which allows rapid prototyping and mass customization. For instance, in June 2023, Alfa Laval launched the AC900, the newest addition to its growing brazed plate heat exchange portfolio. With its extra-large gas outlet port, the single-circuit AC900 is optimized for full and partial-load conditions. It covers capacities between 300 and 600 kW in chillers with screw compressors, industrial chillers, and heat pump applications.
 

EMEA Industrial Machinery Market Analysis

Based on end-use, the EMEA industrial machinery market is divided into agriculture, construction, packaging, food processing, mining, semiconductor manufacturing, others. In 2024, construction held the dominant market of USD 66.2 billion and is expected to reach USD 100.8 billion by 2034.
 

Shift of EMEA market toward digitalization and automation result is significant growth of construction segment in EMEA industrial machinery market. Advanced machinery that are used in construction such as bulldozers, crane, and excavators, is being increasingly equipped with GPS, telematics system and AI-based technologies. This advancement in machines resulted in enhancement efficiency, labor safety and productivity on construction sites.
 

Moreover, the rise in urbanization alongside sustainable developmental projects is further heightening growth. The focus of EMEA countries on large-scale smart cities, transportation networks, and energy efficient buildings is propelling the need for modern construction machinery and thus, the dominance of the sector in the market.
 

Based on operations, the EMEA industrial machinery market is categorized into automated machinery, semi-automated machinery, manual machinery, and robotic machinery. In 2024, automated machinery held the dominant market share of 44% and is anticipated to grow through the years.
 

Industrial machineries are used in various industries, such as agriculture, food processing, packaging, and construction. Automated machinery provides efficiency, more safety and precision as compared to manual machinery. Industries such as automotive and aerospace demand consistent and high-precision solutions in operations, this demand results in increased demand of automated industrial machinery. Additionally, automated industrial machinery allows flexible and adaptive solutions to meet evolving demand. Further, it increases the demand of automated machinery and results in preferred choice over semi-automated, manual or robotic alternatives.
 

Based on distribution channels, the market is divided into direct and indirect. In 2024, indirect held the dominant market of USD 106.7 billion and is expected to reach USD 157.1 billion by 2034.
 

Indirect distribution channel can reach a broader customer base as compared to direct distribution channel which creates challenge to target customers from various industries. On the other hand, indirect distribution channels enable manufacturers to leverage local expertise, regional networks, and customer relationships without need of direct investment in specific regions, as manufacturers can reach targeted customers through dealers, distributors and third-party suppliers.
 

Europe held a EMEA industrial machinery market of around USD 106.3 billion in 2024 and is expected to reach USD 159 billion by 2034.
 

In Europe, Germany’s industrial market is experiencing steady growth in recent years with a strong manufacturing base. Europe reputation for engineering excellence and high-precision manufacturing fuels the demand of advanced industrial machinery. Additionally, to cater the global demand for high-quality and technologically advanced machinery, Europe has become one of the leading exporters of smart industrial machinery. Countries focus on Industry 4.0 and automation further boosts production and sales.
 

The Middle East held a market share of around USD 28.3 billion in 2024 and is expected to reach USD 40.8 billion by 2034.
 

In Middle East, the Saudi Arabia is a dominated country in industrial machinery market, this is due to their vision which focuses on economic diversification, industrialization, and infrastructure development. Government’s heavy investment on construction, manufacturing along with automation, are driving the demand of industrial machinery in Saudi Arabia. Additionally, Saudi Arabia’s push for local manufacturing, renewable energy and mining development is further fueling market growth and result in innovation by key players in the Middle East’s industrial machinery market.
 

Africa held a market of around USD 18.1 billion in 2024 and is expected to reach USD 25.3 billion by 2034.
 

In Africa, South Africa dominates in the industrial machinery market, this is due to strong mining sector drive demand for mining machinery and equipment for extraction, processing and transportation of minerals. Government and private sector investments in infrastructure projects like roads, bridges, airports, and ports, further fueling the need for construction machinery and resulted in gaining a dominant position in market.
 

EMEA Industrial Machinery Market Companies

Key players in the industrial machinery industry are AGCO Corporation, Atlas Copco AB, Caterpillar Inc., CNH Industrial N and Deere & Company, collectively held around 15%-20% market share in 2024. EMEA Industrial Machinery Market seems to be consolidated in nature due to the presence of local and global players across the globe.
 

• AGSO Corporation leverages IoT, AI and automation in their next-generation products like tractors, harvesting machines, etc., which strengthen their position in EMEA as they provide solutions for precision agriculture and sustainable farming technology. As companies operate in agriculture machinery, they drive growth through smart farming solutions that improve yields, dealer and distribution network expansion, product portfolio and continuous R&D investments.
   
• Atlas Copco AB expands their footprints in EMEA market through strategic acquisition and digital transformation like integrating AI-based predictive maintenance tools that enhance processes. Their strong R&D result is energy-efficient product development, which attracts customers/businesses as it helps with operational cost savings.
   
• Caterpillar Inc. focuses on autonomous and electric heavy machinery to ensure accessibility through equipment financing and rental services. They are known for the construction and mining equipment which encompasses cutting-edge automation, AI and electrification.
   
• CHN Industrial emphasizes sustainability in their operations to develop and deploy solutions for construction and smart farming technology & AI-powered agriculture solutions in agriculture. To expand in Europe, Middle East and Africa, they engaged themselves with manufacturing plants and joint ventures.
   
• Deere & Company leverages AI, IoT and machine learning in agricultural equipment, they also integrate big data analytics through the John Deere Operations Center to optimize farming efficiency. They have also adopted a subscription-based model to attract cost-sensitive farmers.
   

EMEA Industrial Machinery Market Companies

Major players operating in the EMEA industrial machinery industry are:

• AGCO Corporation
• ALFA LAVAL
• Atlas Copco AB
• Brandt Industries Ltd.
• Caterpillar Inc.
• CNH Industrial N
• Deere & Company
• ESCO Corp.
• Gerdau S.A.
• GEA Group
• Hitachi Construction Machinery Co., Ltd.
• Honeywell International Inc.
• Illinois Tool Works Inc.
• Ingersoll Rand
• Komatsu Ltd.
• Mitsubishi Electric Corporation
• Sandvik AB
• ShawCor Ltd.
• Terex Corporation
• Volvo Construction Equipment
   

These key players in EMEA industrial machinery market are proactively involved in strategic initiatives, such as mergers & acquisitions, facility expansions, collaboration, and product innovation to strengthen their market position. Their focus on technological advancements, sustainability and regional expansion allows them to cater to diverse industry needs such as agriculture, construction, food-processing, chemicals and power generation. These companies expand aggressively in EMEA market through strategic acquisitions and joint ventures as it helps them to enhance manufacturing capabilities and distribution networks. Furthermore, these companies focus on continuous innovation and sustainable growth to remain competitive.
 

EMEA Industrial Machinery Industry News

• In May 2024, AGCO Corporation announced the opening of The Fendt Lodge in Jackson, Minnesota (U.S.). The 16,000-square-foot world-class customer experience center is located adjacent to AGCO's Jackson manufacturing facility and serves as Fendt's official North American headquarters. It features a Fendt history center and hosts client visits, launch events, dealer meetings, and company gatherings.
   
• In 2023, AGCO Corporation completed the launch of the first battery-electric tractor, the Fendt e107 V Vario, and the award-winning CORE75 AGCO Power engine, which can run on hydrotreated vegetable oil.
   
• In June 2023, Alfa Laval launched the AC900, an addition to the brazed plate heat exchanger portfolio. With its extra-large gas outlet port, the single-circuit AC900 is optimized for both full & partial-load conditions. It covers capacities between 300 and 600 kW in chillers with screw compressors, industrial chillers, and heat pump applications.
   
• In February 2023, Alfa Laval launched AlfaNova GL50, an asymmetric gas-to-liquid plate heat exchanger, made from 100% stainless steel. It handles gas flows up to 250 m3/h and inlet gas temperatures up to 750°C with exceptional performance. This makes it an optimal choice for fuel cell systems, as well as applications such as waste heat recovery, biogas post-treatment, and cooling of hydrogen from electrolyzers.
   

The EMEA industrial machinery market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) (Thousand Units) from 2021 to 2034, for the following segments:

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Market, By End-use

• Agriculture
• Construction
• Packaging
• Food processing
• Mining
• Semiconductor manufacturing
• Others

Market, By Operations

• Automated machinery
• Semi-automated machinery
• Manual machinery
• Robotic machinery

Market, By Distribution Channel

• Direct
• Indirect

The above information is provided for the following regions and countries:

• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Russia
  • Switzerland
  • Ukraine
  • Belgium
  • Sweden
• Middle East
  • Saudi Arabia
  • UAE
  • Kuwait
  • Oman
  • Qatar
  • Yemen
• Africa
  • South Africa
  • Tunisia
  • Algeria
  • Nigeria