Farm Equipment Rental Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | > 6.00 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Farm Equipment Rental Market Analysis
The Farm Equipment Rental market is currently valued at USD 46.72 billion and is expected to register a CAGR above 7% during the forecast period.
Increasing agriculture mechanization and the need to reduce the financial burden on farmers across the globe, in the wake of rising import and export of cereals, are expected to drive demand in the market. In addition, the growing inclination for farm equipment with innovative features, and the rise in startups offering farm equipment for rent, are some of the other vital factors which will likely augment the growth of the farm equipment rental market.
The COVID-19 pandemic had a very negative impact on the farm equipment rental market worldwide. Equipment rental stores were closed due to lockdowns. Farmers also could not travel to rental stores due to the strict imposition of traveling restrictions and social distancing norms. However, in late 2020 and early 2021, as the COVID-19 pandemic receded and the COVID-19 criteria were taken back, growth returned in the global farm equipment rental market. Many new players also entered the market to tap into this post-COVID-19 growth in farm equipment rentals in markets like India. For instance
- In August 2021, Indian agritech startup FarmKart launched its tech-enabled platform rent4farm to offer farm equipment and tractor rental services in India.
The long-term factors, like the increase in the average farming machinery selling price, such as tractors and combine harvesters, Farming as a Service (FaaS) evolution, and increased mobile apps in offering farm equipment on rent and significant farm equipment manufacturers entry in the rental industry will likely drive the growth in farm equipment rental market.
Asia-Pacific dominates the farm equipment rental market due to the increasing demand for tractors and farming equipment such as harvesters, spraying, and threshing equipment for renting purposes. Small farmers in countries such as India need help to afford tractors. However, an Uber-like program is gradually expanding in the country, which makes it possible for farmers to get temporary access to tractors in demand.
Thus, the above factors are forecasted to produce significant growth in the farm equipment rental market.
Farm Equipment Rental Market Trends
This section covers the major market trends shaping the Farm Equipment Rental Market according to our research experts:
Rising Developments in Tractor Rental Service Likely to Drive Demand in the Market
Tractors are expected to occupy most of the market share during the forecast period. The rising demand for high horsepower tractors, especially those above 40 horsepower (HP), i.e., utility tractors and row crop tractors, from matured markets, like Europe and North America, tend to offer new opportunities for players operating in the market. In addition to these developments, key players offering tractor rental services are expected to augment developments in the market further. For instance,
- In December 2021, Mahindra and Mahindra announced the expansion of Krish e, its farming as a service offering across 1600 dealerships in India.
Moreover, growing awareness of the benefits of farm mechanization and the low maintenance cost of the rental fleet is expected to attract several low and medium-scale farmers. So, these are some of the primary factors likely to create demand for tractor hiring in developing countries, majorly in Asia-Pacific and Africa. It allows tractor owners to fully utilize their machines while providing services to farmers who cannot afford their tractors. Due to the abovementioned instances and developments, the tractors segment is expected to gain significance over the forecast period.
Asia-Pacific Region Anticipated to Dominate the Market During Forecast Period
Growing awareness among the mid- and low-income farmers of the Asia-Pacific region about the benefits of farm mechanization is encouraging them to shift from labor-intensive farming techniques to advanced technological equipment in the agricultural sector. It is anticipated to increase demand for tractors and farming equipment such as harvesting, spraying, and threshing equipment for renting purposes in the region.
The government initiatives and active key players' engagement in the market focusing on reducing the farmers' financial burden in Asia-Pacific region countries like India and China act as significant growth drivers for the farm equipment rental market. The leading players in these markets are also engaging in mergers and acquisitions to bolster their market presence further. For instance,
- In March 2022, Mahindra and Mahindra acquired a 69% stake in Carnot Technologies, the developer behind the Krish e app. Carnot Technologies includes over 25,000 tractors, harvesters, and sprayers working on over 3 million acres of land each season.
- In May 2021, Tractors and Farm Equipment (TAFE), a significant tractor manufacturer in India, offered 16500 tractors and 26,800 implements on a 'free-of-cost' rental basis to small farmers in Tamil Nadu.
In addition, increasing demand for farm implements due to the labor shortage in agriculture is expected to support the market's growth during the forecast period. Based on the abovementioned factors, the Asia-Pacific region is expected to hold a dominant market share over the forecast period.
Farm Equipment Rental Industry Overview
The Farm Equipment Rental Market is moderately consolidated due to several major and local players in the market. Some of the major players in the market are Deere & Company, JFarm Services (TAFE), Messick's, Pacific Tractor, Premier Equipment Rentals, and The Pape Group. Several players are focusing on strategies, such as mergers, acquisitions, partnerships, etc., to cement their market positions. For instance,
- In January 2022, Messick's opened its new 2230,000 sq ft headquarters in Pennsylvania, US.
- In December 2021, Papé Machinery Agriculture & Turf completed the asset purchase of Valley Truck & Tractor, a nine-store John Deere dealership in Northern California's Sacramento Valley.
Farm Equipment Rental Market Leaders
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Deere & Company
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Flaman Group of Companies
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Mahindra Trringo
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Pacific AG Rentals LLC
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CNH industrial NV
*Disclaimer: Major Players sorted in no particular order
Farm Equipment Rental Market News
- August 2022- Deere and Co. invested in Hello Tractor, a Nigerian startup that offers marketplace and fleet management technology for African farmers to rent tractors.
- July 2022- The state government of Bihar in India announced to launch of mobile app-based farm equipment rental services for small farmers in the state who cannot afford to buy their farm equipment.
- May 2022- India-based agriculture equipment rental and agro e-commerce startup KhetiGaadi launched its agro advisory services for farmers in Pune.
- March 2022- etHekwini Municipality in South Africa acquired tractors to rent for free to the farmers. The eThekwini Municipality's Agro-Ecology Unit managed the free tractor-hiring initiative.
- September 2021- Sonalika Group launched its Sonalika Agro Solutions App to offer high-tech agro machinery on rent to farmers in India.
Farm Equipment Rental Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Equipment Type
5.1.1 Tractors
5.1.2 Harvestors
5.1.3 Haying Equipment
5.1.4 Others
5.2 Geography
5.2.1 North America
5.2.1.1 United States
5.2.1.2 Canada
5.2.1.3 Rest of North America
5.2.2 Europe
5.2.2.1 Germany
5.2.2.2 United Kingdom
5.2.2.3 France
5.2.2.4 Italy
5.2.2.5 Rest of Europe
5.2.3 Asia-Pacific
5.2.3.1 India
5.2.3.2 China
5.2.3.3 Japan
5.2.3.4 South Korea
5.2.3.5 Rest of Asia-Pacific
5.2.4 Rest of the World
5.2.4.1 South America
5.2.4.2 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share**
6.2 Company Profiles
6.2.1 Farmease
6.2.2 Mahindra & Mahindra Limited (Trringo)
6.2.3 JFarm Services
6.2.4 Pacific AG Rental LLC
6.2.5 Messick's
6.2.6 Flaman Group of Companies
6.2.7 Premier Equipment Rental
6.2.8 The Papé Group, Inc
6.2.9 CNH Industrial
6.2.10 Titan Machinery
6.2.11 KUBOTA Corporation
6.2.12 AGCO Corporation
6.2.13 Friesen Sales & Rentals
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Farm Equipment Rental Industry Segmentation
Farm equipment rental is defined as renting or leasing farm equipment processes like tractors and combine harvesters for a short period.
The Farm Equipment Rental Market is segmented by equipment type (tractors, harvesters, haying equipment, and other equipment types) and geography (North America, Europe, Asia-Pacific, and the rest of the world). The report also provides market sizing and forecasts in value (USD billion) for all the abovementioned segments.
| By Equipment Type | |
| Tractors | |
| Harvestors | |
| Haying Equipment | |
| Others |
| Geography | |||||||
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Farm Equipment Rental Market Research FAQs
What is the current Farm Equipment Rental Market size?
The Farm Equipment Rental Market is projected to register a CAGR of greater than 6% during the forecast period (2024-2029)
Who are the key players in Farm Equipment Rental Market?
Deere & Company, Flaman Group of Companies, Mahindra Trringo, Pacific AG Rentals LLC and CNH industrial NV are the major companies operating in the Farm Equipment Rental Market.
Which is the fastest growing region in Farm Equipment Rental Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Farm Equipment Rental Market?
In 2024, the North America accounts for the largest market share in Farm Equipment Rental Market.
What years does this Farm Equipment Rental Market cover?
The report covers the Farm Equipment Rental Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Farm Equipment Rental Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the emerging trends in the Farm Equipment Rental Market?
The emerging trends in the Farm Equipment Rental Market are a) Online booking platforms b) Telematics integration for equipment monitoring c) Short-term rental options
What are the challenges facing the Farm Equipment Rental Market?
Key Challenges in the Farm Equipment Rental Market are a) Maintenance and transportation of heavy machinery b) Need for customization to suit different farming practices
Farm Equipment Rental Industry Report
The global agriculture equipment rental market is witnessing significant growth, fueled by the increasing demand for mechanization in agriculture and the need to ease financial burdens on farmers. This market, characterized by a diverse range of machinery such as tractors, harvesters, and sprayers, caters to different farming needs and power outputs. The trend towards renting, driven by the high cost of machinery, limited arable land, and government subsidies, offers benefits like reduced overheads and access to the latest technology, enhancing farm productivity. The adoption of four-wheel-drive tractors and high horsepower equipment is notable, meeting large-scale farming demands. With the rise of startups and technological platforms in this sector, the agriculture equipment rental market is vibrant and evolving, supported by a focus on sustainable farming and the benefits of mechanization. According to Mordor Intelligence™ Industry Reports, this market's share, size, and revenue growth are on the rise, with forecasts and historical analyses available in a free report PDF download, highlighting its role in modernizing global farming practices.
