The farm equipment rental market comprises various types of equipment that are provided on rent to farmers including tractors, harvesters, cultivators, and milking machines. These rental services provide effective alternatives to purchasing expensive farm equipment and reduce capital costs for farmers. Customers in the agriculture sector can rent necessary equipment based on their requirement for short duration to complete specific tasks. This has enabled timely operations and optimized farm operations for small and marginal farmers.
The farm equipment rental market is estimated to be valued at USD 57.17 Bn in 2024 and is expected to reach USD 87.82 Bn by 2031, growing at a compound annual growth rate (CAGR) of 6.3% from 2024 to 2031.
Key Takeaways
Key players operating in the farm equipment rental market are Deere & Company, CNH Industrial, AGCO Corporation, Kubota Corporation, and Mahindra & Mahindra. These manufacturers offer comprehensive rental solutions as well as after-sales services to rental companies.
The Farm Equipment Rental Market provides considerable opportunities for equipment dealers and rental companies to expand their businesses. The rising affordability of rental services is encouraging more small farmers to avail machinery on rent. Moreover, growth in contract farming and precision agriculture is expected to drive the adoption of advanced rental equipment.
North America and Europe dominate the global farm equipment rental market due to significant mechanization in agriculture. However, emerging economies in Asia Pacific and Latin America are anticipated to witness rapid growth in rented farm equipment owing to rising private investments and government initiatives to promote mechanization.
Market Drivers
Increasing mechanization of agricultural activities: The growing labor shortage in the agriculture industry coupled with rising wages is prompting more farmers to rent high-capacity machinery for time-bound operations. This is a key factor driving the growth of the farm equipment rental market. Cost-effectiveness of renting equipment: Renting farm machinery on an as-needed basis provides flexibility to farmers and reduces the need for substantial capital investments. This has made equipment renting an economically viable option especially for small & marginal landholding farmers.
Market Restrain
Seasonal demand for equipment: The demand for certain types of farm equipment such as harvesters is highly seasonal since it coincides with specific crop harvesting periods. This restricts continuous utilization and rental income for service providers. Lack of availability of advanced machinery: In developing regions, the availability of latest machinery through rental channels is limited due to low mechanization levels and inadequate supplier networks. This acts as a barrier for adopting advanced equipment-based farming practices.
Segment Analysis
Within the farm equipment rental market, the tractors sub-segment currently dominates and accounts for over 30% share of the overall market. Tractors are regularly used for activities like tilling, harvesting etc. on large fields and farms. Their power and size enables operations across wide swaths of land which increases productivity and efficiency for farmers. With rising farm sizes and mechanization levels, the demand for high horsepower tractors remains robust globally. Implements like harvesters, seed drills and tillers constitute another major segment. These are equally important for key agriculture activities but witness seasonal demand peaks. The combine harvesters sub-segment in particular has been growing due to increasing commercialization of crops and larger cultivable areas. Their ability to simultaneously reap and thresh multiple crops efficiently drives consistent adoption.
Global Analysis
The North American region currently holds the leading share in the global farm equipment rental market and the trend is expected to continue during the forecast period. This can be attributed to increasing precision farming practices in countries like the U.S. and Canada. Farmers are open to latest technologies and tools that maximize yields. At the same time, high initial costs of heavy machinery encourage rental options for small holders. Asia Pacific is projected to witness the fastest growth during the coming years. Countries such as India and China are spearheading agricultural production globally. Mechanization levels are rising sharply to offset farm labor shortages. Rental services provide a cost-effective means to access advanced equipment on demand and boost farm output.
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Automotive and TransportThe global Agricultural Equipment Market was estimated at $124.2 billion in 2015.
New agricultural equipment is replacing the traditional tools owing to improved productivity and enhanced quality of the crop.The need of food is growing at a faster rate as the population is increasing, so the demand for new agricultural equipment is growing to match the requirement of food.Request a Sample Copy of This Report @ https://www.millioninsights.com/industry-reports/agriculture-farm-equipment-marketInnovative technologies in the agriculture are increasing the quality & production per square feet for the agricultural products.
Manufacturers are focusing on integrating various new technologies such as robotic systems, Google Earth and GPS into existing machinery for tracking productivity and improving it.
The government also encourages the use of farming equipment by proving subsidies and offering lower rates to the farmers in emerging countries like India and China to adopt agricultural equipment.Equipment MarketOn the basis of Product: Tractors dominate the product category and is estimated to account over 20% of total revenue in 2015 after harvesters.
Tractors are the most efficient and effective equipment in the agricultural sector as they can perform several activities in the process of farming.
Harvesters are expected to grow at a CAGR of 5% through 2014-25.Other product segment includes thrasher, combine harvester, rotavator, Zero Till Seed Drill, Power Tiller, Multi Crop Planter, Drip Irrigation, Sprinkler Irrigation, Power Weeder, Power Spray.On The basis of Application: The products are divided as per the processes in farming such as Sowing & Planting Equipment, Land Development/Seed Bed Preparation/Tillage Equipment, Plant Protection Equipment, Water Inter Cultivation equipment, Agro Processing and Harvesting & Threshing.Threshing and Harvesting expect the fast growth of a CAGR over 6% through the forecast period.
The global agricultural equipment market was estimated at $124.2 billion in 2015.
Agricultural equipment or machinery are the tools used in various processes of farming, such as planting, threshing, agriculture product processing, harvesting.
New agricultural equipment is replacing the traditional tools owing to improved productivity and enhanced quality of the crop.The need of food is growing at a faster rate as the population is increasing, so the demand for new agricultural equipment is growing to match the requirement of food.Innovative technologies in the agriculture are increasing the quality & production per square feet for the agricultural products.
Manufacturers are focusing on integrating various new technologies such as robotic systems, Google Earth and GPS into existing machinery for tracking productivity and improving it.
The government also encourages the use of farming equipment by proving subsidies and offering lower rates to the farmers in emerging countries like India and China to adopt agricultural equipment.Request Sample Copy of This Market Research @ https://www.millioninsights.com/industry-reports/agriculture-farm-equipment-market/request-sampleOn the basis of Product: Tractors dominate the product category and is estimated to account over 20% of total revenue in 2015 after harvesters.
Tractors are the most efficient and effective equipment in the agricultural sector as they can perform several activities in the process of farming.
