Global Farm Equipment Rental Market
Farm equipment rental is the service provided by farm equipment manufacturers and other farm equipment companies. Through the rental service, farm equipment such as tractors, harvesters, balers, and sprayers are provided to the farmers on a rental basis. Most of the companies operating in the market offer the equipment on an hourly, weekly, or on a monthly basis to fulfill the needs of the farmers. Farm equipment rental services have helped in the growth of small- and medium-scale farmers, which has led to an increase in global agricultural production.
Global Farm Equipment Rental Industry Overview
Rental farm equipment offered by key players operating in the market are deployed in all sectors of agriculture. The equipment offered by companies uses modern technology that increases agricultural efficiency and production. Since 2005, rental equipment has been offered by companies around the world. Also, government initiatives for the development of the farm equipment rental market in certain regions of the world such as Asia-Pacific have helped in the upliftment of the market.
The global farm equipment rental market is expected to reach $46.28 billion by 2026, with a CAGR of 6.63% during the forecast period 2021-2026. The growth rate in the market is because of the increased government initiatives around the world for rental farm equipment, as this leads to an increase in agricultural production to cater to the growing global food demand. Also, inflation in farm equipment prices has made it difficult for small- and medium-scale farmers to afford the equipment. This has led to an increase in the growth of the global farm equipment rental market.
The global farm equipment rental market in the product segment is expected to be dominated by tractor, followed by harvester. The dominance of tractor in the product segment is due to the multiple purpose tractors used in the field. Tractors are used for transportation as well to provide power for other implements such as harvesters and balers.
- 50-100 HP
The 50-100 HP tractors are expected to dominate the tractor rental segment due to the increased applications that these tractors can perform in the field. In conventional agriculture, all major activities such as harvesting and cultivation can be easily performed by attaching an implement with a tractor having a 50-100 HP range.
- Four-Wheel Drive
The rental farm tractor market is expected to be dominated by four-wheel-drive tractors pertaining to the increased applications of these tractors when compared to two-wheel drive tractors. Also, four-wheel-drive tractors can easily be used in the wet field, which increases the adoption of these tractors.
Asia-Pacific is the region that is expected to dominate the global farm equipment rental market in the coming years. The average farm size in most countries of the region, such as India, is less than 5 hectares of land, which is considered a primary driver for the farm equipment rental market in the region.
Key Market Players and Competition Synopsis
Deere & Company, Escorts Limited, JC Bamford Excavators Ltd., Mahindra & Mahindra Ltd., Tractors and Farm Equipment Limited, Associated Supply Company, Inc., Cedar Street Sales & Rentals, Farmease, Flaman Group of Companies, German Bliss Equipment Inc., KWIPPED, Inc., Messick’s, Pacific Tractor & Implement, The Pap? Group, Inc., Titan Machinery Inc.
The companies that are profiled in the report have been selected based on the selective pool of players, primarily Tier-1 (which hold 50-60% of the market), mid-segment players (comprising 30-40% share), and small and emerging companies (holding the balance 10-20% share), based on various factors such as product portfolio, annual revenues, market penetration, research, and development initiatives, along with a domestic and international presence in the farm equipment rental industry.
Market Report Coverage - Farm Equipment Rental
- Product: Tractor, Harvester, Baler, Sprayer, and Others
- North America: U.S., Canada, and Mexico
- South America: Brazil, and Rest-of-South America
- Europe: Germany, France, Spain, and Rest-of-Europe
- Middle East and Africa: South Africa and Rest-of-Middle East and Africa
- Asia-Pacific: India, Japan, South Korea, Australia, and Rest-of-Asia-Pacific
Market Growth Drivers
- Increased Government Initiatives for the Upliftment of Farm Equipment Rental Market
- Rising Global Food Demand
- High Rental Costs and Interest Rates
- Lack of Awareness among Farmers
- Rise in the Adoption of Modern Agricultural Equipment
- Scope of Geographical Expansion for Equipment Manufacturers
Key Companies Profiled
Manufacturers: Deere & Company, Escorts Limited, JC Bamford Excavators Ltd., Mahindra & Mahindra Ltd., Tractors and Farm Equipment Limited
Retailers: Associated Supply Company, Inc., Cedar Street Sales & Rentals, Farmease, Flaman Group of Companies, German Bliss Equipment Inc., KWIPPED, Inc., Messick’s, Pacific Tractor & Implement, The Pap? Group, Inc., Titan Machinery Inc.
How This Report Can Add Value
Product/ Innovation Strategy: The product segment helps the reader in understanding the different types of farm equipment offered by key players operating in the market and their potential globally. Moreover, the study provides the reader a detailed understanding of the operation of different rental farm equipment (i.e., tractor, harvester, baler, sprayer, and others). These are the primary equipment rented out by growers around the world, wherein tractors are the primary equipment rented out.
Growth / Marketing Strategy: The farm equipment rental service providers have opted for a merger and acquisition strategy as a way of establishing dominance in the farm equipment rental market. Growth/marketing strategies will help the reader in understanding the revenue-generating strategies adopted by the players operating in the global farm equipment rental market. For instance, in August 2021, Herc Holdings Inc., a leading North American equipment rental supplier operating as Herc Rentals Inc., announced that it had completed the acquisition of substantially all the assets of Texas-based CBS Rentals (CBS). Also, in June 2021, CNH Industrial N.V. acquired Raven Industries Inc. The long partnership between the two companies will further enhance CNH Industrial’s position in the global agriculture equipment rental market by adding innovation capabilities in autonomous and precision agriculture technology. Moreover, other strategies adopted by the market players will help the reader in making strategic decisions, such as go-to-market strategies.
Key Questions Answered in the Report
- What is the estimated global farm equipment rental market size in terms of revenue for the forecast period 2021-2026, and what is the expected compound annual growth rate (CAGR) during the forecast period 2021-2026?
- What are the key trends, market drivers, and opportunities in the market pertaining to farm equipment rental?
- What are the major restraints inhibiting the growth of the global farm equipment rental market?
- What kinds of new strategies are being adopted by the existing market players to expand their market position in the industry?
- What is the competitive strength of the key players in the farm equipment rental market based on an analysis of their recent developments, product offerings, and regional presence?
- How is the competitive benchmarking of the key farm equipment rental companies in the agriculture market based on the analysis of their market coverage and market potential?
- How much revenue is each segment expected to record during the forecast period, along with the growth percentage?
- Which are the type of players and stakeholders operating in the market ecosystem of farm equipment rental, and what is their significance in the global market?