The global farm equipment rental market accounted for a value of USD 41.2 billion in 2019 and is projected to register growth at a CAGR of 6.7% during forecast period.
COVID-19 has impacted farm equipment rental market. The manufacturing units halt to halt its production due to lockdown and the supply chain is disrupted due to travel restriction. The laborers are migrating which leads to lack of workers in the farm and the production houses have piled up a large stock in store and can’t use which caused a great loss to the farmers. This decreases the adoption of farm equipments. Many farms are closed due to COVID-19. The farm equipment rental market is likely to witness loss due to COVID-19.
For more details, visit: Global Farm Equipment Rental Market By Equipment Type (Tractors, Balers, Sprayers, Others), By Power Output (<30 HP, 31-70 HP, 71-130 HP, Others), By Drive (2 Wheel Drive and 4 Wheel Drive), By Region, Forecast & Opportunities to 2026
The population is increasing globally and this increases the food demand. There is shortage of skilled labors to cope with the increasing food demands. This leads to adoption of various new technologies for farming. This leads to farmer rent various farm equipments and drives growth in farm equipment rental market during forecast period.
On the basis of equipment type, the farm equipment rental market is segmented into tractors, harvesters, balers, sprayers and others. The harvesters segment is estimated to register growth at highest CAGR during forecast period. The harvesters are self-propelled machines which are designed to harvest an assortment of grain crops efficiently. The harvester is used to winnowing, reaping and threshing operations. The labor cost is high and harvesting cannot tolerate the insufficient workforce. The increases the adoption of harvesters and drives growth in harvesters segment during forecast period.
On the basis of power type, the farm equipment rental market is segmented into <30 HP, 31-70 HP, 71-130 HP, 131-250 HP and >250 HP. The 71-130 HP segment is estimated to dominate the market during forecast period. The 71-130 HP power output segment consists of some 2WD tractor and 4WD tractors models. The farm mechanization is increasing rapidly around various regions such as Asia-Pacific. The demand for various farm equipments such as tractors due factors such as higher food production necessity, greater power requirements and high consumption rates. This increases adoption of 71-130 HP power output segment and drives growth in this segment during forecast period.
On the basis of drive, the farm equipment rental market is segmented into two-wheel drive and four wheel drive. The four-wheel drive segment is estimated to be the fastest growing segment during forecast period. The 4WD tractors are robust machines mainly used for large scale commercial farming practices. Tractors have high wheel slip and very high pulling capacity along with very high pulling capacity. The 4WD tractors body is resistant to maximum war and tear and the adoption of 4WD is increasing and this drives growth in 4WD segment during forecast period.
Asia-Pacific region is estimated to lead the market during forecast period. The land under farming is larger in this region and the production of rice and, cotton and palm is very higher. There is shift from adopting labor intensive farming to adopting advance technique for farming. The use of advance technological equipments is increasing in agricultural sector in Asia-Pacific region. This increases the demand for tractor, harvester and other farming equipments for renting purposes. The investment in machinery agriculture sector is widely increasing in this region and this drives growth in Asia-Pacific region in farm equipment rental market during forecast period.
The key market players in farm equipment rental sector are John Deere, CNH Industrial, Kubota Corporation, AGCO Corporation, Mahindra & Mahindra, Escorts Ltd., JCB, Tractors & Farm Equipment Ltd., Pape GrooupInc., Premier Equipment Rentals, Flaman Group of Companies, Pacific AG Rentals, Farmease, Kwipped Inc., Cedar Streets Sales & Rentals Inc., and EM3 Agri-services Ltd.
- What are the expected industry trends over the next three to five years?
- Which of the farm equipment rental equipment type is likely to lead by 2026?
- Which of the drive segments is expected to have the maximum potential to during the forecast period?
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- What are different organic and inorganic strategies implemented by companies to gain increased market share?