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The farm equipment rental market size is forecast to increase by USD 12.8 billion at a CAGR of 6.8% between 2023 and 2028. The market is witnessing significant growth due to several key factors. Farmers, seeking to reduce financial burdens, are increasingly turning to rental services for access to specialized equipment that is expensive to purchase outright. The growing need to meet rising demand for food products necessitates the use of advanced, specialized equipment. Moreover, government support for the purchase of new farm equipment is driving the trend towards rental agreements. Diversified rental businesses offer farmers flexibility in equipment usage, while also reducing maintenance burdens. Maintenance services provided by specialized companies ensure that the equipment is always in optimal condition, further increasing the appeal of rental options. These trends are expected to continue shaping the market in the coming years.
The market is witnessing significant growth as farmers increasingly turn to equipment rental companies to meet their agricultural needs. With the advent of ecommerce and app-based systems, farmers can now easily browse and book various types of equipment online, including agriculture tractors, harvesters, and planting equipment. A content management system integrated with rental software enables equipment rental companies to manage their inventory efficiently, keeping track of assets, rental agreements, maintenance services, repair schedules, and purchasing. Specialized companies catering to diversified rental businesses offer flexibility, reducing the maintenance burdens for farmers. Scalability is another key advantage, as farmers can rent equipment as needed, improving farm productivity without the need for large capital investments.
Furthermore, health alerts and real-time maintenance services ensure the equipment remains in optimal condition, enhancing the overall farming experience.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The tractors segment is estimated to witness significant growth during the forecast period. The tractor rental segment holds a significant share in the market due to its versatile applications in agriculture operations. Sales representatives play a crucial role in connecting customers with the right rental solutions, offering industry-specific templates to cater to unique farming requirements. Tractor rental companies are focusing on deploying mobile solutions to streamline the rental process, ensuring quick and efficient service. Security is a top priority, with strong data protection measures implemented to safeguard customer information. Integrations with other farm management systems enable seamless data sharing and improved operational efficiency. Mahindra and Mahindra's Trringo brand is an example of a company offering advanced farm equipment on a rental basis, contributing to the market's growth. The expansion of custom hiring centers for tractors is anticipated to further fuel the market's development during the forecast period.
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The tractors segment accounted for USD 15.61 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 49% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market in the Asia Pacific (APAC) region is projected to expand at a faster rate compared to the global market over the forecast period. With a substantial population in countries like China and India, agriculture remains a significant source of livelihood for many. The increasing population in several APAC nations is driving the demand for food products, thereby fueling the requirement for enhanced agricultural productivity. Consequently, there is a growing trend among farm equipment manufacturers in the region and regional governments to establish Contract Hire Centers (CHCs) to offer advanced farm equipment on a rental basis. Key capabilities of these CHCs include industry-specific templates for sales reps to streamline customer interactions, quick deployment time for mobile solutions, strong security measures for customer data, and seamless integrations with existing farm management systems.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Need to reduce financial burden on farmers is the key driver of the market. Farmers can derive significant advantages from renting farm equipment through equipment rental companies. The expense of purchasing and maintaining expensive assets, such as forage harvesters, mower conditioners, and tillage equipment, can be mitigated by renting. These large-scale machines are capital-intensive and may not be economically viable for small farmers with limited acreage. Rental software and eCommerce platforms enable farmers to easily book and reserve equipment through a content management system. Assets like harvesters, tractors, tillers, and others require regular maintenance and repair schedules. Rental companies manage these tasks, ensuring that farmers have access to well-maintained equipment. For instance, Zimmerman Farm Service offers disc mower conditioners for approximately USD10 per acre and USD50 per day in Pennsylvania, US.
Furthermore, over the long term, farm equipment needs to be replaced, making rental options a cost-effective solution for farmers.
Growing need to meet rising demand for food products is the upcoming trend in the market. Farmers in various parts of the world are witnessing an escalating demand for the rental of farm equipment due to the increasing production of fruits and vegetables. Equipment rental companies are capitalizing on this trend by offering advanced eCommerce platforms and user-friendly content management systems for farmers to easily book and reserve assets through rental software. Efficient inventory management, maintenance, and repair schedules are crucial elements of these systems to ensure a seamless rental experience. The convenience offered by such solutions is particularly beneficial for farmers in countries with large vegetarian and vegan populations, such as India, where the demand for fruits and vegetables is high.
Furthermore, in developed countries like the US, Canada, and the UK, the growing preference for plant-based diets among the millennial population is driving the demand for farm equipment rental services.
Growing government support for purchase of new farm equipment is a key challenge affecting the market growth. Farmers rely on equipment rental companies to access the latest and most advanced farm equipment, especially when the cost of purchasing new assets is prohibitive. ECommerce platforms and content management systems enable farmers to easily browse and book equipment online, streamlining the rental process.
Moreover, rental software solutions help equipment rental companies manage their inventory, maintenance, and repair schedules efficiently. Government initiatives to boost agricultural production have led to increased demand for farm equipment rentals. Subsidies on agriculture machinery and tax relief on farm machinery purchases encourage farmers to upgrade their equipment, benefiting both farmers and rental companies. By providing access to modern farm equipment, rental companies enable farmers to optimize their yields, adapt to changing weather patterns, and maintain the productivity of their farms.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ALMACO - The company offers combine that is handcrafted with uncompromised quality to deliver world-class data quickly, efficiently and safely every time.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is a significant segment within the agricultural industry, catering to the needs of farmers for specialized and expensive equipment. Equipment rental companies play a crucial role in providing farmers with access to a diverse range of assets, including tractors, rotavators, and other farm-related machinery. The rental industry has seen technological advancements with the adoption of ecommerce platforms, content management systems, and rental software for equipment booking & reservation. Key capabilities of these solutions include inventory management, maintenance schedules, rental agreements, and maintenance services. Industry-specific templates and integrations with sales reps and customers enable seamless transactions. Deployment time is reduced with mobile solutions, ensuring farmers can access equipment quickly.
Furthermore, security is a priority, with customer data protected and integrations with specialized companies for high-tech farm equipment. Flexibility is another key advantage, allowing farmers to rent equipment for short periods, reducing maintenance burdens and rental fees. Specialized companies offer diversified rental businesses, addressing the needs of small farmers and addressing environmental concerns. Risk mitigation is ensured through real-time engine warnings, vehicle servicing, and health alerts. Technological innovation continues to bridge the technology gap, with app-based systems offering solutions for land development, sowing and planting, cultivation, plant protection, harvesting and threshing, post-harvest, and agro-processing.
Market Scope |
|
Report Coverage |
Details |
Page number |
147 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.8% |
Market growth 2024-2028 |
USD 12.8 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.37 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 49% |
Key countries |
US, China, India, France, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ALMACO, Associated Supply Co. Inc., Cedar Street Sales and Rentals, Deere and Co., Escorts Crop Solutions, Flaman, German Bliss Equipment Inc., Holmes Rental Station, Mascoutah Equipment Co. Inc., Messicks Farm Equipment, Pacific Ag Rentals, Sandhills Global Inc., Simplex Tool Rental, The Pape Group Inc., TINGA, Titan Machinery Inc., Total Equipment Rental Inc., and Zimmerman Farm Service Inc. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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