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The farm equipment rental market share is expected to increase by USD 14.89 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 7.78%.
This farm equipment rental market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers farm equipment rental market segmentation by product (tractors, harvesters, haying equipment, and others) and geography (APAC, Europe, North America, Middle East and Africa, and South America). The farm equipment rental market report also offers information on several market vendors, including 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, Total Equipment Rental Inc., and Zimmerman Farm Service Inc. among others.
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The need to reduce the financial burden on farmers is notably driving the farm equipment rental market growth, although factors such as growing government support for the purchase of new farm equipment may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the farm equipment rental industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Farm Equipment Rental Market Driver
One of the key factors driving the global farm equipment rental industry growth is the need to reduce the financial burden on farmers. The costs incurred in renting farm equipment can be written off on annual tax returns. Farm equipment, especially larger equipment such as forage harvesters, mower conditioners, and tillage equipment, are expensive to buy and require more time to make the farming business profitable. Such large equipment is available at affordable rental options. For instance, Zimmerman Farm Service offers a disc mower conditioner for around USD 10 per acre and USD 50 per day in Pennsylvania, US. Farm equipment rental companies offer well-maintained equipment, thereby helping farmers increase their profits. Therefore, farmers do not have to bear any financial burden by using rental farm equipment, which is a major driver for the growth of the market during the forecast period.
Key Farm Equipment Rental Market Trend
Growing need to meet the rising demand for food products is one of the key farm equipment rental market trends that is expected to impact the industry positively in the forecast period. There has been increased consumption of fruits and vegetables across the world in recent years. This can be attributed to the increasing vegetarian and vegan population. In countries such as India, a vast majority of the population is vegetarian, and the demand for fruits and vegetables is high. The millennial population in such countries opt for a vegetarian or vegan diet due to ethical issues over animal cruelty. Thus, owing to the large-scale global demand for fruits and vegetables, there will be an increase in the demand for rental farm equipment. This will drive the growth of the market in the coming years.
Key Farm Equipment Rental Market Challenge
One of the key challenges to the global farm equipment rental industry growth is the growing government support for the purchase of new farm equipment. For instance, the Agriculture and Farmers Welfare Department in India offers subsidies to farmers for the purchase of straw management equipment. Similarly, as part of a subsidy program, the Government in China provides up to 30% subsidy to farmers for the purchase of new agriculture machinery. Such government initiatives enable farmers to avail technologically advanced equipment at a subsidized cost. Government subsidies offered on agriculture equipment will increase the demand for new models of farm equipment. Hence, such government support allows farmers to purchase new models of farm equipment instead of renting them. Such factors may hinder the prospective growth of the market during the forecast period.
This farm equipment rental market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Technavio categorizes the global farm equipment rental market as a part of the global agricultural and farm machinery market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the farm equipment rental market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the farm equipment rental market encompasses successful business strategies deployed by the key vendors. The farm equipment rental market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The farm equipment rental market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the farm equipment rental market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
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53% of the market's growth will originate from APAC during the forecast period. China and India are the key markets for farm equipment rental in APAC. Market growth in this region will be faster than the growth of the market in other regions.
The growth in population in many countries of APAC is leading to an increase in demand for food products, which will facilitate the farm equipment rental market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
In 2020, the governments of China, India, and Nepal, imposed COVID-19-related restrictions such as nationwide lockdowns, and stay-at-home regulations. Thus, many farm equipment manufacturers witnessed the negative impact of the pandemic on their business operations and faced supply chain disruptions due to the availability of a limited workforce and raw materials shortages. Thus, farmers across the region had little or no access to new farm equipment. This was favorable for the regional farm equipment rental market as farmers could not purchase new farm equipment and relied on rental service providers. Furthermore, due to the continuous initiatives taken by the regional governments and market players, the regional market will continue to witness growth during the forecast period.
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The farm equipment rental market share growth by the tractor segment will be significant during the forecast period. Tractors are used for many purposes in agriculture operations and have more applications than other farm equipment. The increase in demand for lower capacity models of tractors is also encouraging farm equipment manufacturers to launch new models of such tractors and make them available to the farmers on a rental basis. For instance, Mahindra and Mahindra offer advanced models of farm equipment on a rental basis through its brand Trringo.
This report provides an accurate prediction of the contribution of all the segments to the growth of the farm equipment rental market size and actionable market insights on post COVID-19 impact on each segment.
Farm Equipment Rental Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2021 |
Forecast period |
2022-2026 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.78% |
Market growth 2022-2026 |
$ 14.89 billion |
Market structure |
Fragmented |
YoY growth (%) |
7.41 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 53% |
Key consumer countries |
US, Canada, China, India, and France |
Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
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, Total Equipment Rental Inc., and Zimmerman Farm Service Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our 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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