Market Size of Farm Equipment Rental Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 6.00 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Farm Equipment Rental Market Analysis
The Farm Equipment Rental market is currently valued at USD 46.72 billion and is expected to register a CAGR above 7% during the forecast period.
Increasing agriculture mechanization and the need to reduce the financial burden on farmers across the globe, in the wake of rising import and export of cereals, are expected to drive demand in the market. In addition, the growing inclination for farm equipment with innovative features, and the rise in startups offering farm equipment for rent, are some of the other vital factors which will likely augment the growth of the farm equipment rental market.
The COVID-19 pandemic had a very negative impact on the farm equipment rental market worldwide. Equipment rental stores were closed due to lockdowns. Farmers also could not travel to rental stores due to the strict imposition of traveling restrictions and social distancing norms. However, in late 2020 and early 2021, as the COVID-19 pandemic receded and the COVID-19 criteria were taken back, growth returned in the global farm equipment rental market. Many new players also entered the market to tap into this post-COVID-19 growth in farm equipment rentals in markets like India. For instance
- In August 2021, Indian agritech startup FarmKart launched its tech-enabled platform rent4farm to offer farm equipment and tractor rental services in India.
The long-term factors, like the increase in the average farming machinery selling price, such as tractors and combine harvesters, Farming as a Service (FaaS) evolution, and increased mobile apps in offering farm equipment on rent and significant farm equipment manufacturers entry in the rental industry will likely drive the growth in farm equipment rental market.
Asia-Pacific dominates the farm equipment rental market due to the increasing demand for tractors and farming equipment such as harvesters, spraying, and threshing equipment for renting purposes. Small farmers in countries such as India need help to afford tractors. However, an Uber-like program is gradually expanding in the country, which makes it possible for farmers to get temporary access to tractors in demand.
Thus, the above factors are forecasted to produce significant growth in the farm equipment rental market.
Farm Equipment Rental Industry Segmentation
Farm equipment rental is defined as renting or leasing farm equipment processes like tractors and combine harvesters for a short period.
The Farm Equipment Rental Market is segmented by equipment type (tractors, harvesters, haying equipment, and other equipment types) and geography (North America, Europe, Asia-Pacific, and the rest of the world). The report also provides market sizing and forecasts in value (USD billion) for all the abovementioned segments.
| By Equipment Type | |
| Tractors | |
| Harvestors | |
| Haying Equipment | |
| Others |
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Farm Equipment Rental Market Size Summary
The farm equipment rental market is experiencing significant growth, driven by the increasing mechanization of agriculture and the need to alleviate financial pressures on farmers globally. This trend is further supported by the rising demand for innovative farm equipment and the emergence of startups offering rental services. The market, which faced challenges during the COVID-19 pandemic due to lockdowns and travel restrictions, has rebounded as restrictions eased, with new players entering to capitalize on the recovery. Long-term growth is anticipated due to factors such as the rising cost of farming machinery, the evolution of Farming as a Service (FaaS), and the proliferation of mobile apps facilitating equipment rentals. The Asia-Pacific region, particularly countries like India, is a dominant force in the market, driven by the need for affordable access to tractors and other equipment.
Tractors are expected to dominate the market share, with high horsepower models gaining traction in mature markets like Europe and North America. The demand for farm mechanization is increasing among mid- and low-income farmers in the Asia-Pacific region, encouraging a shift from labor-intensive methods to advanced technological solutions. Government initiatives and active engagement by key players in countries like India and China are crucial in reducing financial burdens and promoting market growth. The market is moderately consolidated, with major players like Deere & Company and Mahindra Trringo focusing on strategic partnerships and acquisitions to strengthen their positions. The ongoing demand for farm implements, driven by labor shortages, is also expected to support market expansion in the coming years.
Farm Equipment Rental Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Industry Attractiveness - Porter's Five Forces Analysis
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1.3.1 Bargaining Power of Suppliers
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Threat of New Entrants
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 By Equipment Type
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2.1.1 Tractors
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2.1.2 Harvestors
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2.1.3 Haying Equipment
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2.1.4 Others
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2.2 Geography
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2.2.1 North America
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2.2.1.1 United States
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2.2.1.2 Canada
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2.2.1.3 Rest of North America
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2.2.2 Europe
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2.2.2.1 Germany
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2.2.2.2 United Kingdom
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2.2.2.3 France
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2.2.2.4 Italy
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2.2.2.5 Rest of Europe
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2.2.3 Asia-Pacific
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2.2.3.1 India
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2.2.3.2 China
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2.2.3.3 Japan
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2.2.3.4 South Korea
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2.2.3.5 Rest of Asia-Pacific
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2.2.4 Rest of the World
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2.2.4.1 South America
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2.2.4.2 Middle-East and Africa
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Farm Equipment Rental Market Size FAQs
What is the current Farm Equipment Rental Market size?
The Farm Equipment Rental Market is projected to register a CAGR of greater than 6% during the forecast period (2024-2029)
Who are the key players in Farm Equipment Rental Market?
Deere & Company, Flaman Group of Companies, Mahindra Trringo, Pacific AG Rentals LLC and CNH industrial NV are the major companies operating in the Farm Equipment Rental Market.
