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Farm Equipment Rental Market Size to Reach USD 82.2 Billion in 2028

By Biswas Debanjan

Posted on December 7, 2021

A survey of the global farm equipment rental market size shows that the market is expected to reach USD 82.2 Billion in 2028 and register a revenue CAGR of 7.4% over the forecast period, according to the latest report by Reports and Data. Market revenue growth is driven by growing rising mechanization trends and increasing demand for a variety of food grains globally. In addition, factors such as steady shift towards more modernized farming techniques and adoption of farming machinery, equipment, and services for agricultural operations, especially in developing economies, are supporting revenue growth of the market currently. Rising cost of cultivation owing to high labor costs in some countries, unavailability or low availability of manual labor for agriculture activities, and increasing shift towards mechanization of farm operations due to manual processes being less cost-effective in the long term are other factors driving market growth.

However, inability of some small-scale farmers to afford rental equipment or purchase farm machinery and equipment is a major factor expected to hamper market growth to some extent going ahead.

Rising demand for and increasing focus on different ranges of farming equipment among farmers and rental companies respectively is further contributing to revenue growth of the market. Additionally, rapid technological advancements promoting agricultural practices and creating a shift from conventional farming to more advanced farming approaches, including modern machinery in farming practices, is expected to continue to support growth of the market.

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Some key findings from the report

Two-wheel-drive tractors are mainly utilized for farming in dry soil conditions, and for transporting farm produce. These tractors are highly efficient, easy to use, and energy-efficient. Owing to smaller turning radius, these tractors facilitate farmer accessibility to smaller areas or around short corners. Two-wheel-drive tractors are also comparatively cheaper than the more robust 4WD tractors, thus, making them more suitable for use by farming families or smallholding farmers.

Tractors are used in various agricultural activities including sowing and planting, plowing, cultivating, threshing, and others. Growing demand for tractors by farmers on rental basis is projected to accelerate agricultural mechanization over the forecast period.

Asia Pacific market is the fastest growing market for rental equipment, supported by revenue contribution from countries such as India and China. The market in the region is expected to register the fastest CAGR in terms of revenue over the forecast period. India and China, being two of the most populous countries in the region, are focused on food security due to rapidly expanding population in these countries and rising food demand. In addition, major agriculture manufacturers in India continue to explore opportunities and offer equipment on rental basis along with government aided schemes. This is resulting in easy accessibility of small- and medium-sized farmers to otherwise inaccessible equipment due to financial restraints and other challenges. In addition, rising food demand is driving the ongoing rapid shift towards modernization and mechanization of agriculture and farming practices in countries in the region, and the trend is expected to continue over the forecast period.

Leading players operating in the market include John Deere (US), Kubota Corporation (Japan), CNH Industrial (UK), Tractors and Farm Equipment Ltd. (India), AGCO Corporation (US), JCB (UK), Mahindra & Mahindra (India), Escorts Ltd. (India), Pape Group, Inc. (US), and Premier Equipment Rentals (US).

For the purpose of this report, Reports and Data has segmented the global farm equipment rental market on the basis of equipment type, power output, drive, and region:

Equipment Type Outlook (Revenue, USD Billion, 2018 – 2028)