Farm Equipment Rental Market Share Projections: CAGR of 7% Envisions Market Size of $98.35 Billion by 2033

The global farm equipment rental market size is anticipated to grow from USD 50 billion to USD 98.35 billion in 10 years. The market will experience rapid growth due to technological advancements in farm equipment during the forecast period.

Newark, April 11, 2024 (GLOBE NEWSWIRE) — The Brainy Insights estimates that the USD 50 billion in 2023 global farm equipment rental market will reach USD 98.35 billion in 2033. Agricultural Machinery Agricultural machinery and equipment can be rented from rental businesses. They mostly serve farmers who need access to costly or specialized equipment but cannot afford to buy it all at once. Providers vary from more varied rental enterprises catering to multiple industries to specialized companies specializing only in agricultural machinery. Renting equipment offers farmers flexibility, financial savings, and less maintenance work. It considerably lowers the up-front expenses related to buying farm equipment. Flexibility is provided by renting.

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Farmers can modify the kind and amount of equipment according to certain jobs, seasonality, or changing needs. Farmers are relieved of the responsibility of maintaining and repairing their machinery when maintenance services are included in rental agreements. Additionally, renting makes scaling possible. Having the appropriate equipment available when needed increases agricultural profitability and production. Additionally, renting reduces the risks of investing in unfamiliar machinery by enabling farmers to test-drive new technologies and equipment before making long-term commitments.

Report coverage & details:

Key Insight of the Global Farm Equipment Rental Market

Asia Pacific will dominate the market during the forecast period.

Due to the region’s varied agricultural environment, which includes major commercial operations and smallholder farms, a significant need exists for a wide range of farm equipment. Mechanization and modernization are required due to the region’s fast urbanization and population growth, which have put more strain on labour and agricultural land. Significant strides in agricultural technology have been made in the Asia Pacific region, given the international cooperation, private sector investment, and government initiatives. It is made simpler for farmers to obtain equipment rental services through government assistance through support programmes, incentives, and subsidies. Access to rental services in rural areas has improved due to infrastructure improvements. The development of rental enterprises in remote locations has been made easier logistically by investments in market facilities, rural electrification, and transportation networks.

In 2023, the agriculture tractors segment dominated the market with the largest market share of 37% and revenue of 18.50 billion.

The type segment is divided into agriculture tractors, agriculture harvesters, agriculture planting equipment, irrigation and crop processing equipment, cultivation and ploughing equipment, planting equipment, cutter and shredders equipment, and others. In 2023, the agriculture tractors segment dominated the market with the largest market share of 37% and revenue of 18.50 billion.

In 2023, the cultivation segment dominated the market with the largest market share of 39% and revenue of 19.50 billion.

The application segment is divided into land development and seed bed preparation equipment, sowing and planting, cultivation, plant protection, harvesting and threshing, post-harvest and agro-processing and others. In 2023, the cultivation segment dominated the market with the largest market share of 39% and revenue of 19.50 billion.

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Advancement in market

The Krish-e Smart Kit (KSK) was introduced by Krish-e Mahindra’s AgTech company. The first-of-its-kind after-market gadget, the Krish-e Smart Kit, gives owners of farm equipment and tractors comprehensive insights into their machinery through GPS-enabled time tracking and remote parameter monitoring from the convenience of a smartphone. Ag-Tech start-up Carnot Technologies is the creator of the innovative Krish-e Smart Kit. With the help of the Krish-e Smart Kit, fleet operators and rental business owners may decrease tractor downtime while managing maintenance expenses and enhancing fleet performance sustainably.

Market Dynamics

Driver: Growing knowledge about renting farm equipment.

The affordability of renting instead of buying altogether helps farmers, especially small farmers, confront financial difficulties. Farmers may obtain the necessary equipment without paying high upfront expenses, which frees up funds for other business areas. Furthermore, rental services’ flexibility and agility meet farming’s changing needs. Furthermore, the agricultural emphasis on sustainability and environmental issues highlights the relevance of renting services for equipment sharing. Renting helps lessen the negative environmental effects of farming by encouraging resource conservation and lowering the number of machinery in use. Additionally, renting farm equipment helps farmers reduce risk and get access to markets. Furthermore, renting enables farmers to conduct tests. Renting enables farmers to experiment with new tools or methods before making large-scale investments. These elements work together to fuel the rising demand for farm equipment rentals.

Restraints: Rental costs.

Variations in the quality of rental machinery, impacted by elements including age, usage history, and rental companies’ maintenance methods, give rise to worries over the performance and dependability of equipment. Events of failures or malfunctions brought on by poor maintenance can disrupt farm activities and undermine rental service trust. Furthermore, farmers continue to incur significant costs for rental fees, particularly in high-demand seasons or when several pieces of equipment are needed at once. Farmers face difficulties in budgeting due to fluctuations in rental costs, which are influenced by various factors such as the type of equipment, duration, and operating expenses. The restrictions could discourage farmers from depending on These restrictions would discourage farmers from depending on rental companies, which would decrease the availability and use of rental equipment in farming operations. As a result, financial concerns will restrict the use of rental services and impede the expansion of the industry.

Opportunities: Developments in technology.

Technology has completely changed how agricultural machinery is made and works, making the machinery more accurate, effective, and adaptable. New equipment is now readily available on the market due to the quick speed at which technology is developing, and renting gives farmers access to state-of-the-art equipment without the long-term commitment or financial strain of ownership. Technological developments have resulted in the widespread use of specialized equipment for certain purposes or environments. Precision agriculture technologies, like variable rate application technology and GPS guiding systems, allow farmers to more precisely optimize inputs and maximize yields. A more affordable option for having on-demand access to such equipment is to rent it. The need for agricultural equipment rentals is driven by technological improvements, which provide farmers access to the newest innovations without long-term commitments or financial concerns.

Challenges: Lack of accessibility.

The limited availability of farm equipment rental services, particularly in rural or remote regions, poses a significant challenge for farmers. Logistical constraints and low demand in these areas make it economically unfeasible for rental companies to establish operations, resulting in limited access to rental equipment. As a result, farmers may struggle to find the equipment they need for their operations. Moreover, logistical challenges associated with coordinating equipment rentals further compound the issue. Scheduling delivery and pickup of rental equipment, Transportation to and from farms, and Compatibility issues between rented equipment and existing farm infrastructure can also cause disruptions.

Some of the major players operating in the global farm equipment rental market are:

• Aktio Corporation
• Ashtead Group Plc.
• Cramo
• H&E Equipment Services, Inc.
• Loxam
• Maxim Crane Works, L.P.
• Nishio Rent All Co. Ltd.
• Ramirent Plc.
• Sarens NV
• Speedy Hire Plc.

Key Segments covered in the market:

By Type

• Agriculture Tractors
• Agriculture Harvesters
• Agriculture Planting Equipment
• Irrigation and Crop Processing Equipment
• Cultivation and Ploughing Equipment
• Planting Equipment
• Cutter and Shredders Equipment
• Others

By Application

• Land Development and Seed Bed Preparation Equipment
• Sowing and Planting
• Cultivation
• Plant Protection
• Harvesting and Threshing
• Post-Harvest and Agro-Processing
• Others

By Region

• North America (U.S., Canada, Mexico)
• Europe (Germany, France, the UK, Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America)
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

About the report:

The market is analyzed based on value (USD Billion). All the segments have been analyzed on a worldwide, regional, and country basis. The study includes the analysis of more than 30 countries for each part. The report analyses driving factors, opportunities, restraints, and challenges to gain critical market insight. The study includes Porter’s five forces model, attractiveness analysis, Product analysis, supply and demand analysis, competitor position grid analysis, distribution, and marketing channels analysis.

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Source: finance.yahoo.com