Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Farm Equipment Rental Market size was over USD 56.49 billion in 2024 and is anticipated to cross USD 128.09 billion by 2037, witnessing more than 6.5% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of farm equipment rental is estimated at USD 59.43 billion.
The growth driver for the market is the rise in the number of suppliers/ rental services, and initiatives by the government to support farmers.Mukhyamantri Harit Krishi Sanyantra Yojana initiated by the State of Bihar aims to help farmers in increasing agriculture yields, providing rental equipment and financial support. Moreover, any single farmer or group of farmers from Bihar can apply for this yojana, particularly those who have owned land. Further, a 50% subsidy will be provided for renting machinery.
Farm Equipment Rental Sector: Growth Drivers and Challenges
Growth Drivers
- High market value of agriculture equipment - The requirement of equipment is basic for the agriculture sector. Therefore, the world's shift towards precise farming and mechanization eventually increased the demand for high-value equipment. This resulted in affecting agriculture production and no savings since the farmers had to invest their hard-earned money in buying expensive machinery.
- Increasing demand for food - With the rise in population, the demand for food is also increasing. To meet these demands, the adoption of new techniques and equipment must be acknowledged. With the assistance of rental equipment, farmers can easily increase productivity and maintain the global food demand. Further, the subsidies provided by the government such as Yantra Laxmi Scheme, help the farmer in accessing necessary elements required for the field.
- Increasing number of rental services - The farm equipment rental market is rapidly expanding in the world since the rental sector has various equipment to offer whether it is related to construction or farming. The construction equipment rental is also in high demand due to the increasing industry awareness. As in the 2022-23 budget of the Indian Government, nearly USD 26 billion is anticipated to be invested to develop highways for better transport and connectivity. The suppliers of the farm equipment rental market had to take risks since the seasonal variations hinder growth.
Challenges
- Fluctuations in demand due to changing seasons - Planting, harvesting and other such type of seasonal events are a barrier to the growth of the market. Rental equipment suppliers may find difficulty in generating a fixed income throughout the year resulting in huge losses.
- High-value investments - The farm equipment rental market requires high-value investments. Businesses that step into this field face difficulty in paying huge amounts for stocking machinery and other necessary equipment.
Farm Equipment Rental Market: Key Insights
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
6.5% |
|
Base Year Market Size (2024) |
USD 56.49 billion |
|
Forecast Year Market Size (2037) |
USD 128.09 billion |
|
Regional Scope |
|
Farm Equipment Rental Segmentation
Type (Tractors, Harvesters, Balers, Sprayers)
Tractors segment is poised to hold farm equipment rental market share of over 39% by the end of 2037. The segment growth is growing because tractors are resistant to damage and consume less time in cultivation. Further, 4-wheel drive tractors are highly demanded due to the large number of farmers.
Additionally, in a country like India where a majority of revenue is generated from farming, the role of tractors in their life is very crucial as not every small landholder can afford advanced machinery. Therefore, the farm equipment companies in India are supporting the needs of farmers by offering low-cost and high-quality tractors. On average, USD 0.3 million to USD 3 million one has to spend for a tractor which is the most common and widely used farm equipment in India. The price may differ as per the brands.
Drive (4Wheel Drive,2 Wheel Drive)
4-wheel drive segment in the farm equipment rental market is likely to observe growth of more than 6% through 2037. Since the 4-wheel drive helps in large-scale commercial farming and can work in different field conditions. Moreover, 4-wheel drive equipment provides stability and grip such as Mahindra Tractor which performs efficiently for all your agricultural activities. Another important factor contributing to the growth of the market is the growing need for highly advanced machinery that can help in precise farming and adapt to various farming methods.
Power Output (<30 HP, 31-70 HP, 71-130 HP, 131-250 HP, >250 HP)
In farm equipment rental market, 71-130 HP segment is anticipated to hold revenue share of over 44% by the end of 2037. These consist of 4 WD and 2 WD tractor models. Such as the 6R 130 utility tractor by Deere & Company. The 71-130 HP segment is growing due to the high consumption rates, demand for power, large land and food production necessities at a higher rate.
Our in-depth analysis of the global market includes the following segments:
|
Equipment Type |
|
|
Drive |
|
|
Power Output |
|
Want to customize this research report as per your requirements? Our research team will cover the information you require to help you take effective business decisions.
Customize this ReportFarm Equipment Rental Industry - Regional Synopsis
Asia Pacific Market Forecast
Asia Pacific industry is set to account for largest revenue share of 45% by 2037. In the region the demand for agricultural yields is increasing with the rise in population.
Additionally, there are many startups in India for instance EM3 Agri Services, that are providing cost-effective solutions such as rentals. As in India, land area is scattered ranging from small to large which becomes a hurdle for farmers to buy a full range of farming equipment just for a small piece of land. The agriculture machinery industry of Korea is set to level up with other competitors in developed countries.
With the introduction of advanced technology and smart farming, the farm equipment rental market in Korea is flourishing. As per a report, the market size of smart farming in South Korea reached USD 5.4 trillion won in 2020. In China, farmers find difficulty in purchasing high-cost agriculture machinery since they remain idle for a long time due to seasonal variations, therefore renting out a piece of farm equipment is the best choice as it increases the utilization rate and supports the economy.
North America Market Analysis
North American farm equipment rental market is set to showcase growth rate of over 6% between 2024 and 2037. The market in the North American region is growing due to technological developments in the agriculture field.
However, yearly increasing prices of agricultural equipment are supporting the market in the USA. As the farmers prefer renting equipment instead of buying them. As per an analysis, a particular tractor has also hiked nearly 50% from 2020 to 2023 in the US.
In Canada, the market is growing due to high interest rates and expensive equipment and drought. According to the National Agroclimatic Risk Report by the Government of Canada, an April- May analysis reports, more than 90% of the farmland available in Alberta is affected by the drought.
Companies Dominating the Farm Equipment Rental Landscape
- AGCO Corporation
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Deere & Company
- Ashtead Group
- Cramo
- Ramirent
- H & E Equipment Services
- Speedy Hire
- Sarens
- Titan Machinery
- Friesen Sales & Rentals
The farm equipment rental market is dominated by key market players who are gaining traction in the market by the high-end prices of agriculture equipment.
In the News
- AGCO Corporation a well-known name in the field of advanced machinery and agricultural equipment invested in Innova Ag Innovation Fund VI to push the agriculture sector towards sustainability with more advanced solutions.
- AGCO Agriculture Foundation which holds a vision of sustainable development partners with The Do More Agriculture Foundation to enhance the mental health of farmers with a funding of USD 0.5 million.
- Aktio invested in AI technology for asset value calculation named ‘i- rental AI’ developed by Sorabito and PKSHA Technology.
Author Credits: Shweta Patidar
- Report ID: 6163
- Published Date: Nov 15, 2024
- Report Format: PDF, PPT
