The farm equipment rental is services that provide various farming machinery to Farmers. The farms based equipment is used for different tasks in farm such as ploughing, harvesting and more. There are further different tasks that are performed may be once in a season and hence further there is no necessity of farmer to buy the said equipment in order to perform these tasks.
According to study, “Global Farm Equipment Rental Market to reach USD 72.50 billion by 2026” the key companies operating in the global farm equipment rental market are John Deere, Kubota Corporation, CNH Industrial, Mahindra & Mahindra, AGCO Corporation, Escorts Ltd., JCB, Flaman Group of Companies, Tractors and farm equipment’s ltd. and Premier Equipment Rentals. The players in the market are further focusing on increasing their presence by mergers & expansions and investments, acquisitions, partnerships, joint ventures, and agreements.
Based on equipment type, farm equipment rental market is segmented as harvesters, tractors, sprayers, balers and others. The Harvesters segment holds major share in global market owing to high labor cost coupled with insufficient workforce in the harvesting category. Based on power output, market is segmented as less than 30 HP, 31 HP to 70 HP, and 71 HP to 130 HP, 131 HP to 250 HP and above 250 HP. The 71 HP to 130 HP segment consists of 4WD tractors and some 2WD tractor models as well. These (71-130HP) tractors are expected to witness higher growth rate due to high consumption rates, greater power requirements in the farms, higher food production necessity, and the large land size of the farm holdings during the forecast period. In addition, based on drive, market is segmented as two-wheel drive and four-wheel drive. Four-wheel-drive tractors are robust machines used generally for large scale commercial farming practices of 100 HA–2,000 HA. They have a very high pulling capacity along with high wheel-slip and wheel-power capacities.
The farm equipment rental market is driven by rise in demand for productivity & operational efficiency, followed by high cost of agriculture equipment, limited availability of arable land, shortage of skilled labor & increase in mechanization in developing countries and growth in government subsidies for farming equipment. However, low level of awareness among farmers may impact the market. Moreover, rise in adoption of new & advanced technological applications in farm machinery and strong growth in emerging economies is key opportunities for market.
Based on geography, the Asian-Pacific region holds major share in global farm equipment rental market owing to largest arable land coupled with rise in shift from labor intensive farming techniques to advanced technological equipment in the region. Whereas, the North-American and European regions are anticipated to witness higher growth rate due to increase in disposable income and rise in investments in various agriculture machinery over the forecast period. The global farm equipment rental market is valued approximately at US $43.7 billion in 2018 and is expected to grow with a healthy growth rate of more than 7.5% over the forecast period 2019 to 2026.
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Ankur Gupta, Head Marketing & Communications