Farm Tractor Rentals Market - Forecasts from 2023 to 2028

The farm tractor rentals market is estimated to grow at a CAGR of 4.89% during the forecast period

The farm tractor rentals market is anticipated to rise at a steady pace during the projected period. The demand for farm equipment rental services is growing as a result of the high cost of new farm equipment purchases and related maintenance services. Through the use of rental services, farmers can benefit by avoiding the expense of maintaining farm equipment. Farmers who rent farm equipment may harvest their crops on schedule without having to put a significant amount of money down on expensive agricultural machinery.

Growth drivers for the farm tractor rentals market

Demand in the tractor rentals market is anticipated to be driven by growing agricultural mechanisation and the desire to lessen the financial burden on farmers throughout the world as a result of increased cereal import and export. Other important aspects that will probably accelerate the expansion of the farm tractor rental industry include the rising trend towards tractors with cutting-edge features and the rise in startups providing farm tractors t for rent. In addition, several small- and medium-scale farmers are anticipated to be drawn in by the rising knowledge of the advantages of farm mechanisation and the cheap maintenance costs of the rental fleet.

Rising developments in tractor rental service

Throughout the projected period, the tractor rental market share is going to be high. Growing demand from established markets like Europe and North America for high horsepower tractors, particularly those with more than 40 horsepower (HP), such as utility tractors and row crop tractors, tends to present new opportunities for market participants. Key firms who provide tractor rental services are anticipated to further advances in the tractor rental industry in addition to these.

Increasing online rental services to drive the market

Farmers in the middle class who cannot afford or maintain a tractor now have the best option available to them since they may hire a wide range of tractors based on location, kind, feature, and duration.. Owners of tractors may make money from them, giving them a second source of income. Renters, meanwhile, have access to tractors whenever they need them, allowing them to make use of the newest technology at competitive pricing.  This is the key driver for the farm tractor rentals market.

Utilization in the food sector is regarded as a growth driver

Fruit and vegetable consumption has increased dramatically worldwide in recent years. The rising number of vegetarians and vegans is to blame. There is a high demand for fruits and vegetables in countries like India where the majority of the population follows a vegetarian diet. The millennial generation in these nations favours a vegetarian or vegan diet due to moral concerns about animal cruelty. The need for agricultural leasing equipment will increase as a result of the substantial increase in worldwide demand for fruits and vegetables. In addition, there is a rising demand for these farm equipment rentals from developed nations due to factors including rising consumption rates, the need for more food production, higher electricity demands on farms, and the extent of agricultural holdings to propel the farm tractor rentals market.

Growing prevalence of smart farming

Demand for tractors is rising as a result of precision farming and the growing use of agricultural mechanisation to boost productivity. The tractor rental market is also being driven by the rising number of farm training courses that encourage the widespread usage of agricultural equipment. In addition, the demand for tractors in the construction sector is rising as a result of the expansion of building and construction projects. Furthermore, telematics and GPS-equipped modern tractors have been developed as a result of numerous technical advances.

Asia Pacific is anticipated to dominate the farm tractor rental market

Offering the greatest technology and easing farmers' financial burdens is one of the main drivers of the expansion of the Asia-Pacific tractor rental industry. Without having to spend a significant amount of money on tractors, renting a tractor enables farmers to cultivate their crops on schedule and gives them an easy option to improve their operations.

Government initiatives and product innovations in the Asia Pacific region

In January 2022, the Tamil Nadu government unveiled a variety of programmes including an e-Wadgai for farmers and a smartphone app for renting farm machinery. They may utilise the app to get additional information about renting devices and the terms of service. The new programme would subsidise 2,118 different types of agricultural gear for a total of Rs 50.73 crore.

Additionally, an app-based system for renting out farm machinery, like harvesters and tractors, to small and marginal farmers in about 3,000 main agricultural credit societies will be introduced by the Bihar Cooperative Department in June 2022. Farmers who don't have their agricultural equipment for tillage or other cultivation needs might reserve it using the app, and depending on availability, the machines would be brought to their door. The rental would be on an hourly basis, sources claim.

Key manufacturers are focusing on product innovation

The tractor rentals market is fairly fragmented, includes several active competitors, and is also seeing the birth of several new entrepreneurs. John Deere, Farmease, Trringo, and JFarm Services are a few of the market's top competitors. The businesses are growing their market share by purchasing rival businesses, buying more tractors, and entering untapped markets.

As top corporations concentrate on retaining their leadership position and new competitors attempt to establish a market presence, consumer expectations will continue to change, which will be matched by the introduction of new products with new features or lower price points.  

Market Key Developments

• In August 2022, Hello Tractor, a Nigerian business that provides marketplace and fleet management technologies for African farmers to hire tractors, received a minority investment into the tractor sharing and management platform, from Deere and Company.
• In March 2022, the creator of the Krish e app, Carnot Technologies, sold a 69% interest to Mahindra and Mahindra. Each season, more than 25,000 tractors, harvesters, and sprayers from Carnot Technologies operate across more than 3 million acres of land.
• In January 2022, Carnot Technologies, the company that created the Krish e app, was purchased by Mahindra & Mahindra for a 69% share. Over 25,000 tractors, harvesters, and sprayers are used by Carnot Technologies every season to operate on more than 3 million acres of land.

Segmentation:

By Engine Power

• Below 40 HP
• 40 H.P.-120 HP
• 121 HP-180 HP
• 181 HP-250 HP
• More than 250 HP

By Application

• Harvesting
• Seed Sowing
• Irrigation
• others

By Operations

• Manual Tractor Vehicle
• Autonomous Tractor Vehicle

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• Japan
• China
• India
• South Korea
• Indonesia
• Thailand
• Others