Farm Equipment Rental Market Poised for Growth Owing to High Labor Costs



The global farm equipment rental market is anticipated to witness substantial growth owing to rising labor costs. Farm equipment renting provides farmers with flexible access to modern tools without significant upfront investment. Tractors, harvesters, sprayers and other machinery help improve efficiency and productivity. The Global Farm Equipment Rental Market is estimated to be valued at US$ 57.17 Bn in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period 2024-2031.


Key Takeaways

Key players operating in the farm equipment rental market are Deere & Company,CNH Industrial,AGCO Corporation,Kubota Corporation,Mahindra & Mahindra. These market leaders have extensive equipment fleets and widespread service networks to serve customers.

The farm equipment rental market provides various opportunities for both operators and farmers. Renting removes the need for large capital outlays while ensuring the latest technologies are utilized. This flexibility promotes precision agriculture and optimizes operations.

Major players are expanding globally to capitalize on growing mechanization in emerging regions. Strategic acquisitions and partnerships broaden international presence and allow localized support in diverse agricultural landscapes. Increased rental adoption is expected across Asia Pacific, South America, Eastern Europe and Africa.

Market Drivers
High labor costs are a key driver for the farm equipment rental market. Hiring farmhands and seasonal workers involves significant expense that renting equipment helps mitigate. Machinery improves efficiency and reduces time spent on manual and repetitive tasks.

Market Restraints
Initial investment required to build rental fleets poses a challenge, as does ongoing maintenance and repair costs. Seasonal demand fluctuations also impact utilization rates. Lack of infrastructure in developing markets hinders repair services and parts availability that are important for customer satisfaction.

Segment Analysis
The farm equipment rental market is dominated by the tractors sub-segment. Tractors account for over 35% of the market share as they form an essential part of most agricultural operations including ploughing, sowing, fertilizing, spraying and harvesting. Their multipurpose functionality and ability to perform a variety of tasks has resulted in higher demand for rental tractors among small and marginal farmers who cannot afford to purchase their own. The harvesters and dryers sub-segment is another major segment driven by the increasing need to mechanize the harvesting and drying processes within tight timelines.

Global Analysis
The North American region currently holds the largest share in the farm equipment rental market owing to prevalence of large cultivable lands and growing contract farming practices. It is estimated to witness a CAGR of 5% during the forecast period on account of steady mechanization of agricultural activities.

The Asia Pacific region, driven by countries such as India and China, is expected to emerge as the fastest growing regional market at a CAGR of over 7.5% through 2031. This can be attributed to ongoing government initiatives and subsidy schemes that promote rental farm mechanization in order to boost productivity and maximize crop output.

Get more insights on this topic :

What Are The Key Data Covered In This Farm equipment rental  Market Report?

:- Market CAGR throughout the predicted period

:- Comprehensive information on the aspects that will drive the Farm equipment rental 's growth between 2024 and 2031.

:- Accurate calculation of the size of the Farm equipment rental  and its contribution to the market, with emphasis on the parent market

:- Realistic forecasts of future trends and changes in consumer behaviour

:- Farm equipment rental  Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa

:- A complete examination of the market's competitive landscape, as well as extensive information on vendors

:- Detailed examination of the factors that will impede the expansion of Farm equipment rental  vendors

About Author:

Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)

 

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it

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