Apr 18, 2020   SOURCE: BusinessWire

Global Farm Equipment Rental Industry (2020 to 2025) - Strong Growth in Emerging Economies Presents Opportunities - ResearchAndMarkets.com

The "Farm Equipment Rental Market by Equipment Type (Tractors, Harvesters, Sprayers, Balers & Other Equipment Types), Power Output (<30HP, 31-70HP, 71-130HP, 131-250HP, >250HP), Drive (Two-wheel Drive and Four-wheel Drive), Region - Global Forecast to 2025" report has been added to ResearchAndMarkets.com's offering.

The global farm equipment rentals market is estimated to account for a value of USD 46.8 billion in 2020 and is projected to grow at a CAGR of 7.3% from 2020, to reach a value of USD 66.4 billion by 2025.

Factors such as the shortage of farm labor and increasing labor cost, along with rising demand for crop productivity and operational efficiency, are projected to drive the growth of this market. The increasing government subsidies for farming equipment in developing countries further provide open opportunities for growth of the farm equipment rental market.

The four-wheel-drive segment, by drive, is projected to dominate the market by 2025.

The four-wheel-drive segment accounted for the second-largest market share in 2018. They have massive pulling capacity and have high wheel-slip and wheel-power capacities. The distinctive feature of this machinery is that it has controls to move all four wheels and provides higher traction as compared to that of 2WD tractors. It is highly versatile and can also support a broader scope of implements including haulage, loader, mowing, plant protection, tillage, and slashing. It is projected to grow from 2020 to 2025, with high demand expected to arise from developing regions.

The 71-130 HP segment of the farm equipment rental market is projected to grow at a significant CAGR of 7.3% during the forecast period.

The 71-130 HP segment accounted for a larger share in 2018 and is projected to grow at a higher CAGR from 2020 to 2025. The increased government support in the Asia Pacific and South America is expected to fuel the demand for 71-130 HP equipment during the forecast period. This range of power output also offers farmers 2WD as well as 4WD drive types, which makes it feasible for farmers with small as well as large holdings to use these efficiently. All the developing countries with developing agricultural economies can easily work with this power range and also increase the mechanization levels of the farms.

The Asia Pacific market is estimated to account for the largest market share due to the high adoption of farm equipment, such as tractors and harvesters, on a renting basis, in the region.

According to the FAOSTAT, the Asia Pacific region contributed to more than 60% of the global population in 2017, with China and India being two of the most populous countries in the world. Hence, the increase in food demand in this region has led to a surge in the use of technologically advanced farm equipment for higher productivity in crop production. The predominance of small-scale manufacturers and increasing focus on rice cultivation is also widely seen across various countries in the Asia Pacific region. Further, a shift from the adoption of labor-intensive farming techniques to advanced technological equipment in the agricultural sector across the Asia Pacific countries has led to increasing demand for tractor and various farming equipment such as harvester and spraying and threshing equipment for the renting purpose.

Market Dynamics

Drivers

  • Shortage of Skilled Labor and An Increase in Mechanization in Developing Countries
  • Rising Demand for Productivity and Operational Efficiency
  • High Cost of Agriculture Equipment
  • Limited Availability of Arable Land
  • Growing Government Subsidies for Farming Equipment

Restraints

  • Low Level of Awareness Among Farmers

Opportunities

  • Strong Growth in Emerging Economies
  • Rise in the Adoption of New and Advanced Technological Applications in Farm Machinery

Challenges

  • Lack of Safety-Related Regulations in Developing Regions

Companies Profiled

  • John Deere
  • CNH Industrial
  • Kubota Corporation
  • Agco Corporation
  • Mahindra & Mahindra
  • JCB
  • Escorts Ltd.
  • Tractors & Farm Equipments Ltd.
  • Pape Group Inc.
  • Premier Equipment Rentals
  • Flaman Group of Companies Ltd.
  • Pacific AG Rentals LLC
  • Pacific Tractor & Implement Ltd
  • Farmease
  • Kwipped, Inc
  • Cedar Streets Sales & Rentals Inc.
  • Em3 Agri-Services Ltd.
  • German Bliss Equipment Inc.
  • Friesen Sales & Rentals

For more information about this report visit https://www.researchandmarkets.com/r/l118g2