Tractor Rental Market Forecasts to 2028 - Global Analysis By Power Source, Product Type, Power Type, Type, Driver Type (2-Wheel Drive, 4-Wheel Drive ), Application End User and Geography

According to Stratistics MRC, the Global Tractor Rental Market is accounted for $48.45 billion in 2022 and is expected to reach $77.79 billion by 2028 growing at a CAGR of 8.21% during the forecast period. Tractors are earthmoving equipment utilised for various purposes in the agriculture as well as construction industries. In addition to ploughing and farming, tractors are also employed in the loading and unloading of building materials.

According to the survey by the National Bank For Agriculture and Rural Development (NABARD), there is a very low penetration of farm machinery. In NABARD All-India Rural Financial Inclusion Survey (NAFIS) just 5.2% of agricultural households have a tractor and just 1.8% owned a power tiller.

Market Dynamics:

Driver:

Increase in Online Rental Services

Any farming equipment that is purchased always costs a lot of money, and on top of that, it needs maintenance, but renting eliminates the trouble of upkeep. Owners of tractors can make money from them, giving them a second source of income. Renters, meanwhile, have access to tractors whenever they need them, allowing them to take use of the newest technology at competitive pricing. Major rental service providers are entering this untapped sector because it offers far greater potential for tractor rental than more developed regions.

Restraint:

Government Support for the Purchase of New Farm Equipment

The expanding government support for the purchase of new farm equipment is one of the primary factors preventing the expansion of the world market for tractor rentals. The Agriculture and Farmers Welfare Department of India, provides farmers with financial aid for the purchase of equipment for handling straw. Farmers can purchase more affordable, technologically updated equipment through this government programme. Government subsidies for agricultural equipment will result in a rise in the demand for new types of machinery. Farmers can now choose to buy modern agricultural equipment models rather than rent them because of government assistance. Such difficulties may prevent further advancement. Collectively, these issues limit the growth of the rental market for farm equipment worldwide.

Opportunity:

Expanding the rental product portfolio

Rental companies are putting a lot of effort into diversifying their inventory of rental products, which now includes both new and second-hand machinery. This aspect will influence the market going forward. Investment in R&D innovation has boosted labour productivity and Tractor Rental's integration with the larger economy. The quick uptake of rapidly changing technologies like cloud computing, robotic automation, artificial intelligence (AI), machine learning, the internet of things (IoT), and 5G is also optimistic for the industry and should promote future expansion. Despite changes in the cost structure of the technology distribution channel, increasing industrial expenditure should continue to have a net positive impact on the industry and on overall real economic activity.

Threat:

High maintenance cost

An important difference in operational efficiency knows which rental assets require repair, carrying out proactive, condition-based maintenance, tracking expenses, and monitoring availability deadlines. A rental asset that underperforms after being rented is very expensive since it damages the company's reputation, immediate income, and substantial maintenance costs.

COVID-19 Impact

Production of many farm equipment products has been interrupted as a result of the COVID-19 epidemic, primarily due to the protracted lockdown in important worldwide nations. The market for renting farm equipment has been severely affected by this recently. Equipment and machinery makers must concentrate on safeguarding their staff, operations, and supply chains when COVID-19 infection instances start to fall in order to react quickly to emergencies and adopt new methods of operation.

The >100 HP segment is expected to be the largest during the forecast period

The >100 HP segment is estimated to have a lucrative growth, due to the expanded range of field applications that these tractors can handle, the 50-100 HP tractors are anticipated to dominate the tractor rental market. In conventional agriculture, all significant tasks, including cultivation and harvesting, may be readily completed by securing an implement to a tractor with a power range of >100 HP.

The 4-Wheel Drive (4-WD) segment is expected to have the highest CAGR during the forecast period

The 4-Wheel Drive (4-WD) segment is anticipated to witness the fastest CAGR growth during the forecast period, due to their greater versatility in comparison to two-wheel drive tractors, four-wheel drive tractors are predicted to dominate the rental farm tractor industry. Tractors with four-wheel drives are also more often employed since they can operate with ease in wet fields.

Region with highest share:

North America is projected to hold the largest market share during the forecast period owing to increase in both business and residential construction activity. The U.S. government has also greatly increased its capital expenditures in the agricultural sector.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period, owing to Rice and other crops like cotton and palm are being grown by farmers more and more throughout the Asia Pacific region. Additionally, the agricultural industry in Asia-Pacific nations has seen a transition away from labour-intensive farming methods and toward high-tech equipment, which has increased demand for tractors and other farming equipment, including harvesters, sprayers, and threshing equipment, for rental purposes. Crop output has increased as a result of investments in diverse agricultural gear, notably in developing nations.

Key players in the market

Some of the key players profiled in the Tractor Rental Market include John Deere, EM3 Agri Services, Mahindra & Mahindra, Flaman Group of Companies, Premier Equipment Rental, Pacific Tractor & Implement, Titan Machinery, JFarm Services, Trringo, Farmease and Kwipped Inc.

Key Developments:

In Aug 2022, Mahindra launches the New Jeeto Plus CNG "CharSau" The New Jeeto Plus CNG "CharSau" is best suited for both inter and intra-city applications with its segment leading range, best in class mileage, easy manoeuvrability as well as class leading payload capacity, leading to higher profits.

Power Sources Covered:

• Electric
• IC Engine
• Other Power Sources

Product Types Covered:

• Row Crop Tractors
• Utility Tractors
• Industrial Tractors
• Earth Moving Tractors
• Other Product Types

Power Types Covered:

• < 40 HP
• 40-100 HP
• < 100 HP
• > 100 HP
• 100-200 HP
• > 200 HP
• Other Power Types

Types Covered:

• High- Powered Engines
• Low- Powered Engines
• Other Types

Driver Types Covered:

• 2-Wheel Drive (2-WD)
• 4-Wheel Drive (4-WD)

Applications Covered:

• Industrial Use
• Household Use
• Other Applications

End Users Covered:

• Warehouse
• Agriculture
• Construction Industry
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances