Farm Equipment Rental Market Size, Share and Trends 2024 to 2034

Farm Equipment Rental Market Size and Forecast 2024 to 2034

The global farm equipment rental market size is worth around USD 57.17 billion in 2024 and is anticipated to reach around USD 105.51 billion by 2034, growing at a CAGR of 6.32% over the forecast period 2024 to 2034. Increasing the upfront costs to purchase high-end farming equipment like tractors and harvesters, which makes low-scale farmers unable to buy these products, along with increasing awareness for agri-tech farming and farming as a services (FaaS) solution, is fuelling the farm equipment rental market.

Farm Equipment Rental Market Key Takeaways

• Asia Pacific accounted for the largest market share of 35% in 2023.
• North America is expected to grow at a notable CAGR of 5.94% during the forecasted years.
• By equipment, the tractors segment contributed more than 40% of market share in 2023.
• By equipment, the harvesters segment is expected to grow at a CAGR of 7.42% over the studied years.
• By power output, the 41 HP to 100 HP segment generated the highest market share of 47% in 2023.
• By power output, the 100HP segment is registering a fastest CAGR of 7.32% during the forecasted years.
• By drive type, the four-wheel drive segment captured the biggest market share of 55% in 2023.
• By drive type, the two-wheel drive segment is projected to expand at a solid CAGR of 5.73% during the forecast period.

Asia Pacific Farm Equipment Rental Market Size and Growth 2024 to 2034

The Asia Pacific farm equipment rental market size was exhibited at USD 18.82 billion in 2023 and is projected to be worth around USD 37.46 billion by 2034, poised to grow at a CAGR of 6.45% from 2024 to 2034.

Asia Pacific accounted for the largest share of the farm equipment rental market in 2023. The growth of this region is attributed to factors like rising demand for a variety of tractors and rental farm equipment like sprayers and harvesters. In urban cities of India, this rental equipment is easily available, although small-town farmers need some support to leverage the rental equipment for farming.

• In July 2022, the state government of Bihar in India announced the launch of mobile app-based farm equipment rental services for small farmers in the state who cannot afford to buy their farm equipment.

Also, rising demand for mechanization in farming and low maintenance for the rental fleets is anticipated to gain traction of many large and medium-scale farmers in the Asia Pacific, fuelling the region's growth further. Government initiatives to reduce the financial burden on farmers and engaging activities by major key players are notable driving factors in the Asia Pacific.

• In March 2022, Mahindra and Mahindra acquired a 69% stake in Carnot Technologies, the developer behind the Krish e app. Carnot Technologies includes over 25,000 tractors, harvesters, and sprayers working on over 3 million acres of land each season.

North America is expected to witness the fastest growth in the farm equipment rental market during the forecasted years. The growth of this region is attributed to various factors, like technological advancements in the farming sector in North America, along with the government's strong support for hi-tech farming. Increasing adoption of technologies such as automated machinery and precise farming tools, including accurate sensing ability to forecast the environmental status.

• In February 2024, Deere & Company introduced its latest range of four-track tractors with high HP, which includes a top model boasting 830 horsepower. The 2025 lineup features new models, including the 9RX 710, the 9RX 770, and the 9RX 830, equipped with upgraded engines, hydraulic systems, and technology packages, along with updated cabs.

In North America, major growth factors are due to the significant progress observed in the United States for the farm equipment rental market. Rental equipment providers belonging to the U.S. provide tools with cutting-edge technologies, GPS systems, and variable rate application tools, including automation in machinery, fuelling the market growth further with technically advanced farming practices.

Europe holds a notable presence in the global farm equipment rental market. Efficient and affordable farming practices are adopted by the farmers in Europe, and these practices are supported by the various framing authorities and the Ministry of Agriculture in Europe, fuelling the region's growth. CAP is the common Agricultural policy invented and made effective by the European government to support farmers financially while conserving resources and reducing carbon emissions as per the strict environmental rules followed in Europe.

Market Overview

The farm equipment rental market is expanding owing to factors like increasing mechanization in agriculture and high upfront costs required to purchase farming equipment, which is not possible for low- and medium-scale farmers. For them, farm equipment rental services are cost-effective and efficient for farming and producing maximum yield. Renting farming equipment offers reliable solutions and better financial alternatives and provides necessary machinery without the need to invest substantial costs.

The rise in agricultural start-ups with technological advancement and digital platforms is fuelling the farm equipment rental market further in a revolutionizing way. Mobile applications and online platforms provide details about farming equipment and are able to make transactions related to it, making it an easy option to adopt for better farming. Moreover, these solutions are equipped with technically advanced systems like IoT, advanced analytics, big data analytics, ML/AI, and real-time monitoring, making them more appealing and in-demand solutions for the agriculture sector.

AI Impact on the farm equipment rental market

AI is significantly impacting the farm equipment rental market with the help of ML algorithms and advanced data analytics. Algorithms are used to analyze huge amounts of generated data with historical patterns and to gain insights from it, which further helps to proliferate market growth. Rental companies can predict the market's inclination more accurately with the help of AI and provide customized packages for farmers. It also helps in inventory management, which is a crucial factor for cost-effective operations. Machine learning further helps identify potential threats before they manifest by using patterns and predictive maintenance, which, in turn, reduces downtime and provides more reliable solutions for consumers.

Farm Equipment Rental Market Growth Factors

• Affordability and cost efficiency for the low-scale farmers.
• Substantial investment is needed for new farming machinery.
• Spectrum of equipment can be brought on rent by the farmers to produce maximum yield.
• Increasing start-ups for farm equipment on a rent, fuelling the farm equipment rental market further.
• Helps reduce the financial burden on farmers.
• Provide absolute productivity and operational efficiency in farming processes.

Market Scope

Market Dynamics

Driver

Farming as a service evolution

The significant driving factor for the farm equipment rental market is the evolution of farming as a service and the increasing need for mechanization for agriculture tasks instead of manual help. The import and export of cereals are also major causes of market expansion. Increasing start-ups to provide farming equipment on rent has given rise to the market. Moreover, owning farming machinery requires solid upfront costs, which is not possible to invest by small and medium-scale farmers. For them, farming as a service culture is truly a boon as it helps them to save their unnecessary spending on farming and gives them huge returns.

Restraint

Possible unavailability during peak seasons

A major restraint faced by the farm equipment rental market is the all-time dependency on the equipment providers, which leads to shortages of necessary farming equipment during the peak season, causing huge losses for farmers who opt for rental equipment instead of buying their own. Heightened demand during rainy seasons or peak seasons for farming leads to limited farming equipment availability or equipment not being in a proper position to work due to breakdowns and other issues regarding the machinery.

Opportunity

Technically well-equipped tractors and services

The major opportunity that the farm equipment rental market holds is the increasing development of various rental services for tractors with different horsepower as per requirements, fuelling the market notably on a global level. The increasing farmers' inclination for tractors with more than 40 horsepower creates a lucrative opportunity for farm equipment rental providers to strengthen their roots in the market by providing highly advanced and technically well-equipped tractors like utility tractors and row crop tractors. Furthermore, government initiatives should provide tractors with different ranges to mitigate financial burdens on the farmers.

• In September 2024, the Jharkhand Government is set to offer a major relief to farmers by distributing around 4,000 tractors under the ‘Chief Minister’s Tractor Distribution Scheme’ during the financial years 2024-25 and 2025-26. The initiative, led by the Department of Agriculture, Animal Husbandry, and Cooperation, will provide an 80% subsidy to the beneficiaries.

Equipment Insights

The tractors segment accounted for the largest share of the farm equipment rental market in 2023. The tractor segment holds its dominance due to the variety of fundamental tasks related to agriculture that depend upon tractors. The power and versatile nature of tractors help with tasks like planting, plowing, and harvesting, along with goods transportation from one place to another.

• In August 2022, Deere and Co. invested in Hello Tractor, a Nigerian startup that offers marketplace and fleet management technology for African farmers to rent tractors.

The harvesters segment is expected to witness rapid growth in the farm equipment rental market over the studied years. Farmers are looking for cost-effective solutions to perform repetitive tasks in the agriculture sector, such as mechanization of the process instead of hiring laborers for tasks. Renting harvesters seasonally can help farmers manage their expenses while managing the ownership more effectively. Using the equipment on rent only when it is required avoids unnecessary wastage of initial investments and yearly maintenance.

Power Output Insights

The 41 HP to 100 HP segment dominated the global farm equipment rental market in 2023. Horsepower means HP plays a crucial role in determining the ability of tractors to work. These types of horsepower are used for heavy-duty tasks and large farm work for extended periods. The Kubota M4 series and Massey Ferguson 4700 are prime examples of this range of horsepower tractors. It's generally used for commercial farming processes and for heavy-lifting objects.

The 100HP segment is expected to witness the fastest growth in the farm equipment rental market during the forecasted years. The growth of this segment is due to the qualities and features of 100HP tractors, which are advantageous for medium-sized farming. Since 100 HP tractors are versatile, powerful, handlining complex terrains, and efficient enough to allow a balance between affordability and capability.

HP ranges and their features

Drive Type Insights

The four-wheel drive segment led the global farm equipment rental market. Four-wheeler drive in agriculture provides better fuel efficiency and carrying capacity due to its robust nature, versatility for tasks, and enhanced safety features, fuelling the adoption of four-wheel drive in the market. Also, while operating in mud, the four-wheel drive provides a better grip.

The two-wheel drive segment is expected to witness significant expansion in the farm equipment rental market during the forecast period. Cost saving is the significant benefit provided by the two-wheel drive for the farm equipment rental market. These tractors are more comfortable to handle manually than four-wheel drives. Two-wheel drive-type tractors are better options for farmyards, gardens, and around trees and city areas.

Farm Equipment Rental Market Companies

• Deere & Company
• CNH Industrial
• AGCO Corporation
• Kubota Corporation
• Mahindra & Mahindra
• Flaman Group of Companies
• Pacific AG Rentals LLC
• Messick's
• CLAAS KGaA mbH
• The Papé Group, Inc

Recent Developments

• In July 2023, Pacific AG Rentals LLC announced a partnership with Burro, a Philadelphia-based autonomous mobility company. Through this collaboration, Pacific AG Rentals LLC will add Burro's autonomous robots to their rental fleet, aiming to enhance productivity and efficiency in the agricultural sector.
• In May 2022, India-based agriculture equipment rental and agro e-commerce startup KhetiGaadi launched its agro advisory services for farmers in Pune.

Segments Covered in the Report

By Equipment

• Tractors
• Harvesters
• Balers
• Sprayers
• Others

By Power Output

• Less than 40 HP
• 41 HP to 100 HP
• More than 100 HP

By Drive Type

• Two-wheel Drive
• Four-wheel Drive

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa