Dublin, April 20, 2020 (GLOBE NEWSWIRE) -- 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 renting a 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.
Key Topics Covered:
1 Introduction
2 Research Methodology
3 Executive Summary
4 Premium Insights
4.1 Opportunities in the Farm Equipment Rental Market
4.2 Market, by Drive
4.3 Asia-Pacific: Farm Equipment Rental Market, by Key Country and Equipment Type
4.4 Market, by Equipment Type and Region
4.5 Market: Major Regional Submarkets
5 Market Overview
5.1 Introduction
5.2 Macroindicators
5.2.1 Growing Demand for Agricultural Mechanization to Meet Global Food Security
5.3 Market Dynamics
5.3.1 Drivers
5.3.1.1 Shortage of Skilled Labor and An Increase in Mechanization in Developing Countries
5.3.1.2 Rising Demand for Productivity and Operational Efficiency
5.3.1.3 High Cost of Agriculture Equipment
5.3.1.4 Limited Availability of Arable Land
5.3.1.5 Growing Government Subsidies for Farming Equipment
5.3.2 Restraints
5.3.2.1 Low Level of Awareness Among Farmers
5.3.3 Opportunities
5.3.3.1 Strong Growth in Emerging Economies
5.3.3.2 Rise in the Adoption of New and Advanced Technological Applications in Farm Machinery
5.3.4 Challenges
5.3.4.1 Lack of Safety-Related Regulations in Developing Regions
6 Industry Trends
6.1 Introduction
6.2 Key Influencers
6.3 Industry Trends
6.3.1 Global Farm Equipment Market Trending Progressively Toward Renting of Equipment as Compared to Purchasing
6.4 Porter'S Five Forces Analysis
6.4.1 Bargaining Power of Suppliers
6.4.1.1 Intense Competition Among Key Regional Players
6.4.2 Bargaining Power of Buyers
6.4.3 Threat of New Entrants
6.4.4 Threat of Substitutes
6.4.5 Intensity of Rivalry
6.4.5.1 Local Farm Equipment Manufacturers Vs. Oems
7 Farm Equipment Rental Market, by Equipment Type
7.1 Introduction
7.2 Tractors
7.2.1 the Tractors Segment is Projected to Dominate the Asia-Pacific Region in Terms of Growth
7.3 Harvesters
7.3.1 Asia-Pacific is Projected to Lead the Harvesters Market During the Forecast Period
7.4 Sprayers
7.4.1 Sprayers Would Witness Large-Scale Demand in the Developed Countries
7.5 Balers
7.5.1 North America is Estimated to Lead the Balers Segment in the Farm Equipment Rental Market
7.6 Other Equipment Types
7.6.1 Equipment Types Such as Power Tillers, Threshing Equipment, and Planting Equipment Are Preferred in the Rental Market
8 Farm Equipment Rental Market, by Power Output
8.1 Introduction
8.2 < 30 Hp
8.2.1 Utility/Compact Tractors Holds Strong Rental Market in the Developing Countries
8.3 31-70 Hp
8.3.1 Asia-Pacific Accounted for the Highest Share in the Market for 31-70 Hp Tractors
8.4 71-130 Hp
8.4.1 High Demand for Equipment With Power Output 71-130 Hp Common in All Global Markets
8.5 131-250 Hp
8.5.1 Us and Europe Are the Largest Markets for Large Tractors
8.6 >250 Hp
8.6.1 High Power Tractors Accounts for High Demand from Large Farmlands of More Than 100 Hectares
9 Farm Equipment Rental Market, by Drive
9.1 Introduction
9.2 Two-Wheel-Drive
9.2.1 Extensive Benefits Raise the Demand for Two-Wheel-Drive Tractors in Developing Nations
9.3 Four-Wheel-Drive
9.3.1 Farmers Working With Tough Soils and Land Conditions Drive the Market for 4Wd Tractors
10 Farm Equipment Rental Market, by Region
10.1 Introduction
10.2 North America
10.2.1 US
10.2.1.1 the Us Market for Farm Equipment Rental is Progressing Slowly Due to Trends More Inclined Toward the Purchase of Equipment
10.2.2 Canada
10.2.2.1 Rental Services Can Acquire Better Market Share as Farmers Are Dealing With Difficult Climatic Conditions and Rising Equipment Prices
10.2.3 Mexico
10.2.3.1 Affordability and Shortage of Farm Equipment Driving the Market for Rental Equipment
10.3 Europe
10.3.1 France
10.3.1.1 Slower Rate of Growth for the Rentals Market Due to High Mechanization Levels in Farmlands
10.3.2 Germany
10.3.2.1 Sustenance of Small Farm Outputs Through the Equipment Hiring Model
10.3.3 Spain
10.3.3.1 Market for Farm Equipment Rental Developing Steadily in the Country
10.3.4 Italy
10.3.4.1 Increased Pressure for Improving the Production of Smallholding Farmers Increases the Scope for Rental Businesses
10.3.5 UK
10.3.5.1 Increasing Scope of the Rental Business in the Market Due to Large Farm Sizes and Unstable Financial System
10.3.6 Poland
10.3.6.1 Large Concentration of Small Farmers and Supportive Government Subsidies Increase the Scope for Rental Businesses
10.3.7 Rest of Europe
10.3.7.1 Growing Need to Increase the Level of Mechanization in Smallholding Farms Driving the Equipment Rental Market
10.4 Asia-Pacific
10.4.1 India
10.4.1.1 India is Estimated to Have the Highest Growth Potential for the Equipment Rental Market
10.4.2 China
10.4.2.1 Tractors Market Declining But Niche Equipment Market Showing Promising Growth
10.4.3 Japan
10.4.3.1 Rising Shortage of Young Labour and An Increase in Machine Costs Driving the Market for Equipment Rental
10.4.4 Australia
10.4.4.1 Slow Growth of the Farm Industry Showing Promising Potential for Choosing Rental-Based Farm Equipment
10.4.5 Thailand
10.4.5.1 Growth in Market Potential for Equipment Renting Observed Due to Better Adoption of Mechanization by Farmers in Thailand
10.4.6 Rest of Asia-Pacific
10.5 South America
10.5.1 Brazil
10.5.1.1 Huge Untapped Market for Rental Businesses, With Farmers Ready to Rent With Reduced Rental Rates
10.5.2 Argentina
10.5.2.1 Moderate Market for Renting Businesses, With Large Farms, Better Rates of Mechanization, and High Automotive Businesses Already Established in the Market
10.5.3 Chile
10.5.3.1 Dependence on Imported Equipment for Cultivation Raises Scope for the Equipment Renting Business in Chile
10.5.4 Rest of South America
10.5.4.1 Growing Rates of Mechanization and Also Growing Trends Toward Renting Systems in the Market
10.6 Rest of the World
10.6.1 Africa
10.6.1.1 South Africa Adopting Alternatives for Enhancing Productivity With Lower Capital Costs
10.6.2 Middle East
10.6.2.1 Access to Better Farming Machinery Driving the Market for Equipment Renting
10.6.3 Turkey
10.6.3.1 Slowly Developing Mechanization Sector Showing Better Scope for Rental Farm Equipment Due to Unstable Economic Scenarios
11 Competitive Landscape
11.1 Overview
11.2 Competitive Leadership Mapping
11.2.1 Visionary Leaders
11.2.2 Dynamic Differentiators
11.2.3 Innovators
11.2.4 Emerging Companies
11.3 Market Share Analysis, 2019
11.4 Competitive Scenario
11.4.1 Acquisitions
11.4.2 Expansions & Investments
11.4.3 New Product Launches
11.4.4 Agreements & Collaborations
12 Company Profiles
12.1 John Deere
12.2 Cnh Industrial
12.3 Kubota Corporation
12.4 Agco Corporation
12.5 Mahindra & Mahindra
12.6 Jcb
12.7 Escorts Ltd.
12.8 Tractors & Farm Equipments Ltd.
12.9 Pape Group Inc.
12.10 Premier Equipment Rentals
12.11 Flaman Group of Companies Ltd.
12.12 Pacific AG Rentals LLC
12.13 Pacific Tractor & Implement Ltd
12.14 Farmease
12.15 Kwipped, Inc
12.16 Cedar Streets Sales & Rentals Inc.
12.17 Em3 Agri-Services Ltd.
12.18 German Bliss Equipment Inc.
12.19 Friesen Sales & Rentals
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