Tractor Rental Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Tractor Rental market is segmented by Tractor Type (Utility Tractors, Row Crop Tractors, Industrial Tractors, Earth Moving Tractors), Power Source (IC Engine, and Electric), Power (Less than 100 hp, 100-200 hp, More than 200 hp), and Geography (North America, Europe, Asia-Pacific, and Rest of the World). The report offers market size and forecasts for the Tractor Rental Market in value (USD Billion) for all the above segments.

Market Snapshot

Market_Overview
Study Period: 2018-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >6 %

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Market Overview

The Tractor Rental Market was valued at USD 44.78 billion in 2021, and it is projected to reach USD 64.28 billion by 2027, registering a CAGR of 6.21% during the forecast period (2022-2027).

COVID-19 pandemic has shut down the production of various products in farm equipment, mainly owing to the prolonged lockdown in major global countries. This has hampered the growth of the farm equipment rentals market significantly in the last few months and was continued during 2020 and 2021. As part of its contribution to COVID-19 relief measures, Tractors and Farm Equipment Ltd (TAFE) has offered 16,500 tractors under a free rental scheme for farmers in Tamil Nadu. The scheme is intended to benefit approximately 50,000 farmers and will cover 1.20 lakh acres of agricultural land.

Over the long term, the increasing demand for mechanization and the rising number of low and medium-scale farmers are the primary factors that are creating a huge demand for tractor rental in underdeveloped countries such as Ghana and other African countries, majorly in the south of the Sahara, tractor rental firm allows tractor owners to fully utilize their machines, and additionally providing services to farmers, who cannot afford their tractors.

However, fluctuating fuel prices and a shortage of workers in rental companies, such as drivers, can stymie the growth of farm equipment rental services.

Asia-Pacific is expected to dominate the tractor rental market owing to rising crop production, increased adoption of advanced technology, and rising demand for tractors and various farming equipment such as harvesters, spraying, and threshing equipment for rental purposes. Farmers in the Asia Pacific region are increasing their production of rice and other crops such as palm oil and cotton. Furthermore, a shift in the agricultural sector across Asia Pacific countries from labor-intensive farming techniques to advanced technological equipment has resulted in increased demand for tractors and various farming equipment such as harvesters and spraying and threshing equipment for rental. Increased crop production has also resulted from investments in various agricultural machinery, particularly in developing countries such as India, China, Vietnam, and Thailand.

Scope of the Report

Tractors are earthmoving machines used for a variety of tasks in the agriculture and construction industries, among others. Tractors are also used in applications such as construction material loading and unloading, as well as plowing and farming.

The tractor rental market is segmented by tractor type, power source type, power type, and Geography.

The Tractor Rental Market is segmented by tractor type into utility tractors, row crop tractors, industrial tractors, and earth moving tractors. By power source type, the market is segmented into IC Engine, and Electric. By power, the market is segmented into less than 100 hp, 100-200 hp, and more than 200 hp. By Geography, the market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World. The report covers the market size and forecast in value (USD Billion) for all the above segments.

The tractor rental market report covers the increasing demand for tractor rental solutions, new players entering the market, the impact of mobile-based applications on the market, and initiatives taken by market players to gain a competitive advantage. 

By Tractor Type
Utility Tractors
Row Crop Tractors
Industrial Tractors
Earth Moving Tractors
By Power Source
IC Engine
Electric
By Power Type
Less than 100 hp
100-200 hp
More than 200 hp
By Geography
North America
United States
Canada
Rest of North America
Europe
Germany
United Kingdom
France
Rest of Europe
Asia Pacific
India
China
Japan
South Korea
Rest of Asia-Pacific
Rest of the World
South America
Middle-East and Africa

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Key Market Trends

Increase in Online Rental Services is driving the Market

Purchasing any farming machinery always requires a huge amount of money and in addition to that, it needs maintenance but in the case of renting there is no hassle of any maintenance

The tractor rental market has created the best solution for the middle-class farmers’ who can’t afford and maintain the tractor as now they can rent a vast variety of tractors on basis of location, type, feature, and duration. Farmease one of the leading rental service providers in the United States connects the farmers to share their spare farm machinery with needy farmers who can’t afford the machinery. Tractor owners can earn from their tractor which adds a second income source to them, and on the renter's front, they get access to the tractor on demand by that they get the latest technology at affordable prices according to the need. Major rental service providers are tapping into the unexplored market as the developing countries have huge potential for tractor rental as compared to matured markets such as North America and Europe.

For instance, In May 2021, as part of its contribution to COVID-19 relief measures, Tractors and Farm Equipment Ltd (TAFE) offered 16,500 tractors under a free rental scheme for farmers in Tamil Nadu who own agricultural land of two acres or less. The scheme is intended to benefit approximately 50,000 farmers and will cover approximately 1.20 lakh acres of agricultural land. According to a company statement, TAFE would offer its 16,500 Massey Ferguson and Eicher tractors to small farmers with two acres or less.

In April 2021, Tractor Supply's mobile app has surpassed 1 million downloads in less than a year. According to Lawton, the app has become a "material portion" of Tractor Supply's digital sales, with customers able to schedule their buy online, and pick up in-store orders there. BOPIS accounts for approximately 75% of the retailer's digital sales, with 75% of those orders being for curbside pickup.

In 2018, Aeris, the United States-based technology company is coming together with Hello Tractor, an agriculture technology company that has previously worked with farmers in Nigeria and Kenya, to launch a tractor rental service in India.

key market trend 1

Asia Pacific is Expected to grow at the fastest rate in Tractor Rental Market

One of the key factors for the growth of the Asia-Pacific tractor rental market is to provide the best technology and reduce the financial burden on farmers. Renting a tractor allows the farmers to cultivate their crops on time without investing large sums of money on tractors, it also provides them a convenient way of enhancing their operations.

In India, 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.

  • In January 2022, The Tamil Nadu government announced a number of schemes, including an e-Wadgai for farmers and a mobile app for renting farm equipment. E-Vadagai is a mobile app that allows Indian farmers in Tamil Nadu to rent farm equipment without having to visit farm offices. They can also use the app to learn more about device rentals and terms of service. The new scheme will provide a total subsidy of Rs 50.73 crore for 2,118 different types of agricultural machinery.
  • In April 2020, TAFE, announced a free tractor rental scheme in Uttar Pradesh, India through its JFarm platform, for 90 days duration. This initiative of TAFE is announced under its CSR in which the company will offer 3,000 tractors on a free rental basis to reduce the impact of COVID-19 on small farmers.
key market trend 2

Competitive Landscape

The global tractor rental market is moderately fragmented, has several active players, and also the market is witnessing the emergence of many new startups. Some of the major players in the market are John Deere, Farmease, Trringo, and JFarm Services amongst others. The companies are expanding their presence by acquiring other market participants, increasing their tractor counts, and tapping into new and unexplored markets. 

Major Players

  1. Premier Equipment Rental

  2. Flaman Group of Companies

  3. Titan Machinery

  4. John Deere

  5. Kwipped Inc.

tractor rental market CL.png

Recent Development

  • In June 2022, The Bihar cooperative department will launch an app-based system for renting farm equipment such as harvesters and tractors to small and marginal farmers in approximately 3,000 primary agricultural credit societies. Farmers who do not have farm equipment for tilling the land or other cultivation needs would be able to book it through the app, and the machines would be delivered to their door based on availability. According to sources, the rental would be on an hourly basis. 

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Tractor Type

      1. 5.1.1 Utility Tractors

      2. 5.1.2 Row Crop Tractors

      3. 5.1.3 Industrial Tractors

      4. 5.1.4 Earth Moving Tractors

    2. 5.2 By Power Source

      1. 5.2.1 IC Engine

      2. 5.2.2 Electric

    3. 5.3 By Power Type

      1. 5.3.1 Less than 100 hp

      2. 5.3.2 100-200 hp

      3. 5.3.3 More than 200 hp

    4. 5.4 By Geography

      1. 5.4.1 North America

        1. 5.4.1.1 United States

        2. 5.4.1.2 Canada

        3. 5.4.1.3 Rest of North America

      2. 5.4.2 Europe

        1. 5.4.2.1 Germany

        2. 5.4.2.2 United Kingdom

        3. 5.4.2.3 France

        4. 5.4.2.4 Rest of Europe

      3. 5.4.3 Asia Pacific

        1. 5.4.3.1 India

        2. 5.4.3.2 China

        3. 5.4.3.3 Japan

        4. 5.4.3.4 South Korea

        5. 5.4.3.5 Rest of Asia-Pacific

      4. 5.4.4 Rest of the World

        1. 5.4.4.1 South America

        2. 5.4.4.2 Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Kwipped Inc.

      2. 6.2.2 John Deere

      3. 6.2.3 EM3 Agri Services

      4. 6.2.4 Titan Machinery

      5. 6.2.5 The Pape Group, Inc.

      6. 6.2.6 Premier Equipment Rental

      7. 6.2.7 Flaman Group of Companies

      8. 6.2.8 Pacific Tractor & Implement

      9. 6.2.9 JFarm Services

      10. 6.2.10 Farmease

      11. 6.2.11 Trringo

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Frequently Asked Questions

The Tractor Rental Market market is studied from 2018 - 2027.

The Tractor Rental Market is growing at a CAGR of >6% over the next 5 years.

The Tractor Rental Market is valued at 45 Billion USD in 2018.

The Tractor Rental Market is valued at 64 Billion USD in 2027.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2021.

Premier Equipment Rental, Flaman Group of Companies, Titan Machinery, John Deere, Kwipped Inc. are the major companies operating in Tractor Rental Market.

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