Tractor Rental Market Size
|2019 - 2029
|Base Year For Estimation
|> 6.00 %
|Fastest Growing Market
*Disclaimer: Major Players sorted in no particular order
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Tractor Rental Market Analysis
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.
Tractor Rental Market Trends
This section covers the major market trends shaping the Tractor Rental Market according to our research experts:
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.
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.
Tractor Rental Industry Overview
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.
Tractor Rental Market Leaders
Premier Equipment Rental
Flaman Group of Companies
*Disclaimer: Major Players sorted in no particular order
Tractor Rental Market News
- 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.
Tractor Rental Market Report - Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Tractor Type
5.1.1 Utility Tractors
5.1.2 Row Crop Tractors
5.1.3 Industrial Tractors
5.1.4 Earth Moving Tractors
5.2 By Power Source
5.2.1 IC Engine
5.3 By Power Type
5.3.1 Less than 100 hp
5.3.2 100-200 hp
5.3.3 More than 200 hp
5.4 By Geography
5.4.1 North America
18.104.22.168 United States
22.214.171.124 Rest of North America
126.96.36.199 United Kingdom
188.8.131.52 Rest of Europe
5.4.3 Asia Pacific
184.108.40.206 South Korea
220.127.116.11 Rest of Asia-Pacific
5.4.4 Rest of the World
18.104.22.168 South America
22.214.171.124 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Kwipped Inc.
6.2.2 John Deere
6.2.3 EM3 Agri Services
6.2.4 Titan Machinery
6.2.5 The Pape Group, Inc.
6.2.6 Premier Equipment Rental
6.2.7 Flaman Group of Companies
6.2.8 Pacific Tractor & Implement
6.2.9 JFarm Services
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Tractor Rental Market Research FAQs
What is the current Tractor Rental Market size?
The Tractor Rental Market is projected to register a CAGR of greater than 6% during the forecast period (2024-2029)
Who are the key players in Tractor Rental Market?
Premier Equipment Rental, Flaman Group of Companies, Titan Machinery, John Deere and Kwipped Inc. are the major companies operating in the Tractor Rental Market.
Which is the fastest growing region in Tractor Rental Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Tractor Rental Market?
In 2024, the Asia Pacific accounts for the largest market share in Tractor Rental Market.
What years does this Tractor Rental Market cover?
The report covers the Tractor Rental Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Tractor Rental Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Tractor Rental Industry Report
Statistics for the 2024 Tractor Rental market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Tractor Rental analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.