Market Size of Tractor Rental Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | > 6.00 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
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.
