Farm Tractor Rental Global Market Report 2024

The farm tractor rental market size has grown strongly in recent years. It will grow from $49.94 billion in 2023 to $54.4 billion in 2024 at a compound annual growth rate (CAGR) of 8.9%. The growth observed in the historical period can be attributed to factors such as cost-efficient farming practices, the variability in agricultural land sizes, the flexibility in farm operations, reduced capital investment, and the accommodation of specialized farming needs.

The farm tractor rental market size is expected to see strong growth in the next few years. It will grow to $75.92 billion in 2028 at a compound annual growth rate (CAGR) of 8.7%. The anticipated growth in the forecast period can be attributed to factors such as the rising adoption of agricultural machinery in developing regions, the growing trend of precision farming, initiatives focused on environmental sustainability, the fluctuating nature of agricultural cycles, and government support and subsidies. Major trends expected in the forecast period include the emergence of eco-friendly and electric tractor rentals, the provision of remote assistance and support services, collaborations with agricultural technology (agtech) providers, the implementation of financial flexibility and pay-per-use models, and the introduction of training and skill development programs in the agriculture machinery sector.

The anticipated rise in farm mechanization is poised to drive the farm tractor rental market in the coming years. Farm mechanization involves the adoption of more advanced machinery and technology in agricultural operations. The increased utilization of modern farm equipment, including tractors and specialized machinery, holds the potential to enhance efficiency, boost crop yields, and increase profitability for farmers. This, in turn, contributes to a growing demand for farm tractor rentals. As an illustration, in July 2022, the Farm Production Expenditure report published by the United States Department of Agriculture, a federal agency in the U.S., revealed that farm production expenditure for tractors and self-propelled farm machinery in U.S. agriculture practices reached $17,600 million in 2021. The average expenditure on tractors and self-propelled farm machinery per farm stood at $8,784 in the U.S. This data underscores the significant investment in such equipment within the agricultural sector. Consequently, the increase in farm mechanization emerges as a key driver for the farm tractor rental market.

The anticipated increase in climatic change is expected to drive the growth of the farm tractor rental market in the foreseeable future. Climate change refers to long-term alterations in the Earth's climate patterns, encompassing shifts in temperature, precipitation, wind patterns, and other atmospheric conditions. Farmers, facing the challenges posed by climate change-induced factors such as droughts, floods, or unexpected pest outbreaks, can mitigate financial risks by opting for tractor rental. This allows them to adapt their equipment needs without making a long-term ownership commitment. As an illustration, in October 2023, a report published by the World Health Organization (WHO), a Switzerland-based intergovernmental organization, revealed that approximately 3.6 billion people inhabit regions highly susceptible to the effects of climate change as of 2023. Projections further indicate that between 2030 and 2050, climate change could lead to an annual increase of about 250,000 deaths attributed to factors such as undernutrition, malaria, diarrhea, and heat stress. Consequently, the escalating impact of climatic change emerges as a driving force behind the growth of the farm tractor rental market.

Technological advancements have become a prominent trend gaining popularity in the farm tractor rental market. Leading companies in the industry are introducing technologically advanced products and platforms to reinforce their position. As an example, in May 2021, Proxecto, an India-based tractor company, unveiled an innovative fully automatic hybrid tractor equipped with advanced eco-friendly technology. This cutting-edge agricultural tractor operates without the need for battery packs and is designed to run on multiple fuel options. Notably, it features all-wheel electric drive technology with easy three-mode operations, eliminating the need for a clutch and gears, thereby reducing the physical exertion for farmers. This exemplifies the industry's focus on integrating advanced technologies to enhance efficiency and provide more user-friendly solutions in the farm tractor rental market.

Major companies in the farm tractor rental market are actively engaged in developing innovative products, including tractor rental applications, to expand their customer base, boost sales, and increase revenue. A tractor rental application is a software application or mobile app designed to streamline the process of renting or leasing tractors and related agricultural equipment. For instance, in August 2021, Sonalika Group, an India-based tractor manufacturer, introduced the Sonalika Agro Solutions app. This app serves as a unique platform connecting farmers with a diverse range of machinery renters, providing access to high-tech agricultural implements available for rent in their local area. Tailored specifically for tractors and implement rental, the app enables farmers to easily explore advanced farm machinery suitable for their crop needs using their smartphones. Its standout feature lies in creating a platform where users can effortlessly list their tractors and implements for rent or find and rent the equipment they require, facilitating a seamless and efficient rental process for farmers.

In December 2022, Titan Machinery Inc., a U.S.-based manufacturer of farm machinery, acquired the Idaho dealership assets of Pioneer Farm Equipment Co. The financial details of the acquisition were not disclosed. Through this acquisition, Titan Machinery aims to incorporate five full-line Case IH agriculture dealerships situated in southeastern Idaho. The strategic move is anticipated to serve as an excellent opportunity for Titan to expand its footprint, building on its recent Heartland acquisition and reinforcing its presence in the region, particularly among commercial application equipment customers. Pioneer Farm Equipment Co. is a U.S.-based company engaged in the manufacturing and rental services of agricultural machinery.

Major companies operating in the farm tractor rental market report are Messick’s Farm Equipment Inc., Deere & Company, CNH Industrial NV, Kubota Corporation, Mahindra & Mahindra Limited, AGCO Corporation, Titan Machinery Inc., Escorts Limited, The Papé Group Inc., Atlantic Tractor LLC, Sunsouth LLC, Birkey's Farm Store Inc., Rocky Mountain Equipment, Agri-Service LLC, Flaman Group of Companies, Friesen Sales & Rentals Ltd., Van der Sluis Technische Bedrijven, Stotz Equipment, Hoober Inc., Green Diamond Equipment Ltd., Pacific Ag Rentals LLC, S&H Farm Supply Inc., Meade Tractor, Beard Implement Co., Tractors and Farm Equipment Limited, Pacific Tractor & Implement, Premier Equipment Rental Inc., Shearer Equipment, Chupp Implement Co., Dowda Farm Equipment Inc.

Asia-Pacific was the largest region in the farm tractor rental market in 2023. North America is expected to be the fastest-growing region in the global farm tractor rental market report during the forecast period. The regions covered in the farm tractor rental market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the farm tractor rental market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary categories of farm tractor rental include those powered by internal combustion engines (ICE) and electric tractors. An electric tractor is a type of agricultural vehicle that relies on electricity from batteries instead of a traditional gasoline or diesel engine. Operations involving tractor vehicles can be either manual or autonomous, with power outputs ranging across different categories, such as < 30 hp, 31-70 hp, 71-130 hp, 131-250 hp, and >250 hp. Additionally, tractors come in various drive types, including two-wheel and four-wheel configurations. These versatile machines find applications in a variety of farming operations, including harvesting, seed sowing, irrigation, and other agricultural tasks.

The farm tractor rental market research report is one of a series of new reports that provides farm tractor rental market statistics, including farm tractor rental industry global market size, regional shares, competitors with a farm tractor rental market share, detailed farm tractor rental market segments, market trends, and opportunities, and any further data you may need to thrive in the farm tractor rental industry. This farm tractor rental market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The farm tractor rental market includes revenues earned by entities by renting out farm tractors such as utility tractors, row crop tractors, garden tractors, orchard-type tractors, and implement carrier tractors. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.