Farm Equipment Rental Market: Global opportunity analysis and industry forecast
The farm equipment refers to the machinery that are used for farming or agriculture purpose. The farm equipment are of various types such as tractor, harvesting equipment, mower conditioners, tillage equipment and other farm implements. The high investment in the new farm equipment with an expensive maintenance services increase the demand for the farm equipment rental services. Farmers are hiring the rental services in-order to gain some profit by excluding the maintenance costs of the farm equipment's. The rental of farm equipment's helps the farmers to harvest the crops on time by avoiding large sum of money as a down payment on heavy farm equipment's. Moreover, the purchasing of large farm equipment is a financial burden for farmers if the farming business is not profitable.
COVID-19 scenario analysis:
- The demand for the farm equipment rentals is expected to decrease in the year 2020 due to lockdown imposed by the government and low demand from farmers.
- COVID-19 pandemic has shut-down the production of various products in the farm equipment, mainly owing to the prolonged lockdown in major global countries. This has hampered the growth of the farm equipment rentals market significantly form last few months, as is likely to continue during 2020.
- COVID-19 has already affected the sales of equipment and machinery in the first quarter of 2020 and is likely to cause a negative impact on the market growth throughout the year.
- The major demand for equipment and machinery was previously noticed form giant manufacturing countries including the U.S., Germany, Italy, the UK, and China, which is badly affected by the spread of coronavirus, thereby halting the demand for equipment and machinery.
- Further, potential impact of the lockdown is currently vague and financial recovery of companies is totally based on its cash reserves. Equipment and machinery companies can afford a full lockdown only for a few months, after which the players would have to modify their investment plans.
- Equipment and machinery manufacturers must focus on protecting their workforce, operations, and supply chains to respond toward immediate crises and find new ways of working after COVID-19 infection cases start to decrease.
Top impacting factors: Market Scenario Analysis, Trends, Drivers and Impact Analysis
The increasing shift from purchasing of new equipment’s to the equipment rental services by the farmers has driven the market of farm equipment rental services. The tractors hold a largest market share in the product segment of farm rental equipment market. The increase in demand for the high horse power (HP) tractors for farming in large cultivation land is expected to boost the market of farm equipment rental. Further, the growing demand for the 2 wheel tractors which are used for farming in dry soil conditions act as a growth driver for the farm equipment rental market. The farm equipment's rental provide cost saving benefits to the farmers by eliminating the maintenance cost and fuel cost of new farm equipment's. The increase in demand for the farm implements for farming is increasing the market of farm equipment rental market. The farm implements are very rare equipment's that are used in farming in specific season thus encouraging the rental companies to provide these equipment's to the farmers on rent. Asia-Pacific is a developing region and is expected to dominate the farm equipment rental market. The government initiatives for reducing the financial burden on the farmers in Asia-Pacific region countries like India and China act as a major growth driver for farm equipment rental market. However, the fluctuating fuel prices and shortage of workers in rental companies like drivers can hamper the growth of the farm equipment rental services.
New products to flourish the market
The rental penetration in countries like India and China is low compared to global rental penetration. The government of India has launched a CHC farm machinery app on October 2019 that provides tractors and other farm equipment's on rent to the farmers. The small and marginal farmers can easily hire the farm machineries through this app.
Further one of the global leader in farm machinery Mahindra has launched a TRRINGO.com as a farm machinery hiring services. The TRRINGO is the first technology based model in tractor rental services for the farmers who are unable to afford their own tractor and other farm equipment.
High demand from equipment’s:
The farm equipment rentals include various farm equipment like tractors, harvesting equipment's, soil cultivation equipment's, pest control equipment's and planting & fertilizers equipment. These equipment are classified into various products. For example, the rotary tillers are the soil cultivation equipment that are used as an addition in the tractors. The rotary tillers use electric motor cultivator that cultivates the soil using rotating blades. Further, the agricultural aircraft sprayer in the farm equipment category act as a pest control equipment. It is used in spraying insecticides, pesticides and herbicides on the plants. Moreover, the innovative farm equipment combine harvester is a very rare equipment available in very few countries. The combine harvester act as combination of harvesting, cleaning and threshing of grain crops. The combine harvester is used in crops such as maze, oats, wheat and others.
Key benefits of the report:
- This study presents the analytical depiction of the farm equipment rentals market along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the farm equipment rentals market share.
- The current market is quantitatively analyzed to highlight the farm equipment rentals market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed Market analysis based on competitive intensity and how the competition will take shape in coming years.
Farm Equipment Rental Market Report Highlights
| Aspects | Details |
 By Type |
|
 By Product |
|
 By Drive type |
|
 By Region |
|
 Key Market Players | Boels Rentals, Cramo, Ramirent Plc., Herc Holdings Inc., Sarens NV, Kiloutou, Kanamoto Co. Ltd., H&E Equipment Services, Inc., Taiyokenki Rental Co., Ltd., Nishio Rent All Co. Ltd., United Rentals Inc., Speedy Hire Plc., Aktio Corporation, Loxam, Ashtead Group Plc., Maxim Crane Works, L.P. |
Loading Table Of Content...
