New, Pre-Owned, And Rental Agriculture Equipment Market Research: 2032
The Global New, Pre-Owned, And Rental Agriculture Equipment Market size was valued at $236.6 billion in 2020, and is projected to reach $434.1 billion by 2032, growing at a CAGR of 5.2% from 2023 to 2032. A device, component of a device, or attachment to a device that is primarily intended to be used for agricultural purposes is referred to as agricultural equipment. "Agricultural equipment" can refer to anything used in the production of crops, horticulture, or floriculture. New, pre-owned, and rental agriculture equipment is a service that allows end users to rent agricultural equipment for a certain period by signing contracts that include terms and conditions.
Market Dynamics
Agriculture is becoming more mechanized, which reduces the drudgery that labor-intensive farming methods contribute. Thus, the use of sustainable mechanization can boost land productivity by enhancing crop quality and decreasing operating times. During agricultural operations, mechanization techniques can be used to address issues such a lack of labor. In addition, according to the Food and Agriculture Organization (FAO), 60% more food must be produced by 2050 to feed a population of 9.3 billion people worldwide.
Normal farming practices would place too much pressure on our natural resources to accomplish that. Increase agricultural output sustainably by using a variety of ecosystem-friendly methods, reducing the use of outside inputs, and helping farmers adapt to the more frequent weather extremes that occur with climate change to increase their resilience and lower greenhouse gas emissions. Thus, the increase in mechanization of agricultural activities is driving the adoption of agriculture equipment, thereby surging the new, pre-owned, and rental agriculture equipment market growth.
In a report released in 2019, the United Nations Department of Economic and Social Affairs predicted that the world's population would increase to 8.5 billion by 2030 and 9.7 billion by 2050. This raises questions about the future viability of food and nutrition. More than 820 million people were undernourished in 2018, according to data from the Food and Agriculture Organization of the United Nations (FAO). This puts pressure on the agriculture sector to produce enough food for the expanding population and to close the global undernourishment gap.
The ability of the soil to produce high-quality crops is also diminished as a result of the degradation of environmental resources brought on by a growth in agricultural production, which has a detrimental effect on the entire agricultural value chain. The implementation of automatic and semi-automatic agricultural equipment thus motivates sustainable mechanization of agricultural activities, by increasing the cultivation efficiencies. Agricultural equipment not only reduces the operational time of different farming activities but also helps to propel crop production causing minimum environmental degradation. Hence, the increase in population is driving the new, pre-owned, and rental agriculture equipment market growth.
However, agricultural activities are most widely conducted in rural regions of various developing countries. Farmers in these countries are majorly illiterate and unaware of the benefits of employing agriculture equipment for improving crop production. Illiteracy causes continuation of traditional farming practices, which are unsustainable and degrade the soil quality, thereby reducing the crop bearing efficiency of soil. Furthermore, rural areas do not have digital facilities such as resources, skills, and networks, which limits the penetration of advanced agricultural equipment in these areas. Thus, all these factors together restrain the market growth for agriculture equipment.
Heavy and modern agricultural equipment require qualified workers to operate because they come equipped with many levers and gears. However, one mistake might result in a variety of issues, including the inability to carry out the planned duties. To operate these powerful devices, an equipment operator must also complete training and obtain a license. Additionally, some businesses that rent equipment out offer training to users on how to use these devices, which costs businesses time and money to do. Therefore, a significant barrier to the expansion of the global new, pre-owned, and rental agriculture equipment market is the lack of trained operators.
Governments from many countries help with the growth of agricultural industries, including financial aid for the purchase of machinery and seeds. The subsidies help to ensure enough food production, lower the inflation rate for food commodities, protect farmer incomes, and strengthen the agricultural industry. To increase agricultural production, developing countries like India offer a variety of subsidies, debt waiver programs, and other such services. For instance, the Government of India provides several programs for agricultural equipment, including Central Farm Machinery Training & Testing, online farm machinery monitoring, loan-cum-subsidy for the purchase of tractors, pump sets, and power tillers, as well as engineering training services for the use of innovative agricultural equipment. As a result, it is predicted that all these factors working together will present profitable prospects for the advancement of the global market throughout the forecast period.
Segmental Overview
The new, pre-owned, and rental agriculture equipment market is segmented into sales type, equipment category, and region. By sales type, the market is classified into new, pre-owned, and rental. By equipment category system, it is bifurcated into heavy and compact.
Region wise, the new, pre-owned, and rental agriculture equipment market analysis is conducted across North America (the U.S., Canada, and Mexico), Europe (the UK, France, Germany, Spain, and the rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, New Zealand, and rest of Asia-Pacific), and LAMEA (Brazil, Argentina, Rest of Latin America, Saudi Arabia, UAE, Rest Of Middle East, South Africa, Nigeria, and Rest Of Africa).
By Sales Type:
The new, pre-owned, and rental agriculture equipment market is categorized into new, pre-owned, and rental. Equipment for agriculture that is brand-new, has never been used before and is bought straight from the manufacturer or an authorized retailer. It often comes with warranties, and the most recent features, and is in brand-new, unused condition. Pre-owned agriculture equipment that has been owned or utilized in the past by another person. It may have undergone upgrades or repairs, and it is frequently offered for sale at a lower cost than brand-new machinery. The condition can change, and it might or may not come with the newest features or warranties. Agriculture machinery that is rented or leased for a set amount of time.
Users can utilize the equipment on a temporary basis without having to buy it completely. Rental equipment is typically maintained by the rental company and can be a cost-effective solution for short-term projects or when equipment is needed on a temporary basis. New segment is expected to be the largest revenue contributor during the forecast period. Pre-owned is expected to exhibit the highest CAGR share in the sales type of segment in the new, pre-owned, and rental agriculture equipment market during the forecast period.
By Application:
The new, pre-owned, and rental agriculture equipment market forecast is classified into heavy, and compact. Heavy agriculture equipment’s with more than 40 hp output are considered in this segment. Compact agriculture equipment’s with up to 40 hp output are considered in this segment. The heavy segment is expected to be the largest revenue contributor during the forecast period, and the compact segment is expected to exhibit the highest CAGR share in the application segment in the new, pre-owned, and rental agriculture equipment market during the forecast period.
By Region:
The new, pre-owned, and rental agriculture equipment market overview is analyzed across North America, Europe, Asia-Pacific, and LAMEA. In 2022, Asia-Pacific held the highest revenue in new, pre-owned, and rental agriculture equipment market share. And LAMEA is expected to exhibit the highest CAGR during the forecast period.
Competition Analysis
The major players profiled in the new, pre-owned, and rental agriculture equipment market include Agrostroj Pelhimov A.s., Alamo Group Inc., CNH industrial, Deere & Company, J C Bamford Excavators Ltd. (JCB), Kubota Corporation, Mahindra & Mahindra, Pacific Ag Rentals, SDF S.p.A., and Tractors and Farm Equipment Limited.
Major companies in the market have adopted acquisition, partnership and product launch as their key developmental strategies to offer better products and services to customers in the New, pre-owned, and rental agriculture equipment industry.
Some examples of acquisition, Investment and expansion in the market
In December 2021, AGCO Corporation has acquired Appareo Systems, LLC, through this acquisition, AGCO Corporation will be able to use innovative innovation in mechatronics, automated vehicles, and artificial intelligence produced by Appareo systems for the improvement of its product line.
In January 2020, AGCO announced its plans for the establishment of a state-of-the-art manufacturing facility in France. The manufacturing facility is designed as an Industry 4.0 site to sustain the demand for agricultural equipment in the region.
In November 2022, Mahindra & Mahindra in Pithampur, MP, expanded its first Greenfield Farm Machinery Plant. The largest farm equipment facility outside of Punjab is a 23-acre complex. The facility will assist Indian farmers in mechanizing their farming practices and in fulfilling their aspirations.
The product launch in the market
In August 2021, John Deere launched the new 6155MH Tractor, which delivers all-around performance and dependability that have been demonstrated in the field to be useful for cultivating, harrowing, or towing harvester trailers.
In November 2022, New Holland launched its first driverless grain cart harvest machine T8 tractor with Raven Autonomy, for harvesting application. It makes use of OMNiDRIVE, the first driverless farming technology in the world for harvesting grain carts. Thanks to a cutting-edge technological stack, the farmer may operate, synchronize, and monitor an autonomous tractor from the harvester's cab.
In February 2023, TAFE, manufacturer of Massey Ferguson tractors, has launched TAFE, manufacturer of Massey Ferguson tractors, has launched its brand-new DYNATRACK Series, an innovative line of tractors that combine potent power with dynamic performance, smart technology, unrivalled usefulness, and versatility.
In June 2023, Mahindra & Mahindra ltd has launched India's new Sarpanch Plus Tractor series. This tractor comes with a 6-year warranty from Mahindra and has 2 HP (1.49 kW) more power, a higher maximum torque, and back-up torque to quickly cover more ground.
In December 2023. Sonalika Tractors has launched its field-ready electric tractor for the domestic market called Tiger Electric.
In January 2020, CASE IH launched a new suspended front axle for its CASE IH Quantum V, N, and F model tractors. The new suspended axle offers front suspension option, which allows manual setting of the suspension height from the cab to provide comfort during operations.
In February 2020, Fendt, a brand of AGCO, The Momentum planter has been launched into the North American row crop producing sector. The product is made to help with difficult planting circumstances. In addition, it has Smart Frame technology, which may be utilized for automatic, intelligent, and configurable vertical contour toolbars.
In January 2020, Fendt, a brand of AGCO, has introduced Australia's broadest selection of hay tools. Slicer TLX mower, Former 2 and 4 rotor rakes, and Rotana round balers are the models that are featured. There are two different cutting widths for the Fendt Slicer TLX: 3.1 meters and 3.6 meters.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the new, pre-owned, and rental agriculture equipment market analysis from 2020 to 2032 to identify the prevailing new, pre-owned, and rental agriculture equipment market opportunity.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the new, pre-owned, and rental agriculture equipment market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global new, pre-owned, and rental agriculture equipment market trends, key players, market segments, application areas, and market growth strategies.
New, Pre-Owned, And Rental Agriculture Equipment Market Report Highlights
| Aspects | Details |
 Market Size By 2032 | USD 434.1 billion |
 Growth Rate | CAGR of 5.2% |
 Forecast period | 2020 - 2032 |
 Report Pages | 240 |
 By Sales Type |
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 By Application |
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 By Region |
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 Key Market Players | J C Bamford Excavators Ltd. (JCB), Pacific Ag Rentals LLC, KUBOTA Corporation, Tractors and Farm Equipment Limited, Deere & Company, CNH Industrial N.V., AGROSTROJ Pelhrimov, a.s. (Wilhelm STOLL Maschinenfabrik GmbH), Mahindra & Mahindra Limited, Alamo Group Inc., SDF S.p.A. |
Analyst Review
Technological advancements in the field of agricultural machinery have led to increased crop production. The new, pre-owned, and rental agriculture equipment market witnessed a huge demand in Asia-Pacific. The highest share of the Asia-Pacific market is attributed to the increase in demand for agricultural equipment in the original equipment manufacturers (OEMs) industries in the region.
Agricultural equipment manufacturers have focused on designing and upgrading their equipment portfolios with automation and sensor technologies, which reduce the downtime of equipment, thereby offering improved operational times. In addition, key players now produce machinery conforming to the latest emission standards to tackle the environmental challenges on farms. The development of new hybrid equipment, which can work on both fuel as well as batteries, decreases operational costs and significantly increases productivity. These efforts assist in the cultivation of better crops to cater to the surge in demand for food globally.
Moreover, the agricultural sector plays a vital role in developing and underdeveloped countries, where the majority of the population is engaged in farming activities. Thus, the economic growth of these countries is majorly dependent on the volume of crops produced, which is assisted using advanced agricultural machinery. Furthermore, governments in these nations offer incentives and loans to farmers to motivate the use of agricultural equipment, which increases the cultivation of crops. In addition, rental and pre-owned options for agriculture equipment avoid initial investment costs for customers with low budgets. Thus, all these factors collectively are anticipated to create lucrative growth opportunities for the new, pre-owned, and rental agriculture equipment market during the forecast period.
The new, pre-owned, and rental agriculture equipment market was valued for $2,36,567 million in 2020 and is estimated to reach $4,34,209 million by 2032, exhibiting a CAGR of 5.2% from 2023 to 2032.
The forecast period considered for the global new, pre-owned, and rental agriculture equipment market is 2020 to 2032, wherein, 2020-2021 are historic years, 2022 is the base year, 2023 is the estimated year, and 2032 is the forecast year.
The latest version of global new, pre-owned, and rental agriculture equipment market report can be obtained on demand from the website.
The base year considered in the global new, pre-owned, and rental agriculture equipment market report is 2022.
The major players profiled in the new, pre-owned, and rental agriculture equipment market include Agrostroj Pelhimov A.s., Alamo Group Inc., CNH industrial, Deere & Company, J C Bamford Excavators Ltd. (JCB), Kubota Corporation, Mahindra & Mahindra, Pacific Ag Rentals, SDF S.p.A., and Tractors and Farm Equipment Limited.
The top ten market players are selected based on two key attributes - competitive strength and market positioning.
The report contains an exclusive company profile section, where leading companies in the market are profiled. These profiles typically cover company overview, geographical presence, market dominance (in terms of revenue and volume sales), various strategies, and recent developments.
Based on application the heavy segment was the largest revenue generator in 2022.
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