Off-highway vehicles are used for construction, mining, and agricultural activities. These vehicles are designed for off-road use like step and uneven ground. The off-highway vehicle usually has large tires with deep, open treads, and flexible suspensions. It uses for traveling or driving in areas that do not have asphalt roads. Higher clearance and power enable these vehicles to access trails and roads that have rough and low-traction surfaces. Moreover, off-highway vehicles are very costly and require heavy maintenance which requires a high level of initial investments. Thus, the companies prefer to rent the required vehicle which subsequently reduces their project costs. This is a cost-effective approach since it allows the companies to face lower maintenance costs and fewer technical charges. In addition, transportation, operation, and servicing requirements are reduced by many folds. Furthermore, renting vehicles enables the company to get the latest technology available in the market required for the project.
COVID-19 Impact Analysis
The lockdown imposed due to COVID-19 has caused business shutdowns and halted production across the globe. The demand and supply of raw material suppliers for the manufacturing of off-highway vehicles have been affected severely due to restrictions. Moreover, lockdown across the globe has halted vehicle production, which, in turn, impacted the industry globally. Furthermore, lockdown imposed by various governments led to the unavailability of labor, and all the major construction & mining activities worldwide have been halted. Thus, it has severely affected the demand of the off-highway rental vehicle market. Moreover, the off-highway rental vehicle market is an evolving sector, which is weakened due to the ongoing pandemic, but it is expected to rise again in the post the pandemic phase.
Top Impacting Factors
Rise in construction industry, rise in demand for cost reduction, and high cost of new equipment are expected to drive the growth of the market.
However, recession & economic slump affects construction industry and shortage of labor hamper market growth.
Moreover, rise in agricultural activities, rise in cost of maintenance, and surge in demand for new technology can act as an opportunity for growth of the market.
Market Trends
Recession & economic slump affects the construction industry
The construction industry is prone to the impacts of recession and economic slump. Similarly, the vehicle rental market is influenced by the business cycles of the economy. Economic transitions can be divided into periodic stages of expansion, recession, trough, and recovery. In the case of economies that experience an expansionary trajectory, the construction industry also experiences robust growth, so does the vehicle rental market, with an exponential increase in profitability. In addition, this growth can be attributed to high consumer demand and easy access to public-private capital investments. Alternatively, the construction industry suffers under a recession-plagued economy, as the shortage of consumer demand results in a reduction in the final output. For instance, in 2020, the sudden outbreak of the COVID-19 pandemic across the world resulted in the lockdown of many economic sectors, including the construction industry. during this time, critical government construction projects, such as hospital builds, key utilities, and infrastructure, continued working but at a slower pace with less labor force at the job site to prevent the spread of coronavirus. Thus, the fall in global economic growth can hamper the growth of off-highway rental vehicle market.
Agricultural activities
Agriculture is the most vital sector of every country. Thus, there is a rise in agricultural activities but due to financial burden, some farmers are not able to use afford new machinery for farming. Farm equipment, especially larger equipment such as forage harvesters, mower conditioners, and tillage equipment are expensive to buy and require more time to make the farming business profitable. Thus, low rental cost has reduced the burden on the farmers and allowed them to harvest crops on time by avoiding large sums of money as a down payment on farm equipment.
For instance, in India firms such as EM3 Agri Services and Trringo, owned by Mahindra’s Farm Equipment Sector, have been offering tractor-on-call services in different states in the country.
TAFE, India’s second-largest tractor maker, has launched the JFarm Service APP in September 2018, a tractor aggregation platform that aims to help farmers achieve optimal utilization of their tractors. The application works as an interface between farmers who want to hire and rent out their equipment.
Moreover, John Deere plans to deploy 10,000 tractors in Nigeria in the next five years, through a public-private partnership, selling them to contractors, who then rent them out to small farmers, using a platform from a company called Hello Tractor. Farmers can request a tractor via a text message to an agent, who aggregates requests. A tech platform pairs the availability of tractors with jobs and then tracks each tractor as it is being used. Likewise increase in agricultural activities can act as various opportunities for the growth of the off-highway rental vehicle market.
Key Benefits of the Report
- This study presents the analytical depiction of the off-highway rental vehicle 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 challenges of the off-highway rental vehicle market.
- The current market is quantitatively analyzed from 2020 to 2030 to highlight the off-highway rental vehicle market growth scenario.
- The report provides a detailed off-highway rental vehicle market analysis based on competitive intensity and how the competition will take shape in the coming years.
Questions Answered in the Report
- Which are the leading market players active in the off-highway rental vehicle market?
- What would be the detailed impact of COVID-19 on the market?
- What current trends would influence the market in the next few years?
- What are the driving factors, restraints, and opportunities in the off-highway rental vehicle market?
- What are the projections for the future that would help in taking further strategic steps?
Off-Highway Rental Vehicle Market Report Highlights
| Aspects | Details |
 By Equipment Type |
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 By Application |
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 By Region |
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 Key Market Players | Deere & Company, Flaman Group of Companies, Epiroc AB, Nisho Rent All Co. Ltd., Taiyokenki Rental Co. Ltd, Caterpillar Inc, H&E Equipment Services Inc, Pacific Tractor & Implements, Boels Rentals, Maxim Crane Works L.P |
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