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The global tractor rental market is anticipated to grow at a steady rate and will post a CAGR of more than 8% during the forecast period. The growing participation from private players and increasing government initiatives will drive the growth prospects for the global tractor rental market until the end of 2016. The agricultural sector in the majority of economies across the globe is focusing on the improvement of their farm productivity. Consequently, the government is taking up more initiatives to improve agricultural activities by increasing its expenditure on the agricultural technologies. In addition, a large number of private players are entering the agricultural sector and are contributing heavily by investing in newer program initiatives. For instance, in India, ITC, has plans to make Andhra Pradesh, a major hub for its agricultural business unit. Also, the 2016-2017 budget was proposed to implement certain measures to improve the agriculture sector and farmer's welfare by increasing the land under irrigation, providing subsidies to gram panchayats of villages and municipalities, and providing 100% electrification in villages by May 2018. Furthermore, the government of the USA has significantly increased its capital investments in the agricultural sector. For instance, as an agricultural subsidy, the government provides approximately USD 30 billion annually to the farmers of corn, rice, soya bins, wheat, and other crops.
The increasing consolidation of fragmented lands in Europe and the Americas will drive the growth prospects for the global tractor rental market in the coming years. Since the return on investment witnessed from the larger farms is much greater than the smaller farms, the trend of land consolidation in the Americas and Europe is significantly growing. For instance, large companies such as Farm and Ranch supply stores in the US, Monsanto, and Archer-Daniels Midland have started dominating the agricultural market.
Vendors in the market are increasingly renting out tractors and supplying products such as laser-guided land leveling systems, four-wheel drive field forklifts, and pipe fittings to expand their market presence. Also, many medium-sized businesses are focusing on enhancing their flexibility in financing the farm equipment and machinery to improve the agricultural sector. Furthermore, the rental companies are focusing on creating a product portfolio that includes the renting out of new and used equipment, sales of merchandise products, replacement of equipment and machinery parts, and customer maintenance.
Key vendors in this market are -
The high-powered tractor engines segment accounted for the maximum market share during 2015 and will continue to dominate the market for the next few years. One of the major factors responsible for the growing popularity of high-powered engine tractors is the increasing production of these tractors in the Americas and Europe. In addition, since the majority of the revenue in the tractor rental segment is earned from countries like the US and Brazil, the market is anticipated to exhibit strong growth in the coming years.
Europe accounted for the maximum market share during 2015 and will continue to dominate the market for the next few years. One of the major factors responsible for the market’s growth in the region is the increasing dependence of its total population on the agricultural sector.
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PART 01: Executive summary
PART 02: Scope of the report
PART 03: Market research methodology
PART 04: Introduction
PART 05: Market landscape
PART 06: Market segmentation by engine power
PART 07: Geographical segmentation
PART 08: Key leading countries
PART 09: Market drivers
PART 10: Impact of drivers
PART 11: Market challenges
PART 12: Impact of drivers and challenges
PART 13: Market trends
PART 14: Key vendor analysis
PART 15: Appendix
PART 16: Explore Technavio
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