Technavio, a tech-focused market research firm, has published a new report on the global tractor rental market, which is expected to post an impressive CAGR of more than 8% during the forecast period 2016-2020.
This latest report by Technavio covers the market outlook and growth prospects of the global tractor rental market for 2016-2020, considering 2015 as the base year. In addition, an overview of the market, key leading countries, vendor landscape, and a detailed analysis of the top vendors operating in this market are covered in the report.
Based on geographical division, Technavio market researchers segment the global tractor rental market into the following key regions: The Americas, APAC, and Europe.
Geographical segmentation of the global tractor rental market for 2015 (market share %)
|
Europe |
43% |
|
Americas |
31% |
|
APAC |
26% |
Source: Technavio
Global tractor rental market in Europe
In 2015, Europe accounted for around 43% share in the global tractor rental market. In Europe, approximately 17% of the total population is dependent on the agricultural sector. High-powered engine capacity tractors are more popular in Europe. It is expected that the sales of tractors will go up during the forecast period with the gradual recovery from the recession in Spain, Iceland, and Greece. Germany has emerged as the largest country in Europe in terms of sales of new tractors, where high-powered tractors are more preferred.
According to Abhay Sinha, a senior analyst at Technavio, specializing in research on automotive services, “The participation of the households in the tractor rental market as a percentage of households depending on agriculture, is expected to shoot up to approximately 6% during the forecast period. The growing maturity of the tractor rental market will create awareness among the farmers to use tractor rental to improve the productivity of the farms.”
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Global tractor rental market in the Americas
In the Americas, approximately 3% of the total population is dependent on the agricultural sector. The high-powered engine capacity tractors are prevalent in the Americas since it can be used in multitasking applications. The consolidation of smaller farms to larger farms is since large farm size rationalizes better financial returns than the smaller or mid-sized farms, as with lower cost, the return could be higher due to economies of scale. In the Americas, the average farm size is 432 acres of land and larger farm size helps the farmer to grow crops at a lower rate as economies of scale can be attained in larger farm size. In the US, the participation of the farmers in the tractor rental market is high compared to other regions.
Global tractor rental market in APAC
In APAC, the agricultural sector is the major segment contributing to the GDP of the region, specifically India. In India, approximately 60% of the total population is dependent on the agricultural sector. Low-powered engine capacity tractors are more popular in the APAC region, and the demand for high-powered engine capacity tractors is low. It is quite difficult for Indian farmers to produce more crops per hectare of land due to the lack of awareness about farming methods, absence of proper farm equipment and many other issues. Indian government has taken initiatives where they are offering subsidies to people to rent out farm equipment and tractors to small farmers. The renting of tractors and other farm equipment is a practical solution to improve the productivity of the farms.
The top leading vendors operating in the global tractor rental market are:
- Pacific Rentals
- Sunbelt Rentals
- John Deere
A more detailed analysis is available in the Technavio report titled, ‘Global Tractor Rental Market 2016-2020’. Technavio also customizes reports by other regions and specific segments upon request.
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