Northbrook, IL 60062 -- (SBWIRE) -- 11/27/2023 -- The global farm equipment rental market, valued at USD 46.8 billion in 2020, is projected to soar to USD 66.4 billion by 2025, exhibiting a robust CAGR of 7.3%. This growth is fueled by a confluence of factors, including the imperative for food security, a scarcity of skilled labor, and an upswing in mechanization particularly in developing nations.

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Driving Mechanization with Rental Solutions

Increasing mechanization, driven by the demand for efficient farming practices, is a key driver of the farm equipment rental market. The shift towards mechanized solutions is particularly pronounced in regions where labor shortages and a growing population underscore the need for innovative and effective farming methods.

Two-Wheel Drive Dominance in Asia Pacific

In the Asia Pacific region, the two-wheel-drive segment takes the lead in the farm equipment rental market. These tractors, efficient in dry soil conditions and suitable for smaller land holdings, are a preferred choice for smallholding or family farmers. The demand for two-wheel-drive tractors is especially high in developing regions like Asia, Africa, and the Middle East.

Tractors Spearhead Market Share

Tractors emerge as the cornerstone of the farm equipment rental market, capturing the largest market share in 2020. These versatile machines play a pivotal role in various farming activities, and the demand for tractor rentals is expected to escalate as population growth drives an increased need for food grains, particularly in the Asia Pacific region.

High-Power Tractors on the Rise

The >250 HP segment, representing high-power tractors, is projected to witness the highest growth in terms of value. While these high-power machines find demand primarily in North America and Europe for large-scale commercial farming, the global market is witnessing an upward trend in their adoption, particularly for processes like harvesting and plowing.

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Asia Pacific's Leading CAGR

Asia Pacific stands out with the highest Compound Annual Growth Rate (CAGR) in the farm equipment rental market from 2020 to 2025. The region's focus on rice cultivation, the prevalence of small-scale manufacturers, and the transition from labor-intensive to technologically advanced farming practices contribute to this significant growth.

Industry Leaders Shaping the Landscape

The report delves into the marketing and development strategies of key players shaping the farm equipment rental market. Leading companies, including John Deere, CNH Industrial, Kubota Corporation, AGCO Corporation, Mahindra & Mahindra, JCB, Escorts Ltd, and others, are instrumental in propelling the industry forward with their innovative solutions and extensive product portfolios.

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