New, Pre-Owned, And Rental Agriculture Equipment Market Expected to Reach $434.1 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “New, Pre-Owned, And Rental Agriculture Equipment Market," The new, pre-owned, and rental agriculture equipment market size was valued at $236.6 billion in 2020, and is estimated to reach $434.1 billion by 2032, growing at a CAGR of 5.2% from 2023 to 2032.

New, pre-owned, and rental agriculture equipment refers to the sale of new, used equipment or temporary leasing of agriculture machinery and tools to individuals, contractors, or companies. It allows access to a wide range of equipment without the need for purchase, offering flexibility and cost saving for farming.

Emerging markets such as Asia-Pacific, Latin America, and Africa, have witnessed a rise in population, economic growth, urbanization, and an increase in technological advancement in machinery that aid in the improvement of workflow. The population in Asia-Pacific and Africa has grown at a rapid pace, thus creating a surge in demand for food products. Most of the countries in these two regions are emerging nations and have experienced strong economic growth.

Agricultural equipment aids in increasing agricultural productivity with less time consumption. In addition, agricultural equipment requires lower effort inputs, thereby reducing the demand for human labor on farms. This not only saves time on operations but also saves costs incurred on the workforce. Furthermore, advancements in machine technologies promote the growth of the new, pre-owned, and rental agriculture equipment market. This is attributed to the fact that the implementation of automatic and semi-automatic machinery increases crop production owing to lower downtimes and highly precise operations.

Various countries in Asia-Pacific and LAMEA generate most of their revenue from the agricultural industry. The countries such as India, China, Indonesia, and Brazil are anticipated to exhibit rapid growth owing to a surge in the adoption of agricultural equipment. Farmers in these regions have adopted agricultural equipment even on small-sized farms due to the provision of government incentives to motivate the use of agricultural equipment. Various agricultural equipment manufacturers focus on product launches and product developments to assist in other agricultural activities such as fruit picking, irrigation, and crop processing.

Mechanization in agriculture lessens the drudgery that labor-intensive farming practices cause. Thus, by improving crop quality and cutting down on operating times, the implementation of sustainable mechanization can increase land production. Mechanization techniques can be applied to agricultural operations to overcome problems such as labor shortages. In addition, the Food and Agriculture Organization (FAO) estimates that 60% more food must be produced by 2050 to feed the world's population of 9.3 billion people. Normal farming methods would put an undue amount of strain on our natural resources to do it. By employing a variety of ecosystem-friendly techniques, lowering the usage of outside inputs, and assisting farmers in becoming more resilient to the increasingly frequent weather extremes brought on by climate change, agricultural output and lower greenhouse gas emissions can be sustainably enhanced. Thus, an increase in the mechanization of agricultural activities drives the adoption of agriculture equipment, thereby surging new, pre-owned, and rental agriculture equipment market growth.

In addition, OEMs collaborate with technology providers to update their agricultural machinery with the latest technologies. For instance, the company CNH Industrial N.V., operating in the UK, signed an agreement through its brand CASE IH with Farmers Edge Inc., a Canadian agricultural technology provider. This agreement is expected to focus on offering better services and equipment for the customer.

The agreement aims at the development of digital agricultural solutions such as connectivity and agronomic solutions for its various agricultural equipment products. Moreover, it plans to offer unique technology platforms, which feature execution, planning, analysis, and decision-making capabilities to improve agricultural processes using various agriculture equipment. Such trends are expected to drive the growth of new, pre-owned, and rental agriculture equipment market

In addition, 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.

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.

Key Findings of the Study

• The report provides an extensive analysis of the current and emerging global new, pre-owned, and rental agriculture equipment market trends and dynamics.
• Depending on sales type, the new segment accounted for maximum share of the new, pre-owned, and rental agriculture equipment industry in 2022.
• By equipment category, the heavy segment generated the highest revenue in 2022.
• Region wise, Asia-Pacific accounted for largest share of the global new, pre-owned, and rental agriculture equipment market share in 2022. LAMEA is anticipated to grow at the highest rate in the new, pre-owned, and rental agriculture equipment market during the analysis period, followed by Asia-Pacific.
• The report provides an extensive analysis of the global new, pre-owned, and rental agriculture equipment market analysis and emerging opportunities of the market.
• The global new, pre-owned, and rental agriculture equipment market forecast analysis from 2020 to 2032 is included in the report.