India Farm Tractor Rental Market Analysis & Forecast (2018-2028)

India Farm Tractor Rental Market Analysis & Forecast (2018-2028)

Executive Summary

Farm Tractor Rental Market is highly unorganized and an emerging market in India, it’s still in its growing phase. In past few years, we have seen that the demand for farm rental market services has grown as a result of the high cost of new farm tractors purchases and the related maintenance services. By the use of rental services, farmers are able to benefit by avoiding the expense of maintaining farm tractors. Farmers who rent farm tractors can harvest their crops on schedule without having to put a significant amount of money down on expensive farm tractors.

Even though there are close to 675 million people employed in the agricultural sector countrywide, the number of tractors held by farmers has decreased, with only about 35 million tractor owners as of 2022. This comparison emphasises how low the penetration is, while also highlighting the market's anticipated development potential for Farm tractors rental service. The government has also been working on strategies to increase farm output and, as a result, double the amount of money farmers take home. A steady increase in output can make farming more lucrative. It is important to emphasise the tractor section's crucial contribution to agricultural modernization and rising production.

According to Makreo’s research, the majority of farmers who rent tractors are those who already own one because they can afford the rent. This is because, despite the fact that agriculture is a significant sector and market contributing to India's GDP, most farmers are still uneducated and live below the poverty line. And the main reason they rent a tractor is to reduce the expense of maintenance and to stay current with the rapidly evolving technologies; as a new technology enters the tractor sector every two to three years, owning a tractor would be a loss for them. The small farmland owners do not hold the capacity to bear heavy rentals thus companies operating in the rental space need to first understand what percentage of population they can cater to out of total faming population.

The COVID-19 outbreak was seen as a market opportunity; skilled laborer’s returned to their hometowns and began farming on their properties. To assist farmers in such a precarious situation, players like TAFE gave away free tractors to the farmers, which persuaded small and marginal farmers to choose to rent from organized players

Performance of Segmentation

By Organized & Unorganized Players: The Indian Farm Tractor Rental market is highly unorganized led by local ginners, as farmers in India are uneducated and they still prefer to rent from local tractor owners to avoid stepping out of their haven, therefore famers still think going to organized players will increase their burden, owing to this they prefer local vendors. But gradually the trend is changing as the Indian government and several organized players entered into the market in recent years; the organized companies began making investments in the industry, and later they established online apps and service centres that are assisting farmers by making renting tractors simple, accessible, and reliable. In contrast to unorganized players, companies guarantee farmers that they will be responsible for any wear and tear on the tractor during the rental period.

By Tractor Type: In accordance with the customer's farming needs, the demand for tractor rental services varies throughout different horsepower categories. For small-scale farmers, who may have limited acreage or operate in difficult terrain, tractors with engine power in the range of 15-25 HP may be more acceptable. Tractors with an engine power of between 40 and 55 HP may be needed by medium- to large-scale farmers, whereas tractors with an engine power of more than 70 HP may be needed by large-scale farmers. Majority of the demand comes from 40-55hp tractor while 15-25 hp tractors holds least share.

Future Outlook

In the upcoming years, the Indian farm tractor rental market is predicted to increase moderately. The demand for mechanized farming methods and the growing demand for affordable and effective farming solutions are the main causes. The growing use of precision agriculture methods is one of the major factors propelling growth in the Indian tractor rental market. These techniques use advanced technologies such as GPS mapping and sensors to optimize farming operations, leading to higher yields and improved efficiency. As a result, farmers are increasingly turning to tractor rentals to access these technologies and improve their farming operations.

Makreo research has published study on Farm Tractor Market titled, “India Farm Tractor Rental Market Analysis and Forecast (2018-2028)”. Market assessment has been carried out using qualitative and quantitative methods and have combined the impact of macroeconomic and micro economic scenario. The market has witnessed many shifts in recent past after the COVID-19 outburst that given a suggest push in the market. Future outlook has been assessed keeping various influencing factors into consideration and also to assess the expected opportunities in the market.

Segmentation Covered:

• By Player Type: Organized Players vs Unorganized Players
• By Tractor Type: Micro Tractor, Mini Tractor, Medium Tractor, Big Tractor

Company’s Assessed

• Sonalika Tractors
• Gold Farm
• Farmkart
• KhetiGaadi
• Krish-e
• JFarm Service
• EM3 Agri Services
• Ravgo
• AgroStar
• Escorts Agri Machinery
• Oxen Farm Solutions

Key Questions Answered

1. What is the market revenue of India farm tractor rental market for the organized players?

2. What percentage of the market has been occupied by the unorganized players?

3. How tractor rental varies in India by the type of tractors/capacity?

4. What are the average number of paid mobile gamers in India and what is the average expenditure they make in mobile gaming?

5. Who are the major players operating in the farm tractor rental market in India?

6. Why there is low participation rate in the farm tractor rental market in the country?

7. What is the future expected growth outlook of the farm tractor rental market in India?

8. What is the demand and supply scenario of India tractor market?