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

Overview

Executive Summary
Farm tractor rental market is highly unorganized and an emerging market in India, it’s still in its growing phase. In the 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 tractor purchases and related maintenance services. Through 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 spend a significant amount of money 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 emphasizes how low the penetration is while also highlighting the market's anticipated development potential for farm tractor rental services. 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 emphasize 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 have the capacity to bear heavy rentals, so companies operating in the rental space need to first understand what percentage of population they can cater to out of total farming 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

Organized and 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, farmers still think going to organized players will increase their burden, and owing to this, they prefer local vendors. But gradually the trend is changing as the Indian government and several organized players entered the market in recent years; the organized companies began making investments in the industry, and later they established online apps and service centers 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 a study on the 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 has combined the impact of macroeconomic and microeconomic scenarios. The market has witnessed many shifts in the recent past after the COVID-19 outburst, which gave the market a suggested push. The future outlook has been assessed, taking various influencing factors into consideration and also assessing 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 the Indian farm tractor rental market for the organized players?
2. What percentage of the market has been occupied by unorganized players?
3. How does tractor rental vary in India depending on the type of tractor and capacity?
4. What is 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 is there a 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 the Indian tractor market?