The agriculture industry has always been an evolving industry. With the continuous technological advancements, farmers today are constantly exploring ways to enhance their productivity and efficiency. A crucial aspect of this evolution is the introduction of new, pre-owned, and rental equipment. These equipment refer to the brand-new, used, or temporary leasing of agriculture machinery or tools that allow individuals, contractors, or companies to access a wide variety of equipment used in agriculture without purchasing. This blog talks about the vital elements shaping the new, pre-owned, and rental agriculture equipment market, such as new product launches and strategic alliances between the leading market players.
Advantages of new, pre-owned, and rental agriculture equipment:
Nowadays, new agricultural equipment incorporates the latest advancements, such as GPS-guided tractors, precision planting, and autonomous machinery. These technological advancements help farmers to optimize farming operations and improve yield. Another beneficial advantage of availing new agricultural equipment is optimum fuel efficiency, fewer emissions, and enhanced reliability.
On the other hand, pre-owned or used agricultural equipment is considerably cheaper than investing in new machinery, making it an attractive option for smaller farms or budget-conscious farmers. Moreover, used equipment is readily available in the market, allowing farmers to expand their machinery fleet or replace the existing one. Additionally, many farmers find that used or pre-owned equipment can adequately perform according to their needs and offer reliable service for years.
However, rental agricultural equipment is becoming increasingly popular due to its flexibility and cost-efficiency. These equipment allow farmers to pay only for what they need, reducing upfront costs and minimizing the financial risk associated with ownership. Furthermore, renting equipment is a practical choice for seasonal needs, eliminating the need for equipment storage during idle periods.
As per a new report published by Allied Market Research, the global new, preowned, and rental agriculture equipment market is expected to grow at a CAGR of 5.2% over the estimated period from 2023 to 2032.
New product launches:
Owing to the growing advancements in machine technology, many leading market players have brought numerous innovative products to cater to the rising demand for smart farming. A notable example is the launch of Smart-Kit by Krish-e, the AgTech business of Mahindra Group. This smart device enables equipment owners to track their tractors and other farm equipment through GPS-enabled time-tracking and remote monitoring parameters.
Mergers and acquisitions:
The new, pre-owned, and rental agriculture equipment market has also undergone a series of mergers and acquisitions to bolster competitive insights. For example, Titan Machinery, one of the largest American dealers of agricultural and construction equipment announced its acquisition of J.J. O’Connor & Sons, the largest case dealership in Australia to offer a wide range of new and pre-owned equipment, parts, and services through 15 dealerships and across the Southeastern Australian grain belt.
Another example is the acquisition of Southeast Farm Equipment Co., by Quality Equipment, a John Deere Ag & Turf dealer group to serve the increasing needs of the local customer base with focused precision ag support, enhanced service capabilities, and a wide variety of new and pre-owned equipment.
To sum up, the new, pre-owned, and rental agriculture equipment market is experiencing remarkable growth owing to the increasing demand for enhanced agricultural productivity with reduced time consumption. In addition, the rising implementation of automatic and semi-automatic machinery to perform highly precise operations and promote crop production may drive the market’s growth in the forthcoming years.