Summary of our market study

The global agricultural equipment rental market experienced structural growth, particularly evident in the French market, which increased by 57%. Stimulated by the pandemic in 2020, the French market saw a significant increase of 14.8%, reaching a market size of 118.1 million euros in 2021, a minimal decline on the previous year. This reflects farmers' preference for rental models due to the financial uncertainties induced by the pandemic. Worldwide, the market was valued at over $45 billion in 2021, and is expected to grow at a CAGR of 6.1% between 2022 and 2028. Asia-Pacific is expected to be one of the main drivers of this growth. Despite the positive trends, developments such as public policy support for equipment purchases in countries like China and India could slow market expansion.

In addition, the French trade balance for agricultural equipment was in deficit by €1.526 billion in 2021, with exports amounting to €4.142 billion. The French farm equipment rental market is highly competitive and is moving towards digitalization and collaborative economy models, with a notable trend towards higher input prices partly due to external factors such as the war in Ukraine.

Trends and dynamics in the agricultural equipment market

The agricultural equipment market has been a crucial area for farmers and ancillary industries, and in recent years certain trends have become prominent, reshaping the way equipment is purchased and used in the agricultural sector. One of the main observations is the gradual shift from purchase to rental of agricultural equipment, amplified during periods of economic uncertainty such as the 2020 pandemic.

Farms remain the main consumers of agricultural equipment, with some 350,000 to 400,000 farms operating in the country, representing a decrease of around 20% in ten years. Despite this decline, the average useful agricultural area per farm is around 65 to 70 hectares, reflecting considerable activity and need for agricultural machinery. Demand for agricultural machinery is closely linked to the economic health and prosperity of the farming sector. When farm incomes and margins are strong, farmers are more inclined to invest in new equipment. conversely, in times of low margins or economic uncertainty, such as the pandemic outbreak in 2020, farmers increasingly turn to leasing. This is borne out by the sales index for the agricultural rental market, which saw an impressive jump of around 15% in 2020 compared with the previous year.

Assessing the value of different categories of agricultural production gives us an insight into potential equipment requirements. According to the most recent figures, total goods production in the agricultural sector amounted to around €75-80 billion, representing growth of over 7% on the previous year. Over 60% of this production value comes from crop production. Land use across the country is another key factor in equipment demand. Crops and meadows, the main focus of agricultural machinery, account for just over half of total land use. In terms of financial expenditure, pig farms are at the forefront, with average annual expenditure reaching over half a million euros, suggesting that this segment could generate significant demand in the agricultural machinery market.

Agricultural equipment sales data provide further details on demand, with tractors accounting for around 30% of sales by value, followed by grounds maintenance equipment with around 20%. Other important categories include soil preparation, livestock and harvesting equipment. Another indicator of demand for equipment is the number of agricultural vehicle registrations. This number rose sharply, but fell significantly in 2020 due to the pandemic. Interestingly, the decline in new vehicle registrations coincided with an increase in equipment rental sales, highlighting the shift.

Key players in the agricultural equipment rental market

The agricultural equipment rental market features a wide range of players, from manufacturers and dealers to specialist rental agencies and online platforms. These players have developed unique offerings that appeal to different market segments, from large farms to independent contractors and cooperatives.

  • Manufacturers offering rental services

Manufacturers such as New Holland, Claas, AGCO, Case IH and Kubota have established their presence not only in equipment sales, but also in rental. These giants offer a range of rental services, often through their subsidiaries or branches, to meet the needs of farmers who prefer to rent rather than buy. In particular, they offer long-term rental options, with leasing a popular choice for customers who wish to become equipment owners.

  • Dealer networks and regional specialists

Dealers are essential cogs in the farm equipment rental machine. Many of them, like PM-Pro, are leading regional forces, also engaged in selling equipment mainly from a single manufacturer, such as PM-Pro, which focuses on John Deere. Their rental services often complement their sales operations. Similarly, Massey Ferguson dealer Le Normand offers its services in specific regions such as Brittany, and has a history of acquiring smaller companies to strengthen its market presence.

  • Farm equipment rental specialists

TMC LOC, Slo-Location, Bretagne Location and Alcator represent a group of farm equipment rental specialists that stand out for their flexible rental options, including short-term leases. They generally focus on regional markets and do not necessarily have a national presence, but they play a vital role for local farmers in these regions.

  • Online advertising platforms

The digitization of the rental offer has led to the emergence of online advertising platforms such as WeFarmUp and Agriaffaires. These platforms capitalize on the trend towards a more collaborative economy, enabling peer-to-peer equipment rental transactions, which can be highly competitive with traditional rental providers.

  • Construction equipment rental

Some players straddle the construction and agricultural sectors. Kiloutou and Loxam are examples of companies which, although primarily known for their construction equipment, have diversified their portfolios to include agricultural equipment rental. This enables them to appeal to a wider audience likely to need machinery for a variety of purposes, including farming.

  • Cooperative competition

Cooperatives for the use of agricultural equipment (CUMA) create an interesting dynamic in the market, as they buy equipment to rent to their members. Because of their proximity, these cooperatives can represent a form of external competition for standard rental companies.

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Summary and extracts

1 Market overview

1.1 Definition and scope of study

Agricultural machinery refers to the various machines used in farming (tractors, combines, etc.). These machines are usually expensive to buy and maintain.

Worldwide, the agricultural equipment rental market is expected to grow at a CAGR of 6.1% over the period 2022 - 2028. The Asia-Pacific region in particular is expected to drive growth in the global agricultural equipment rental market. However, public policies in a number of developed and developing countries, such as China and India, are supporting the purchase of agricultural equipment, which could de facto slow growth in the global rental market.

The French market, meanwhile, grew by 57% between 2010 and 2020. In particular, the very sharp rise in 2020 compared with 2019 (+14.8%), may be explained by farmers' preference for the rental model, which is less financially risky, given the uncertainties caused by the pandemic. The often fragile financial situation of farmers is also a factor in favor of the rental model. Moreover, in 2021, the market remains at the same level as in 2020.

The market is characterized by significant seasonality of demand around the periods corresponding to different stages of agricultural production, such as harvesting, ploughing and sowing, which require substantial material resources, particularly in terms of farm machinery. As a result, the agricultural equipment rental sector is particularly competitive, with many different types of players positioned in the rental market (such as the French subsidiaries/branches of foreign manufacturers, dealers, agricultural rental specithere is also indirect competition from CUMAs (cooperatives for the use of agricultural equipment), which can rent equipment to their members.

In addition, the trend in the market is towards the digitalization of the offer, as well as the collaborative economy, with, for example, rental between private individuals.

List of charts presented in this market study

  • Size of the global agricultural equipment rental market
  • Size of the French agricultural machinery and equipment rental and leasing market (NAF code 77.31Z)
  • Agricultural equipment wholesale market size
  • Agricultural equipment exports, imports and trade balance
  • Main countries to which France exports
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Latest news

Construction: Loxam holds up well despite the new-build crisis - 22/03/2024
  • - Last year's sales: over 2.5 billion euros, up more than 6%.
  • - Revenues generated in France: 1,042 million euros (+6.6%).
  • - Share of the new housing market in Loxam's business: 10%.
  • - Public works sector share of sales: over a quarter
  • - Proforma sales in Brazil: around 100 million euros.
  • - Loxam presence: 25 countries.
  • - Revenues generated outside France and Northern Europe: 804 million euros (+14.4%).
  • - Reduction in capital expenditure: from 520 million to 350 million euros.
New Holland to produce a new generation of vineyard tractors - 24/05/2023
  • Investment of 21.4 million euros in the Coex plant in the Vendée region
  • Increase in workforce by a further 100 employees to 400
  • Launch of a new range of vineyard machinery Design of the TE6 in collaboration with Italian designer Pininfarina.
Kiloutou tops one billion euros in sales - 18/04/2023
  • Kiloutou has made 5 acquisitions in 2022.
  • Kiloutou's sales rise from €793 million in 2021 to €1.08 billion in 2022, an increase of 28.4%.
  • Kiloutou's international share doubled to 36%.
  • The overall market grew by 2% to 7% in European countries, and by 4% in France.
  • Kiloutou is number three in Europe and number two in France, with a 13.4% market share.
  • The group has 600 branches (including 500 in France) and 7,000 employees (including 5,000 in France).
  • Kiloutou has invested 270 million euros in 2022 and plans to reduce its investments by 10 to 20% in 2023.
  • Kiloutou's online business should increase from 21 to 34 million euros in 2023 thanks to its new website.
Equipment rental: Loxam ready for new acquisitions - 15/03/2023
  • Key figures - Sales :
  • 2.4 billion euros by 2022
  • - Annual growth: 10% and 9% on a comparable basis
  • - Operating profitability: 279.7 million euros in 2022 (12% margin)
  • - Presence in some thirty countries
  • - Market share: 20% in France, 7% in Europe
  • - Growth forecast for 2023: +5% to +6
  • - number four worldwide
  • - two acquisitions in 2022, one in Spain, the other in Portugal
American manufacturers launch the race for high-tech tractors - 02/01/2023
  • The champions of agricultural machinery - Deere, CNH, AGCO, Kubota, CLAAS - have a bright future ahead of them
  • According to Grand View Ressearch, the market, worth $155.7 billion in 2021, is expected to grow by 5% a year between now and 2030, driven by mechanization, food demand, and an appetite for intelligent agriculture.
  • The CNH Group will invest 2.6 billion in research and development between now and 2024, and expects to increase its sales from 17.8 billion in 2021 to 20-22 billion in 2024
  • The group plans to rent out remote access to its ploughing and fertilization optimization software, with remuneration per hectare
  • Market leader Deere, capitalized at $128 billion, has increased its sales by 19% in 2022, to $52.6 billion
In the Loiret region, John Deere diversifies into battery manufacturing - 21/12/2022
  • The plant of the American giant (sales $44 billion) employs 800 people
  • Creation of a battery assembly unit at its Fleury-les-Aubrais plant in the Loiret region of France
  • An investment of 34 million euros
  • Production to start at the end of 2024, at a rate of 19,000 batteries per year Outside Europe
  • John Deere plans a second battery assembly plant in the USA

Companies quoted in this study

This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :

John Deere SAS
CNH Industrial France
Claas
Kiloutou
Loxam
MB Diffusion Agriaffaires
PM Pro
Vensys Groupe - Hydrokit
AGCO
Le Normand Groupe

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