The agricultural equipment rental market - France

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.