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Summary of our market study
In 2020, the French agricultural equipment rental market is expected to grow by more than 10% a year, and is estimated to be worth around 150 million euros.
Worldwide, the market is valued at over $45 billion.
France's trade balance in agricultural equipment is in deficit by over 1.5 billion euros. Exports exceed 4 billion euros.
One of the main trends is the gradual shift from purchase to rental of agricultural equipment.
There are between 350,000 and 400,000 active farms, representing a decline of around 20% in ten years.
The average useful agricultural area per farm is between 65 and 70 hectares.
The fall in new vehicle registrations coincides with an increase in sales of leased equipment.
Total production of goods in the agricultural sector amounts to between 75 and 80 billion euros. Over 60% comes from crop production.
Crops and meadows, which make up the agricultural machinery market, account for just over half of total land use.
Tractors account for around 30% of sales by value, followed by grounds maintenance equipment with around 20%.
Players in the agricultural equipment rental market
- Manufacturers offering rental services through their dealerships: Deere, New Holland, Claas, AGCO, Case IH and Kubota
- Farm equipment rental specialists: TMC LOC, Slo-Location, Bretagne Location and Alcator represent a group of farm equipment rental specialists
The digitization of the rental offer has led to the emergence of online advertising platforms such as WeFarmUp and Agriaffaires. - Construction equipment rental: Kiloutou and Loxam have diversified their portfolios to include agricultural equipment rental.
Cooperatives for the use of agricultural equipment (CUMA) purchase equipment for rental to their members.
to understand this market
Detailed content of our market study
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
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