Latest News:- Agricultural Equipment Finance Market: Lease is expected to lead the Type segment during 2024-2028

Agricultural Equipment Finance Market to grow at a CAGR of 6% during 2024-2028

The Agricultural Equipment Finance Market is expected to grow at a CAGR of 6% during 2023 and 2028. During this period, the market is also expected to show a growth of USD 182.8 billion. In the agricultural sector, the replacement cycle for equipment varies depending on its usage and condition. While some instruments, such as forklifts and tractors, require frequent maintenance and may need to be replaced within a shorter time frame due to cost efficiency, others can be utilized for 12-15 years if they are not extensively used or at risk of obsolescence. However, in certain regions like India, Bangladesh, and Pakistan, agricultural equipment replacement policies and emission regulations are less stringent, resulting in longer equipment utilization periods. Regardless, maintaining efficient and eco-friendly agricultural operations necessitates regular equipment assessment and timely replacement when necessary. 

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The Lease subsegment is expected to dominate the Type segment during the forecast period 

Technavio analysts predict that the Lease subsegment will lead the Type segment during 2024 and 2028 The lease segment dominates the global agricultural equipment finance market, accounting for a significant market share in 2023. Financing companies offer flexible lease options to borrowers based on the residual fair market value. This arrangement enables borrowers to make payments at the end of the lease term if they choose to own the equipment. Alternatively, they can return the equipment to the lessor. The trend towards rental equipment usage is increasingly popular in major agricultural markets, including North America, Western Europe, and the Asia Pacific region.

Here are the various ways based on which the market is segmented: 

• Type
  • Lease
  • Loan
  • Line of credit
• Product
  • Tractors
  • Harvesters
  • Haying equipment
  • Others
• Geography
  • APAC
  • North America
  • Europe
  • South America
  • Middle East and Africa

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There are several factors that are causing the market to flourish quick and easy access to credit

Learn which are the obstacles that the market is experiencing in the way of its growth by accessing the free PDF report

Research Analysis Overview

The Agricultural Equipment Finance Market in large-scale farming is witnessing significant growth due to the adoption of precision agriculture and farm mechanization. Technological advancements, such as drones and precision agriculture tools, are increasing agricultural productivity and efficiency. Online financial platforms are revolutionizing equipment acquisition by providing quick loan approvals and real-time information transparency. The Farm Service Agency (FSA) and finance companies offer Farm Equipment Loans for the purchase of essential machinery like planters, harvesters, combines, tractors, and utility vehicles. Contract farming and alternative finance options, such as unsecured loans and equipment rental, are also gaining popularity. The FSA offers farm loan waivers to eligible farmers, providing relief during financial hardships. Blockchain technology is being explored for its potential in enhancing transparency and security in agricultural equipment finance transactions. As the demand for credit continues to grow, online finance platforms are expected to play a crucial role in meeting the financing needs of agricultural enterprises.

Market Research Overview

The global diversified financial services market encompasses businesses predominantly offering financial solutions, including banking, insurance, and capital markets. Notably, these companies do not predominantly operate in any one financial service sector. Technavio's market analysis for the global capital markets sector is determined by the consolidated revenue generated by organizations specializing in bond and stock issuance. Factors driving the expansion of the diversified financial services market include digital transformation, which has led to the adoption of advanced technologies and platforms by numerous companies to enhance operational efficiency and customer experience.

The Agricultural Equipment Finance Market is experiencing significant growth, fueled by the quick and easy access to credit. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Contacts

Technavio Research
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