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Global Agricultural Equipment Finance Market 2016-2020

About Agricultural Equipment Finance

Equipment financing refers to the credit, including leasing, government loans, and other small business administration loans, which are disbursed to different businesses in the automotive, construction, agriculture, and other industries. It also includes sale and leaseback, which help individual customers raise cash for equipment purchase by selling off collateralized existing equipment.

The interest rate on the credit depends on whether a customer has opted for equipment loan or lease, but the maturity term depends on the equipment's life. In case of loan, once the credit is repaid, the instrument or machine belongs to the buyer. If it is leased, then the funder or the financial institution is the owner of the equipment, but the buyer can use it during the lease period.

Technavio’s analysts forecast the global agriculture equipment finance market to grow at a CAGR of 3.61% during the period 2016-2020.

Covered in this report

The report covers the present scenario and the growth prospects of the global agricultural equipment finance market for 2016-2020. To calculate the market size, the report considers total financing of agricultural equipment offered to the end-users in the Americas, APAC, and EMEA.Technavio's report, Global Agricultural Equipment Finance Market 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.

Key vendors

  • Agricultural Bank of China Ltd.
  • BNP Paribas SA
  • JP Morgan & Chase Co.
  • Deere & Co.
  • Wells Fargo & Co.
Other prominent vendors
  • KeyCorp
  • PNC Financial Services Group
  • Banc of America
Market driver
  • Rise in use of rental equipment
  • For a full, detailed list, view our report
Market challenge
  • Lack of trained workers in agriculture
  • For a full, detailed list, view our report
Market trend
  • Increased dominance of banking institutions
  • For a full, detailed list, view our report
Key questions answered in this report
  • What will the market size be in 2020 and what will the growth rate be?
  • What are the key market trends?
  • What is driving this market?
  • What are the challenges to market growth?
  • Who are the key vendors in this market space?
  • What are the market opportunities and threats faced by the key vendors?
  • What are the strengths and weaknesses of the key vendors?

Press Release

Technavio Announces the Publication of its Research Report – Global Agricultural Equipment Finance Market 2016-2020

Technavio recognizes the following companies as the key players in the Global Agricultural Equipment Finance Market: Agricultural Bank of China Ltd., BNP Paribas SA, JP Morgan & Chase Co., Deere & Co., and Wells Fargo & Co.

Other Prominent Vendors in the market are: KeyCorp, PNC Financial Services Group, and Banc of America.

Commenting on the report, an analyst from Technavio’s team said: “Banks are currently dominating the agricultural equipment finance market. The credibility that comes with banks has made it a preferred choice of finance for the majority of the loan-seeking individual customers. Banks are highly regulated, and therefore, become a reliable choice for customers. Since the credit market is still recovering from economic slump of 2008, we expect the interest rates to be low during the forecast period. The fall in the interest rate adds to the weightage given to banks for being a potential financer; low interest rate attracts more small farmers in particular as it helps them hold on to their cash balances and exhibit growth to investors.”

According to the report, renting an equipment is a cost effective option for farmers as it enables them to use the latest machinery without incurring huge expenses. The growing number of rental dealers is encouraging financing companies to fund well-maintained quality equipment. These factors have propelled the expansion of the renting business.

Further, the report states that shortage of skilled workers in agricultural firms is one of the biggest challenge faced by the agriculture industry.

Companies Mentioned

Agricultural Bank of China Ltd., BNP Paribas SA, JP Morgan & Chase Co., Deere & Co., Wells Fargo & Co, KeyCorp, PNC Financial Services Group, Banc of America.

  • Executive summary
    • Highlights
  • Scope of the report
    • Market overview
    • Top-vendor offerings
      • Table Product offerings
    • Other prominent vendors
      • Table Other prominent vendors
  • Market research methodology
    • Research methodology
    • Economic indicators
  • Introduction
    • Key market highlights
    • About agriculture equipment finance
    • Advantages and disadvantages of equipment finance
      • Table Advantages and disadvantages of equipment finance
    • Equipment offered on credit
      • Table Types of agricultural equipment offered by financiers on credit
  • Market landscape
    • Market overview
      • Table Equipment financing versus leasing
      • Table Types of equipment financing
    • Market size and forecast
      • Table Global agriculture equipment finance market 2015-2020 ($ billions)
    • Five forces analysis
      • Table Five forces analysis
  • Geographical segmentation
    • Geographical segmentation 2015
      • Table Geographical segmentation 2015
    • Geographical segmentation 2020
      • Table Geographical segmentation 2020
    • APAC
      • Table Agriculture equipment finance in APAC 2015-2020 ($ billions)
      • Table Level of mechanization in different countries (2015)
      • Table Different financing mode 2015-2020 in APAC
    • Americas
      • Table Agriculture equipment finance market in the Americas 2015-2020 ($ billions)
    • EMEA
      • Table Agriculture equipment finance market in EMEA 2015-2020 ($ billions)
  • Market drivers
    • Growth of investments in agricultural sector
    • Rise in use of rental equipment
    • Replacement of outdated agricultural equipment
    • Stability in federal budgeting to drive growth in the US
    • Different finance mechanisms
    • Renewal of equipment contracts
  • Impact of drivers
    • Table Impact of drivers
  • Market challenges
    • Sluggish economic growth
    • Lack of trained workers in agriculture
      • Table Agricultural employment as a share of total employment (%) 2015
    • Fluctuations in agricultural equipment market
    • Costlier bank lending rates
    • Less-developed equipment finance market
    • Lack of collateral
  • Impact of drivers and challenges
    • Table Impact of drivers and challenges
  • Market trends
    • Increased dominance of banking institutions
    • Movement of assets through asset-based lending
    • Farmers' special financing program in the US
      • Table Farm loan information in the Americas
  • Vendor landscape
    • Competitive landscape
    • Competition analysis
      • Table Financials of Agricultural Bank of China 2015
      • Table Solutions offered in domestic market
      • Table Financials of BNP Paribas 2015
      • Table Financials of chase equipment finance 2015
      • Table Financials of John Deere 2015
      • Table Financials of Wells Fargo 2015
  • Appendix
    • List of abbreviations
  • Explore Technavio

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