According to a new report from Research and Markets, the global tractor rental market will grow at a CAGR of 8.09% from 2016 to 2020.

The tractor rental market is globally operated by third party suppliers or tractor manufacturers that offer used tractor on rent to the farmers based on their requirements.

The report says that the rapid growth of the agricultural sector is a significant factor that spurs the prospect for the growth of this market.

The rise in the wages of agricultural laborers is empowering farmers to use modern methods of farming. Farmers have started using more and more farm equipment and renting farm equipment is the only viable and practical option.

According to the report, one of the major drivers for this market is high labor wage. The labor wage in regions such as the Americas and Europe is already high, whereas APAC countries such as India and China are experiencing a rise in the minimum wage of laborers. As a result, it is difficult for farmers to employ more laborers in the market. Farmers are finding ways to rent out tractors and other farm equipment in their agricultural fields to fulfill the low employment of laborers. It can be inferred that increases in the wage of laborers is acting as a strong growth driver for this market.