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The Europe railcar leasing market is estimated to grow at a CAGR of 6% between 2022 and 2027. The size of the market is forecast to increase by USD 2,269.86 million. The growth of the market depends on several factors, including the increased funding by the European Commission, the efficiency and reliability of rail over road transport, and reduced freight transportation costs with intermodal service.
This report extensively covers market segmentation by type (freight cars, tank wagons, and intermodals), and end-user (petroleum and chemical, coal, agricultural products, and others). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The efficiency and reliability of rail over road transport are notably driving the market growth, although factors such as poor maintenance of railway networks resulting in less sustainability and profitability may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The efficiency and reliability of rail over road transport are notably driving the market growth. By using rail transportation, fewer trucks are on the road, which results in less traffic and almost 30% lesser carbon emissions. Due to traffic, road freight in Europe is frequently delayed. Over 75% of road freight is delayed in Europe as a result of lost hours from traffic, which has an immediate effect on buyers and suppliers.
Rail provides a well-organized network for planning and management, including accurate timing of arrivals and departures and cutting-edge signaling systems. When compared to air freight and sea freight, rail only accounts for 25% of the total cost, making it significantly more economical than road freight. This is so because shipping a tonne of goods by rail requires less fuel than shipping a tonne of goods by road. Rail freight is not only dependable and economical but also environmentally friendly. When compared to trucks, rail freight releases 75% less carbon dioxide into the atmosphere. This is a result of the use of alternative fuels like biodiesel and LNG. Thus, such factors will boost the market in Europe during the forecast period.
The use of big data analytics in European rail freight is an emerging trend in market growth. Big data analytics are being used by European freight rail operators to improve the effectiveness of their operations and their overall business performance. It can help reduce errors and inefficiencies while improving transparency in rail freight operations. Large amounts of data are typically gathered using software programs and on-product sensors. The data sources used include handheld field tablets, GPS units that record speed and the distance between trains, weather data that can be used to ensure train safety, maintenance logs, arrival time and location, and visual and acoustic sensors in brakes, rails, switches, and other hardware.
The use of train-flow planning software helps decrease the unneeded and premature stopping and braking of trains through the use of big data analytics. By doing so, you can save 15% to 20% on fuel and shorten transportation delays. Additionally, employing computerized maintenance management systems provides operators with knowledge regarding the state of wagons and containers, enabling them to schedule maintenance tasks and repairs at the appropriate time and prevent breakdowns and derailments. Hence, during the forecast period, such technological developments will fuel the expansion of the market in Europe.
Poor maintenance of railway networks resulting in less sustainability and profitability are major challenges impeding market growth. In order to provide customers with high-quality services and meet the specific needs of rail freight, railroad networks must continually be maintained and upgraded. These services primarily involve the prompt arrival and delivery of goods to clients. The development and improvement of the rail infrastructure had received more than USD 40 million in funding as of 2018. The lack of proper maintenance on rail freight lines, however, despite significant investments and strategies for infrastructure development, leads to speed restrictions and, occasionally, the closure of railway lines. This affects the performance of the entire supply chain network in terms of delays in volumes and hindrances in the transportation of goods from the point of production to the destination due to the closure of lines.
For instance, more than 70% of the freight railway lines in France are in poor condition. As a result, they are subject to speed restrictions, and approximately 20% of the railway lines are inoperable. This has an impact on how goods are transported from the point of production to their final destination. Hence, such factors will likely hinder the market growth during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Railcar Leasing Market in Europe Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
RAILPOOL GmbH - The company primarily offers full rail service, from service maintenance, repairs, documentation, and vehicle updates. The key offerings of the company include rail car leasing and related services such as repair, preventive maintenance, spare parts, and component management.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the freight cars segment will be significant during the forecast period. Flat cars, open cars, boxcars, and sliding wall freight cars are all used for freight transportation. Freight cars are primarily used to transport coal, logs, and vehicle equipment, and they have a carrying capacity of up to 100 tonnes. Transportation of coal through freight across Europe accounts for 40% total loading share.
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The freight cars segment was valued at USD 2,466.12 million in 2017 and continued to grow until 2021. The number of freight rail services operating in Eastern Europe will rise along with the expansion of manufacturing businesses in the region. Transporting bulky raw materials like steel to these manufacturing locations will require freight rails. Based on the cargo that needs to be transported, the kind of freight car is chosen. There are additional freight vehicles, such as covered hoppers, that are primarily employed for the delivery of coal, frac sand, and cement. Companies in Europe lease sliding wall freight cars, flat cars, and boxcars as their preferred modes of transportation. Furthermore, rising government spending on the construction of rail infrastructure is also anticipated to drive market expansion. Additionally, the freight car manufacturing companies place a lot of emphasis on redesigning the freight cars to increase the container's capacity, which will improve the effectiveness of transportation over the course of a single trip. Various end-user industries now have a greater need for new freight cars as a result. Additionally, the market is experiencing an increase in continuous technological advancements, which will ultimately fuel the expansion of the freight cars market within the railcar leasing market in Europe during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the railcar leasing market in Europe as a part of the global railroads market within the global transportation market. The super parent global transportation market covers revenue generated by the companies providing air freight and logistics service, airline service, marine service, road, and rail (railroads and trucking service), and transportation infrastructure (airport services, highways and rail tracks, and marine port and services). Railroads service includes companies providing primarily goods and passenger rail transportation. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
Railcar Leasing Market In Europe Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6% |
Market growth 2023-2027 |
USD 2,269.86 million |
Market structure |
Concentrated |
YoY growth 2022-2023(%) |
5.53 |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Akiem Group SAS, Alpha Trains Luxembourg Sarl, Angel Trains Ltd., Beacon Rail Leasing Ltd., ERMEWA INTERSERVICES, ERR European Rail Rent GmbH, GATX Corp., Mitsui and Co. Ltd., Porterbrook Leasing Co. Ltd., Rail Innovators Group B.V., RAILPOOL GmbH, The Greenbrier Companies Inc., Touax SCA, TRANSCHEM Sp zoo, TRANSWAGGON GmbH, and VTG GmbH |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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