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The Europe Railcar Leasing Market size is forecast to increase by USD 2.51 billion, at a CAGR of 6.28% between 2023 and 2028.
The market's growth hinges on pivotal factors, including funding from the European Commission, the superior efficiency and reliability of rail compared to road transport, and the lowered freight transportation expenses facilitated by intermodal service. These dynamics underscore the significance of sustainable and cost-effective transportation solutions, driving the railcar leasing market forward. As rail infrastructure continues to evolve and innovate, it fosters greater confidence among stakeholders, positioning rail transport as a preferred mode for freight movement in Europe. The report provides market size, historical data spanning from 2018 - 2022, and future projections, all presented in terms of value in USD million for each of the mentioned segments.
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The market is primarily driven by the increasing demand for efficient transportation solutions, prompting a rise in railcar lessors and service providers. Railcars leased on a rental basis offer flexibility and cost-effectiveness to businesses. However, challenges such as complex contract negotiations, high tax and insurance costs, and the need for extensive repair and maintenance can hinder market growth. Additionally, navigating regulatory requirements and ensuring compliance with financial services and asset management agencies pose challenges for market players in Europe. Our researchers analyzed the data with 2023 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 opting for rail transportation, railcar lessors and service providers contribute to reducing traffic congestion and slashing carbon emissions by nearly 30%. In Europe, where road freight is frequently delayed due to traffic, rail offers a solution with over 75% less delay. The railcar leasing model ensures efficient repair and maintenance, insurance, and financial services, making it a cost-effective choice for renting on a contractual basis.
Moreover, rail also boasts precise timing and signaling systems, offering a well-organized network for transporting goods, coaches, and cars. Compared to air and sea freight, rail is 25% more economical, particularly for transporting freight cars like tank wagons and intermodals carrying petroleum, chemicals, coal, and agricultural products. With advanced coatings, rail freight emerges as an environmentally friendly alternative, emitting 75% less carbon dioxide than trucks, thereby promoting sustainability in the transportation sector. This is a result of the use of alternative fuels like biodiesel and LNG. Thus, such factors will boost the market 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 good train operations. Large amounts of data are typically gathered using software programs and on-product sensors.
Moreover, 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.
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 goods trains, 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.
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 market forecasting 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 market growth analysis strategies.
Customer Landscape
Companies 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 market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies 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 551.75 million in 2018. 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 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 market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The market is experiencing dynamic growth driven by various factors, such as the efficiency and reliability of rail over road transport and reduced freight transportation costs. Technological advancements, including the integration of intelligent systems in freight cars and applications of advanced coatings on railcars, further enhance the market landscape. However, challenges such as environmental concerns and competitive rivalry necessitate strategic approaches. Company selection methodology and Porter's Five Forces Framework aid in assessing supplier bargaining power and buyer bargaining power, ensuring robust decision-making. As the logistics industry embraces energy-efficient transportation and big data analytics for the transportation of goods and services, players like BRUNSWICK Rail and Chicago Freight Car Leasing navigate the market's competitive landscape with foresight. With the European Commission emphasizing goods train transportation and rail infrastructure, the market anticipates sustained growth driven by innovation and strategic partnerships among railway operators, shippers, and railcar leasing services providers.
Moreover, the market showcases diverse dynamics and strategies, with innovative approaches like full-service leasing and finance leasing gaining prominence. Qualitative and quantitative research underpins strategic decisions, while Porter's five forces analysis guides market participants in navigating challenges such as the threat of new entry and the threat of substitution. Additionally, vendor selection methodology ensures optimal partnerships, enhancing market competitiveness. Railroads play a pivotal role in the region's transportation landscape, with passenger coaches and tank cars facilitating efficient freight and passenger services. Amid evolving trends, energy and coal transportation remain significant, along with steel and mining industries driving demand. Furthermore, emerging and active quadrants highlight ongoing innovations supported by cutting-edge technologies and international monetary funds. With a focus on accurate market growth, European railcar leasing demonstrates resilience and adaptability, addressing restraints while leveraging opportunities in an ever-evolving market.
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Market Scope |
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Report Coverage |
Details |
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Page number |
156 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.28% |
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Market Growth 2024-2028 |
USD 2.51 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.2 |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Akiem Group SAS, Alpha Trains Luxembourg Sarl, ALSTOM SA, Angel Trains Ltd., AstraRail Industries SA, Beacon Rail Leasing Ltd., ERMEWA INTERSERVICES, ERR European Rail Rent GmbH, GATX Corp., Marmon Holdings Inc., Nexrail, Porterbrook Leasing Co. Ltd., Rail Innovators Group B.V., RAILPOOL GmbH, The Greenbrier Companies Inc., Touax SCA, TRANSCHEM Sp zoo, TRANSWAGGON GmbH, VTG GmbH, and MITSUI and CO. LTD. |
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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. |
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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 market research report to meet your requirements.
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
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