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The Railcar Leasing Market size is estimated to grow at a CAGR of 7.12% between 2022 and 2027 and the size of the market is forecast to increase by USD 18,365.83 million. The growth of the market depends on several factors such as cost advantages of railcar leasing, increasing crude oil and energy consumption globally, expansion of railway infrastructure.
This report extensively covers market segmentation by end-user (petroleum and chemical, coal, agricultural products, and others), type (freight cars, tank cars, and locomotives), and geography (North America, APAC, Europe, South America, and Middle East and Africa). 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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Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Railcar Leasing Market Customer Landscape
Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
Rising global crude oil and energy consumption is a major driving factor for the growth of the global railcar leasing market during the forecast period. One of the key end-users of rail logistics is the global oil and gas refining industry. Due to the growing automotive and energy industries, oil and gas and petrochemical industries are growing at a rapid pace. As a result, industries are expected to encourage the growth of the global railcar leasing market during the forecast period.
In addition, the increasing demand for fuel oil and gas has led to a simultaneous rise in the global refinery capacity, owing to the addition of new refineries and the expansion of existing refinery complexes. As a result, the increasing requirement for petroleum refining and consistently growing oil refining capacity is projected to drive the demand for efficient railcars for transportation during the forecast period.
The increasing popularity of mobile power plants is the primary trend in the global railcar leasing market growth. The increasing replacement of coal-fired power plants with natural gas-based mobile power plants is significantly driving the growth in the popularity of mobile power plants. Additionally, due to high efficiency and durability and the rising demand for power, there is an increasing demand for mobile power plants during the forecast period.
Also, the rise in investments in the end-user industries, including manufacturing, automotive, transportation, and logistics, is also encouraging the growth of mobile power plants. For instance, the dominant vendors such as Siemens AG (Siemens), GE, and Rolls-Royce Holdings Plc (Rolls-Royce) are prioritizing on the R&D of new products to cater to the requirements of the power industry. Thus it is expected to drive the rail car leasing market growth during the forecast period.
Stringent regulations for railcars is a major challenge to the growth of the global railcar leasing market. Based on the type of railcars, there are various types of regulations associated with them. For instance, there are strict federal regulations and standards that must be followed for using any tank cars for the transportation of crude oil. Control over railcar design and procedures for reducing accidents involving railcars are other regulations that are introduced by the Department of Transportation (DOT).
As a result, there is a significant negative impact on railcar leasing, as most of the leasing companies have old railcars. Additionally, there are other rules, such as mandatory modification of the railcar, which must be performed by the lessor. Due to the above set of regulations, it is expected to hinder the growth of the global railcar leasing market during the forecast period.
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.
Akiem Group SAS: This company offers mostly railcar leasing such as dry lease which provide custom service and maximum modularity to ensure benefit from the solution which aligns most closely with your needs and fleet strategy. Also, it offers a wide range of rolling stock, value added leasing solutions, and industrial and maintenance solutions.
Berkshire Hathaway Inc: The company offers railcar leasing which supports infrastructure to handle all your fleet management and maintenance needs.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The petroleum and chemical segment will account for a major share of the market's growth during the forecast period. Many companies in the petroleum and chemical industries rely on railcar leasing companies as rail transportation is a cost-effective and efficient way to transport large quantities of petroleum products and chemicals over long distances.
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The petroleum and chemical segment was valued at USD 20,263.07 million in 2017 and continued to grow until 2021.Some of the key services provided by railcar leasing companies includes leasing of railcars, maintenance and repair services, and logistics and transportation management. These services are key to ensuring the safe and efficient transportation of hazardous materials such as petroleum products and chemicals. As there is an increasing demand for petroleum products and chemicals around the world, companies in these industries are for looking for reliable and cost-effective transportation solutions. As a result, there is a growing demand for rail cars in this segment which is expected to significantly drive the rail car leasing market growth during the forecast period.
Based on type, the market has been segmented into freight cars tank cars and locomotives. Freight cars are dominant segment which are used for the transportation of goods such as coal products, forest products, metals and minerals, construction raw materials, and agricultural products. Box cars, center beam cars, flat cars, gondola cars, and hoppers, are some of the various types of freight cars which are used for various end-user applications. In order to enhance the efficiency of transportation in a single trip as well as for a long period, manufacturers are highly focused on redesigning freight cars to increase the capacity and life span of the containers which in turn increased the demand for frieght cars by various end-users.
APAC is estimated to contribute 31% to the global growth during the forecast period. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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Another region offering significant growth opportunities to vendors is North America. One of the key reason for the market share growth in this region is the rising demand for rail freight logistics from various industry shippers. For instance, In US, more than 70% of the coal and about 58% of the raw metal ores used in various industrial segments are transported using railways. This is mainly due to the presence of well-developed infrastructure and technologically advanced systems that are integrated into rail freight operations in North America. Hence, It is expected to boost the growth of the rail car leasing market during the forecast period.
During the COVID-19 pandemic, there was a significant slowdown in railay industry due to decline in passenger numbers.However, In 2021, due to the adoption of safety protocols at railway stations and the distribution and administration of COVID-19 vaccines on a large scale and other social distancing guidelines increased the passenger strength. Such factors are expected to fuel the growth of the rail car leasing market during the forecast period.
The railcar leasing market 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.
Railcar Leasing Market Scope |
|
Report Coverage |
Details |
Page number |
177 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.12% |
Market growth 2023-2027 |
USD 18,365.83 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.71 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 31% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Akiem Group SAS, Beacon Rail Leasing Ltd., Berkshire Hathaway Inc., C.K. Industries Inc., ERMEWA INTERSERVICES, First Citizens Bancshares Inc., GATX Corp., ITE Management L P, Mitsui and Co. Ltd., Procor Ltd., RAILPOOL GmbH, Sasser Family Companies, Sumitomo Mitsui Financial Group Inc., The David J. Joseph Co., The Greenbrier Companies Inc., Touax SCA, Trinity Industries Inc., VTG GmbH, Wells Fargo and Co., and GLNX Corp. |
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, Market condition analysis for 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. |
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