USD 13.12 billion
Rail Car Leasing Market Size, Share, Growth Analysis, By Product(Tank Cars, Freight Cars, and Others), By Leasing Type(Full-Service Leasing, Operating Leasing, and Finance Leasing), By Application(Chemical Products, Oil & Gas, Energy & Coal, Steel & Mining), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG20U2015 |
Region:
Global |
Published Date: March, 2024
Pages:
202
|Tables:
93
|Figures:
76
Rail Car Leasing Market Insights
Global Rail Car Leasing Market size was valued at USD 13.12 billion in 2022 and is poised to grow from USD 13.76 billion in 2023 to USD 20.18 billion by 2031, at a CAGR of 4.9% during the forecast period (2024-2031).
The global rail car leasing market has witnessed rapid growth due to increasing demand for transportation of various goods and services across the world is one of the major factors driving the market growth. The expansion of the transportation and logistics sector has led to the growth of the rail car leasing market services in recent years. There has been a surge in the demand for freight transport across different regions alongside the increasing necessity for efficient and economical transportation solutions.
The escalating demand for efficient goods transportation, expansion of railroads leading to increased railcar usage and the cost-effectiveness of the railcars as well as the mounting demand for freight and passenger transportation plus growing environmental concerns and need for energy efficient transport options have given this market challenges as well as opportunities to grow. However, the high costs of rail car leasing and the shortage of skilled labor are two key restraints for this market.
All in all, the rail car leasing services provide an adaptable and cost-effective solution for transporting goods through railcars, vehicles designed for railway track transport. These services involve the leasing of various railcars, often accompanied by maintenance and repair offerings, and frequently cater to short-term as well as long-term leasing demands during periods of heightened need.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Tank Cars
Fastest Growth
Freight Cars
Growth Rate
4.9% CAGR
Global Rail Car Leasing Market ($ Bn)
Country Share for North America Region (%)
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Rail Car Leasing Market Segmental Analysis
Global rail car leasing market is segmented by product type, leasing type, end-user, application and region. Based on product type, the market can be segmented into tank cars, freight cars, and others. Based on leasing type, the market is segmented into full-service lease, operating lease, and finance lease. Based on application, the market is segmented into chemical products, oil & gas, energy & coal, steel & mining, agriculture, and others. And lastly, based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Analysis by Product Type
Based on product type, the global rail car leasing market is segmented into tank cars, freight cars and others.
Tank cars are dominating the rail car leasing market. Tank cars are railway cars that are widely used for large-scale transportation of both hazardous and non-hazardous liquids and gaseous substances such as petroleum, chemical gases, ethanol, etc. As per the railcar leasing market forecast, the mint is estimated to grow at the fastest CAGR of 5.8% across the forecast period in terms of railcar type. This growth is attributed to the escalating need for transporting bulk liquids and gases such as petroleum, chemicals, and liquefied gases.
Freight cars are a type of railway vehicle used for carrying cargo over long distances and are the fastest-growing product type in this market. These contain both open and enclosed cars mostly used transportation of coal, grains, and other such commodities. They are equipped with safety features such as brakes, couplers, and secured closure systems. Other railcars used in the railroad industry consist of passenger coaches, cabooses, flatbed cars, boxcars, etc. They are primarily used for transporting goods or passengers. Boxcars are widely used to transport goods, while flatbeds are used for the transport of large items like construction materials or machinery.
Analysis by Leasing Type
Based on leasing type, the global Rail Car Leasing market is segmented into full-service lease, finance lease, and operating lease.
In full-service leasing, the leasing company provides complete maintenance, repair, and other services for the leased rail cars. This type of leasing offers convenience and predictability to railroad operators. They have to pay a fixed rate that covers the costs and everything like maintenance and other services of the leased cars, suitable for shippers who focus on their core business operations rather than managing rail car maintenance and logistics. All this factor helps it to hold a significant portion of this market.
Finance leasing or capital leasing is the fastest growing leasing model after full-service leasing. It involves long-term leasing arrangements along with options to buy the railcars at the end of the lease terms. Railroad operators or shippers make regular payments, which cover the costs plus interest over the lease term, and at the end of the term, they have the option to buy the cars at a predetermined residual value. This type of leasing model offers flexibility to acquire rail cars without significant upfront investments making it suitable for those who intend to use rail cars for long-term use and are interested in ownership
Operating leasing consists of short-to medium-term leasing agreements without transfer of ownership rights. Railway operators pay a fixed amount periodically for the use of the rail cars without any responsibilities of ownership, suitable for shippers who need rail cars for a specific project, seasonal demand, or short-term contracts.
Analysis by Application
Chemical products such as liquid slurries, gases like ethanol, and other solids are also transported in bulk. The chemical segment is expected to exhibit the highest growth during the forecast period because of the constant demand for a wide range of chemical products across diverse industries such as manufacturing, agriculture, pharmaceuticals, and other sectors, driving consistent demand for railcar leasing services.
Oil & gas are widely transported through railcar leasing services as it is cost-effective and delivers on-time delivery which makes it one of the rapidly growing sectors. They require specialized rail cars with specialized safety measures to ensure no gas or oil leak. Rail car leasing helps transportation companies to transport energy and coal safely and efficiently. Leasing companies offer tank cars and hopper cars which are specially designed for this type of transport. Railcar leasing services are also heavily used in steel and mining industries as these require a large amount of transportation of goods on time from mines to processing units or centers.
Agriculture is another sector where railcar leasing plays a pivotal role. Perishable food items and other food products require a temperature-controlled environment in railcars to maintain the food quality. Other services include transportation of goods like mining aggregates such as gravel, stones, minerals, etc., chemical fertilizers, petrochemicals etc.
Global Rail Car Leasing Market By Product Type
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Rail Car Leasing Market Regional Insights
Based on geography, the global Rail Car Leasing market is segmented into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa.
Among these regions, the North American region holds a major part of the market. The increasing demand for rail transportation services and the need for efficient and cost-effective transportation solutions are driving the demand for rail car leasing market in this region. North America has a diverse industrial base, including sectors such as energy, agriculture, automotive, and chemicals, all of which rely heavily on rail transportation for moving goods efficiently. Factors like increasing economic growth and rail car leasing companies are also driving the market growth in this region, giving rise to competition and innovation in the market. This is helping to drive down costs and improve the quality of services offered by these companies to make rail car leasing services more attractive to businesses in the region. Regulatory developments as well as safety standards, environmental regulations, and trade policies also impact the rail car leasing market in this region.
The Asia-Pacific region, particularly countries like China and India, has been experiencing rapid growth in the rail car leasing market. This region is expected to register a CAGR of 7.3% in the global Rail car Leasing market. This growth is attributed to the expansion of rail networks in economies such as China and India along with governmental initiatives or investments towards rail freight corridor projects. Driven by urbanization and, investments in high-speed rail, freight corridors, and intermodal terminals are driving the demand for specialized rail cars and leasing services in this region. At the same time, the booming tourism sector is also playing a major role in the rising demand for efficient and smooth rail cars which helps the leasing companies to focus on innovations in rail cars to provide the best experience.
Global Rail Car Leasing Market By Region
- Largest
- Fastest
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Rail Car Leasing Market Dynamics
Drivers
Environmental Benefits
- Increasing environmental concerns and consumers preference for eco-friendly options has fuelled the growth of this market. Railways are considered as the greener alternative as compared to other modes of transport. Since they have a smaller carbon footprint and produce lesser greenhouse gases and are cost effective, various industries are opting for railways, hence driving the demand for rail car leasing market.
Growing industrial activities and Infrastructure development
- Increasing industrialization is projected to be a key catalyst for rail car leasing market growth as it is a cheap alternative for companies to transport their finished products and raw materials over long distances. High investments in the development of new railway infrastructure projects around the world are also slated to bolster the demand for rail car leasing in the future.
Restraints
Regulatory Compliance
- Safety, environmental, and regulatory mandates imposed by government authorities also get added to the operating costs of railcar leasing companies. Keeping up with the evolving regulatory standards could be challenges for market players and thereby slow down rail car leasing demand outlook as well.
Infrastructure Limitations
- Some regions have limited rail infrastructure and inadequate connectivity, especially in remote areas. This can pose a major challenge to the rail car leasing market as this limits the scope of business for companies operating in this space.
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Rail Car Leasing Market Competitive Landscape
The global rail car leasing market is highly competitive with several players competing at both international and regional levels. The major players in this market are adopting and trying out various growth strategies to stay in the market. Innovations, mergers, acquisitions, collaboration and intensive research & development are some of the growth strategies that are adopted by these key players to thrive in this competitive market. The key market players are also constantly focused on R&D to supply industries with the most efficient and cost-effective solutions which caters to the needs and demands of businesses.
Top Player’s Company Profiles
- GATX Corporation (United States)
- TrinityRail (United States)
- CIT Group Inc. (United States)
- Wells Fargo Rail (United States)
- Union Tank Car Company (United States)
- CAI International Inc. (United States)
- Beacon Rail Leasing (United Kingdom)
- VTG Aktiengesellschaft (Germany)
- Mitsui Rail Capital (United States)
- SMBC Rail Services LLC (United States)
- Wagon Leasing (Poland)
- TTX Company (United States)
- Touax Rail Limited (France)
- The Greenbrier Companies (United States)
- Andersons Rail Group (United States)
- American Railcar Industries (United States)
- Infinity Rail (United States)
- Touax Rail Services (France)
- GE Capital Rail Services (United States)
- Sumitomo Mitsui Finance and Leasing Co., Ltd. (Japan)
Recent Developments
- In October 2023, GATX Corporation entered into a long-term rail care supply agreement with Trinity, a subsidiary of Trinity Industries, Inc. To buy 15 thousand newly manufactured railcars until 2028. Also, there is an option for GATX to request up to 500 more rail cars annually from 2023 to 2028. This agreement ensures GATX a reliable supply of top-notch, contemporary railcars with cost advantages throughout North America.
- In January 2023, Akiem Group SAS signed a 10-year leasing agreement with GB Railfreight. Akeim Group SAS has invested approximately USD 31.1 million to expand the size of its locomotive fleet.
Rail Car Leasing Key Market Trends
Digitization and Integration of Advanced Technologies
- Companies can focus on utilizing advanced digital technologies and data-driven solutions to enhance their rail car leasing operations and improve operational efficiency as well. Artificial intelligence and IoT are top two technologies that could redefine the global rail car leasing marketplace in the long run.
Rail Car Leasing Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global rail car leasing market analysis, the market offers eco-friendly, cost-effective, and flexible solutions to businesses from various industries. Factors like demand for sustainable transport options, developing infrastructure, and the need for efficient transportation systems for seamless and efficient connectivity across different industries as well as consumers have driven this market. While there are still some infrastructure limitations in some parts of the world and some regulatory challenges can affect the market growth, at the same time, it can also be treated as an opportunity to build something new which can lead to market expansion, technological advancements, collaborations and partnerships both on international as well as regional level.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 13.12 billion |
| Market size value in 2031 | USD 20.18 billion |
| Growth Rate | 4.9% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Rail Car Leasing Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Rail Car Leasing Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Rail Car Leasing Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Rail Car Leasing Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Rail Car Leasing Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Rail Car Leasing Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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