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Railcar Leasing Market Report Overview
The global railcar leasing market size was USD 9921.47 million in 2021 and is expected to reach USD 19642.38 million in 2031, exhibiting a CAGR of 7.07% during the forecast period.
Trains that transfer goods consist of a single coach with carriages and cars, called railcars. The term railcar leasing refers to the leasing or renting of railcars. A railcar leasing company offers tank and freight cars for rent with full-service packages, which include maintenance, taxes, and insurance. As well as tax and insurance choices, other financial structures are included in this category. The expansion of the market is mainly ascribed to the variety of product types, applications, and geographical extension. In addition, tank cars and freights cars are the largest segment of the segment. Along with this, high demand for railcar leasing in end-use industries such as food and agriculture, and oil, gas, and chemicals applications are like to augment the growth of the market with a substantial CAGR during the projection period.
COVID-19 Impact: Decline in End-Use Industry During the Pandemic Obstruct the Market Growth
The global COVID-19 pandemic has been unprecedented and staggering, with the railcar leasing market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.
The COVID-19 pandemic has hampered the growth of the entire business industry including the chemical, pharmaceutical, manufacturing, IT, and service market due to imposed restrictions on the market by the government to prevent coronavirus emissions across the globe. Therefore, depreciation in the growth of end-use and other industries has directly impacted the railcar leasing market. However, the increasing demand for consumer goods and other product in the market is expected to expand the railcar leasing market during the forecast.
Latest Trends
"Increasing Trend for Short-Term Leasing Arrangements Creates Market Opportunities"
The railcar leasing market is constantly evolving, with new trends emerging every year. One of the latest trends in the market is the increasing demand for short-term leasing arrangements. This has been driven by companies who are looking for a more cost-effective and efficient way to transport their goods. As a result, more companies are opting for short-term leasing arrangements, as opposed to long-term contracts. Another trend in the market is the increasing demand for specialty railcars. Companies are increasingly looking for railcars that are designed to transport specific types of goods, such as temperature-controlled cars for the transportation of food, or hazardous material cars for the transportation of hazardous materials. This has driven the demand for specialty cars, which has seen significant growth in the last few years.
Railcar Leasing Market Segmentation
- By Type Analysis
According to type, the market can be segmented into Tank Cars, Freight Cars, and Others.
- By Application Analysis
Based on application, the market can be divided into Food & Agriculture, Oil & Gas, Chemical Products, Energy and Coal, Steel & Mining, Aggregates & Construction, and Others.
Driving Factors
"Rising Demand for Efficient and Cost-Effective Transportation to Accelerate Market Growth "
The increasing demand for efficient and cost-effective transportation is one of the main drivers of the market. Companies are increasingly looking for ways to transport their goods in a more efficient and cost-effective manner, and railcar leasing provides them with an ideal solution. The availability of railcars is also a driving factor, as companies are able to find railcars that are suited to their specific needs and requirements. Such aspects of the growth of the market will fuel the opportunities for the market to grow.
"Regulations around Railcar Leasing vary from Different Country Drive the Growth of the Market "
The railcar leasing market is driven by a number of factors, including the increasing demand for efficient transportation, the availability of railcars, and the regulatory environment. These factors are anticipated to propel the market growth in the coming years. Also, the regulations around railcar leasing vary from country to country, and companies must be aware of the regulations in their area before entering into a leasing agreement. Companies must also be aware of the tax implications of railcar leasing, as this can have a significant impact on their bottom line.
Restraining Factors
"High Cost of Railcars’ Mileage and Storage Charges May Hinder the Growth of the Market"
The railcar leasing industry is characterized by stringent laws that favor the lessor in contract execution due to the high cost of railcars. Whenever railcars are moved from one place to another, mileage payments and storage charges are incurred. Therefore, these retraining factors can hamper the growth of the market.
Railcar Leasing Market Regional Insights
"North America Dominates the Market Due to Efficient Rail Transportation Network in the Region"
As per previous years’ stats, North America prominently dominated the railcar leasing market in 2020. Around 1 billion railcars are traveling through the continent. The growth of the market is driven by the increasing demand for rail freight logistics from a number of industry segments. Apart from this, the growing railcar network’s efficiency in the region is attributed to grow the market during the forecast. Also, the presence of top companies in the region, particularly, in the U.S. and Canada is fueling the growth of the market in the projection time frame.
Key Industry Players
"Key Players Penetration into Partnership with Railcar Manufacturers to Retain Position in the Market "
The key players of the market get advantages from the variety of application segments such as food & agriculture, oil & gas, chemical products, energy and coal, steel & mining, and many more are attributed to generate lucrative opportunities for the leading players of the railcar leasing market. Some of the leading players such as Touax Group, VTG, Mitsui Rail Capital, BRUNSWICK Rail, The Greenbrier Companies, Ermewa, and other major players hold the highest number of railcar leasing market shares. In order to manage and outsource fleets, key manufacturers are penetrating into partnerships with railcar manufacturers, this will likely to stimulate market growth. Besides, to expand the revenue of the market these players work on acquisition, mergers, and collaboration strategies which help them to generate the highest profit in the market.
LIST OF TOP RAILCAR LEASING COMPANIES
- Touax Group
- VTG
- Mitsui Rail Capital
- BRUNSWICK Rail
- The Greenbrier Companies
- Ermewa
- Union Tank Car
- Trinity
- Andersons
- Chicago Freight Car Leasing
- SMBC (ARI)
- GATX
- CIT
- Wells Fargo
Report Coverage
This report concentrates on the railcar leasing market. It highlights the market value, expected CAGR, and USD value over the forecast period. The COVID-19 impact on the market at the beginning of the pandemic and the post-pandemic effects on international market restrictions and how the industry is going to turn the corner are also stated in the report. The report provides significant market data with its product type and product applications, end-use details, and an idea of the market growth in the future. This report also provides an understanding of the growing market trends and developments and their effects on the market growth, driving factors along with restraining factors that impact the market dynamics. Along with this, the leading region, key players of the market, and their tactics to beat the market competition, sustainable policies, their collaboration, mergers, companies’ profile, previous years’ revenue, profit & loss, and market position based on their share value in the market, are also explained in the report.
| REPORT COVERAGE | DETAILS |
|---|---|
|
Market Size Value In |
US$ 9921.47 Million in 2021 |
|
Market Size Value By |
US$ 19642.38 Million by 2031 |
|
Growth Rate |
CAGR of 7.07% from 2021 to 2031 |
|
Forecast Period |
2024-2031 |
|
Base Year |
2024 |
|
Historical Data Available |
Yes |
|
Regional Scope |
Global |
|
Segments Covered |
Type and Application |
Frequently Asked Questions
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What value is the global railcar leasing market expected to touch by 2031?
The global railcar leasing market is expected to touch USD 19642.38 million by 2031.
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What CAGR is the railcar leasing market expected to exhibit during 2024-2031?
The railcar leasing market is expected to exhibit a CAGR of 7.07% over 2024-2031.
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Which are the driving factors of the railcar leasing market?
The growing demand for cost-effective transportation and the need for carrying petrochemicals, gases, and transportation of cargo, oil, and other goods is the driving factor of the market.
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Which are the top companies operating in the railcar leasing market?
Touax Group, VTG, Mitsui Rail Capital, BRUNSWICK Rail, The Greenbrier Companies, Ermewa, Union Tank Car, Trinity, Andersons, Chicago Freight Car Leasing, SMBC (ARI), GATX, CIT, and Wells Fargo are top companies operating in the market.
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