NEW YORK, Oct. 1, 2023 /PRNewswire/ — The North America railcar leasing market size is expected to grow by USD 5.16 billion from 2022 to 2027. However, the growth momentum of the market will progress at a CAGR of 6.76% during the forecast period. The market is segmented by product (freight cars, tank cars, and locomotives) and end-user (petroleum and chemical, coal, agricultural products, and others). The efficiency and reliability of rail over road transport are key factors driving market growth. Transporting goods by rail goes a long way in reducing traffic congestion and carbon emissions. The rail network allows customers to ensure on-time delivery of products thanks to the network structure and consistent arrival and departure times. Additionally, rail transport is cheaper than road transport, causing many manufacturing companies to use freight trains instead of road transport. For example, products such as oil, gas, cement, chemicals, and other bulk goods are mainly transported by rail cars instead of trucks due to low transportation costs and reliability of the mode of transport. Hence, these factors are expected to drive market growth during the forecast period. The report analyses the market size and growth and provides accurate predictions on the growth of the market. View a Free PDF Sample
Key Highlights:
- The report recognizes the following as some of the key players in the railcar leasing market in North America: American Industrial Transport Inc., Arrendadora Nacional de Carros de Ferrocarril S.A. de C.V., Berkshire Hathaway Inc., Everest Railcar Services Inc., First Citizens Bancshares Inc., GATX Corp., GLNX Corp., Herzog Contracting Corp., HiRail Leasing, Mitsui and Co. Ltd., Nucor Corp., PFL Petroleum Services LTD., RESIDCO, RTEX Rail, Sasser Family Companies, Stonebriar Commercial Finance, Sumitomo Mitsui Financial Group Inc., Trinity Industries Inc., VTG GmbH, and Wells Fargo and Co.
- Railcar Leasing Market in North America is fragmented in nature.
- Market to observe 6.58% YOY growth in 2023.
Market Dynamics:
Major Trend
- The application of advanced coatings on railcars is a major trend in the market.
- Railcars are susceptible to wear and tear, especially over extended periods of use, and there are many different factors that contribute to their deterioration.
- Furthermore, causes of their deterioration include reactions between the rolling stock and its contents, as well as the effects of climate change.
- It is essential that the coating applied to these rail cars meet certification standards set by regulatory agencies such as the Food and Drug Administration (FDA) and the National Science Foundation (NSF).
- Tank cars, in particular, are susceptible to damage because they carry crude oil and its various derivatives, which can easily react with metal surfaces, thereby leading to wear.
- Hence, these factors are expected to drive market growth during the forecast period.
Significant Challenge
- The risks associated with railcar leasing are significant challenges restricting market growth.
- Renting a railcar involves two significant risks technological advances and reduced residual values of railcars.
- The rental period for rail cars is usually determined by the operators and is generally relatively short. As technology advances, newer and more efficient railcar models are introduced, making older versions obsolete once their lease periods expire.
- Additionally, the residual value of a rail car will decrease as it goes through multiple rental cycles. railcars rented for long periods of time tend to have a lower market value than new models introduced to the market every year.
- Hence, these factors are expected to restrict market growth during the forecast period.
The report also covers information on upcoming trends and challenges. Explore detailed information by purchasing a report
Keg Segments:
- The market share growth by the freight cars segment will be significant during the forecast period. Freight vehicles are used for the transport of goods, e.g. coal, forest products, metal, and minerals, or the production of crops. Freight car manufacturing companies are focusing a lot on redesigning freight cars to increase container capacity, thereby improving transportation efficiency during a trip. This has increased the demand for new freight cars from many different end-user industries. In addition, freight cars include open cars, covered cars, flat cars, and sliding-wall freight cars. Based on the material that must be transported, it is decided which freight cars shall be used. Another type of transport vehicle is the covered hoppers that are mainly used for transporting cement, frac sand, and coal. Hence, these factors are expected to drive segment growth during the forecast period.
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Related Reports:
The Rail Wheel Market size is estimated to grow at a CAGR of 5.27% between 2022 and 2027 and the size of the market is forecast to increase by USD 1,203.58 million.
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.
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Railcar Leasing Market Scope in North America |
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Report Coverage |
Details |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.76% |
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Market growth 2023-2027 |
USD 5.16 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023 (%) |
6.58 |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
American Industrial Transport Inc., Arrendadora Nacional de Carros de Ferrocarril S.A. de C.V., Berkshire Hathaway Inc., Everest Railcar Services Inc., First Citizens Bancshares Inc., GATX Corp., GLNX Corp., Herzog Contracting Corp., HiRail Leasing, Mitsui and Co. Ltd., Nucor Corp., PFL Petroleum Services LTD., RESIDCO, RTEX Rail, Sasser Family Companies, Stonebriar Commercial Finance, Sumitomo Mitsui Financial Group Inc., Trinity Industries Inc., VTG GmbH, and Wells Fargo and Co. |
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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. |
ToC:
Executive Summary
Market Landscape
Market Sizing
Historic Market Sizes
Five Forces Analysis
Market Segmentation by Product
Market Segmentation by End-User
Market Segmentation by Geography
Customer Landscape
Geographic Landscape
Drivers, Challenges, & Trends
Company Landscape
Company Analysis
Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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