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The railcar leasing market size is forecast to increase by USD 20.02 billion, at a CAGR of 7.24% between 2023 and 2028. The growth of the market depends on several factors such as the cost advantages of railcar leasing, the rising global crude oil and energy consumption, and the expansion of railway infrastructure. The report provides market size, historical data spanning from 2018-2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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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.
Rising global crude oil and energy consumption is the key factor driving market growth. The global oil and gas refining industry is one of the key end-users of rail logistics. The oil and gas and petrochemical industries are growing at a rapid pace due to the growing automotive and energy industries. In the past few years, all these industries have shown significant growth due to the increasing global population and energy demand. The rapid growth in the oil and gas and petrochemical industries is expected to encourage the growth of the market.
Moreover, the growth in demand for fuel oil and gas has led to a simultaneous increase in the global refinery capacity, owing to the addition of new refineries and the expansion of existing refinery complexes. The global oil and gas industry is likely to witness further expansions in the future. Hence, the increasing requirement for petroleum refining and continuously growing oil refining capacity are expected to drive market growth during the forecast period.
The increasing popularity of mobile power plants is the primary trend shaping market growth. The growth in the popularity of mobile power plants is driven by the increasing replacement of coal-fired power plants with natural gas-based mobile power plants. Furthermore, mobile power plants have high efficiency and durability due to the developments and investments made by manufacturers. In addition, rapid economic growth has led to an increasing demand for power, which resulted in high demand for mobile power plants. Strict environmental and financial regulations will further support the demand for biofuel-based mobile power plant solutions.
Additionally, the rise in investments in the end-user industries, including manufacturing, automotive, transportation, and logistics, is also encouraging the growth of mobile power plants. Dominant market players such as Siemens AG (Siemens), GE, and Rolls-Royce Holdings Plc (Rolls-Royce) are focusing on the R&D of new products to cater to the requirements of the power industry. Furthermore, many rural areas in emerging economies are still not equipped with basic energy infrastructure. Thus, many leading mobile power plant providers are collaborating with government-owned companies to develop infrastructure using mobile power plants. Thus, such factors will drive the growth of the market during the forecast period.
Stringent regulations for railcars is a major challenge to the growth of the 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 market 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.
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 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 21.47 billion in 2018. Some of the key services provided by railcar leasing companies include 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 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 market growth during the forecast period.
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APAC is estimated to contribute 31% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Another region offering significant growth opportunities to companies 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 market during the forecast period.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The Global Railcar Leasing Service Market plays a crucial role in the transportation of goods and services, offering a variety of railroad cars for both short-term and long-term leases. Amidst the evolving landscape of the transportation and logistics industry, there's a growing demand for freight transport, driving the need for efficient railroads and environmentally-friendly solutions. However, the high cost associated with railcar leasing and lack of skilled labor pose challenges.
Recent developments in the market highlight the involvement of key players and shifting market trends, influenced by organizations such as the International Monetary Fund (IMF), World Bank, and World Economic Forum (WEF). As global freight traffic surges, particularly in emerging economies, optimizing supply chain networks becomes paramount.
Technological advancements offer opportunities for cost-effective solutions, outsourcing non-core activities while navigating regulatory and environmental restrictions. Despite high upfront costs and low demand in certain markets, railcar leasing remains an attractive option, especially with favorable terms and access to financing. Companies leverage boxcars, flatcars, gondolas, and other specialized cars to meet diverse transportation and storage needs, managing capital expenditure and reducing carbon footprint while enhancing risk management strategies.
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Railcar Leasing Market Scope |
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Report Coverage |
Details |
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Page number |
177 |
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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 7.24% |
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Market Growth 2024-2028 |
USD 20.02 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
6.75 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 31% |
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Key countries |
US, Canada, China, Japan, and Germany |
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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, Beacon Rail Leasing Ltd., Berkshire Hathaway Inc., Caterpillar Inc., First Citizens Bancshares Inc., GATX Corp., GLNX Corp., Herzog Contracting Corp., Procor Ltd., Rail First Asset Management, RAILPOOL GmbH, Sasser Family Companies, Streem, Sumitomo Mitsui Financial Group., The David J. Joseph Co., The Greenbrier Companies Inc., Touax SCA, 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. |
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 End-user
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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