Global Railcar Leasing Market Forecast, Trend Analysis & Competition Tracking - Global Industry insights 2015 to 2031
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May 2023
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This report was compiled by Correspondence Linkedin | Detailed Market research Methodology Our methodology involves a mix of primary research, including interviews with leading mental health experts, and secondary research from reputable medical journals and databases. View Detailed Methodology Page
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Global Railcar Leasing Market Revenue Outlook:
The global railcar leasing market was valued at US$ 14.8 Bn in 2020 and is projected to register а САGR of 5.4% by 2031.
From 2015 to 2020, sales of railcar leasing were significantly high, expanding at under 6% CAGR. Railcars can either be owned by a private company or by the railway corporation of a respective nation. Most companies prefer to lease a railcar instead of owning it, reducing the overall operating costs and time for that organization. However, leasing a railcar is optional for a company. A corporation can select an appropriate leasing service that suits their requirements from various leasing types such as operating lease, finance lease, purchase or sale-leasebacks, and per diem lease.
The COVID-19 pandemic has promised new growth in expanding the global leasing market. The total leasing spending has increased and reached US$ 1,185 billion in 2020 and is further expected to grow more and reach US$ 2,601 billion in 2026. From 2021 to 2031, demand is likely to expand at a CAGR exceeding 14%.
Railcar leasing is a service where a service provider rents a railcar for a time duration per the contract with a lessee. Along with the railcar, a lessor provides several associated services such as insurance, repair & maintenance, financial services, taxes, etc. According to the type of lease service agreement, these services can be managed by the lessee or the lessor. Railcar lease services are used for transporting several goods for various industries such as metal & mining, automotive, manufacturing, oil & gas, temperature-controlled products such as food, chemicals, and pharmaceuticals, among other goods.
How is the Demand for Railcar Leasing increasing?
Railway transport is one of the fastest modes of transport, coupled with vast railway networks across the Asia-Pacific countries, enabling organizations to access this convenient mode of transportation. Moreover, ease-of-operation and reduced logistics expenditures are other factors that are expected to fuel the profit margins of this industry sector. These factors are also expected to augment further the financial growth of this given market globally.
COVID-19 impact on the Railcar Leasing Market
The COVID-19 pandemic has resulted in the slowdown of critical trade activities across several countries. The primary factor behind this slowdown is various countermeasures adopted by respective governments to curb the trajectory of this virus. As significant economies enforce precautionary lockdowns, a considerable gap between market supply and demand is being created, resulting in increased difficulties for both manufacturers and distributors to manage their respective operations effectively. This is a primary factor that is anticipated to influence prospects for revenue growth. However, as these lockdowns are gradually lifted and economies begin to recover, this market is expected to regress to its post-COVID state.
Opportunities and Trends for Railcar Leasing Market
Rapid industrialization and favorable policies by respective governments for the development of industrial infrastructure are other opportunities that are expected to bolster projected profit margins for this given market. Additionally, ongoing R&D activities aimed at various technological developments in the logistic sector, coupled with the introduction of new technologies such as RFID tags, barcodes, etc., are some of the significant factors that are anticipated to alleviate the financial strength of this given railcar leasing market.
Regional Analysis
North America is expected to have a significant market share, among others
North American region is experiencing transition as approx. 1.5 million railcars are continuing through the vast landscapes of the NA region. As railcar leasing provides up to 10% returns, investors are expected to use the opportunities to enter into partnerships/collaborations with railcar manufacturers for leasing out fleets. For instance, Napier Park Global Capital has entered into a joint partnership with Trinity Industries Leasing Company, thus increasing this new trend.
Competitive Landscape
The railcar leasing market landscape appears highly consolidated, with a major chunk of it being dominated by US players.
- Berkshire Hathaway, Inc (ULTX)
- Wells Fargo
- Sumitomo Mitsui Financial Group, Inc.
- Trinity Industries, Inc. (TrinityRail)
- VTG
- GATX Corp
- CIT Group Inc.
- American Railcar Industries, Inc.
- Chicago Freight Car Leasing Co.
- Other Players
Some notable stats in the market include:
- The Y-o-Y railcar usage volume is down by 11.8% in North America; these levels have dropped below that registered as a result of the recession of 2009.
- New railcar deliveries accounted for approx. 20,000 units in February 2020, compared to that of 35,000 units for the same duration in 2019.
Report Scope
- Forecast Period: 2022-2031
- Actual Year: 2021
- Historical Data Available for: 2015-2020
Key Regions Covered
- North America
- US
- Canada
- Europe
- Germany
- UK
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia Pacific
- China
- Japan
- South Korea
- India
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- GCC
- South Africa
- Israel
- Rest of MEA
Key Segments Covered
Railcar Leasing Market, By Railcar Type
- Hopper Cars
- Tank Cars
- Refrigerated Box Cars
- Gondola Cars
- Other Railcar Types
Railcar Leasing Market, By End-Use Industry
- Automotive
- Mining
- Chemical
- Energy & Power
- Other End-Use Industries
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- Berkshire Hathaway, Inc (ULTX)
- Wells Fargo
- Sumitomo Mitsui Financial Group, Inc.
- Trinity Industries, Inc. (TrinityRail)
- VTG
- GATX Corp
- CIT Group Inc.
- American Railcar Industries, Inc.
- Chicago Freight Car Leasing Co.
- Other Players