Railcar Leasing Market in North America to grow by USD 8.3 Billion (2025-2029), driven by rising demand for tank cars, AI's impact on market trends - Technavio

NEW YORK, Jan. 27, 2025 /PRNewswire/ -- Report with market evolution powered by AI - The railcar leasing market in north america size is estimated to grow by USD 8.30 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of  9.1%  during the forecast period. Increasing demand for tank cars due to growing crude oil production is driving market growth, with a trend towards application of advanced coatings on railcars. However, risks associated with railcar leasing  poses a challenge. Key market players include 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 Co., Stonebriar Commercial Finance, Trinity Industries Inc., VTG Aktiengesellschaft, and Wells Fargo and Co..

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Market Driver

The Railcar Leasing Market in North America is experiencing significant growth, driven by the freight transport needs of railroads and various industries. Key sectors include Oil & Gas, Chemical Products, Energy and Coal, Steel & Mining, Food & Agriculture, Aggregates & Construction, and Petrochemical transportation. Trends include the use of digital freight trains, IoT, telematics, and monitoring systems. Emerging economies and global freight traffic increase the demand for railcar leasing services from logistics companies and railway operators. Taxes and insurance are crucial considerations. Market leaders like SMBC (ARI), BRUNSWICK Rail, Mitsui Rail Capital, Andersons, and Railcar Leasing Services provide a wide range of railcars, including tank cars, freight cars, box cars, flatbed cars, passenger coaches, and cabooses. Environmental concerns and government spending also impact the market. The Portfolio Matrix identifies key players as Active, Cutting Edge, and Innovator. SEC filings and statistical databases offer valuable insights into market trends. 

Railcars in North America undergo significant wear and tear due to prolonged usage and exposure to various environmental conditions. This deterioration can be attributed to the reaction between the railcar material and the transported goods, particularly in tank cars carrying crude oil and its derivatives. To mitigate this damage, certified coatings such as sulfuric acid, epoxy, and phenolic are applied. The Food and Drug Administration (FDA) and National Science Foundation (NSF) certify these coatings for use in the transportation industry. Ensuring the application of these certified coatings is crucial for maintaining railcar integrity and preventing potential damage to the transported goods. 

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 Market Challenges

• The Railcar Leasing Market in North America is a significant segment of the freight transport industry, serving various sectors like Oil & Gas, Chemical Products, Energy and Coal, Steel & Mining, Food & Agriculture, Aggregates & Construction, and Rail freight logistics. Challenges include taxes, insurance, and regulatory compliance. Railroads and logistics companies rely on railcar leasing services from providers like SMBC (ARI), BRUNSWICK Rail, Mitsui Rail Capital, and others for tank cars, freight cars, box cars, flatbed cars, passenger coaches, and cabooses. Emerging economies and global freight traffic growth impact the market. Petrochemical transportation, gases, and temperature-controlled containers are key areas of focus. IoT, digital freight trains, telematics, and monitoring systems are transforming the industry. Environmental concerns and government spending are also critical factors. Companies like Andersons, Railcar Leasing Services, and Railway Operators are active innovators in this cutting-edge market. Market size and trends can be analyzed using a Portfolio Matrix. SEC filings and statistical databases provide valuable insights.
• The railcar leasing market in North America faces risks due to technological advances and declining residual values. Lease terms are typically short, averaging five years. New, more efficient railcars are continually being introduced, rendering older models obsolete after the lease period. Economic conditions and industry demand impact the market, with potential decreases leading to lower utilization rates and impacting lease rates or lessee availability. These challenges require careful consideration for railcar lessors.

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Segment Overview 

This railcar leasing market in North America report extensively covers market segmentation by  

1. End-user 
• 1.1 Petroleum and chemical
• 1.2 Coal
• 1.3 Agricultural products
• 1.4 Others
2. Product 
• 2.1 Freight cars
• 2.2 Tank cars
• 2.3 Locomotives
3. Geography 
• 3.1 North America

1.1 Petroleum and chemical- The petroleum and chemical segments are anticipated to dominate the railcar leasing market in North America due to the significant demand for railcars in these industries. Notable players, such as PFL Petroleum Services, offer railcar leasing and management services, enabling customers to reduce capital expenditures, improve flexibility, minimize risk, and boost efficiency. The US, Mexico, and Canada are expected to be the primary contributors to market growth due to increased investments in the oil and gas sector, particularly in the US shale industry, and the chemical industry, which is projected to expand moderately. Favorable government regulations and increased production capacities are driving investments in the chemical industry, leading to a heightened demand for railcars for chemical transportation. Overall, the railcar leasing market in North America is poised for growth due to these industry-specific factors.

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Research Analysis

The railcar leasing market in North America is a significant segment of the freight transport industry, catering to the needs of various sectors including Railroads, Oil & Gas, Chemical Products, Energy and Coal, Steel & Mining, Food & Agriculture, Aggregates & Construction, and others. The market is driven by the increasing demand for efficient and cost-effective freight transport solutions. Railcar leasing services offer flexibility to businesses by allowing them to rent railcars for specific periods, reducing the need for large upfront capital investments. The market is influenced by factors such as global freight traffic, taxes, insurance, and the logistics industry. Emerging economies and the growth of industries like petrochemicals, gases, oil, food products, seafood, and others are creating new opportunities in the railcar leasing market. Tank cars and freight cars are the most commonly leased railcars, with the former being popular in the Oil & Gas sector and the latter in various industries.

Market Research Overview

The Railcar Leasing Market in North America is a significant sector within the freight transport industry, providing railcars and related services to various industries, including Railroads, Petrochemicals, Oil, Gas, Food Products, and Agriculture. The market is driven by the need for efficient and cost-effective freight transport, especially in the context of increasing global freight traffic and emerging economies. Railcar leasing involves the provision of freight cars, such as tank cars, box cars, flatbed cars, and passenger coaches, to customers for a fee. Key factors influencing the market include taxes, insurance, logistics industry trends, and regulatory requirements. The market is witnessing innovation through the adoption of digital technologies like IoT, telematics, and monitoring systems, enabling real-time tracking and optimization of railcar fleets. Digital freight trains and temperature-controlled containers are also gaining popularity in the market. Major industries utilizing railcar leasing services include Oil & Gas, Chemical Products, Energy and Coal, Steel & Mining, Food & Agriculture, Aggregates & Construction, and Rail freight logistics. Environmental concerns and government spending are also influencing market trends. Companies offering railcar leasing services include SMBC (ARI), BRUNSWICK Rail, Mitsui Rail Capital, Andersons, and various railway operators and logistics companies.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• End-user
• Petroleum And Chemical
• Coal
• Agricultural Products
• Others
• Product
• Freight Cars
• Tank Cars
• Locomotives
• Geography
• North America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio