Europe's Railcar Leasing Market to Grow by USD 2.52 Billion (2024-2028), Boosted by EU Funding, AI Redefining the Market Landscape - Technavio

NEW YORK, Nov. 21, 2024 /PRNewswire/ -- Report with market evolution powered by AI -The railcar leasing market in europe size is estimated to grow by USD 2.52 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 6.28% during the forecast period. Increased funding by european commission is driving market growth, with a trend towards applications of advanced coatings on railcars. However, shortage of skilled workforce in railcar leasing companies poses a challenge.Key market players include Akiem Group SAS, Alpha Trains Luxembourg Sarl, ALSTOM SA, Angel Trains Ltd., AstraRail Industries SA, Beacon Rail Leasing Ltd., ERMEWA INTERSERVICES, ERR European Rail Rent GmbH, GATX Corp., Marmon Holdings Inc., Nexrail, Porterbrook Leasing Co. Ltd., Rail Innovators Group B.V., RAILPOOL GmbH, The Greenbrier Companies Inc., Touax SCA, TRANSCHEM Sp zoo, TRANSWAGGON GmbH, VTG GmbH, and MITSUI and CO. LTD..

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Market Driver

Railcar leasing in Europe is a growing market with railcar lessors and service providers offering railcars for rental on a contract basis. Railcars are essential for moving goods such as metals and mining products, oil & gas products, temperature-sensitive goods, industrial goods, and various other commodities. The railcar lease facilities provide maintenance, tax, insurance, and financial services, ensuring the smooth operation of production lines and railway networks. Railcar types include gondolas, boxcars, hopper cars, and tank cars. The rail freight industry's diversified sectors include coal, electricity generation, petrochemicals & gases, automotive & components, energy equipment & products, and rail products. Railcar leasing companies like VTG and DB Cargo are investing in digital enhancements, including intelligent railcars with integrated sensor technology, location tracking, status monitoring, and online tracking. These digital solutions help reduce demurrage costs, optimize freight train operations, and ensure secure transit. Railway privatization and the increasing demand for rail transport requirements have led to the growth of the railcar leasing market. Private railcars and storage units are also popular options for businesses looking to manage their freight services efficiently. Leasing agreements include maintenance costs, and lessors execute contracts for the movement of railcars, car miles, and storage prices. Tank wagons, intermodals, petroleum and chemical tank cars, agricultural products, and advanced coatings are some of the other railcar types in demand. The railcar leasing market benefits from IoT, digital assistance, loading and unloading optimization, freight car management, arrival notification, and intelligent technologies like telematics and monitoring systems. Rail products, construction goods, and various other cargo types are transported using these railcars. In summary, the European railcar leasing market is a significant player in the freight industry, providing railcars, maintenance services, financial structures, and digital solutions to various sectors. Railcar leasing offers benefits like secure transit, optimized operations, and cost savings, making it an essential component of the European railway network. 

Railcars, a vital component of Europe's transportation infrastructure, undergo significant wear and tear due to their extensive use. To mitigate damage and reactions with the contents they carry, railcar leasing companies apply solid coatings such as epoxy, sulfuric acid, and phenolic acid. These chemically inert coatings protect railcars from weather changes and reactions. However, tank cars, which transport flammable liquids and hazardous gases, pose unique challenges. Their cylindrical shape makes it difficult to achieve an even coating on the top surface, resulting in uneven protection. Despite these challenges, the use of coatings remains essential to ensure the longevity and safety of railcars in Europe's railcar leasing market. 

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 Market Challenges

• Railcar leasing in Europe is a significant market for rail lessors and service providers, offering rental opportunities for various types of railcars, including gondolas, boxcars, hopper cars, tank cars, and freight cars. Leasing agreements are common on a rental basis, with contracts covering repair and maintenance, tax, insurance, and financial services. Asset management agencies oversee railcar lease facilities, ensuring the efficient use of rolling stock for goods in sectors like metals and mining, oil & gas products, temperature-sensitive goods, industrial goods, and construction goods. Railcar leasing is crucial for industries reliant on railway networks, such as freight trains, coal, electricity generation, mining products, petrochemicals & gases, automotive & components, and energy equipment & products. Challenges include demurrage costs, private railcars, storage units, and the need for digital enhancements to meet rail transport requirements. Intelligent railcars equipped with sensors, location tracking, and status monitoring offer benefits like online tracking, secure transit, and freight car management. Railway privatization and the rail freight industry's growth have led to the need for advanced coatings, traction energy, noise reduction, and intelligent technologies like IoT, digital assistance, and telematics. Leasing agreements require careful execution, considering factors like maintenance costs, car miles, storage price, and tank wagons. Rail products like coaches, carriages, and cars are also subject to leasing and renting.
• In Europe's railcar leasing market, timely maintenance of railcars is a crucial aspect. Railcar leasing companies are primarily responsible for maintaining and servicing these complex railcar and locomotive machines. However, the rail industry is facing a significant challenge due to a shortage of skilled railway engineers, numbering around 2,500-3,000, required to keep up with the demands of the evolving railway infrastructure. Europe's railway sector aims to enhance its infrastructure using innovative technologies. Yet, competition from other sectors, such as avionics, marine, and inland waterways, poses a challenge in retaining engineers proficient in the latest technology. The rail industry must address this issue to ensure efficient maintenance and servicing of railcars.

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Segment Overview 

This railcar leasing market in Europe report extensively covers market segmentation by

1. Type 
• 1.1 Freight cars
• 1.2 Tank wagons
• 1.3 Intermodals
2. End-user 
• 2.1 Petroleum and chemical
• 2.2 Coal
• 2.3 Agricultural products
• 2.4 Others
3. Geography 
• 3.1 Europe

1.1 Freight cars- The European railcar leasing market in 2023 is primarily driven by the freight cars segment, which accounts for the largest share. Freight cars are used for transporting goods, including coal, logs, and vehicle equipment, with a capacity of up to 100 tonnes. Coal transportation through freight rail makes up 40% of the total loading share. The expansion of manufacturing industries in Eastern Europe will necessitate an increase in freight rail services, particularly for transporting heavy raw materials like steel. Government investment in rail infrastructure development is also expected to boost market growth. Freight car types include sliding wall freight cars, flat cars, and boxcars, with covered hoppers used for cement, frac sand, and coal transport. Manufacturers focus on increasing container capacity to enhance transportation efficiency, driving demand for new freight cars. Advanced GPS tracking technology in freight cars facilitates real-time monitoring, scheduling, and on-time deliveries, further fueling market growth during the forecast period.

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Research Analysis

Railcar leasing in Europe is a dynamic market that caters to the rental of railcars on a lease or rental basis. This service is essential for various industries, including freight transportation of goods like coal, agricultural products, petroleum and chemical, and intermodals. Railcar lessors offer a diverse fleet of railcars, including tank wagons, intermodals, and freight cars, available for lease. Service providers in this market offer repair and maintenance, insurance, financial services, and asset management for railcars. These services ensure the optimal performance and longevity of the railcars. The leasing contracts are customizable and can include tax and insurance provisions. Advanced coatings are increasingly being used in railcar manufacturing to improve their durability and efficiency. The rental of railcars can be for trains, goods transport, or as individual cars for specific industries. The rental of railcars is an important aspect of the logistics and transportation sector in Europe, providing cost-effective and efficient solutions for businesses.

Market Research Overview

Railcar leasing in Europe is a growing market that caters to the rental of railcars on a contractual basis to various industries. Railcar lessors provide railcars for transportation of goods on freight trains, including metals and mining, oil & gas products, temperature-sensitive goods, industrial goods, gondolas, boxcars, hopper cars, and more. Leasing agreements include maintenance costs, insurance, financial services, and asset management. Service providers offer repair and maintenance, tax, and insurance services, as well as railcar lease facilities. Railcar leasing is essential for industries with high rail transport requirements, such as production lines, railway networks, and the freight rail industry. Demurrage costs and private railcars also contribute to the market's growth. Digital enhancements, such as intelligent railcars with integrated sensor technology, location tracking, status monitoring, and online tracking, are increasingly popular. Industries that benefit from railcar leasing include coal, electricity generation, mining products, petrochemicals & gases, automotive & components, energy equipment & products, rail products, construction goods, and diversified food products. Railcar types include tank cars, freight cars, rentals, upkeep, and financial structures. Railcar leasing offers benefits such as cost savings, flexibility, and access to advanced technologies like IoT, digital assistance, loading and unloading, freight car management, arrival notification, and intelligent technologies. Rail transport requirements, railway privatization, and the rail freight industry also influence the market's growth. The Indian finance budget and rolling stock are also relevant to the market. Railcar leasing involves the execution of contracts, movement of railcars, car miles, storage price, tank wagons, intermodals, petroleum and chemical, agricultural products, advanced coatings, and more. Other factors include traction energy, noise, and secure transit. Overall, railcar leasing is a vital component of the European rail transport sector.

Table of Contents:

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

• Type
• Freight Cars
• Tank Wagons
• Intermodals
• End-user
• Petroleum And Chemical
• Coal
• Agricultural Products
• Others
• Geography
• Europe

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