Railcar Leasing Market in North America to Grow by USD 8.30 Billion by 2029, Rising Demand for Tank Cars from Crude Oil Production Boosts Market, AI-Driven Report - Technavio

NEW YORK, Feb. 4, 2025 /PRNewswire/ -- Report with the AI impact on market trends - 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 increased freight transport needs in various industries like Railroads, Oil & Gas, Chemical Products, and Food & Agriculture. Tax incentives and government spending are boosting the market. Emerging economies and global freight traffic growth are also key factors. Tank Cars and Freight Cars are in high demand for petrochemicals, gases, and oil transportation. IoT, Digital Freight Trains, Telematics, and Monitoring Systems are revolutionizing the industry. Companies like SMBC (ARI), BRUNSWICK Rail, Mitsui Rail Capital, Andersons, and Railcar Leasing Services are leading the way as innovators in this active market. Rail freight logistics is a major focus, with environmental concerns and regulatory compliance playing crucial roles. The market includes various types of Railcars such as Box cars, Flatbed cars, Coach, Carriage, Passenger coaches, Cabooses, and Tank Cars. Freight wagons for Steel & Mining, Energy and Coal, and Aggregates & Construction are also in demand. Railcar leasing services are essential for Logistics Companies and Railway Operators to optimize their portfolios and meet their cargo needs, whether it's for temperature-controlled containers, seafood, or food products. SEC filings and statistical databases provide valuable insights into market trends. 

Railcars in North America undergo significant wear and tear due to prolonged usage and exposure to various environmental factors. This deterioration can be attributed to reactions between the railcar materials and the cargo they transport, as well as weather changes. To mitigate such damage, certified coatings such as sulfuric acid, epoxy, and phenolic are applied to railcars. These coatings are essential for tank cars, which transport crude oil and its derivatives, as these compounds can react with metal and cause accelerated wear. The Food and Drug Administration (FDA) and the National Science Foundation (NSF) certify these coatings to ensure their safety and effectiveness. 

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Market Challenges

• The Railcar Leasing Market in North America faces several challenges in the freight transport sector. Railroads deal with taxes and regulations, impacting profitability. Freight transport companies, including those in the logistics industry, grapple with insurance costs and global freight traffic. For industries like petrochemicals, gases, oil, food products, and seafood, temperature-controlled containers and IoT technology are essential. Digital freight trains and telematics improve monitoring systems, but investment in tank cars and freight cars is needed. Oil & Gas, Chemical Products, Energy and Coal, Steel & Mining, Food & Agriculture, and Aggregates & Construction rely on rail freight logistics. Environmental concerns and government spending influence market trends. Key players like SMBC (ARI), BRUNSWICK Rail, Mitsui Rail Capital, Andersons, and Railcar leasing services offer railcar leasing services for various cargo types, including passenger coaches, cabooses, box cars, flatbed cars, and freight wagons. Companies must innovate and stay active in this competitive market, using cutting-edge technology and adhering to SEC filings and statistical databases.
• Railcar leasing in North America faces risks due to technological advancements and declining residual values. Lease terms typically last five years, but new, more efficient railcars may render older models obsolete. Economic conditions and industry demand impact the market, potentially leading to lower utilization rates and affected lease rates or lessee availability during downturns. These challenges require careful consideration for railcar leasing businesses.

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Segment Overview 

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

• End-user
• Petroleum And Chemical
• Coal
• Agricultural Products
• Others
• Product
• Freight Cars
• Tank Cars
• Locomotives
• Geography
• 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. PFL Petroleum Services, a leading railcar leasing provider, offers a wide range of services including railcar tracking, maintenance, and storage, allowing businesses to reduce capital expenditures, improve flexibility, minimize risk, and enhance efficiency. The US, Mexico, and Canada are expected to be the major contributors to the market's growth due to increased investments in the oil and gas and chemical industries. In 2022, oil and gas investments in North America reached USD83.4 billion, a 20% increase from the previous year. Similarly, the chemical industry is projected to grow moderately during the forecast period, with investments exceeding USD200 billion in the US alone. These investments will lead to increased demand for railcars to transport chemicals, driving the railcar leasing market.

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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 leasing of railcars for various commodities. Railcars are essential for the efficient movement of goods, particularly in sectors like Oil & Gas, Chemical Products, Energy and Coal, Steel & Mining, Food & Agriculture, Aggregates & Construction, and others. The market is influenced by several factors, including global freight traffic, taxes, insurance, and logistics industry trends. Emerging economies and the growing demand for petrochemicals, gases, oil, food products, seafood, and other cargo have boosted the demand for railcar leasing services. Tank cars and freight cars are the most commonly leased railcars, with coach and carriage types also in demand. Railcar leasing plays a crucial role in ensuring the smooth flow of goods and raw materials across North America.

Market Research Overview

The Railcar Leasing Market in North America is a significant segment of the freight transport industry, serving various sectors including Railroads, Oil, Gas, Chemical Products, Food & Agriculture, Steel & Mining, and Aggregates & Construction. The market is driven by increasing global freight traffic and the growing demand for efficient and cost-effective logistics solutions. Railcar leasing offers several advantages such as tax benefits, insurance coverage, and flexible lease terms. The market is witnessing innovation with the integration of IoT, telematics, and monitoring systems in digital freight trains. Emerging economies and sectors like petrochemicals, gases, and seafood are expected to boost the demand for railcar leasing services. Railcar leasing companies offer a wide range of freight cars including tank cars, freight cars, box cars, flatbed cars, passenger coaches, and cabooses. Environmental concerns and government spending on infrastructure are key factors influencing the market. Leading railcar leasing companies include SMBC (ARI), BRUNSWICK Rail, Mitsui Rail Capital, Andersons, and several others. The market is highly competitive, with players focusing on innovation, portfolio expansion, and customer service to gain a competitive edge. Railcar leasing services are essential for various industries, and the market is expected to grow steadily in the coming years, driven by the increasing demand for efficient and cost-effective freight transport solutions.

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