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Railcar Leasing on the Rise
According to a recent analyst report from global market research company, Technavio, the railcar leasing market in North America, is predicted to grow steadily at a Compound Annual Growth Rate of above 9% by 2021. The report, titled Railcar Leasing Market In North America 2017-2021, finds that one of the primary drivers for this market is the rise in the demand for tank cars due to growing crude oil production. The demand for tank cars during the forecast period will increase due to more number of shippers transporting flammable liquids and gases. As tank cars carry highly flammable and toxic commodities, the federal railroad administration has listed rules and regulations that must be adhered to by rail freight operators and manufacturers. The rules and regulations include enhanced tank car standards and risk-based retrofitting for old tank cars that transport crude oil and ethanol. Also, all tank cars require braking standards that offer better safety and reduce chances of accidents. Consequently, the growth in crude oil production will result in the demand for rail freight transportation, which will drive the market for railcar leasing in North America during the forecast period.
In addition, one of the latest trends gaining traction in this market is the exponentially increasing adoption of the Internet of Things (IoT) in rail logistics. The integration of sensors and electronics in locomotives monitor various things that include track speed, fuel levels, and throttle position. Through the integration of IoT, rail lessors and operators find it easier to collect, analyze and leverage information from rail locomotives, which results in increased efficiency and higher productivity.
The implementation of IoT can also support in real-time equipment tracking; this allows the rail operators and customers to track and trace loads in real time. The device indicates the location of the train, status of cargo, whether loaded or unloaded; and the status of doors whether closed or open, which are notified to the internal and external temperature reading. These factors are going to propel growth in the railcar leasing market in North America in the coming years.
Competitive Landscape and Key Vendors
The railcar leasing market in North America is highly consolidated and dominated by a few vendors holding major shares of the market. These players provide most of the lease operations and services in the market. The market is highly competitive with all market players competing to gain more market share. Also, small vendors are strengthening their positions in the market with investments in railcar equipment. Leading vendors in the market are GATX, Trinity Industries, CIT, and American Railcar Industries.
Other prominent vendors in the railcar leasing market include C.K. Industries, Chicago Freight Car Leasing, Compass Capital, Connell Finance Company, Wells Fargo Rail, GLNX, Greenbrier Leasing, Helm Financial, Herzog Railroad Services, Infinity Rail, Kasgro Rail, Mitsui Rail Capital, The Andersons, and VTG Rail.
Segmentation by Mode Of Transport
During 2016, the freight cars segment dominated the railcar leasing market and accounted for a major part of the overall market share. The high volume of coal transported by the U.S. rail freight is the major contributor to the dominance of this segment in the railcar leasing market. Also, other bulk goods such as forest products, metals and minerals, and agricultural produce further contribute to the growth of the segment.
Growth Drivers, Challenges and Upcoming Trends
Upcoming trends such as intelligent rail freight cars have integrated intelligent systems such as telematics and advanced IT and monitoring systems that help store and process data and record the status and conditions of the freight car. The freight cars installed with light sensors and advanced surveillance cameras enable detection of unauthorized opening of doors and unloading of goods.
This report provides a number of factors contributing to the adoption, limitations, and opportunities of the railcar leasing market. It also offers an analysis of each factor and an estimation of the extent to which the factors are likely to impact the overall market growth.
According to a recent analyst report from global market research company, Technavio, the railcar leasing market in North America, is predicted to grow steadily at a Compound Annual Growth Rate of above 9% by 2021. The report, titled Railcar Leasing Market In North America 2017-2021, finds that one of the primary drivers for this market is the rise in the demand for tank cars due to growing crude oil production. The demand for tank cars during the forecast period will increase due to more number of shippers transporting flammable liquids and gases. As tank cars carry highly flammable and toxic commodities, the federal railroad administration has listed rules and regulations that must be adhered to by rail freight operators and manufacturers. The rules and regulations include enhanced tank car standards and risk-based retrofitting for old tank cars that transport crude oil and ethanol. Also, all tank cars require braking standards that offer better safety and reduce chances of accidents. Consequently, the growth in crude oil production will result in the demand for rail freight transportation, which will drive the market for railcar leasing in North America during the forecast period.
In addition, one of the latest trends gaining traction in this market is the exponentially increasing adoption of the Internet of Things (IoT) in rail logistics. The integration of sensors and electronics in locomotives monitor various things that include track speed, fuel levels, and throttle position. Through the integration of IoT, rail lessors and operators find it easier to collect, analyze and leverage information from rail locomotives, which results in increased efficiency and higher productivity.
The implementation of IoT can also support in real-time equipment tracking; this allows the rail operators and customers to track and trace loads in real time. The device indicates the location of the train, status of cargo, whether loaded or unloaded; and the status of doors whether closed or open, which are notified to the internal and external temperature reading. These factors are going to propel growth in the railcar leasing market in North America in the coming years.
Competitive Landscape and Key Vendors
The railcar leasing market in North America is highly consolidated and dominated by a few vendors holding major shares of the market. These players provide most of the lease operations and services in the market. The market is highly competitive with all market players competing to gain more market share. Also, small vendors are strengthening their positions in the market with investments in railcar equipment. Leading vendors in the market are GATX, Trinity Industries, CIT, and American Railcar Industries.
Other prominent vendors in the railcar leasing market include C.K. Industries, Chicago Freight Car Leasing, Compass Capital, Connell Finance Company,
Segmentation by Mode Of Transport
During 2016, the freight cars segment dominated the railcar leasing market and accounted for a major part of the overall market share. The high volume of coal transported by the U.S. rail freight is the major contributor to the dominance of this segment in the railcar leasing market. Also, other bulk goods such as forest products, metals and minerals, and agricultural produce further contribute to the growth of the segment.
Growth Drivers, Challenges and Upcoming Trends
Upcoming trends such as intelligent rail freight cars have integrated intelligent systems such as telematics and advanced IT and monitoring systems that help store and process data and record the status and conditions of the freight car. The freight cars installed with light sensors and advanced surveillance cameras enable detection of unauthorized opening of doors and unloading of goods.
This report provides a number of factors contributing to the adoption, limitations, and opportunities of the railcar leasing market. It also offers an analysis of each factor and an estimation of the extent to which the factors are likely to impact the overall market growth.
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