Rail Car Rental Market

Rail car rental is a service through which companies and individuals, willing to transport goods or passengers, rent rail cars on a time and distance basis. In a rail car rental service, consumers pay the rail car owners and the railway operator. Rail car rental service is highly popular for goods transportation. Several governing bodies regulate rail car leasing and rental services across several countries. These governing bodies are highly focused on the expansion of rail car rental and leasing services.

Expansion of the railroad network across the globe is primarily driving the global rail car rental market. Trains are capable of transporting large volume of goods at significantly lower cost and in short time. Expansion of the railway network enables manufacturing companies to transport their products across long distances, which in turn reduces dependency over road transport, which is an expensive and time-consuming mode of transportation. Moreover, expansion of mining, oil & gas, and manufacturing industries across the globe is fueling the demand for rail car rental and leasing services. Rise in transportation activities across the globe and lagging supply from the railway industry is another prominent factor driving the global rail car rental market.

The global rail car rental market is primarily restrained by its cost. Leasing a rail car, especially for passenger transportation, is highly expensive. Moreover, rail car leasing or rental services are not available across the globe, which in turn is retraining the rail car rental market.

The global rail car rental market can be segmented based on application, end-use industry, and region. Based on application, the global rail car rental market can be bifurcated into passenger cars and freight cars. The freight cars segment holds a prominent share of the market, as several commodity manufacturers and transporters prefer to rent or lease rail cars.

Based on end-use industry, the global rail car rental market can be classified into four segments. Oil & gas and mining industries are prominent segments of the rail car rental market. Rise in population and increase in disposable income due to increased job opportunities and subsequent surge in demand for vehicles are fueling the demand for commodities and raw materials, which in turn is fueling the demand for rail car rental and leasing services.

In terms of region, the global rail car rental market can be segmented into five regions. North America and Europe comprise a large number of affluent people, who prefer to travel with their families by train. Such people prefer luxury class rail cars, which offer several amenities and services. Moreover, expansion of mining and oil gas sectors in North America is prominently fueling the demand for rail car rental and leasing services. Large manufacturing sector in Europe is a prominent consumer of rail car rental and leasing services. Moreover, availability of several rail car leasing and rental service providers has resulted in Europe and North America holding a prominent share of the global rail car rental market.

Key players operating in the global rail car rental market include The Train Chartering Company Ltd, Vossloh, RAILINC, Northern Sky Rail Charters, The Greenbrier Companies, The Train Chartering Company Ltd, GATX Corporation, and Caterpillar.