Railcar Leasing Market Size, Share, Growth, And Industry Analysis, By Type (Tank Cars, Freight Cars, and Others), By Application (Food & Agriculture, Oil & Gas, Chemical Products, Energy and Coal, Steel & Mining, Aggregates & Construction, and Others), Regional Insights, and Forecast To 2034

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Railcar Leasing Market Overview

The global railcar leasing market size stood at USD 12.18 billion in 2024 and is projected to reach USD 13.04 billion in 2025, growing further to USD 24.11 billion by 2034 at an estimated CAGR of 7.07% from 2025 to 2034.

Trains that transfer goods consist of a single coach with carriages and cars, called railcars. The term railcar leasing refers to the leasing or renting of railcars. A railcar leasing company offers tank and freight cars for rent with full-service packages, which include maintenance, taxes, and insurance. As well as tax and insurance choices, other financial structures are included in this category. The expansion of the market is mainly ascribed to the variety of product types, applications, and geographical extension. In addition, tank cars and freights cars are the largest segment of the segment. Along with this, high demand for railcar leasing in end-use industries such as food and agriculture, and oil, gas, and chemicals applications are like to augment the growth of the market with a substantial CAGR during the projection period.

KEY FINDINGS

COVID-19 Impact:

The global COVID-19 pandemic has been unprecedented and staggering, with the railcar leasing market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

The COVID-19 pandemic has hampered the growth of the entire business industry including the chemical, pharmaceutical, manufacturing, IT, and service market due to imposed restrictions on the market by the government to prevent coronavirus emissions across the globe. Therefore, depreciation in the growth of end-use and other industries has directly impacted the railcar leasing market. However, the increasing demand for consumer goods and other product in the market is expected to expand the railcar leasing market during the forecast. 

Latest Trends

Increasing Trend for Short-Term Leasing Arrangements Creates Market Opportunities

The railcar leasing market is constantly evolving, with new trends emerging every year. One of the latest trends in the market is the increasing demand for short-term leasing arrangements. This has been driven by companies who are looking for a more cost-effective and efficient way to transport their goods. As a result, more companies are opting for short-term leasing arrangements, as opposed to long-term contracts. Another trend in the market is the increasing demand for specialty railcars. Companies are increasingly looking for railcars that are designed to transport specific types of goods, such as temperature-controlled cars for the transportation of food, or hazardous material cars for the transportation of hazardous materials. This has driven the demand for specialty cars, which has seen significant growth in the last few years.

• In the last five years, short-term leasing has grown by nearly 18%, as companies look for flexible and cost-efficient transport options compared to long-term contracts.
• Leasing of specialized railcars, such as tankers and covered hoppers, has increased by 22%, reflecting the rising demand from agricultural, oil, gas, and chemical sectors  

Railcar Leasing Market Segmentation

By Type Analysis

According to type, the market can be segmented into Tank Cars, Freight Cars, and Others.

• Tank Cars: Tank cars are specialized railcars designed to safely transport liquids and gases, from petroleum products to chemicals. Their cylindrical shape and reinforced structure ensure stability and prevent leaks during transit. Modern tank cars often include insulation and pressure controls to handle hazardous or temperature-sensitive materials.
• Freight Cars: Freight cars are versatile rail vehicles built to carry a wide range of goods, including bulk commodities, machinery, and packaged products. They come in various types, such as boxcars, flatcars, and hoppers, each tailored for specific cargo needs. Freight cars play a crucial role in supply chains, enabling cost-effective and large-scale transport over long distances.
• Other Railcars: Other railcars encompass passenger coaches, maintenance vehicles, and specialty cars designed for unique purposes. These cars support the broader rail network by providing comfort, safety, and operational efficiency. From luxury sleepers to inspection cars, this category highlights the adaptability of rail transport beyond standard cargo.

By Application Analysis

Based on application, the market can be divided into Food & Agriculture, Oil & Gas, Chemical Products, Energy and Coal, Steel & Mining, Aggregates & Construction, and Others.

• Food & Agriculture: The Food & Agriculture sector relies on efficient transport to move grains, perishables, and livestock from farms to markets. Rail and logistics networks ensure freshness and reduce spoilage during long-distance transit. Innovations in refrigerated and specialized containers help maintain quality and safety throughout the supply chain.
• Oil & Gas: The Oil & Gas industry depends on pipelines and railcars to transport crude oil, refined fuels, and natural gas. Safety and containment are critical due to the flammable and hazardous nature of these products. Advanced monitoring systems and specialized tank cars ensure secure, large-scale movement across regions.
• Chemical Products: Chemical Products require careful handling and transport due to their reactive and often hazardous properties. Specialized containers and safety protocols minimize risks during storage and transit. Rail and road networks provide reliable, bulk delivery for industries that depend on timely chemical supplies.
• Energy and Coal: Energy and Coal sectors supply power generation plants with essential raw materials. Bulk railcars and conveyors transport large volumes efficiently and economically. These systems support the continuous production of electricity, fueling industrial and residential demand.
• Steel & Mining: Steel & Mining industries transport heavy ores, metals, and finished steel products via robust rail and shipping networks. Efficient movement of raw materials and finished goods is critical to maintaining production timelines. Innovations in freight handling help reduce costs and environmental impact.
• Aggregates & Construction: Aggregates & Construction materials like sand, gravel, and cement rely on bulk transport solutions to reach building sites. Timely delivery ensures smooth progress for infrastructure and construction projects. Specialized hopper cars and trucks optimize handling and minimize material loss.
• Others: This category includes diverse commodities and specialized shipments, from machinery to consumer goods. Flexible transport solutions allow industries to adapt to changing demands and logistics challenges. Innovation in packaging, tracking, and handling ensures safe and efficient delivery across sectors.

Driving Factors

Rising Demand for Efficient and Cost-Effective Transportation to Accelerate Market Growth

The increasing demand for efficient and cost-effective transportation is one of the main drivers of the market. Companies are increasingly looking for ways to transport their goods in a more efficient and cost-effective manner, and railcar leasing provides them with an ideal solution. The availability of railcars is also a driving factor, as companies are able to find railcars that are suited to their specific needs and requirements. Such aspects of the growth of the market will fuel the opportunities for the market to grow.

• Railcars used for transporting chemicals, petroleum, and gas account for around 25 % of global freight movement, making leasing highly attractive for these industries.
• On average, rail freight costs are 40–50 % lower than road transportation for bulk cargo, encouraging shippers to prefer leased railcars over outright purchase.

Regulations around Railcar Leasing vary from Different Country Drive the Growth of the Market

The railcar leasing market is driven by a number of factors, including the increasing demand for efficient transportation, the availability of railcars, and the regulatory environment. These factors are anticipated to propel the market growth in the coming years. Also, the regulations around railcar leasing vary from country to country, and companies must be aware of the regulations in their area before entering into a leasing agreement. Companies must also be aware of the tax implications of railcar leasing, as this can have a significant impact on their bottom line.

Restraining Factors

High Cost of Railcars’ Mileage and Storage Charges May Hinder the Growth of the Market

The railcar leasing industry is characterized by stringent laws that favor the lessor in contract execution due to the high cost of railcars. Whenever railcars are moved from one place to another, mileage payments and storage charges are incurred. Therefore, these retraining factors can hamper the growth of the market.

• Leasing contracts often involve additional costs such as storage, taxes, and mileage fees, which can raise total expenses by nearly 15–20 % for operators.
• In North America, almost 30 % of railcars leased on 5-year contracts face reduced utilization rates by the end of term due to introduction of newer, more efficient models.

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Railcar Leasing Market Regional Insights

North America Dominates the Market Due to Efficient Rail Transportation Network in the Region

As per previous years’ stats, North America prominently dominated the railcar leasing market in 2020. Around 1 billion railcars are traveling through the continent. The growth of the market is driven by the increasing demand for rail freight logistics from a number of industry segments. Apart from this, the growing railcar network’s efficiency in the region is attributed to grow the market during the forecast. Also, the presence of top companies in the region, particularly, in the U.S. and Canada is fueling the growth of the market in the projection time frame.  

Key Industry Players

Key Players Penetration into Partnership with Railcar Manufacturers to Retain Position in the Market

The key players of the market get advantages from the variety of application segments such as food & agriculture, oil & gas, chemical products, energy and coal, steel & mining, and many more are attributed to generate lucrative opportunities for the leading players of the railcar leasing market. Some of the leading players such as Touax Group, VTG, Mitsui Rail Capital, BRUNSWICK Rail, The Greenbrier Companies, Ermewa, and other major players hold the highest number of railcar leasing market shares. In order to manage and outsource fleets, key manufacturers are penetrating into partnerships with railcar manufacturers, this will likely to stimulate market growth. Besides, to expand the revenue of the market these players work on acquisition, mergers, and collaboration strategies which help them to generate the highest profit in the market.

• Touax Group: Touax manages a fleet of more than 11,000 freight cars, serving clients across Europe, North America, and Asia, positioning itself among the leading global lessors.
• VTG: VTG operates over 95,000 railcars worldwide, making it the largest private lessor in Europe, with a strong presence in tank and freight cars for chemicals and industrial goods.

LIST OF TOP RAILCAR LEASING COMPANIES

• Touax Group
• VTG
• Mitsui Rail Capital
• BRUNSWICK Rail
• The Greenbrier Companies
• Ermewa
• Union Tank Car
• Trinity
• Andersons
• Chicago Freight Car Leasing
• SMBC (ARI)
• GATX
• CIT
• Wells Fargo

Report Coverage

This report concentrates on the railcar leasing market. It highlights the market value, expected CAGR, and USD value over the forecast period. The COVID-19 impact on the market at the beginning of the pandemic and the post-pandemic effects on international market restrictions and how the industry is going to turn the corner are also stated in the report. The report provides significant market data with its product type and product applications, end-use details, and an idea of the market growth in the future. This report also provides an understanding of the growing market trends and developments and their effects on the market growth, driving factors along with restraining factors that impact the market dynamics. Along with this, the leading region, key players of the market, and their tactics to beat the market competition, sustainable policies, their collaboration, mergers, companies’ profile, previous years’ revenue, profit & loss, and market position based on their share value in the market, are also explained in the report.