Burlingame, Nov. 06, 2023 (GLOBE NEWSWIRE) -- According to Coherent Market Insights, global locomotive leasing market is estimated to be valued at US$ 10.7 billion in 2022 and is expected to exhibit a CAGR of 8% during the forecast period (2023-2030).
Locomotive leasing is a business arrangement in which companies rent locomotives also known as railroad engines instead of directly purchasing them. With this, industrial and railroad business can access locomotive without having to make high cost investment for ownership. Locomotive leasing providers give different models and maintenance services, which helps clients manage their rail transportation needs efficiently, while also reducing capital expenses.
Market Drivers:
Rise in development of infrastructure to fuel market growth
There is a rise in investment in development of infrastructure, such as industrial corridors and railway networks. Private entities and governments are expanding rail networks for supporting increased freight transportation and promoting sustainable modes of transport. With the use of locomotive leasing, these entities can rapidly acquire the required rolling stock without lengthy procurement process. It further facilitates rapid development of infrastructure. This factor is further projected to boost growth of the global locomotive leasing market over the forecast period.
Operational flexibility of locomotive leasing to propel market growth
The use of locomotive leasing gives business operational flexibility. It enables companies to scale their size of fleet as per the fluctuating transportation demands. It reduces the risk of overinvestment or underutilization. Leasing allows companies to access specialized locomotives or locomotives with particular features tailored to their needs of operation, which enhances operational efficiency. Such benefits of locomotive leasing are driving its adoption, which is further likely to augment growth of the market.
Read full market research report, "Locomotive leasing Market, By Locomotive Type, By Lease Type, By End-User Industry, By Lease Duration, And By Region, Market Size & Share Analysis - Growth Trends & Forecasts, 2023-2030", published by Coherent Market Insights.
Locomotive leasing Market Report Coverage
| Report Coverage | Details |
| Forecast Period | 2023 to 2030 |
| Forecast Period 2023 to 2030 CAGR | 8% |
| Market Size in 2023 | $10.7 billion |
| 2030 Value Projection | $17.25 billion |
| Base Year | 2022 |
| Historical Data for | 2017 to 2021 |
| Segments covered | • By Locomotive Type, By Lease Type, By Application, By Lease Duration, By Lease Provider |
| Growth Drivers | • Cost-effectiveness • Infrastructure Development • Operational Flexibility • Technological Advancements |
Market - Key Developments
In 2022, Beacon Rail Partners completed acquisition of RailAmerica, a locomotive leasing company in the U.S. With this acquisition Beacon Rail Partners gained larger fleet of locomotives.
In 2021, RAILPOOL announced acquisition of Railcare, a locomotive leasing company from Sweden. With this acquisition RAILPOOL gained a biggest fleet of locomotive and expanded its reach into the new markets.
Market Opportunities:
Sustainable and green solutions are generating growth opportunities in the global locomotive leasing market. The rise in focus on environmental consciousness and sustainability are major factors in the locomotive leasing market. Various industries and governments are seeking highly sustainable transportation solutions for reducing carbon emissions. Locomotive leasing companies are leveraging this trend through offering environmentally-friendly locomotives powered by alternative fuels, electric propulsion systems, or hybrid technology.
Key Trends and Analysis of the Global Locomotive Leasing Market:
Growing electrification and availability of alternative fuels is a major trend in the global locomotive leasing market. There is a major shift toward highly sustainable and greener transportation solutions. This is further driving the adoption of electrified locomotives as well as alternative fuels. The emphasis on reduction of carbon emissions and dependence on fossil fuels. The demand for hybrid and electric locomotives is increasing along with locomotives powered by alternative fuels such as hydrogen and natural gas. This trend is likely to boost growth of the global locomotive leasing market in the near future.
Market Restrain:
High initial costs to impede market growth
Acquisition of a fleet locomotives, even through leasing requires high cost investment. Locomotive leasing providers are required to invest in purchasing or leasing locomotives from manufacturers, which is a major financial commitment. It comprises maintenance expenses, upfront payments, insurance, and other related expenses. The high initial cost thus acts as a barrier for small companies. This factor is likely to obstruct growth of the global locomotive leasing market.
Key Market Takeaways:
Global locomotive leasing market is expected to exhibit a CAGR of 8% during the forecast period. The locomotive leasing market is growing rapidly in response to the increasing adoption due to cost-effectiveness. Locomotive leasing offers a cost-effective alternative for purchasing locomotive outright.
On the basis of Locomotive Type, Diesel Locomotives Segment is expected to dominate the market during the forecast period and this is attributed to the widespread use of diesel locomotives around the world due to its advantages.
On the basis of Lease Type, Full-Service Lease Segment is expected to dominate the market during the forecast period and this is attributed to the higher adoption of full-service lease.
On the basis End User Industry, Rail Freight Transportation Segment is expected to dominate the market during the forecast period and this is attributed to the larger demand for locomotive lease for rail freight transportation.
On the basis Lease Duration, Short-Term Lease (Less than 1 year) Segment is expected to dominate the market over the forecast period and this is attributed to increased demand as it ensures that customers can react to short term market requirements.
On the basis Application, Freight Transportation Segment is expected to dominate the market during the forecast period and this is attributed to the benefits of locomotive leasing such as cost-efficiency and flexibility.
On the basis Locomotive Power Capacity, High Power Locomotives Segment is expected to dominate the market over the forecast period and this is attributed to the higher adoption, as it is ideal for freight and long distance passenger trains.
On the basis Lease Provider, Independent Leasing Companies Segment is expected to dominate the market during the forecast period and this is attributed to the advantages such as they offer maintenance services with locomotive leasing.
On the basis of Geography, Asia Pacific is expected to hold a dominant position over the forecast period, due to rise in increasing industrialization and infrastructure development. Moreover, the expansion of manufacturing sector, increasing demand for commodities, and increasing urbanization are the also the factors expected to fuel the market growth.
Key players operating in the global locomotive leasing market include The Andersons Rail Group, GATX Corporation, CIT Group Inc., Progress Rail (A Caterpillar Company), Touax Rail Ltd., TrinityRail, Mitsui & Co., Ltd., Mitsui Rail Capital LLC, VTG Rail Leasing, Angel Trains, SMBC Rail Services, Beacon Rail Leasing, Macquarie Group, Railpool, and Eversholt Rail Group.
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