Technavio analysts forecast the railcar leasing market in Europeto reach USD 3.93 billion during the forecast period, according to their latest report.
This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20170519005744/en/
Technavio has published a new report on the railcar leasing market in Europe from 2017-2021. (Graphic: Business Wire)
The research study covers the present scenario and growth prospects of the 'Railcar Leasing Market in Europe for 2017-2021'. The report further segments the market based on application, including freight cars, tank wagons, and intermodal.
The railcar leasing market in Europe is showing steady growth as it is a sustainable and reliable mode of transportation. Tax benefits and considerations extended to the lessee, by the lessor, is a cost-effective method of financing equipment. Rail operators enter lease agreements since they reduce capital expenditure and other credits that can be allocated for other purposes. Also, it eliminates the risk of equipment degeneration that could lead to reduced resale value.
Looking for more information on this market? Request a free sample report
Technavio's sample reports are free of charge and contain multiple sections of the report including the market size and forecast, drivers, challenges, trends, and more.
Technavio analysts highlight the following three factors that are contributing to the growth of the railcar leasing market in Europe:
- Growth in oil, gas, and mining industry
- Increased funding by the European Commission
- Liberalization of rail industry in Europe
Growth in oil, gas, and mining industry
The railcar market in Europe will be primarily driven by the oil and gas industry, which accounted for 36.18% freight volume share in 2016. The production of primary energy, such as oil, natural gas, and nuclear fuel (uranium), accounted for over 800 million tonnes in 2016.
According to Sharan Raj, a lead logistics research analyst from Technavio, "The growth in consumption and production of primary and secondary energy in Europe will drive the market for the oil and gas industry. Development in the oil and gas industry will drive the growth of the railcar leasing market in Europe
Increased funding by the European Commission
Since the year 1990, there has been a significant increase in the government funding in the European railway industry. For example, in Switzerland, two-third of the revenue from the heavy vehicle fee is designated for rail investments. For encouraging the movement of freight by rail, governments provide freight grants to the railway industry.
"European Commission launched a public-private partnership called Shift2Rail in the year 2013, where the commission planned to invest more than USD 480 million during the forecast period, toward research, innovation, and advancing the rail infrastructure. This will include intelligent traffic management and control systems, and innovative IT and inter-modal freight solutions," adds Sharan.
Liberalization of rail industry in Europe
Monopoly control and the difference in policy regulations from region to region has been the main reason behind the strict freight transport regulation. The regulations mainly included fixing tariffs that are laid down by public authorities and haulage committees; setting up licenses for new entrants in the market (setting quality and quantity restrictions); working conditions, which include driving time and labor wage; and maintaining proper operating standards for vehicles, which include industry measures, access to tracks, and speed.
- Beacon Rail Leasing
- GATX Corporation
- Touax Rail
Browse Related Report:
- Global Tire Logistics Market 2017-2021
- Moving Services Market in US 2017-2021
- Global Logistics Market 2017-2021
Become a Technavio Insights member and access all three of these reports for a fraction of their original cost. As a Technavio Insights member, you will have immediate access to new reports as they're published in addition to all 6,000+ existing reports covering segments like packagingtransportation and distribution, and warehouse and storage. This subscription nets you thousands in savings, while staying connected to Technavio's constant transforming research library, helping you make informed business decisions more efficiently.
Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
If you are interested in more information, please contact our media team at firstname.lastname@example.org.
Media Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770