Railroad Car Rental & Leasing in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: January 2024
NAICS OD4884Revenue
$6.0bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
990
Businesses
101
Wages
$XXX.Xm
Railroad Car Rental & Leasing in the US industry analysis
Railroad car rental and leasing companies offer rental and leasing options on a variety of railroad cars, including boxcars, tank cars, hopper cars, flatcars, gondola cars, pressure differential cars and other specialty railcars. Industry operators own the majority of railcars in the United States, so an increase in demand for railcars typically leads to a jump in demand for industry services.As the economy expanded over the five years to 2023, industrial, construction and trade activity improved, bolstering demand for raw materials and commodities typically moved by rail. For the majority of the period, rail freight volumes have climbed and demand for railcars has grown. The boom in US oil production in 2018 overwhelmed existing oil pipelines, leading to increased demand for railcars as a means of transporting oil. The combination of rising demand and reduced railcar supplies caused lease rates to increase and industry revenue and profit to expand accordingly. But the industry has also encountered challenges in the last few years. The COVID-19 pandemic in 2020 culminated in an estimated 14.0% fall in revenue in 2020, as demand from many of the industry's core downstream markets collapsed. Despite a strong recovery in industrial and oil production in the years following, revenue ultimately declined in the period. Over the past five years, industry revenue has been declining at a CAGR of 1.2% and is expected to total $6.0 billion in 2023. This includes expected growth of 0.9% in 2023.Industry revenue is expected to grow over the five years to 2028, rising at a CAGR of 1.6% to $6.5 billion. Renewed economic growth and increasing shale oil and gas production are expected to drive demand for railcar leases. Growing industrial production and construction activity are also expected to increase commodity and raw material freight volumes on railroads, while climbing international trade is expected to drive demand for flatcar leases that transport intermodal containers used by shipping companies. Operators are expected to grapple with more stringent regulations following several oil spills and derailments in recent years. Regulators have demanded that operators replace older railcar models with newer and safer ones, which may prove costly for rental and leasing companies in this industry. Demand for leases will be tempered by relatively slower growth in oil and gas production.
Trends and Insights
- Companies operating in the Railroad Car Rental industry offer rental and leasing options on a variety of railroad cars, including boxcars, tank cars, hopper cars, flatcars, gondola cars, pressure differential cars and other specialty railcars. Demand for industry services broadly follows the United States economy.
- The vast majority of industry revenue comes from operating leases. An operating lease is an agreement to rent a railcar for a specified length of time, usually more than a year, in which the lessor is responsible for maintaining the railcar and providing repairs and maintenance throughout the length of the agreement.
- Railroads transport heavy goods across the United States, including the transportation of these goods between manufacturers and trade hubs. As a result, services are linked by the location of industrial companies and ports of transit.
- The Railroad Car Rental and Leasing industry is characterized by a moderate-to-high level of concentration, with the four largest players accounting for approximately 60.0% of industry revenue in 2023. By achieving economies of scale, the top five industry players not only account for the majority of revenue, but also most of the railcar fleet owned by lessors.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 1.2 % over the past five years, to reach an estimated $6.0bn in 2024.
Trends and Insights
Demand fluctuates with macroeconomic conditions
- Demand for industry services broadly follows the US economy.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Demand from downstream markets is boosted by increased production
- Demand for industry services is expected to increase consistently over the next five years, fueled by downstream factors such as rising production of oil and gas in the United States.
Biggest companies in the Railroad Car Rental & Leasing in the US
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Gatx Corporation | 866.1 | 287.4 | 33.2 | |
Union Tank Car Co | 794.0 | 179.2 | 22.6 | |
Cit Group Inc. | 685.0 | -196.9 | -28.7 |
To view the market share and analysis for all 5 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Hopper cars, Tank cars and Other . Hopper cars is the largest segment of the Railroad Car Rental & Leasing in the US.
Trends and Insights
Hopper and tank cars bring in the most revenue
- Hoppers are freight cars used to transport bulk commodities such as grains, ore and coal.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Train, Subway & Transit Car Manufacturing in the US
- Rail Transportation in the US
- Rail Maintenance Services in the US
- Heavy Equipment Rental in the US
International industries
- Car Rental in Canada
- Car Rental in Australia
- Passenger Car Rental and Hiring in New Zealand
Table of Contents
About this industry
Industry definition
Companies operating in this industry rent or lease railroad cars to customers who move freight across railroads. Renting or leasing railcars enables downstream customers to avoid incurring the capital costs of purchasing a railcar from a manufacturer.
What's included in this industry?
Railroad car rentalRailroad car leasingCompanies
Gatx CorporationUnion Tank Car CoCit Group Inc.Purchase this report to view all 5 major companies in this industry.
Related Terms
OPERATING LEASECLASS 1 RAILROADLOCOMOTIVEIndustry Code
NAICS 53241 - Railroad Car Rental & Leasing in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Companies operating in the Railroad Car Rental industry offer rental and leasing options on a variety of railroad cars, including boxcars, tank cars, hopper cars, flatcars, go...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The vast majority of industry revenue comes from operating leases. An operating lease is an agreement to rent a railcar for a specified length of time, usually more than a ye...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Railroads transport heavy goods across the United States, including the transportation of these goods between manufacturers and trade hubs. As a result, services are linked b...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The Railroad Car Rental and Leasing industry is characterized by a moderate-to-high level of concentration, with the four largest players accounting for approximately 60.0% of...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Cit is a public company headquartered in New Jersey with an estimated 4,163 employees. In the United States, the company has a notable market share in at least one industry: ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Gatx Corporation's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Union Tank Car Co's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Cit Group Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for Gatx Corporation, and factors influencing its performance in the industry
- Description and key data for Union Tank Car Co, and factors influencing its performance in the industry
- Description and key data for Cit Group Inc., and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Several acts passed by the federal government, such as the Staggers Act and the Rail Safety Improvement Act, still have a tremendous effect on industry participants. With der...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
The Railroad Car Rental and Leasing industry's costs are primarily associated with maintaining its fleet of railcars. Depreciation costs typically represent the largest cost ...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Railroad Car Rental & Leasing in the US industry in United States in 2024?
The market size of the Railroad Car Rental & Leasing in the US industry in United States is $6.0bn in 2024.
How many businesses are there in the Railroad Car Rental & Leasing in the US industry in 2024?
There are 101 businesses in the Railroad Car Rental & Leasing in the US industry in United States, which has grown at a CAGR of 0.2 % between 2019 and 2024.
Has the Railroad Car Rental & Leasing in the US industry in United States grown or declined over the past 5 years?
The market size of the Railroad Car Rental & Leasing in the US industry in United States has been declining at a CAGR of 1.2 % between 2019 and 2024.
What is the forecast growth of the Railroad Car Rental & Leasing in the US industry in United States over the next 5 years?
Over the next five years, the Railroad Car Rental & Leasing in the US industry in United States is expected to grow.
What are the biggest companies in the Railroad Car Rental & Leasing in the US market in United States?
The biggest companies operating in the Railroad Car Rental & Leasing market in United States are Gatx Corporation, Union Tank Car Co and Cit Group Inc.
What does the Railroad Car Rental & Leasing in the US in United States include?
Railroad car rental and Railroad car leasing are part of the Railroad Car Rental & Leasing in the US industry.
Which companies have the highest market share in the Railroad Car Rental & Leasing in the US in United States?
The company holding the most market share in United States is Gatx Corporation.
How competitive is the Railroad Car Rental & Leasing in the US industry in United States?
The level of competition is moderate and steady in the Railroad Car Rental & Leasing in the US industry in United States.
