Freight Cars Market

Freight Cars Market is expected to witness a CAGR of approximately 5.3% during the forecast period, 2023-2030.

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Major Freight Cars Market Drivers

The global freight cars market growth is predicted to rise due to primary drivers including growing favorable government schemes, development in different industries such as oil and gas, agriculture, steel, automotive, and others, growth in the integration of GPS tracking in freight cars, coupled with rise in investment by the exporter and importer of goods and services in freight cars. Forthcoming projects for railway networks along with favorable government initiatives and schemes are estimated to propel the growth of freight cars global market in the forecast period. The surge in global trade and economic activities has increased the requirement for efficient transportation of goods. Meeting this demand involves an increasing need for freight cars capable of carrying different cargo types and delivering developed load capacity. Moreover, the revolution in the freight car market is fostered by the adoption of advanced technologies including IoT and telematics. These innovations facilitate the developed monitoring, maintenance, and tracking of freight cars, ultimately enhancing functional effectiveness, and decreasing transportation costs.

Additionally, global government investments in the expansion and modernization of railway infrastructure are predicted to be a significant driver for the need in the freight car market. The consideration of rail transportation being more environmentally friendly and cost-effective compared to air and road substitutes, coupled with a growing emphasis on sustainability, is predicted to present a positive impact on global freight car market growth. For instance, in 2021, the Indian government think tank Niti Aayog launched the ‘Shoonya’ initiative, with the objective of fully electrifying fleet vehicles in the urban freight sector by 2023. This initiative is part of a substantial effort to increase the adoption of electric vehicles and establish a supportive ecosystem in the country. Similarly, in 2019, the UK government introduced a velocity improvement initiative, involving continuous analysis of freight services with an aim on commodities and flow in collaboration with freight functions, which is predicted to foster the rail freight sector. These steps to develop rail freight will probably increase demand and growth in the global freight cars market in the forecast period.

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While the freight car market growth faces a significant challenge in the form of stringent regulations regarding import and export. Strict trade rules can lead to a decrease in rail freight transportation, subsequently impacting the need for freight cars. In 2020, the Indian Customs Department implemented stringent rules on the import of white goods under free trade agreements to prevent undue dumping from non-producing countries. Such measures reflect an effort to regulate trade and control the arrival of these commodities. India’s imposition of stringent rules on the trade agreements aims to curb the misuse of relaxations. In addition, the country is actively pursuing new regulations to develop domestic manufacturing, looking to decrease imports and address concerns about the arrival of low-performance imports, specifically from China. Hence, the strict rules set by the government over imports and exports are estimated to restrain the global freight cars market growth in the forecast period.

The widespread adoption of rental services around the oil & gas market for moving oil tanks, digitalization in the prevailing existing freight car network, expansion in key end-user industries such as agriculture, construction, automotive, oil and gas, and steel, coupled with trade agreements among countries are predicted to accelerate the growth of freight cars market share. additionally, it is predicted that the market will be further driven by technological innovations in freight cars, including features such as GPS tracking, developing their effectiveness, and capabilities in the transportation sector. The usage of advanced GPS technologies is predicted to develop the effectiveness of freight car transport. Rail operators incorporating GPS technologies into freight cars can efficiently manage the transport procedure, schedule freight cars, maintain a consistent delivery procedure, and decrease instances of freight car theft. For instance, in 2022, Indian Railways initiated real-time monitoring of trains, including freight cars, utilizing the Control Office Application System. Developed by ISRO in collaboration with Indian Railways, the COA system enables the monitoring of freight car movement between stations with GPS. This incorporation of real-time data and on-time deliveries is predicted to propel an increased freight cars demand.

Similarly, in 2021, Sojitz Corporation, a manufacturing company based in Japan, focusing on the importing and exporting of goods and services, successfully took over Southwest Rail Industries Inc. for an unidentified amount whereas, Southwest Rail Industries is based in the US which delivers freight rail cars and coaches to offer facilities for clients in the US. With this acquisition of Southwest Rail Industries Inc., Sojitz focuses on developing customer service, delivering prompt responses, personalizing leases to meet customer requirements, extending railway services around North America, and supporting decarbonization and sustainability efforts.

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By Region, Asia Pacific Region Registered the Largest Revenue Share in the Global Freight Cars Market

Asia Pacific region held the largest market size due to growth in collaborations and strategic partnerships between market players, rise in supportive government initiatives and policies, increase in the number of end-use industries, and considerable growth in demand for freight cars from different industries such as automotive, agriculture, and others. In 2019, the Indian government-initiated efforts to develop the attractiveness of rail freight. These measures included long-term tariff contracts with key clients, traffic rationalization initiatives, incentives for container traffic, and the introduction of schemes including Special Freight Train Operator, Automobiles Freight Train, General Purpose Wagon Investment Schemes, Liberalized Wagon Investment Schemes, and many others. In addition, market players in the Asia Pacific Freight Cars Market significantly invest in different research and development activities which further drive the market growth and result in different profitable opportunities. Moreover, a rapid rise in digitalization in railway network tracks which are fully automated, and an increase in disposable income coupled with developments in technology, are predicted to create lucrative market growth opportunities in the Asia Pacific region in the forecast period.

Top Market Players

Various notable players operating in the market include Siemens, Cubic Corporation, Garmin Ltd., EFKON, GeoToll, Thales Group, FLIR Systems, Inc., DENSO CORPORATION, TomTom International BV., ElectricFeel AG, Bestmile SA, DoubleMap, among others.

Segments covered in the Report:

The Global Freight Cars Market has been segmented on the basis of Application and End-Use Industries. Based on the Application, the market is segmented into Coal, Metals and Minerals, Petroleum and Chemicals, Agricultural Products, Automobiles, Others. Based on the End-Use Industries, the market is segmented into Agriculture, Oil & Gas, Construction, Chemical, Food & Beverages, Medical & Pharmaceuticals, Automotive & Transportation, Government & Defense, Others.

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Report Coverage	Details
Market Revenues (2022)	USD Million
Market Base Year	2022
Market Forecast Period	2023-2030
Base Year & Forecast Units	Revenues (USD Million)
Market Segment	By Application, By End-Use Industries, By Region
Regional Coverage	Asia Pacific, Europe, North America, and RoW
Companies Profiled	Thales Group, Siemens, Garmin Ltd., Cubic Corporation, EFKON, TomTom International BV., FLIR Systems, Inc., GeoToll, ElectricFeel AG, DENSO CORPORATION, DoubleMap, Bestmile SA, among others; a total of 12 companies covered.
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Market Segmentation

Global Freight Cars Market by Application

• • Coal
  • Petroleum And Chemicals
  • Metals And Minerals
  • Automobiles
  • Agricultural Products
  • Others

Global Freight Cars Market by End-Use Industries

• • Agriculture
  • Construction
  • Oil & Gas
  • Chemical
  • Medical & Pharmaceuticals
  • Food & Beverages
  • Government & Defense
  • Automotive & Transportation
  • Others

Global Freight Cars Market by Region

• • North America Freight Cars Market (Option 1: As a part of the free 25% customization)

    • By Application
    • By End-Use Industries
    • US Market All-Up
    • Canada Market All-Up

  • Europe Freight Cars Market (Option 2: As a part of the free 25% customization)

    • By Application
    • By End-Use Industries
    • UK Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up

  • Asia-Pacific Freight Cars Market (Option 3: As a part of the free 25% customization)

    • By Application
    • By End-Use Industries
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up

  • RoW Freight Cars Market (Option 4: As a part of the free 25% customization)

    • By Application
    • By End-Use Industries
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Major Players Operating in the Freight Cars (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Thales Group
  • Siemens
  • Garmin Ltd.
  • Cubic Corporation
  • EFKON
  • TomTom International BV.
  • FLIR Systems, Inc.
  • GeoToll
  • ElectricFeel AG
  • DENSO CORPORATION
  • DoubleMap
  • Bestmile SA