The global railcar leasing market is expected to grow at a CAGR of 6.99% from 2017 to 2012 according to a report from Research and Markets.

According to the report, one of the major drivers for this market is rising global crude oil production. Global crude oil consumption is expected to grow at a CAGR of about 2.64% into 2018. In North America, the U.S. is the largest growth contributor. In APAC, China and India are leading markets in crude oil consumption. The rise in crude oil consumption in China and India is mainly due to the increase in the demand for jet fuel, hydrocarbon gas liquids and gasoline. The growth in the demand coupled with the subsequent supply of crude oil is expected to increase the demand for efficient and cost-effective transportation, so as to push the profit margin of the crude oil suppliers.

The report states that one of the major factors hindering the growth of this market is declining coal consumption by the power sector in U.S. U.S. electricity generation or power generation from coal has been decreasing since 2009, as natural gas is taking over the market share of coal. Economic sustainability and the lower price of natural gas are the main factors which help in natural gas surpassing the consumption of coal in the U.S. power sector.