Rail Transport Market Size, Demand, Growth And Strategies To 2033

21 Mar.,2024

 

Rail Transport Market Definition And Segments

Rail transport refers to the transportation of people and products using wheeled vehicles that are specifically made to travel along railroads. Railroads operate either on networks with physical facilities, labor forces, and equipment spread over a wide geographic area or over a short distance on a local rail line.

The main types in the rail transport market are passenger rail transport and rail freight. Rail freight includes the services in which goods are transported by rail cars. The distances of rail transport are long-distance and short-distance and by destination into domestic and international. Rail transportation is used by various industries including mining, construction, agriculture, construction, and others.

The rail transport market covered in this report is segmented –

1) By Type: Passenger Rail Transport, Rail Freight

2) By Distance: Long-Distance, Short-Distance

3) By Destination: Domestic, International

4) By End-Use Industry: Mining, Construction, Agriculture, Other End Users

Subsegments Covered: Medium-Distance Passenger Transport, Long-Distance Passenger Transport, Short-Distance Passenger Transport, Intermodals, Tank Wagons, Freight Cars

The rail transport market size has grown strongly in recent years. It will grow from $546.13 billion in 2023 to $582.61 billion in 2024 at a compound annual growth rate (CAGR) of 6.7%. The growth in the historic period can be attributed to strong economic growth in emerging markets, rise in e-commerce, change in taxation rules, and rise in mining activity.

The rail transport market size is expected to see strong growth in the next few years. It will grow to $748.97 billion in 2028 at a compound annual growth rate (CAGR) of 6.5%. The growth in the forecast period can be attributed to high-speed trains, technological advances, and emphasis on cutting carbon emission. Major trends in the forecast period include adopting head on generation (HOG) technology should to reduce their carbon footprints, increase profitability of operations, and reduce operating costs and other fuel related expenses, harness digitalization to improve passengers experience and reduce costs, invest in connected mobility to enable drivers and their passengers to experience a much smoother trip and exploit obstacle detection assistance system to enhance passenger’s safety and to reduce accidents.

Faster Economic Growth Boost Rail Transport Market

The rail transport services market's growth is aided by the stable economic growth forecasted in many developed and developing countries. The International Monetary Fund (IMF) predicts that global GDP growth will be 3.3% in 2020 and 3.4% in 2021. Recovering commodity prices, after a significant decline in the historical period, are further expected to aid the market's growth. Developed economies are also expected to register stable growth during the forecast period. Additionally, emerging markets are expected to continue to grow slightly faster than developed markets in the forecast period. Stable economic growth is expected to increase investments in end-user markets, thereby driving the market during the forecast period.

Rising Rail Freight Transport Fueling Growth In The Rail Transport Market Growth

The growing demand for rail freight transport is expected to propel the growth of the rail transport market going forward. Rail freight is the movement of commodities on trains by rail, as opposed to air, ocean, or road transit which allows a larger volume of cargo to be delivered over longer distances. The growth in railroad freight can boost railroad construction as a greater number of trains will be needed to increase rail freight transport. For instance, in October 2022, according to Eurostat, a statistical office of the European Union (EU), rail freight transport in the EU increased in 2021 by 8.7% compared to 2020. Therefore, the growing demand for rail freight transport is driving the growth of the rail road construction market. Therefore, increasing urbanization is driving the rail transport market.

Major companies operating in the rail transport market report are Deutsche Bahn, BNSF, JSC Russian Railways, Indian Railways, SNCF, Union Pacific Corporation, East Japan Railway Company, CSX Corporation, Central Japan Railway Company, Canadian National Railway Company, Aurizon Holdings Ltd., China State Railway Group Co. Ltd., Container Corp. of India Ltd., Japan Freight Railway Co., KiwiRail Ltd., PT Kereta Api Indonesia (Persero), Qube Holdings Ltd., Twentieth Super Pace Nominees Pty Ltd., Abellio ScotRail, Arriva Rail London, Avanti West Coast, c2c, Caledonian Sleeper, Chiltern Railways, CrossCountry, East Midlands Railway, Eurostar, Govia Thameslink Railway, Greater Anglia, Great Western Railway, Hull Trains, Grand Central, Merseyrail, Virgin Trains, ScotRail, London Overground, Heathrow Connect, CD Cargo, Ceské dráhy, Die Länderbahn, GW Train Regio, Emperor Franz Joseph Railway, Caile Ferate Române, CFR Marfa, Burlington Northern Santa Fe LLC, Norfolk Southern Corporation, The National Railroad Passenger Corporation, SOO Line Railroad Company, Kansas City Southern, Canadian Pacific Railway, Hudson Bay Railway Co., Quebec North Shore and Labrador Railway, Rampa Express De Mexico, Unitrade, Haf Logistica Internacional, SILT Corporation, Brazil Great Southern Railway, Companhia do Metropolitano de São Paulo, Companhia Paulista de Estradas de Ferro, Ferrocarril Transandino, Perurail, Belmond Andean Explorer, Ferrovías Central Andina, Estrada de Ferro Central do Brasil, Saudi Railway Company, Israel Railways Ltd., Iraq Republic Railways Co., Middle East Rail, Turkish State Railways (TCDD), Arabian Railway Company, Egyptian National Railways (ENR), Passenger Rail Agency of South Africa (PRASA), Transnet Freight Rail, Nigerian Railway Corporation

Impact Of COVID-19 On The Rail Transport Market And Its Recovery

The outbreak of COVID-19 disease (COVID-19) has acted as a massive restraint on the rail transport market in 2020 as governments-imposed lockdowns and restricted the movement of people and goods to contain the transmission. COVID-19 is an infectious disease with flu-like symptoms including fever, cough, and difficulty breathing. The virus was first identified in 2019 in Wuhan, Hubei province of the People's Republic of China, and has spread globally, including Western Europe, North America, and Asia. Steps by national governments to contain the transmission have resulted in a decline in economic activity with countries entering a state of 'lock down' and harming businesses throughout 2020 and into 2021. However, the rail transport market has started recovering from the shock.

Growing Role Of Adas Technology In Rail Transport

Advanced driver assistance system (ADAS) technology is becoming popular in the rail transportation industry to optimize energy usage, enhance operational management, safety and aid in cost reduction. These systems provide automatic warning, protection, operation, supervision, and control arrangement. They also aid in meeting stringent government regulations towards passenger safety. Around 60 million units of advanced driver assistance systems were produced globally. Some companies providing these systems for locomotives are Thales Group, Alstom S.A., Bombardier Transportation, Hitachi Ltd., CRRC Corporation Limited, Ansaldo STS, and SIEMENS AG.

Enhancing Rail Transport Efficiency With Innovative Intermodal Tracking Solutions

Major companies in the rail transport market are developing rail tracking solutions to enhance efficiency and sustain their position in the market. Rail tracking solutions refer to advanced technologies that monitor and optimize the movement of trains and railway operations. For instance, in June 2023, Vizion, a US-based API-based solution, launched an intermodal rail tracking feature. This new solution complements Vizion's existing ocean tracking capabilities, offering shippers, logistics service providers, and other users’ seamless visibility as containers transition from maritime vessels to inland transportation. The intermodal rail tracking solution streamlines the tracking process by eliminating the need for a lengthy Letter of Authorization process and separate transactions for ocean and rail tracking.

Asia-Pacific was the largest region in the rail transport market in 2023. Western Europe was the second largest region in the rail transport market. The regions covered in the rail transport market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the rail transport market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa

The rail transport market includes revenues earned by entities by providing transportation because it is unaffected by traffic and adverse weather conditions and can carry large amounts of goods. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

The rail transport market research report is one of a series of new reports from The Business Research Company that provides rail transport market statistics, including rail transport industry global market size, regional shares, competitors with a rail transport market share, detailed rail transport market segments, market trends and opportunities, and any further data you may need to thrive in the rail transport industry. This rail transport market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Rail Transport Market Report Scope

Report AttributeDetails Market Size Value In 2024

$582.61 billion

Revenue Forecast In 2033

$748.97 billion

Growth Rate

CAGR of 6.5% from 2024 to 2033

Base Year For Estimation

2023

Actual Estimates/Historical Data

2018-2023

Forecast Period

2024 - 2028 - 2033

Market Representation

Revenue in USD Billion and CAGR from 2024 to 2033

Segments Covered

1) By Type: Passenger Rail Transport, Rail Freight
2) By Distance: Long-Distance, Short-Distance
3) By Destination: Domestic, International
4) By End-Use Industry: Mining, Construction, Agriculture, Other End Users

Subsegments Covered: Medium-Distance Passenger Transport, Long-Distance Passenger Transport, Short-Distance Passenger Transport, Intermodals, Tank Wagons, Freight Cars

Regional Scope

Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa

Country Scope

Australia; China; India; Indonesia; Japan; South Korea; Bangladesh; Thailand; Vietnam; Malaysia; Singapore; Philippines; Hong Kong; New Zealand; USA; Canada; Mexico; Brazil; Chile; Argentina; Colombia; Peru; France; Germany; UK; Austria; Belgium; Denmark; Finland; Ireland; Italy; Netherlands; Norway; Portugal; Spain; Sweden; Switzerland; Russia; Czech Republic; Poland; Romania; Ukraine; Saudi Arabia; Israel; Iran; Turkey; UAE; Egypt; Nigeria; South Africa

Key Companies Profiled

Deutsche Bahn; BNSF; JSC Russian Railways; Indian Railways; SNCF; Union Pacific Corporation; East Japan Railway Company; CSX Corporation; Central Japan Railway Company; Canadian National Railway Company; Aurizon Holdings Ltd.; China State Railway Group Co. Ltd.; Container Corp. of India Ltd.; Japan Freight Railway Co.; KiwiRail Ltd.; PT Kereta Api Indonesia (Persero); Qube Holdings Ltd.; Twentieth Super Pace Nominees Pty Ltd; Abellio ScotRail; Arriva Rail London; Avanti West Coast; c2c; Caledonian Sleeper; Chiltern Railways; CrossCountry; East Midlands Railway; Eurostar; Govia Thameslink Railway; Greater Anglia; Great Western Railway; Hull Trains; Grand Central; Merseyrail; Virgin Trains; ScotRail; London Overground; Heathrow Connect; CD Cargo; Ceské dráhy; Die Länderbahn; GW Train Regio; Emperor Franz Joseph Railway; Caile Ferate Române; CFR Marfa; Burlington Northern Santa Fe LLC; Norfolk Southern Corporation; The National Railroad Passenger Corporation; SOO Line Railroad Company; Kansas City Southern; Canadian Pacific Railway; Hudson Bay Railway Co.; Quebec North Shore and Labrador Railway; Rampa Express De Mexico; Unitrade; Haf Logistica Internacional; SILT Corporation; Brazil Great Southern Railway; Companhia do Metropolitano de São Paulo; Companhia Paulista de Estradas de Ferro; Ferrocarril Transandino; Perurail; Belmond Andean Explorer; Ferrovías Central Andina; Estrada de Ferro Central do Brasil; Saudi Railway Company; Israel Railways Ltd.; Iraq Republic Railways Co.; Middle East Rail; Turkish State Railways (TCDD); Arabian Railway Company; Egyptian National Railways (ENR); Passenger Rail Agency of South Africa (PRASA); Transnet Freight Rail; Nigerian Railway Corporation

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