Railroads Market Research Report—Global Forecast till 2032

Railroads Market Research Report Information By Type (Rail Freight and Passenger Rail), By End Use (Mining, Construction, Agriculture, and Others), and By Region (North America, Europe, Asia-Pacific, and Rest Of The World) – Market Forecast Till 2032

ID: MRFR/AM/10477-HCR | 128 Pages | Author: Sejal Akre | September 2023         

Global Railroads Market Overview

Railroads Market Size was valued at USD 297.8 Billion in 2022. The Railroads market industry is projected to grow from USD 311.8 Billion in 2023 to USD 450.2 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.70% during the forecast period (2023 - 2032). Continuing to invest in projects to build railway lines and expanding railway networks globally, are the key market drivers enhancing the market growth.

Railroads Market Overview

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Railroads Market Trends

  • Continued investments in railway line projects is driving the market growth

The market is probably going to be fueled by ongoing investments in railway line projects and the global growth of railway networks. A number of domestic and international railway projects are now in the planning, development, or construction phases, which is encouraging for the market's future expansion. A prominent global trend that is expected to have a positive effect on railway transportation is railcar leasing. Depending on the load and the usage of modern railway transportation technologies, this method of moving products is not only safer but also more economical. Additionally, improvements in timing of transit, storage facilities, and power sources are projected to open up new growth opportunities for the railway transportation sector.

The COVID-19 pandemic has had a mixed effect on the rail freight industry. Rail freight traffic decreased in North and South America while increasing in Asia. The national state-owned railway corporation of France, SNCF, planned adjustments to its operations in April 2020 in response to the weak passenger and freight demand. Transilien and TER services, as well as Keolis-operated transport networks, were reduced to an average of 15% to 20% of normal capacity, while TGV and Intercités services were reduced to roughly 10% of normal levels. Rail freight service provided by SNCF was operating at 65% of its typical capacity.

COVID-19 caused shortages of truck drivers and restrictions on air and sea travel in several nations, which sharply increased the cost of transportation by truck, ship, or air. Switching to rail freight became advantageous for the supply chain because it was less expensive in comparison. Increased market growth is anticipated over the course of the projection period as a result of further investments, infrastructure upgrades, and technological developments aimed at digitising rail freight.

The need for personal mobility has grown in recent years as income levels have climbed, which has boosted road traffic in major cities around the world. However, because of the inadequate infrastructure of the road network, traffic congestion and travel times rose in urban areas. Thus, tramways and fast transit systems are being integrated into the city's existing infrastructure by urban planners and municipal administrations. Additionally, commuters are looking for reliable, affordable, and environmentally responsible modes of transportation. To ease traffic congestion, developed nations like Germany, France, and the UK are actively encouraging the usage of fast transit systems. Additionally, nations like India, China, Egypt, Brazil, and the UAE have boosted their investments in the construction of metropolises. For instance, more than 15 cities in India have 823.5 km of metro rail under development in 2021. China planned to invest USD 4.8 billion in 2020 for five railway projects totaling 132.1 km in length and 16 metro lines with a combined length of 304.6 km. In addition, the Chinese government declared in 2021 that it will spend USD 154.88 billion to increase the length of its railway network by 22,000 km by 2025. The railway system market would be driven by other wealthy nations expanding their rail networks. Thus, driving the Railroads market revenue.

Railroads Market Segment Insights

Railroads Type Insights

The Railroads Market segmentation, based on type, includes rail freight and passenger rail. Passenger rail segment accounted for the largest revenue share in 2022. The market is anticipated to expand in the upcoming years as the tourism sector accelerates as a result of low passenger train tickets. Additionally, the advent of newer and faster trains, such as metros and bullet trains, as well as greater investments in expanding passenger railroad networks are projected to accelerate sector growth. Additionally, during the forecast period, the passenger rail segment is anticipated to increase at the quickest rate.

Railroads End Use Insights

The Railroads Market segmentation, based on end use, includes mining, construction, agriculture, and others. Agriculture segment dominated the Railroads Market in 2022. For the agriculture sector, reliable and effective railway service is very important. In rural places remote from maritime transit and end markets, rail transport is effectively the only economically viable shipping option available for low-value bulk commodities. These elements have historically fueled the farm railway segment. Small farmers in India can sell their agricultural products on the open market thanks to the extensive Indian railway network, which links the most remote regions of the nation.

Figure 1: Railroads Market, by End Use, 2022 & 2032 (USD Billion)

Railroads Market, by End Use, 2022 & 2032

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Railroads Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia Pacific Railroads market dominated this market in 2022 (45.80%). Due to the population's heavy reliance on rail transportation and rising government investments in new railway construction, this has occurred. For instance, Timetric's Construction Intelligence Centre (CIC) reports that global railway investment is dominated by the Asia Pacific region. It is also the largest market for transport infrastructure in the entire globe, with PwC estimating that by 2025, spending will be around USD 900 billion annually. In addition, rising imports and exports from Asian nations are anticipated to promote market expansion. Moreover, China’s Railroads market held the largest market share, and the Indian Railroads market was the fastest growing market in the Asia-Pacific region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Railroads Market Share By Region 2022 (Usd Billion)


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

The North America Railroads Market is expected to register significant growth from 2023 to 2032. According to the Association of American Railroads, the United States has a top-notch freight rail network, which is a pillar of the country's economy. The country's expanding use of goods rail can be attributed to ongoing expenditures made in the development of infrastructure, technology, and equipment. Rising consumer demand, improved passenger safety measures, and technological as well as operational developments are the main drivers of passenger railway services in the area. Further, the U.S. Railroads market held the largest market share, and the Canada Railroads market was the fastest growing market in the North America region.

Europe Railroads market accounted for the healthy market share in 2022. One of the world's most technologically advanced railway sectors is in Europe. France, Germany, and other nations in the area have advanced train automation technologies and currently operate fully automated trains. Additionally, it is anticipated that increased investments in the region's metro and rail systems will accelerate regional market expansion. Further, the German Railroads market held the largest market share, and the U.K Railroads market was the fastest growing market in the European region

Railroads Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Railroads market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Railroads industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Railroads industry to benefit clients and increase the market sector. In recent years, the Railroads industry has offered some of the most significant advantages to medicine. Major players in the Railroads market, including Central Japan Railway Company, SNCF Group, Union Pacific Corporation, OAO RZD (Russian Railways), BNSF Railway, Indian Railways, Deutsche Bahn, JSC Russian Railways, and CSX Corporation, are attempting to increase market demand by investing in research and development operations.

Transcontinental freight railway operator Canadian Pacific Kansas City Ltd. (CPKC), originally known as Canadian Pacific Railway Ltd. It provides rail and multimodal transportation services between Canada's business hubs in Quebec, Montreal, British Columbia, Vancouver, and the Midwest and Northeast of the United States. The business carries merchandise goods, which includes goods from the forest, industrial, consumer, and energy industries, as well as goods for the automobile and general markets. Bulk commodities that the company transports include coal, potash, sulphur, grain, and fertilisers. Additionally, the business provides transportation, transload, and intermodal logistics services. British Columbia, Alberta, Manitoba, Quebec, Saskatchewan, Ontario, Minnesota, and Illinois are home to the majority of the company's yards, terminals, and transload facilities. Calgary, Alberta, Canada serves as the headquarters of CPKC. Two of the seven Class I railroads operating in the United States, Canadian Pacific Railway and Kansas City Southern Railway, declared their intention to merge in March 2021. The proposed arrangement calls for Canadian Pacific to acquire Kansas City Southern in a stock and cash transaction.

Technology is the focus of Siemens AG (Siemens). Its operations cover the automation, digitization, and electrification domains. The business creates, develops, and produces products as well as installs sophisticated systems and projects. It also offers a variety of specially designed solutions for different needs. Siemens specialises on distributed energy systems, intelligent building infrastructure, and power generation and delivery. It offers digital healthcare services, medical technology, and smart mobility solutions for the rail and road transportation industries. Siemens has locations for its production facilities, warehouses, and sales offices all around the world. It provides services to clients in a range of sectors, including manufacturing, infrastructure, process and energy. Munich, Bavaria, Germany serves as the home base for Siemens. The new air-free brake system, also known as an electronic friction brake system, was created by Siemens in January 2022 and is the first fully electrically controlled friction brake to be deployed in rail vehicles (brake-by-wire). There is no requirement for compressed air at all to operate the braking system.

Key Companies in the Railroads market include

Railroads Industry Developments

July 2020: The takeover of Bombardier's rail division by French high-speed train operator Alstom was approved by the EU. Alstom was required to agree to certain access guarantees and turn over Bombardier's assets that were a part of Hitachi's joint high-speed platform.

Railroads Market Segmentation

Railroads Type Outlook

  • Rail Freight

  • Passenger Rail

Railroads End Use Outlook

  • Mining

  • Construction

  • Agriculture

  • Others

Railroads Regional Outlook

  • North America

    • US

    • Canada

  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe

  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific

  • Rest of the World

    • Middle East

    • Africa

    • Latin America

Report Scope:

Report Attribute/Metric Details
Market Size 2022 USD 297.8 Billion
Market Size 2023 USD 311.8 Billion
Market Size 2032 USD 450.2 Billion
Compound Annual Growth Rate (CAGR) 4.70% (2023-2032)
Base Year 2022
Market Forecast Period 2023-2032
Historical Data 2018- 2022
Market Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered Type, End Use, and Region
Geographies Covered North America, Europe, Asia Pacific, and the Rest of the World
Countries Covered The U.S., Canada, German, France, U.K, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled Central Japan Railway Company, SNCF Group, Union Pacific Corporation, OAO RZD (Russian Railways), BNSF Railway, Indian Railways, Deutsche Bahn, JSC Russian Railways, and CSX Corporation
Key Market Opportunities Government support for alternative fuel powered railway operations
Key Market Dynamics Continued investments in railway line projects and the expansion of railroad networks around the world

Frequently Asked Questions (FAQ) :

The Railroads Market size was valued at USD 297.8 Billion in 2022.

The global market is projected to grow at a CAGR of 4.70% during the forecast period, 2023-2032.

Asia Pacific had the largest share in the global market

The key players in the market are Central Japan Railway Company, SNCF Group, Union Pacific Corporation, OAO RZD (Russian Railways), BNSF Railway, Indian Railways, Deutsche Bahn, JSC Russian Railways, and CSX Corporation

The Passenger Rail Type dominated the market in 2022.

The Agriculture End Use had the largest share in the global market.

Key Questions Answered

  • Global Market Outlook
  • In-depth analysis of global and regional trends
  • Analyze and identify the major players in the market, their market share, key developments, etc.
  • To understand the capability of the major players based on products offered, financials, and strategies.
  • Identify disrupting products, companies, and trends.
  • To identify opportunities in the market.
  • Analyze the key challenges in the market.
  • Analyze the regional penetration of players, products, and services in the market.
  • Comparison of major players’ financial performance.
  • Evaluate strategies adopted by major players.
  • Recommendations
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