What Is The Current and Historic Market Size Analysis Of Rail Freight Market?
The rail freight market has seen considerable growth due to a variety of factors.
• The size of the rail freight market has seen considerable growth in the latter years. It's predicted to increase from a market size of $296.8 billion in 2024 to $316.15 billion in 2025, reflecting a compound annual growth rate (CAGR) of 6.5%.
This growth in the previous times is linked to the expansion in international trade, the affordable cost of rail transportation, and the surge in sustainable transport practices.
How Will The Rail Freight Market Size Evolve In The Foreseeable Future?
The rail freight market is expected to maintain its strong growth trajectory in upcoming years.
• Anticipations are rising for the rail freight market which is projected to witness robust growth in the coming years, potentially reaching a value of $387.32 billion by 2029, with a compound annual growth rate (CAGR) of 5.2%.
The increase in the predicted period can be largely credited to factors such as governmental backing, the growth of the global population and urbanization, the escalation in intermodal transportation, and a spike in the creation and examination of autonomous trains. Among the significant trends expected in the forecast period are strategic collaborations and acquisitions to bolster financial stability, application of precision scheduled railroading, deploying artificial intelligence (AI) for precise analysis and instantaneous transport operations, inaugurating novel advanced freight trains to support the innovation of new and sophisticated products with cutting edge technology, and the utilization of rail vehicle visibility tools.
What Are The Primary Growth Drivers In The Rail Freight Market?
The escalating demand for freight services is predicted to fuel the expansion of the rail freight market. This category includes goods or commodities transported from one area to another using various methods such as ships, aircraft, trains, or trucks. Railways are typically selected for the purpose of shipping cargo over large distances because they offer both efficiency and economical benefits. For instance, as reported by the Bureau of Transportation Statistics, a component of the Department of Transportation (DOT) in the United States, in July 2024, revenues from class I freight and operations surged by 13.8% in 2022 compared to 2021, bringing in $80 billion in freight revenue and $84.5 billion in operating revenue. Consequently, the mounting demand for freight services is the driving force behind the rail freight market's growth.
What Are The Core Segments Of The Globa Rail Freight Market?
The rail freight market covered in this report is segmented –
1) By Type: Intermodals, Tank Wagons, Freight Cars
2) By Freight Type: Containerized, Liquid, Commodities, Other Freight Types
3) By Destination: Domestic, International
4) By Application: Oil And Gas, Mining Industry, Logistics Industry, Post Service, Other Applications
Subsegments:
1) By Intermodals: Containerized Cargo, Trailer-on-Flatcar (TOFC), Double-Stack Container Transport
2) By Tank Wagons: Liquid Cargo, Gas Cargo
3) By Freight Cars: Boxcars, Flatcars, Hopper Cars, Gondola Cars
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Which Emerging Trends Are Reshaping The Rail Freight Market?
Top players in the rail freight sector are developing innovative hybrid train solutions in a bid to elevate their market profits. A hybrid train is a regional transport system that uses a combination of electric, diesel, and battery power, equipped with dual energy storage systems that considerably lower energy consumption and decrease greenhouse gas emissions. For example, Alstom, a rail vehicle manufacturer based in France, in partnership with SNCF Voyageurs, launched the first-ever French hybrid train intended for the regions of Occitanie, Grand-Est, Nouvelle-Aquitaine, and Centre-Val-de-Loire in February 2022. This marks France's maiden venture into hybridizing a Régiolis train. Kickstarted in 2018, this effort is a collaboration between SNCF Group and Alstom, with financial support coming from the Occitanie, Grand-Est, Nouvelle-Aquitaine, and Centre-Val-de-Loire regions. The main objective of this project is to contribute towards a reduced carbon footprint for the regional train fleet.
Who Are the Key Players in the Rail Freight Market?
Major companies operating in the rail freight market include:
• Berkshire Hathaway Inc
• China Railway Corporation
• Canadian National Railway
• Union Pacific Corporation
• Norfolk Southern Corporation
• DB Cargo UK (formerly EWS)
• Japan Freight Railway Company (JR Freight)
• Etihad Rail DB
• Tiger Logistics India Limited
• Kansas City Southern
• SNCF
• BNSF Railway
• Atlas Logistics
• Vale
• Direct Rail Services
• Imt Express
• Quebec North Shore and Labrador Railway (QNS&L)
• Miracle Logistics Company Ghana Limited
• Deutsche Bahn AG
• Freightliner
• Indian Railways
• VLI Logística
• Shree Shyam Logistics
• Rumo
• Orchid Global Sourcing
• CG Logistics Pvt. Ltd
• Ceské dráhy (Ceské Dráhy
• A.s)
• Botswana Rail (BR)
• Delhi Cargo & Courier Services
• MRS Logistics
• Russian Railways
• TransContainer
• Om Logistics
• Saudi Arabia Railways
• Anshika Express Cargo
• CSX Corporation
• Transnet Freight Rail
• Traxport
• GB Railfreight
• SLR Shipping Services LLC
• RAIL1520 Ltd
• América Latina Logística
• Canadian Pacific
• VSL Logistics and Freight forwarding solutions
• Achievers Logistics Ghana
What are the Regional Insights into the Rail Freight Market?
Asia-Pacific was the largest region in the rail freight market in 2024. North America was the second largest region in the rail freight market. The regions covered in the rail freight market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
