What Fueled The Previous Growth In The Rail Logistics Market?
The rail logistics market has seen considerable growth due to a variety of factors.
• The size of the rail logistics market has seen steady growth over the years. The market, which is set to rise from $256.85 billion in 2024, is predicted to reach $267.61 billion in 2025, showcasing a compound annual growth rate (CAGR) of 4.2%.
The progression during the historical era can be credited to factors such as inexpensive transportation and modal shift, environmental accountability, infrastructure advancements, and limitations related to cross-border freight transport.
What Is The Expected Growth In The Rail Logistics Market Size Evolve over the Forecast Period?
The rail logistics market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the rail logistics market size is predicted to experience consistent growth, reaching a value of $299.41 billion in 2029, with a compound annual growth rate of 2.8%.
This growth during the forecast period is largely due to factors such as the increased development and testing of self-driving trains, heightened demand for freight wagons, the advent of customised and high-tech wagons, a rise in budget allocation, and the expansion of e-commerce and online retail. Significant trends to expect within this forecast period encompass the implementation of artificial intelligence and machine learning, the proliferation of high-speed rail, the advent of smart railways, the growth of rail logistics services in developing economies, and the increase of intermodal transportation.
What Main Forces Are Fueling Expansion In The Rail Logistics Market?
The anticipated surge in global trade is expected to fuel the expansion of the rail logistics market in the future. The term global trade refers to the trading of goods and services across international lines. The growth of global trade is being escalated by several drivers, one of which is increased globalization, which fuels the need for effective cross-border transportation services. As international trading of goods continues to rise, the requirement for cost-effective and efficient ways of transportation has become increasingly prominent. For instance, records from the Bureau of Economic Analysis, a US government agency responsible for furnishing official macroeconomic and industry statistics, showed a $35.0 billion increase in goods and services exports in February 2024. This figure, which denotes a 1.2% rise in 2023 to reach $3,053.5 billion, is compared with data from 2022. Consequently, the anticipated surge in global trade is expected to drive the expansion of the rail logistics market.
What Are The Primary Segments In The Global Rail Logistics Market?
The rail logistics market covered in this report is segmented –
1) By Type: Intermodals, Tank Wagons, Freight Cars
2) By Operational Area: Domestic, International
3) By End User: Automotive, Manufacturing, Telecommunication, Retail, Technology
Subsegments:
1) By Intermodals: Container On Flat Car (COFC), Trailer On Flat Car (TOFC), Double Stack Containers
2) By Tank Wagons: Chemical Tankers, Food And Beverage Tankers, Oil And Gas Tankers, Agricultural Product Tankers
3) By Freight Cars: Boxcars, Flatcars, Hopper Cars, Gondola Cars, Refrigerated Cars
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What New Trends Are Influencing The Rail Logistics Market?
Leading firms in the rail logistics market are crafting advanced technologies, like the multipurpose digital experience center, to improve their customer service in this industry. This digital hub is dedicated to the creation and deployment of pioneering signaling solutions in urban, mainline, and freight sectors. For example, in December 2023, Alstom SA, a manufacturing firm based in France, initiated the state-of-the-art digital experience center. The initiatives of this center are aimed at enhancing the efficacy of rail logistics, with a focus on executing integrated cybersecurity, comprehensive project testing, urban, mainline, freight, and mining ventures, and fostering innovative approaches to remote system monitoring and resolution of issues. Moreover, the design of the center has the capacity to accommodate over 7 million hours of engineering work for various projects.
Who Are the Key Players In The Rail Logistics Market?
Major companies operating in the rail logistics market are:
• Meta Platforms Inc.
• United Parcel Service Inc.
• FedEx Corporation
• Mærsk A/S
• Deutsche Bahn AG
• Schenker Deutschland AG
• Deutsche Bahn International Operations GmbH
• Kuehne Nagel International AG
• Union Pacific Corp.
• C.H. Robinson Worldwide Inc.
• Canadian National Railway Co.
• Nippon Express Holdings Inc.
• CEVA Logistics Inc.
• Geodis SA
• Gebrüder Weiss GmbH
• Trinity Industries Inc.
• Japan Freight Railway Co.
• Brookfield Business Partners LP
• SBB Cargo International AG
• VTG AG
• Russian Railways OJSC
• BLR Logistiks Ltd.
• Tschudi Logistics Holding AS
• GeoMetrix Rail Logistics Inc.
• CTL Logistics Sp. z o.o
• Rail Cargo Group
• Interport Global Logistics Private Limited
• Dan Transport Group A/S
What Is The Most Dominant Region In The Rail Logistics Market?
Asia-Pacific was the largest region in the rail logistics market in 2024. The regions covered in the rail logistics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
