Passenger Rail Transportation Market Characteristics
The passenger rail transportation market consists of sales of passenger rail transportation services by entities (organizations, sole traders and partnerships) that use trains to provide transport for passengers from a station where they board the train to a destination station.
Competitive Landscape of the Passenger Rail Transportation Market
Major players in the global passenger rail transportation market include East Japan Railway, MTR Hong Kong, Central Japan Railway, West Japan Railway, and Canadian Pacific Railway.
Passenger Rail Transportation Market Size
The passenger rail transportation market size is expected to significantly grow at a CAGR of nearly 7% during the forecast period. The growth in the passenger rail transportation market is due to lower ticket prices owing to cheaper crude oil prices allowing for cheaper fares, and rise in investments in heavily populated countries such as China and India.
However, the market for passenger rail transportation is expected to face certain restraints from several factors such as operational inefficiencies and lack of interoperability.
Passenger Rail Transportation Market Segmentation
The global passenger rail transportation market is further segmented based on type and geography.
By Type - The passenger rail transportation market is segmented into medium-distance passenger transport, long-distance passenger transport, and short-distance passenger transport.
By Geography - The global passenger rail transportation is segmented into North America, South America, Asia-Pacific, Eastern Europe, Western Europe, Middle East and Africa. Among these regions, North America’s passenger rail transportation market accounts for the largest share in the global passenger rail transportation market.
Trends in the Passenger Rail Transportation Market
Most of the customers now expect service providers to accept payment through cards and digital wallets. With the development of applications like Apple pay, rail transportation service providers are also willing to offer platforms for varied payments. As customers become more aware of contactless bank cards and mobile payments, adoption of virtual payment technologies is expected to rise significantly. For example, in the UK, 46.1 million contactless card transactions were made in December 2014. Rail transportation companies such as Canada’s Via Rail are accepting electronic payments made using digital wallet MasterPass, and card payments via debit and credit cards.
Potential Opportunities in the Passenger Rail Transportation Market
With the introduction of trains, metro railways and other transportation systems in emerging economies, the scope and potential for the global passenger rail transportation market is expected to significantly rise in the forecast period.