Passenger Rail Transport Market Report 2026

The passenger rail transport market size has grown strongly in recent years. It will grow from $287.21 billion in 2025 to $307.44 billion in 2026 at a compound annual growth rate (CAGR) of 7%. The growth in the historic period can be attributed to expansion of national rail infrastructure, increasing urban population density, rising demand for affordable mass transit, modernization of aging rail networks, availability of public funding for rail projects.

The passenger rail transport market size is expected to see strong growth in the next few years. It will grow to $412.67 billion in 2030 at a compound annual growth rate (CAGR) of 7.6%. The growth in the forecast period can be attributed to increasing focus on low-emission transportation, expansion of smart mobility initiatives, rising demand for integrated multimodal transport, increasing investments in rail electrification, growing adoption of digital rail management systems. Major trends in the forecast period include expansion of high-speed rail networks, rising investment in urban and suburban rail systems, growing focus on passenger comfort enhancements, increased adoption of smart ticketing systems, improved rail safety and reliability measures.

The increasing demand for railway passenger transport is anticipated to drive the expansion of the passenger rail transport market in the coming years. Railway passenger transport entails moving people via trains along railway lines. The rising preference for cost-effective and environmentally friendly travel options is fueling the demand for railway passenger transport. It enhances passenger mobility by offering a safe, economical, and energy-efficient mode of travel that links cities and regions through dependable schedules, high-capacity services, reduced road congestion, and sustainable mass transportation. For example, in October 2024, Eurostat, a Luxembourg-based European Union statistical office, reported that rail passenger transport across the European Union reached 429 billion passenger-kilometres in 2023, up from 386 billion passenger-kilometres in 2022, marking an 11.2% year-on-year growth. Hence, the rising demand for railway passenger transport is boosting the growth of the passenger rail transport market.

Major companies in the passenger rail transport sector are emphasizing the adoption of technological innovations such as linear motor-based rail propulsion to improve efficiency, flexibility, and network capacity. Linear motor-based rail propulsion is a system that employs electromagnetic forces along rail corridors or vehicles to deliver controlled traction and braking, supporting partial automation, better energy efficiency, and scalable upgrades to existing rail infrastructure. For example, in May 2023, Nevomo, a Poland-based deep-tech firm, collaborated with GATX Rail Europe, an Austria-based full-service railcar company, to launch a MagRail booster for rail freight. The MagRail booster components provide a cost-efficient solution to expand railway line capacity and boost rail transport efficiency. They can be integrated with conventional freight wagons provided by GATX Rail Europe. This technology facilitates traffic automation and infrastructure electrification, offering increased flexibility, capacity, and improved operational dynamics. A distinctive feature of MagRail is that individual wagons can operate autonomously, making it especially suitable for last-mile applications such as cargo terminals and industrial facilities.

In October 2024, BeNEX, a Germany-based mobility services company, acquired Abellio Deutschland for an undisclosed amount. Through this acquisition, BeNEX sought to enhance its presence in the passenger rail transport sector by broadening its portfolio of regional rail operators and boosting service coverage and operational capacity throughout Germany. Abellio Deutschland is a Germany-based regional rail services provider that focuses on operating passenger rail networks under long-term public transport contracts, including regional rail connections.

Major companies operating in the passenger rail transport market are Central Japan Railway Company, SNCF, Deutsche Bahn, West Japan Railway Company (JR-West), Indian Railways, East Japan Railway Company, MTR Corporation Ltd., Russian Railways, Canadian Pacific Railway Ltd., China Railways, KiwiRail Ltd., PT Kereta Api Indonesia (Persero), Abellio ScotRail, Arriva Rail London, Avanti West Coast, 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, České dráhy, Die Länderbahn, GW Train Regio, Emperor Franz Joseph Railway, Căile Ferate Române, Regiojet, Leo Express, The National Railroad Passenger Corporation (Amtrak), Hudson Bay Railway Co., Companhia do Metropolitano de São Paulo, Perurail, Belmond Andean Explorer, Ferrovías Central Andina, Nuevos Ferrocarriles Argentinos, Trenes Metropolitanos, Brazil Great Southern Railway, Ferrocarril Transandino, 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 SOC Ltd, Union of African Railways, Botswana Railways, Zambia Railways, National Railways of Zimbabwe, Nigerian Railway Corporation.

Asia-Pacific was the largest region in the passenger rail transport market in 2025. Western Europe was the second largest region in the passenger rail transport market. The regions covered in the passenger rail transport market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the passenger rail transport market report are China, India, Japan, Australia, Indonesia, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, Taiwan, New Zealand, UK, Germany, France, Italy, Spain, Austria, Belgium, Denmark, Finland, Ireland, Netherlands, Norway, Portugal, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The passenger 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.

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