Rail Freight Market Report 2026

The rail freight market size has grown strongly in recent years. It will grow from $285.25 billion in 2025 to $300.4 billion in 2026 at a compound annual growth rate (CAGR) of 5.3%. The growth in the historic period can be attributed to expansion of industrial production activities, growth in mining and energy sectors, development of national rail freight corridors, increasing use of rail for bulk transport, availability of large-capacity freight wagons.

The rail freight market size is expected to see strong growth in the next few years. It will grow to $377.49 billion in 2030 at a compound annual growth rate (CAGR) of 5.9%. The growth in the forecast period can be attributed to increasing investments in rail freight electrification, rising focus on low-carbon logistics, expansion of cross-border rail trade routes, growing integration of smart freight tracking systems, increasing demand for cost-efficient long-haul transport. Major trends in the forecast period include expansion of intermodal freight transport, rising demand for bulk commodity rail movement, growing adoption of digital rail freight management, increased focus on fuel-efficient logistics, modernization of freight wagon fleets.

The rising demand for rail transportation is expected to drive the growth of the rail freight market in the future. Rail transportation involves the movement of passengers or goods using rail systems, and rail freight plays a crucial role in the efficient and reliable transportation of goods by ensuring safe handling and optimal cargo performance. For example, in June 2024, the Office of Rail and Road, a UK government department, reported that between April 2023 and March 2024, freight movement in Great Britain reached 15.76 billion net tonne kilometers, reflecting a slight increase from the previous year's 15.73 billion net tonne kilometers. Therefore, the increasing demand for rail transportation is propelling the rail freight market.

Major companies operating in the rail freight market are focusing on adopting high power electric traction technology to improve hauling capacity, energy efficiency, and sustainability of freight operations. High power electric traction refers to sophisticated electric locomotive systems that provide substantially higher horsepower and tractive effort compared to conventional freight locomotives, enabling functions such as pulling longer and heavier trains, lowering energy consumption through regenerative braking, and facilitating predictive maintenance and operational optimization. For example, in May 2025, Indian Railways, an India-based government-owned rail transport operator, introduced the first 9000 HP electric freight locomotive at its Dahod facility in Gujarat. This high power electric traction solution is designed to enhance freight transport efficiency and expand network capacity on dedicated freight and mixed corridors, offering high tractive effort, a top speed of up to 120 km/h, and integration with advanced systems like Siemens’ Railigent X for predictive maintenance and the Kavach safety system. The 9000 HP electric freight locomotive increases hauling efficiency, lowers logistics costs, and promotes decarbonization in the rail freight sector.

In December 2023, TX Logistik AG, a Germany-based provider of rail freight transportation services and logistics solutions, acquired Exploris Deutschland Holding GmbH for an undisclosed amount. Through this acquisition, TX Logistik broadened its European rail freight network and reinforced its competitive position by becoming the second-largest freight operator in Germany while improving its east-west and north-south corridor services across multiple countries. Exploris Deutschland Holding GmbH is a Germany-based rail freight company specializing in rail freight transportation services.

Major companies operating in the rail freight market are Berkshire Hathaway Inc., China Railway Corporation, Canadian National Railway, Union Pacific Corporation, Norfolk Southern Corporation, DB Cargo UK, Japan Freight Railway Company (JR Freight), Etihad Rail DB, Kansas City Southern, SNCF, BNSF Railway, Vale, Direct Rail Services, Quebec North Shore and Labrador Railway (QNS&L), Deutsche Bahn AG, Freightliner, Indian Railways, VLI Logística, Rumo, České dráhy, Botswana Rail (BR), Russian Railways, TransContainer, Saudi Arabia Railways, CSX Corporation, Transnet Freight Rail, Traxport, GB Railfreight, RAIL1520 Ltd., América Latina Logística, Canadian Pacific.

Asia-Pacific was the largest region in the rail freight market in 2025. North America was the second largest region in the rail freight market. The regions covered in the rail freight market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the rail freight 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 rail freight market includes revenues earned by entities by transporting bulk goods from one place to another using trains. 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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