Rail Freight Global Market Report 2024

The rail freight market size has grown strongly in recent years. It will grow from $276.39 billion in 2023 to $291.62 billion in 2024 at a compound annual growth rate (CAGR) of 5.5%. The expansion observed in the historical period can be ascribed to the increase in international trade, the economical nature of railway transportation, and the rising emphasis on sustainability in the transportation sector.

The rail freight market size is expected to see strong growth in the next few years. It will grow to $360.65 billion in 2028 at a compound annual growth rate (CAGR) of 5.5%. The anticipated expansion in the forecast period can be linked to governmental backing, the global rise in population and urbanization, the growing prevalence of intermodal transportation, and an upsurge in the development and testing of autonomous trains. Noteworthy trends expected in the forecast period involve the formation of strategic partnerships and acquisitions to enhance financial strength, the implementation of precision scheduled railroading, leveraging artificial intelligence (AI) for precise analysis and real-time transport operations, the introduction of new advanced freight trains to facilitate the development of innovative products with advanced technologies, and the utilization of rail vehicle visibility tools.

The increasing demand for freight services is expected to propel the expansion of the rail freight market in the future. Freight, comprising goods or merchandise transported from one location to another, utilizes various transportation modes, including ships, aircraft, trains, or trucks. Railways are frequently chosen for cargo transportation over long distances due to their efficiency and cost-effectiveness. For example, as per the Association of American Railroads in June 2023, the total volume of freight shipments in the United States is anticipated to increase from around 19.3 billion tons in 2020 to 25.1 billion tons in 2040, marking a 30% growth. Thus, the escalating demand for freight services is a key driver behind the growth of the rail freight market.

To address drawbacks in rail freight transportation such as loss and theft, tracking and tracing systems utilizing GPS and GSM have been implemented by transportation organizations. These systems ensure comprehensive security and monetization of freight, leading to more effective and efficient transportation over short distances for smaller loads. The ViWaS project in Europe has introduced tracking technology equipped with smart telematics systems in rail freight.

Prominent companies in the passenger rail transport market are placing a strong emphasis on technological advancements to maintain their competitive positions. A notable example is the partnership between Nevomo, a Poland-based deep-tech company, and GATX Rail Europe, an Austria-based full-service railcar company, in May 2023. This collaboration aims to introduce a MagRail booster for rail freight. The MagRail booster components present a cost-effective solution for expanding the capacity of railway lines and enhancing efficiency in rail transport. These components can be seamlessly installed on conventional freight wagons supplied by GATX Rail Europe. The MagRail booster facilitates traffic automation and infrastructure electrification, providing increased flexibility, capacity, and improved dynamics. Its unique feature enables single wagons to operate independently, making it particularly suitable for last-mile areas such as cargo terminals and industrial facilities. This initiative showcases the commitment of these companies to leverage advanced technologies for the benefit of rail transportation.

Major companies operating in the rail freight market report are 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, Companhia Paulista de Trens Metropolitanos, SNCF, BNSF Railway, Atlas Logistics, Porr Qatar Construction WLL, Vale, Direct Rail Services, Jenkar Shipping Ltd., SuperVia, 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., Interem Packers & Movers, České dráhy (České Dráhy, A.s.), RFFSA, Botswana Rail (BR), Delhi Cargo & Courier Services, MRS Logistics, Russian Railways, Shiprocket, TransContainer, Om Logistics, Saudi Arabia Railways, Anshika Express Cargo, CSX Corporation, Transnet Freight Rail, Alstom, Traxport , SYSTRA, GB Railfreight, SLR Shipping Services LLC, RAIL1520 Ltd., América Latina Logística, OJSC Altaivagon, Canadian Pacific, VSL Logistics and Freight forwarding solutions, Achievers Logistics Ghana, Accra.

Asia-Pacific was the largest region in the rail freight market in 2023. 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.

The countries covered in the rail freight market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, 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 primary categories within the rail freight market include intermodal, tank wagons, and freight cars. Freight cars are utilized for the transportation of goods, and the various freight types include containerized, liquid, commodities, and others, targeting both domestic and international destinations. Rail freight finds applications across diverse sectors such as the oil and gas industry, mining industry, logistics industry, post-service, and others.

The rail freight market research report is one of a series of new reports that provides rail freight market statistics, including rail freight industry global market size, regional shares, competitors with a rail freight market share, detailed rail freight market segments, market trends and opportunities, and any further data you may need to thrive in the rail freight industry. This rail freight market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

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.