Europe & CIS Rail Freight Transportation Market, By Country, Competition, Forecast & Opportunities, 2020-2030F

The Europe & CIS Rail Freight Transportation Market was valued at USD 8.55 Billion in 2024, and is expected to reach USD 9.79 Billion by 2030, rising at a CAGR of 2.28%. The Europe & CIS rail freight transportation market is experiencing a phase of modernization fueled by shifts in supply chain strategies and growing emphasis on sustainable logistics. Growth drivers include the rising demand for bulk commodity transport, increasing fuel cost efficiency of rail over road, and expansion of integrated logistics hubs supporting seamless cargo transfers across modes. The market is witnessing a surge in demand for freight corridors capable of handling higher volumes and faster turnaround, driven by the evolving needs of industrial and manufacturing sectors.

Market Drivers

Modernization of Railway Infrastructure

The modernization of railway infrastructure is a key driver for the growth of rail freight transportation, enhancing efficiency, capacity, and reliability across logistics networks. Upgraded tracks, advanced signaling systems, and electrification projects are transforming traditional rail corridors into high-performance freight routes. Investments in modern infrastructure allow for higher axle loads, faster transit times, and reduced maintenance disruptions, making rail a more attractive option for shippers.

Enhanced terminals with digital coordination tools and automated handling equipment are improving intermodal connectivity and reducing cargo dwell times. Modernization efforts also contribute to improved safety, lower energy consumption, and better integration with smart mobility systems. These upgrades are often supported by national and regional funding programs, recognizing rail's strategic importance in reducing congestion and supporting economic growth. For instance, Poland is investing USD 2.8 billion from the EU Recovery Fund to modernize key railway corridors, focusing on track upgrades, electrification, and signaling to boost freight capacity, speed, and reliability.

Key Market Challenges

Infrastructure Modernization and Capacity Constraints

A significant challenge in rail freight transportation is the limited capacity and aging infrastructure that hampers service expansion and operational efficiency. Many rail networks continue to rely on outdated tracks, signaling systems, and rolling stock, which leads to frequent delays, speed limitations, and higher maintenance costs. As cargo volumes grow and demand shifts toward time-sensitive deliveries, existing infrastructure often struggles to accommodate heavier and faster trains.

This bottleneck limits the frequency and flexibility of freight movement, reducing the attractiveness of rail compared to other modes. Investment in double-tracking, electrification, bridge strengthening, and terminal automation is necessary to enhance capacity, but such upgrades are capital-intensive and time-consuming. Network congestion in key freight corridors further disrupts schedules, creating inefficiencies for shippers and logistics providers. Balancing freight and passenger traffic on shared lines adds complexity, especially during peak hours or in densely trafficked zones.

Key Market Trends

Integration of Rail into Intermodal Logistics

Rail freight is increasingly becoming a central component of intermodal transportation strategies, offering a cost-effective and sustainable middle segment for long-distance cargo movement. Shippers and logistics providers are adopting rail as part of a multimodal approach where goods are moved seamlessly between ships, trucks, and trains. This integration enhances delivery speed and efficiency while reducing reliance on long-haul trucking, which often faces challenges like driver shortages, fuel costs, and congestion.

Intermodal terminals equipped with modern cargo handling equipment and digital coordination tools are streamlining the transfer process between modes. The flexibility of combining rail with road or maritime transport enables better routing, higher capacity utilization, and more responsive supply chain management. This trend is also supported by smart tracking technologies that provide end-to-end cargo visibility, ensuring better planning and risk mitigation. The intermodal model is especially attractive for containerized goods, perishable items, and time-sensitive industrial cargo.

Key Market Players

DB Cargo
SNCF Group
Rail Cargo Group
PKP Cargo
TX Logistik AG
SBB Cargo International
Green Cargo
ČD Cargo
Freightliner Group Ltd
ZSSK CARGO

Report Scope:

In this report, the Europe & CIS Rail Freight Transportation Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Europe & CIS Rail Freight Transportation Market, By Freight Category:

Unit Trains
Carload Freight
Intermodal Freight

Europe & CIS Rail Freight Transportation Market, By Transport Area:

International Transport
National Transport