In 2024, the gross revenue of the world's railroad market is expected to be valued at USD 311,628.9 million.
A comprehensive analysis of the rail transit market projects that the railroad investment could increase at an annual growth rate of 5% from 2024 to 2034. The analysis report also gets to the bottom of underlying determinants for market growth in discussion until 2034, when it is expected to reach USD 507,610.6 million.
| Report Attribute | Details |
|---|---|
| Railroad Market Revenue (2024) | USD 311,628.9 million |
| Market Anticipated Forecast Value (2034) | USD 507,610.6 million |
| Market Projected Growth Rate (2024 to 2034) | 5% |
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According to the earlier assessment of railroad industry demand, sales of railroad components worldwide generated a revenue of around USD 243,947.6 million in 2019.
During the subsequent five years, the global sales of the railroad market progressed at an average 4.8% growth rate per year. By 2023 end, the global railroad industry was figured to have realized an annual revenue of USD 294,267.1 million.
| Attributes | Details |
|---|---|
| Railroad Market Size (2019) | USD 243,947.6 million |
| Market Size (2023) | USD 294,267.1 million |
| Market (CAGR 2019 to 2023) | 4.8% |
Since traffic and road congestion emerged as persistent problems in the last decade, many countries chose to move products by train, instigating a higher demand for railroad track construction. Moreover, a rise in the e-commerce sector also raised the need for dependable and effective freight transportation infrastructure during this period.
Though the sector experienced a brief period of downturn during the years 2020 and 2021, it regained its market potential in 2022 and 2023.
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The railroad sector is expected to expand further as sustainability and environmentally friendly transportation options become essential. So, higher investments in the railway sector by public and private entities are expected to support the expansion of the railroad equipment sector over the forecast years.
In an increasingly urbanized world, underground railways or tube trains have become an indispensable mode of transportation for many countries. So, many established railroad equipment suppliers have evolved in the last few years to cater to the growing demand for railroads in the subway sector.
The advent of high-speed rails or bullet trains has increased the appeal of train travel for long-distance passengers as well as commercial enterprises. In the coming days, the growing popularity of bullet trains in emerging economies is expected to boost rail infrastructure development.
The table below lists the countries which are expected to witness a noteworthy growth rate in the railroad market. China and the United States are expected to grow on the back of increased export demand for railroad equipment. Meanwhile, domestic demand for railroad infrastructure is expected to drive the markets in India and Australia.
| Regional Market Comparison | CAGR (2024 to 2034) |
|---|---|
| United States | 2.8% |
| Australia | 4.5% |
| China | 6.8% |
| India | 7.3% |
As per the global railway industry growth forecast, the market in the United States is projected to grow at 2.8% through 2034.
The railroad industry in the United States is seeing an increased investment by private market participants. For instance, Union Pacific Railroad Corporation provides a vital link in the global supply chain by building train connections between 23 states in the western part. Union Pacific supported America's rail transportation infrastructure by investing almost USD 34 billion in its network and operations between 2013 and 2022.
Australia has emerged as a promising market for railroad equipment manufacturers, and it is anticipated to experience a year-on-year growth rate of 4.5% till 2034.
Currently, the expansion and modernization of rail networks to improve the connection, capacity, and efficiency of train transportation services is driving the sales of railroad equipment in the domestic market. However, new policies to enhance the connectivity of hinterlands with coastal towns are more than likely to drive this growth trend during the projected years.
The railroad sector in China is projected to register an impressive 6.8% growth rate per year over the next ten years.
China has started financing for rail projects in its neighboring countries because it understands how important railroads are for its Belt and Road (BRO) initiative. Moreover, it is hoped that the expansion of the railway network beyond China's borders could create enough business opportunities for railroad companies in many Asian countries.
According to the market predictions, the demand for the railroad market in India is projected to rise at a robust 7.3% CAGR through 2034.
The revival of the Indian railroad industry in recent years can be attributed to increased investments by the federal government to beef up national train logistics. The regional market is experiencing some lucrative growth opportunities with the construction of new rail lines, the extension of current networks, and advancements in rail technology.
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In 2024, the passenger rail segment is estimated to account for 56.7% of the worldwide revenue from sales of railroad equipment.
| Attributes | Details |
|---|---|
| Top Type | Passenger Rail |
| Market Share in 2024 | 56.7% |
The rail transit market is witnessing a significant shift from the freight or logistic sector to the passenger or tourism sector these days. Additionally, the expansion of passenger railroad networks after the introduction of metros and bullet trains is expected to boost the demand in this segment.
As per our industry sales analysis, the agriculture sector is anticipated to be the leading end user with a 33.8% market share in 2024.
| Attributes | Details |
|---|---|
| Top End User | Agriculture |
| Market Share in 2024 | 33.8% |
According to many governments, the railroad network is a cornerstone of their economy, as it helps to transport agricultural produce in bulk through freight rail corridors. Over the coming years, the contribution of the agriculture vertical is anticipated to expand further, particularly in the Asian and African countries.
The greater share of the railroad project supplies is typically entrusted to a very few renowned railroad manufacturers, which consolidates the overall market.
New market participants can establish their positions in the global railroad market by releasing innovative products tailored to specific railway tracks and by maintaining product differentiation.
Recent Developments in the Global Railroad Market
In November 2023, BNSF Railway and J.B. Hunt Transport Services Incorporate launched a groundbreaking intermodal service, Quantum, together. Quantum offers the dependability, flexibility, and quickness required for rail-based transit requirements during service-sensitive highway freight transportation. BNSF, the leading intermodal rail provider in North America, aims to meet the needs of customer supply chains through this development.
Hitachi Rail introduced four new products and services in September 2021 as part of its commitment to expand its rail business in North America. The company developed a processor which combines fundamental train control capabilities with next-generation communications, monitoring, and analytics. This new product, ViPro, has been designed to be used for railroad signaling and PTC applications.
| Attribute | Details |
|---|---|
| Estimated Market Size (2024) | USD 311,628.9 million |
| Projected Market Size (2034) | USD 507,610.6 million |
| Anticipated Growth Rate (2024 to 2034) | 5% |
| Forecast Period | 2024 to 2034 |
| Historical Data Available for | 2019 to 2023 |
| Market Analysis | USD million or billion for Value and Units for Volume |
| Key Regions Covered | North America; Latin America; Europe; Middle East & Africa (MEA); East Asia; South Asia and Oceania |
| Key Countries Covered | United States, Canada, Brazil, Mexico, Germany, Spain, Italy, France, United Kingdom, Russia, China, India, Australia & New Zealand, GCC Countries, and South Africa |
| Key Segments Covered | By Type, By End Use, and By Region |
| Key Companies Profiled | Central Japan Railway Company; SNCF Group; Union Pacific Corporation; OAO RZD (Russian Railways); BNSF Railway; Indian Railways; Deutsche Bahn; JSC Russian Railways; CSX Corporation; Siemens Group Ltd.; Wabtec Corporation; The Greenbrier Companies; Progressive Rail Locomotive; Trinity Industries; ALSTOM; Bombardier Inc.; CRRC Corporation; Mitsubishi Electric Corporation; Hitachi Rail STS, Ltd |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The global railroad market is to grow at 5% during the forecast period.
The global railroad market is predicted to be valued at USD 507,610.6 million by 2034.
The global railroad market was valued at USD 294,267.1 million in 2023.
SNCF, ALSTOM, and Hitachi are a few leading players in the global market.
India is likely to witness a CAGR of 7.3% through 2034.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2019 to 2023 and Forecast, 2024 to 2034 5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Type 5.1. Rail Freight 5.2. Passenger Rail 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End-use 6.1. Mining 6.2. Construction 6.3. Agriculture 6.4. Others 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 7.1. North America 7.2. Latin America 7.3. Western Europe 7.4. Eastern Europe 7.5. South Asia and Pacific 7.6. East Asia 7.7. Middle East and Africa 8. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 9. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 10. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 11. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 12. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 13. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 14. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Central Japan Railway Company 17.2. SNCF Group 17.3. Union Pacific Corporation 17.4. OAO RZD (Russian Railways) 17.5. BNSF Railway 17.6. Indian Railways 17.7. Deutsche Bahn 17.8. JSC Russian Railways 17.9. CSX Corporation 17.10. SBB Cargo 18. Assumptions & Acronyms Used 19. Research Methodology
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