The global Railroad Ties market is expected to witness a market value of US$ 7.2 Billion in 2023 and is expected to accumulate a market value of US$ 9.6 Billion by registering a CAGR of 3.0% in the forecast period 2023 to 2033.
The Railroad Ties market registered a CAGR of 2.1% in the historical period 2018 to 2022. Factors such as increasing demand for the concrete tie-in train application, and the rising subway networks in well-established countries are expected to boost the market growth over the analysis period.
As per Future Market Insights - a market research and competitive intelligence provider, the global market value for Railroad Ties has flourished. Rapid urbanization is fueling public transportation, particularly in emerging economies. This trend is expected to increase the demand for railroad ties as more urban rail transit systems are constructed.
The lifespan of traditional wood railroad ties is around 30 years, after which they need to be replaced. As rail infrastructure around the world ages, the demand for replacement railroad ties is expected to grow. This is one of the major factors that is expected to accelerate the growth of the railroad ties market during the forecast period.
Additionally, the market is anticipated to fuel, owing to the factors such as the increasing focus on sustainability. The railway industry is increasingly focused on sustainability and reducing its carbon footprint. The use of eco-friendly materials such as composite railroad ties is expected to increase in the coming years, further driving growth in the market.
Other factors such as the growing demand for freight transportation are projected to augment the sales of railroad ties in the forthcoming years. As e-commerce and international trade continue to expand, the demand for freight transportation is increasing. Rail transportation is a cost-effective and eco-friendly option for moving goods over long distances, which is expected to boost the demand for railroad ties.
Furthermore, the traditional railroad ties were made of wood, which is susceptible to rot, insect infestation, and warping. However, newer materials such as concrete, steel, and composite materials have emerged as more durable and low-maintenance alternatives. The adoption of these materials is expected to escalate the market growth in the near future.
Besides, governments across the globe are investing heavily in railway infrastructure to improve transportation efficiency and reduce carbon emissions. The revenue share for railroad ties is expected to grow as more rail tracks are laid and existing tracks are replaced or upgraded.
On the regional end, the Railroad Ties market in North America is expected to account for the maximum share during the analysis period, owing to the factors such as the adoption of materials such as concrete and composites, as well as the need to replace aging rail infrastructure in the region.
The United States is the largest market for railroad ties in North America, accounting for a significant share of the market. The country has a vast railway network, with over 140,000 miles of track, which requires a substantial number of railroad ties for maintenance and replacement.
Moreover, Canada is also a significant market for railroad ties, with a well-established railway network that spans the country. The Canadian government has recently announced plans to invest in railway infrastructure, which is expected to stimulate the demand for railroad ties in the coming years.
Recent developments in technology, mergers, and acquisitions, and partnerships within the companies involved in the designing of Railroad Ties are expected to create lucrative opportunities for Railroad Ties market growth over the analysis period.
For instance, L.B. Foster, in October 2021, narrowed its focus on more profitable business area of rail technologies as well as precast concrete products, and sold the assets if its steel piling products business, including all inventory associated with the line of business, to J.D. Fields & Co.
| Data Points | Key Statistics |
|---|---|
| Expected Market Value in 2023 | US$ 7.2 Billion |
| Projected Market Value in 2033 | US$ 9.6 Billion |
| Growth Rate (2023 to 2033) | 3.0% CAGR |
Railroad Ties offer support for the rails on the track and are typically rectangular in shape.
Although traditionally made of wood, concrete ties are increasingly being used in railway networks, especially in Asia and Europe. In the United Kingdom, steel ties are commonly used on secondary lines. Plastic composite ties are also used, though in far fewer quantities than wood or concrete ties.
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The increasing investments made in the expansion of the railway network and coverage across the globe are expected to spur the sales of railroad ties. Implementation of modern technologies in developing new and advanced ties is expected to aid in the growth of the industry.
Developing countries have made significant investments in the introduction of subway networks which could act as a growth driver and aid in the development of railway ties. The railway is often considered a more economical means of travel when compared to airways, and thus the increasing inclination towards railway for traveling or commuting is anticipated to boost the demand during the forecast period.
Apart from this, the increasing uptake of ties made from sustainable materials is further projected to bolster the growth of the industry during the forecast period. These changing market dynamics are anticipated to spur sales in the coming years.
Concrete ties are typically comprised of sand, gravel, and cement, which gives them considerable weight and allows them to stay in place for a prolonged period of time. When compared to wooden ties, it is easier to manufacture and require less maintenance. The Railroad Ties market is predicted to expand due to increased demand for concrete ties in railway applications.
In addition, the concrete tie has advantages such as a longer lifespan, high durability, less damage rate, and minimal maintenance requirements. It is also resistant to moisture and harsh weather conditions. These factors have contributed to an increase in demand for concrete ties, which is expected to drive the expansion of the market.
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North America is projected to lead the market in terms of Railroad Ties market share during the forecast period due to the well-established railway network and infrastructure spanning the USA and Canada. Furthermore, the expansion of the regional market will be aided by the efficient operation of the subway network in North America.
A rise in demand for concrete ties has been witnessed in the region owing to its numerous benefits. Owing to these features, North America is predicted to maintain a healthy share of the market during the forecast period.
Steel rail ties are predicted to be the key growth driver for the regional market in Europe. Germany is one of the leading countries in Europe and is expected to hold lucrative growth opportunities in the coming years.
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The Railroad Ties market in Asia Pacific is expected to be propelled by the implementation of subway networks, growth of railway infrastructure, and the increased acceptance of new railroad technologies. India is considered to hold a prominent position in terms of market share in the South Asia & Pacific region from 2021 to 2031.
Some of the key market players are:
The acquisition of other market players and competitors allows significant players to strengthen their market position. These acquisitions enable acquiring firms to broaden their product portfolios while also gaining access to the infrastructures, technology, distribution networks and R&D facilities of the acquired firm.
Many leading manufacturers and suppliers are focusing on expanding their business through collaborations and acquisitions. Manufacturers are investing in product development in order to bolster the demand and improve sales.
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments.
The report also maps the qualitative impact of various market factors on market segments and geographies.
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Railroad Ties Market
