Rail freight refers to a mode of transportation that provides the carriage of goods from a point of loading, or goods station, to a point of unloading, as well as a station capable of handling the loading and unloading of the goods carried that are generally heavy in bulk and of low value in their bulk and that offer fuel efficiency and certain solutions for the movement of goods compared to other methods.
The main types in the rail freight market are intermodal, tank wagons, and freight cars. Freight cars are used to transport and carry goods. The freight types include containerized, liquid, commodities, and others for the destinations including domestic, and international. Rail freight is used by various applications including oil and gas, mining industry, logistics industry, post-service, and others.
The rail freight market covered in this report is segmented –
1) By Type: Intermodals, Tank Wagons, Freight Cars
2) By Freight Type: Containerized, Liquid, Commodities, Other Freight Types
3) By Destination: Domestic, International
4) By Application: Oil And Gas, Mining Industry, Logistics Industry, Post Service, Other Applications
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 growth in the historic period can be attributed to growth in international trade, low cost of railway transportation, and growing sustainability in transportation.
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 growth in the forecast period can be attributed to government support, global population growth and urbanization, increasing growth of intermodal transportation, and a surge in development and testing of autonomous trains. Major trends in the forecast period include strategic partnerships and acquisitions to improve financial strength, implementing precision scheduled railroading, using artificial intelligence (AI) to provide accurate analysis and real time transport operations, launching new advanced freight trains to aid in development of new and advanced products with advanced technologies, and using rail vehicle visibility tools.
The growing need for freight services is expected to propel the growth of the rail freight market going forward. Freight encompasses items or merchandise moved from one location to another, employing various modes of transportation like ships, aircraft, trains, or trucks. Railways are a frequently chosen method for transporting cargo over extended distances due to their efficiency and economical nature. For instance, in June 2023, according to the Association of American Railroads, a US-based trade association, the total volume of freight shipments in the United States is projected to grow from approximately 19.3 billion tons in 2020 to 25.1 billion tons in 2040, reflecting a 30% increase. Therefore, the growing need for freight services is driving the growth of the rail freight market.
The increasing demand for rail transportation is expected to propel the growth of the rail freight market going forward. Rail transportation refers to the movement of passengers or goods using rail systems. Rail freight contribute to the efficient and reliable transportation of goods by ensuring safe handling and optimal cargo performance throughout rail transportation. For instance, in November 2022, according to Eurostat, a UK-based government agency, rail freight transport in the European Union (EU) experienced significant growth of 8.7% compared to 2020. Furthermore, according to the Federal Highway Administration, a US-based department of transportation specializing in highway transportation, there will be a 30% increase in overall freight movements in the United States from roughly 19.3 billion tons in 2020 to 25.1 billion tons in 2040. Therefore, increasing demand for rail transportation drives the rail freight market.
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, Ceské dráhy (Ceské 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
Major companies operating in the rail freight market are innovating new hybrid train, to increase their profitability in the market. The hybrid train is an electric-diesel-battery regional train equipped with two energy storage systems that offer reduced energy consumption and greenhouse gas emissions. For instance, in February 2022, Alstom, a France-based rolling stock manufacturer, along with SNCF Voyageurs, launched the first French hybrid train for the Occitanie, Grand-Est, Nouvelle-Aquitaine, and Centre-Val-de-Loire regions. This train marks France's inaugural hybridization effort for a Régiolis train. The initiative, initiated in 2018 through collaboration between SNCF Group and Alstom, received financial backing and support from the Occitanie, Grand-Est, Nouvelle-Aquitaine, and Centre-Val-de-Loire Regions. The project's overarching goal is to play a part in reducing the carbon footprint of the regional train fleet.
Tracking and tracing systems of rail freight using GPS and GSM help transportation organizations overcome rail freight transportation drawbacks such as loss and theft. It provides full-fledged security and monetarization of freight and more effective and efficient freight transportation over short distances for smaller loads. The ViWaS project, equipped with smart telematics systems in Europe, has introduced tracking technology in rail freight.
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 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.
The rail freight market research report is one of a series of new reports from The Business Research Company 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.
Rail Freight Market Report Scope
Report AttributeDetails Market Size Value In 2024$291.62 billion
Revenue Forecast In 2033$360.65 billion
Growth RateCAGR of 5.5% from 2024 to 2033
Base Year For Estimation2023
Actual Estimates/Historical Data2018-2023
Forecast Period2024 - 2028 - 2033
Market RepresentationRevenue in USD Billion and CAGR from 2024 to 2033
Segments Covered1) By Type: Intermodals, Tank Wagons, Freight Cars
2) By Freight Type: Containerized, Liquid, Commodities, Other Freight Types
3) By Destination: Domestic, International
4) By Application: Oil And Gas, Mining Industry, Logistics Industry, Post Service, Other Applications
Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Country ScopeAustralia; 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
Key Companies ProfiledBerkshire 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; Ceské dráhy (Ceské 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
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