Global Rail Freight Transportation Market to Reach $205.3 Billion by 2026

Rail freight transport holds a critical significance in supporting economic performance of a country due to its paramount role in ensuring seamless and efficient flow of goods locally and across borders. Growth in the market is being driven by rising freight volumes, infrastructure development and adoption of sophisticated technology. The market growth is fueled by technological advances and efforts by various countries such as China to boost rail freight volumes to curb pollution. While road transportation accounts for over half of transport volumes in several countries, increasing traffic, emissions and cost are driving governments to opt for rail freight transport. The global rail freight transport market is gaining from increasing rail transport between Europe and China. Around 59 cities in China holds rail freight links with nearly 49 cities across Europe. Implementation of new technologies, developing infrastructure and other such factors are main reasons for the market growth of rail freight.

Amid the COVID-19 crisis, the global market for Rail Freight Transportation estimated at US$159.3 Billion in the year 2020, is projected to reach a revised size of US$205.3 Billion by 2026, growing at a CAGR of 4.3% over the analysis period. Intermodals, one of the segments analyzed in the report, is projected to grow at a 3.7% CAGR to reach US$96 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Freight Cars segment is readjusted to a revised 4.5% CAGR for the next 7-year period. This segment currently accounts for a 23% share of the global Rail Freight Transportation market. Connecting different transport modes to the rail transport system, the intermodal segment is gaining from various trends including globalization, growing domestic intermodal transport, increasing focus on containerization and surge in international transportation. Several companies are equipping freight cars with electronic data interchange with barcodes for offering near real-time response to clients. The technology is anticipated to help companies in exchanging status and orders with their clients and suppliers. These intelligent systems allow companies to reduce inventory and ensure faster replenishment of stocks.

The U.S. Market is Estimated at $56 Billion in 2021, While China is Forecast to Reach $35.4 Billion by 2026

The Rail Freight Transportation market in the U.S. is estimated at US$56 Billion in the year 2021. The country currently accounts for a 34.4% share in the global market. China, the world`s second largest economy, is forecast to reach an estimated market size of US$35.4 Billion in the year 2026 trailing a CAGR of 5.5% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 2.8% and 4.1% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.3% CAGR while Rest of European market (as defined in the study) will reach US$35.5 Billion by the end of the analysis period. North America commands the global rail freight transport market owing to its extensive network of railways spanning over 200,000 miles. The regional market receives a strong contribution from the US that transports a significant volume of goods per year. Asia-Pacific market for rail freight transport is slated to be driven by incorporation of smart systems and technology in freight cars. Emerging economies are eyeing on major investments in rail freight transport to help the transportation mode in scaling new heights by overcoming challenges presented by changes in logistics industry.

Tank Wagons Segment to Reach $65.3 Billion by 2026

In the global Tank Wagons segment, USA, Canada, Japan, China and Europe will drive the 4.6% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$33.8 Billion in the year 2020 will reach a projected size of US$46.7 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$9.2 Billion by the year 2026, while Latin America will expand at a 5.7% CAGR through the analysis period.