Railway System Market: Global Industry Analysis and Forecast (2024-2030) by Type, Application, System Type, and Region

Global Railway System Market size was valued at USD 48.07 Billion in 2023 and the total Railway System revenue is expected to grow at a CAGR of 4.92% from 2024 to 2030, reaching nearly USD 67.28 Billion.

Rail transportation or the railway system has emerged as a highly reliable mode of transportation in terms of safety, with trains being fast and less affected by adverse weather conditions such as rain or fog, compared to other modes of transport. Rail transport is well-organized with fixed routes and schedules, making its services more certain, uniform, and regular than other modes of transportation. It plays a crucial role in facilitating economic progress by enabling the movement of goods and people. Different adaptations of rail transport, including passenger railways, urban metro railways (underground or overground), and goods carriages, are expected to drive the growth of the railway system market during the forecast period.

Insufficient infrastructure and declining air quality are pressing concerns in major cities, along with challenges such as soaring gasoline prices, traffic congestion, and greenhouse gas (GHG) emissions, which impact urban dwellers. In this context, public transportation offers numerous advantages compared to private vehicles. Urban transit systems help alleviate traffic congestion and are more energy-efficient than other modes of transportation.

The growing trend of urbanization is expected to spur the expansion of rapid transit systems, including metros, light rail, electric multiple units, and diesel multiple units. Many countries, such as India, China, Egypt, and Brazil, are making substantial investments in metro infrastructure to reduce road traffic. These metro systems are equipped with advanced features such as train information systems, train safety systems, and HVAC systems. As a result, the increasing number of metro projects is expected to boost the market for railway systems.

Nevertheless, there are certain constraints and limitations associated with rail transport that could hinder the growth of the railway system market. The high cost of rail transport is one of the major challenges, as it requires substantial capital for construction and maintenance, especially when building an entire rail network. The expenses related to construction, maintenance, and overheads are considerably higher compared to other modes of transportation. Additionally, rail transport is limited to specific tracks and cannot provide door-to-door service, which results in increased costs and time wastage for intermediate loading or unloading, along with additional wear and tear.To know about the Research Methodology :- Request Free Sample Report
Railway System Market Dynamics:
High preference for rail transportation over the other transportation

Railways serve as critical infrastructures and are a primary mode of transportation in many countries, playing a significant role in economic development due to their comparative advantages in serving specific types and volumes of freight. As a result, governments around the world are actively prioritizing the development of railway network infrastructures and implementing favorable initiatives to support their growth, which in turn drives the expansion of the railway system market. Countries with efficient freight railways gain a competitive edge and enjoy broader benefits from well-balanced transport systems that optimize the movement of different types of freight in the most suitable mode.

The economic advantages of freight transport are realized when producers in developing countries can access inputs such as raw materials, intermediate goods, and resources cost-effectively, and transport their final products to markets. Well-managed railway systems provide the necessary potential and services to support heavy industries, facilitating trade, economic specialization, and overall economic growth. In regions such as Central Asia, Eastern Europe, South Asia, Southeast Asia, and Sub-Saharan Africa, which are characterized by clusters of small countries, rail freight can enhance economic integration by enabling access to international and regional markets and connecting landlocked countries.

Policymakers are increasingly recognizing the advantages of freight railways, particularly in terms of safety and environmental impact. Consequently, many countries are now prioritizing rail transport as a critical component of their efforts to reduce emissions and meet sustainable development commitments. In several emerging economies, shifting from road to rail and inland waterways is considered a key strategy to achieve greenhouse gas emission reduction targets as outlined in their Nationally Determined Contributions. This signifies the growing recognition of rail transport as a more sustainable and environmentally-friendly mode of freight transportation.

New platforms and advances in technology in the railway system

The utilization of technologies such as blockchain, big data analytics, robotics, and artificial intelligence in end-to-end logistics is anticipated to significantly impact the roles of carriers and decision-making by shippers. Advanced robotics is enabling manufacturers worldwide to bring back production activities that were previously outsourced to low-cost labor destinations. The digitization of freight logistics is facilitating asset sharing and giving rise to new players in the logistics chain. Many countries are also conducting trials of autonomous rail transportation, utilizing robots with automatic drives that inspect rails, potentially reducing railway maintenance costs and minimizing delays.

Traditionally, issues on railway tracks are addressed only after they occur, often resulting in lengthy disruptions and high costs. However, with the implementation of robots and artificial intelligence, problems can be rapidly detected and addressed before accidents or derailments occur. This not only improves accessibility for travelers and cargo traffic, but also saves costs for society and increases safety for railway maintenance workers. As a result, the increasing adoption of advanced technology in the railway system is expected to present lucrative growth opportunities in the industry.
Railway System Market Segment Analysis:
Based on Application, the passenger transportation segment held the largest market over 60%, and

dominated the global railway system market in 2023. The segment is expected to grow at a CAGR of 5.21% during the forecast period and maintain its dominance by 2030. Passenger transportation has grown rapidly in past few decades and is expected to continue to grow rapidly in the future. Significant factors affecting total demand for transport include increases in demand for transportation associated with increased income of populations across the world. Over 40 age population demanding tours with their friends and family. In addition, the increasing transportation activities for daily up-downs, vocational trips, transportation of goods, etc. are further expected to support the segment growth.

Passenger rail transportation, particularly on small and suburban routes, is seen not only as a business but also as a social function. It is a part of the state program that ensures the public transportation required to satisfy work needs, daily leisure, and tourism communication. As a result, railway transportation is typically subsidized by the state, and its function is critical to the state's economic and social sectors. An appropriately set transport system of passenger transportation encourages residents’ accessibility, allows corporations to disperse the manufacturing divisions rationally, and allows the development of regional economic growth, specialization, etc.

This affects employee productivity and living standards; in other words, a passenger transportation system affects not just the economy but also communities and their members. Thus, the demand for railway systems is expected to increase significantly, thereby driving the railway system market during the forecast period.

The Freight Transportation segment is expected to witness a rapid growth rate during the forecast period. The demand for freight transportation across the world has been rising significantly reflecting growth in the economy and is expected to continue its upward trend. Policymakers and transportation experts have expressed concern about whether the railroads will be able to keep pace with rising demand.

The freight railroad industry plays an important role in the nation’s economy as a mainstay of transportation for many basic industries and, increasingly, for exports and imports that travel by rail to and from the nation’s ports. The demand for freight transportation is derived from the demand for the goods themselves. No intrinsic value, or utility, arises from moving a trainload of coal, grain, or imported goods; rather, the value of the transportation derives from the value of consuming or using the good at its destination.

The demand for freight transportation depends primarily on the overall amount of economic activity; the type of economic activity (for example, the relative amount of goods, which have to be transported, and services, which do not); and the location of economic activity (in particular, the distances between the sources of raw materials, distribution and production facilities, and consumers). As a result, increasing economic imports and exports across the world is expected to drive segment growth. The transportation industries are not passive participants in the market, however. If they can reduce the cost of transportation—by adopting new technologies or finding other ways to increase productivity, for example—they may be able to increase demand for their services.
Railway System Market Regional Insights:
The United States is expected to witness a rapid growth rate in the North American Railway System market during the forecast period. The United States has the largest railway network in the world, followed by China and India. The US railway system is the world’s longest, with over 250,000 km of operational route length. Freight lines account for around 80% of the country's entire rail network, while the whole passenger network extends approximately 35,000 kilometers. The freight rail network in the United States is made up of 538 private railways (seven Class I railroads, 21 regional railroads, and 510 minor railroads). Union Pacific Railroad and BNSF Railway are two of the world's largest freight railway networks. Amtrak's nationwide passenger rail network connects 500 locations throughout 46 US states via more than 30 train lines.

Many decision-makers in the United States support increasing public transportation spending in order to promote more sustainable development and enhanced urban mobility. For the last few years, the US government has been active in the renovation, expansion, and modernization of current transportation systems. To boost rail passenger transportation, the United States railroads are being upgraded with new safety measures, and fresh financing is being made available to finish pending projects, thereby supporting the railway system market growth. As part of the US President's USD 2.3 trillion infrastructure renovation plan, the railway system will be overhauled with the support of USD 80 billion in government funds. The "race" to acquire prospective funding of USD 80 billion for Amtrak and other rail programs has begun. In a paper, Amtrak explains its 15-year strategy called Connect US.

China is expected to offer lucrative growth opportunities for the railway system market players during the forecast period. China's rail network is the world's second-largest, with more than 100,000 kilometers of track. The state-owned China Railway Company operates a large network. In China, rail is the primary form of transportation. The country's rail network includes about 90,000 kilometers of conventional rail lines and over 10,000 kilometers of high-speed lines. By 2050, the country's overall rail network is expected to augment 270,000 kilometers. China's high-speed rail network has grown rapidly in recent years, making it by far the greatest in the world. The 2,298-kilometer Beijing-Guangzhou high-speed line is the world’s longest.

China and its economy are well-suited to long-distance railway traffic, which can transport massive volumes of people and products. China's economy is strongly reliant on coal and coke, metal ores, iron and steel, petroleum products, grain, fertilizers, and other bulk materials that are most cost-effectively carried by rail. Additionally, China has a high population density in settled regions and several big cities. Chinese increasing purchasing power, allowing them to spend more on travel. As a result, some of the world's greatest inter-city passenger flows occur, producing high demand for travel inside major metropolitan areas. As a result, these above-mentioned factors are expected to support the railway system market growth.

Brazil is one of the fastest-growing regions for rolling stock and associated railway system markets. The availability of cheap labor has prompted multiple large businesses to enter Brazil's industrial industry. The country's railroads run on a wide, meter, standard, and dual gauges, with network lengths of 4,932 km, 23,773 km, 202.4 km, and 396 km, respectively. According to the Brazilian Association of the Railway Industry's (ABIFER) September 2021 "Rail Month" report, the country's rail sector investments totaled more than USD 16.56 billion (BRL 91.972 billion).

Throughout the month, the federal government made a concentrated effort through the Ministry of Transportation to encourage private investments in the development of the railway network and to promote train travel from north to south. The federal government made a concerted effort during the month to attract financial investors in the augmentation of the railway network and promote train travel from north to south through the Ministry of Infrastructure (MINFRA).
Railway System Market Scope: Inquiry Before Buying



Railway System Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
USD 48.07 Billion


Forecast Period 2024 to 2030 CAGR:
4.92%
Market Size in 2030:
USD 67.28 Billion


 Segments Covered:
by Type
Locomotive
Metros
Monorails
Trams
Freight Wagons
Passenger Coaches
Others


by Application
Passenger Transportation
Freight Transportation


by System Type
Auxiliary Power System
HVAC
Propulsion System
Onboard Vehicle Control
Train Information System
Train Safety System



Railway System Market by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Railway System Market Key Players:
1. CRRC (China)
2. Alstom (France)
3. Siemens (Germany)
4. Hyundai Rotem (South Korea)
5. Thermo King (US)
6. Knorr Bremse (Germany)
7. Hitachi (Japan)
8. Toshiba (Japan)
9. STADLER RAIL AG (Switzerland)
10. TRANSMASHHOLDING (Russia)
11. Wabtec Corporation (US)
12. ABB Ltd. (Switzerland)
13. American Equipment Company (US)
14. Bombardier Inc. (US)
15. Calamp Corporation (US)
16. Construcciones Y Auxiliar de Ferrocarriles, (Spain)
17. Fuji Electric (US)
18. General Electric Company (US)
19. Hyundai Rotem Company (South Korea)
20. Ingeteam Power Technology (Spain)
21. Medcom (US)
22. Mitsubishi Heavy Industries Ltd. (Japan)
23. Škoda Transportation (Europe)
24. Strukton Groep N.V (The Netherlands)
25. Others

FAQs:

1. What are the growth drivers for the Railway System market?
Ans. The increasing prevalence of chronic pain diseases such as arthritis, cancer, and fibromyalgia, is expected to be the major driver for the Railway System market.

2. What is the major restraint for the Railway System market growth?
Ans. Stringent government regulations are expected to be the major restraining factor for the Railway System market growth.

3. Which region is expected to lead the global Railway System market during the forecast period?
Ans. North America is expected to lead the global Railway System market during the forecast period.

4. What is the projected market size & growth rate of the Railway System Market?
Ans. The Global Railway System Market size was valued at USD 48.07 Billion in 2023 and the total Railway System revenue is expected to grow at a CAGR of 4.92% from 2024 to 2030, reaching nearly USD 67.28 Billion.

5. What segments are covered in the Railway System Market report?
Ans. The segments covered in the Railway System market report are Type, Applications, System Type, and Region.