How big is the rail logistics market today, and what are its future growth expectations?
The rail logistics market size has grown steadily in recent years. It will grow from $256.85 billion in 2024 to $267.61 billion in 2025 at a compound annual growth rate (CAGR) of 4.2%. The growth in the historic period can be attributed to low cost of transportation and modal shift, environmental responsibility, infrastructure developments, restrictions associated with cross-border freight transport.
The rail logistics market size is expected to see steady growth in the next few years. It will grow to $299.41 billion in 2029 at a compound annual growth rate (CAGR) of 2.8%. The growth in the forecast period can be attributed to surge in development and testing of autonomous trains, demand for freight wagons, availability of custom-made and technologically advanced wagons, upsurge in budget allocation, and growth of e-commerce and online retail. Major trends in the forecast period include integration of artificial intelligence and machine learning, development of high-speed rail, emergence of smart railways, expansion of rail logistics services in emerging economies, and growth of intermodal transportation.
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What are the top drivers to the rising demand in the rail logistics market?
A rise in global trade is expected to propel the growth of the rail logistics market going forward. Global trade, or international trade, refers to exchanging goods and services across international borders. Global trade is rising due to several factors. The rise in global trade is propelled by increasing globalization, driving demand for efficient cross-border transportation services. The increasing volume of commodities being moved internationally has made the demand for effective and affordable transportation methods even more pressing. For instance, in February 2024, according to the Bureau of Economic Analysis, a US-based government agency that provides official macroeconomic and industry statistics, exports of goods and services increased by $35.0 billion, or 1.2%, in 2023 to $3,053.5 billion as compared to 2022. Therefore, a rise in global trade is expected to propel the growth of the rail logistics market.
How is the rail logistics market segmented?
The rail logistics market covered in this report is segmented –
1) By Type: Intermodals, Tank Wagons, Freight Cars
2) By Operational Area: Domestic, International
3) By End User: Automotive, Manufacturing, Telecommunication, Retail, Technology
Subsegments:
1) By Intermodals: Container On Flat Car (COFC), Trailer On Flat Car (TOFC), Double Stack Containers
2) By Tank Wagons: Chemical Tankers, Food And Beverage Tankers, Oil And Gas Tankers, Agricultural Product Tankers
3) By Freight Cars: Boxcars, Flatcars, Hopper Cars, Gondola Cars, Refrigerated Cars
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Who are the top competitors in the rail logistics market?
Major companies operating in the rail logistics market are Meta Platforms Inc., United Parcel Service Inc., FedEx Corporation, Mærsk A/S, Deutsche Bahn AG, Schenker Deutschland AG, Deutsche Bahn International Operations GmbH, Kuehne Nagel International AG, Union Pacific Corp., C.H. Robinson Worldwide Inc., Canadian National Railway Co., Nippon Express Holdings Inc., CEVA Logistics Inc., Geodis SA, Gebrüder Weiss GmbH, Trinity Industries Inc., Japan Freight Railway Co., Brookfield Business Partners LP, SBB Cargo International AG, VTG AG, Russian Railways OJSC, BLR Logistiks Ltd., Tschudi Logistics Holding AS, GeoMetrix Rail Logistics Inc., CTL Logistics Sp. z o.o, Rail Cargo Group, Interport Global Logistics Private Limited, Dan Transport Group A/S
What significant trends should we anticipate in the rail logistics market over the forecast period?
Major companies operating in the rail logistics market are developing innovative technology, such as the multipurpose digital experience center, to serve customers better in this market. The digital experience center is a hub for developing and executing cutting-edge signaling solutions across urban, mainline, and freight operations. For instance, in December 2023, Alstom SA, a France-based manufacturing company, launched the technologically advanced digital experience center. The center’s programs are designed to improve rail logistics efficiency, and the purpose is to implement integrated cybersecurity, end-to-end project testing, urban, mainline, freight, and mining projects, as well as to develop innovations in remote system monitoring and troubleshooting. Additionally, the center’s design can support over 7 million hours of engineering work for projects.
Which regional trends are influencing the rail logistics market, and which area dominates the industry?
Asia-Pacific was the largest region in the rail logistics market in 2024. The regions covered in the rail logistics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
What Does The Rail Logistics Market Report 2025 Offer?
The rail logistics market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.
Rail logistics refers to the planning, coordinating, and executing transportation activities involving the movement of goods via rail networks. It encompasses a wide range of activities, including the scheduling of train services, the management of freight operations, the tracking of shipments, and the optimization of routes and resources.
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