The global rail transport market has rebounded strongly in 2021 after a significant decline in 2020 due to the effects of Covid. All regions have recovered well following the economic shock, with the market driven during the forecast period by the expected stable growth in developed economies. Additionally, emerging markets are expected to continue to grow slightly faster than the developed markets.
The rail transport market consists of sales of rail transportation services by entities that use trains to provide transport for passengers and/or cargo.
As per data on the Global Market Model, the global rail transport market size is expected to grow from US$468.6 billion in 2020 to US$519.4 billion in 2021 at a compound annual growth rate (CAGR) of 10.8%. The growth is mainly due to the companies rearranging their operations and recovering from the Covid-19 impact, which had caused a 12.9% market decline in 2020 vs 2019, and which had led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach US$658.4 billion in 2025 at a CAGR of 6.1%.
Asia Pacific was by far the largest region in the global rail transport market, accounting for 41.7% of the market in 2020. Western Europe was the second largest region, with North America in third place. In terms of key countries, China alone accounted for 21.8% of the global rail transport market in 2020 with the USA in second place with 15.4%.
The rail transport market is segmented into passenger rail transport and rail freight. Rail freight accounted for 52.3% of the market in 2021 and this is expected to grow in 2025 to 53.3% at a CAGR of 6.6%.
Advanced driver assistance system (ADAS) technology is becoming popular in the rail transportation industry to optimize energy usage, enhance operational management, safety and aid in cost reduction. These systems provide automatic warning, protection, operation, supervision, and control arrangement. They also aid in meeting stringent government regulations towards passenger safety. Around 60 million units of advanced driver assistance systems were produced globally.
Although railways are already the most sustainable form of transportation, following ambitious net-zero emissions plans, governments are looking to further decarbonize the rail industry. The most common decarbonization solutions include replacing diesel trains with battery technology, hydrogen fuel cells, or electric trains. To further minimize the CO2 emissions, rail operators deploy electric locomotives that use energy from renewable sources, such as solar or wind.
The Rail Transport Global Market Report 2021 – By Type (Passenger Rail Transport, Rail Freight), By Distance (Long-Distance, Short-Distance), COVID-19 Impact And Recovery is one of a series of new reports from The Business Research Company that provides global rail transport market overviews, analyzes and forecasts global rail transport market size, share, global rail transport market players, global rail transport market segments and geographies, the market’s leading competitors’ revenues, profiles and market shares.