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The North America - Rail Freight Transportation Market size is estimated to grow at a CAGR of 7.45% between 2023 and 2028. The market size is forecast to increase by USD 35.83 billion. Several factors play a crucial role in the market's growth such as low transportation cost of freight, increase in cross-border trades and increasing demand for freight rail network.
The report includes a comprehensive outlook on the North America Rail Freight Transportation Market offering forecasts for the industry segmented by Mode Of Transportation, which comprises freight cars, tank wagons, and intermodals. Additionally, it categorizes End-user into petroleum and chemical, coal, metals and minerals, agriculture products, and others. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
An increase in cross-border trades is notably driving market growth. Cross-border e-commerce is significantly high in countries such as the US and Canada. Canadian railways transported over 332 million tons of freight in 2020. Its railways help move approximately USD 200 billion in Canadian exports to North America - rail freight transportation markets and through a network of multimodal terminals such as rail, ship, and truck throughout the continent. The freight rail sector is the backbone of the Canadian economy, carrying more than USD 320 billion in commodities yearly through a coast-to-coast network.
Moreover, rail transported products worth USD 84 billion across the US-Mexico border in 2021, with over 246,000 loaded train containers crossing through the Laredo, Texas, port of entry. The Laredo rail crossing is the busiest on the border, with over 24 trains running daily in both directions. Therefore, increasing cross-border trades are expected to boost the growth of the market during the forecast period.
Increasing use of artificial intelligence (AI) in rail infrastructure technology is an emerging trend shaping the market growth. Advancements in rail infrastructure technology using artificial intelligence (AI) and the Internet of Things (IoT) have the potential to boost the growth of the North America - rail freight transportation market by increasing efficiency, reducing costs, and improving safety. Furthermore, the use of innovative technologies such as AI, machine learning, and machine vision for automating rail inspections has also increased in the US, with machine vision sensors and cameras installed on railcars or tracks used to inspect various components.
For instance, in 2020, the Federal Railroad Administration (FRA) updated rail integrity and track safety standards to reduce costs, improve data collection and analysis, and maintain integrity. The new regulations focus on developing innovative inspection methods and improving data quality, leading to the digital transformation of the rail industry across the region. Therefore, such development and advancement are anticipated to boost the growth of the market during the forecast period.
Interoperability issues associated with rail transportation are a significant challenge hindering market growth. Interoperability refers to the ability of a rail system to allow safe and uninterrupted movement of trains between different places. Interoperability issues can be of three types such as operational interoperability, technical operability, and legal interoperability. The differences in the rail gauge are the most common operational interoperability issue that can hinder the movement of rail freight between different countries.
Moreover, challenges related to interoperability with other rail networks, particularly about the handling of intermodal traffic. Intermodal traffic involves the movement of shipping containers or trailers between different modes of transportation, such as from truck to rail or vice versa which may limit North America - rail freight transportation market growth. Thus, interoperability issues may hinder the growth of the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Rail Freight Transportation Market in North America Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Berkshire Hathaway Inc. - The company offers rail freight transportation solutions under the subsidiary of BNSF Railway for agriculture and consumer goods.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The freight cars segment is estimated to witness significant growth during the forecast period. Freight cars such as boxcars, center beam cars, flat cars, gondola cars, and hoppers are used to transport goods such as coal products, forest products, metals and minerals, construction raw materials, and agricultural products for various end-user applications.
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The freight cars segment was the largest and was valued at USD 31.94 billion in 2018. Freight car manufacturing companies are highly focused on redesigning freight cars to increase the capacity and life span of containers, thereby enhancing the efficiency of transportation in a single trip and in the long run. This led to an increase in demand for new freight cars from end-user industries. Compared with other modes of transportation, rail freight transportation has a lower environmental impact, and it is 55% more fuel-efficient. In addition, opting for rail freight transportation will reduce road traffic congestion, which will reduce greenhouse gas emissions and environmental pollution. Thus, the freight cars segment will contribute to the growth of the market during the forecast period.
The North America Rail Freight Transportation Market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Rail Freight Transportation Market In North America Scope |
|
Report Coverage |
Details |
Page number |
160 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.45% |
Market Growth 2024-2028 |
USD 35.83 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.75 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Berkshire Hathaway Inc., Brookfield Business Partners LP, Canadian National Railway Co., Canadian Pacific Kansas City, CSX Corp., DB Schenker, Deutsche Post AG, DSV AS, GeoMetrix Rail Logistics Inc., Grupo Mexico SAB de CV, Harsco Corp., Hub Group Inc., Kerry Logistics Network Ltd., Norfolk Southern Corp., Patriot Rail Co., RSI Logistics Inc., Union Pacific Corp., United Parcel Service Inc., VIA Rail Canada Inc., and WSP Global Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Mode of Transportation
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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