Rail Freight Market by Destination and Geography - Forecast and Analysis 2022-2026

The rail freight market share is expected to increase by USD 29.29 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 2.15%.

This rail freight market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers rail freight market segmentation by destination (domestic and international) and geography (APAC, Europe, North America, MEA, and South America). The rail freight market report also offers information on several market vendors, including BNSF Railway Co., Brookfield Business Partners L.P., Canadian National Railway Co., Canadian Pacific Railway Ltd., Colas SA, CSX Corp., Dassault Systemes SE, Deutsche Post AG, SNTFM CFR Marfa SA, and WSP Global Inc. among others.

What will the Rail Freight Market Size be During the Forecast Period?

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Rail Freight Market: Key Drivers and Challenges

The low cost of rail freight is notably driving the rail freight market growth, although factors such as increasing maintenance expenses may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the rail freight industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Rail Freight Market Driver

One of the key factors driving the global rail freight market growth is the low cost of rail freight. The transportation cost of goods to far-off places through airfreight is higher than rail freight. Fuel surcharges, transportation costs, labor and handling expenses, customs brokerage, and landing charges are some of the major components of airfreight costs. In addition, the rising prices of fuel in APAC countries such as India have been adding to the total cost of transportation of goods, as the fuel consumption is roughly proportional to the distance flown and the weight of aircraft. Such factors are resulting in the high demand for rail freight services among shippers, which is expected to positively impact the growth of the market during the forecast period.

Key Rail Freight Market Challenge

One of the key challenges to the global rail freight market growth is the increasing maintenance expenses. The non-competitive pricing of rail freight and rapid increase in the maintenance cost of rail infrastructure is expected to negatively impact the growth of the market in focus during the forecast period. The total cost consists of maintenance and upkeeping trains, stations, loading docks, and signaling systems which is approximately 25%-30% of the total operating cost of rail freight. Moreover, the rail freight charges have not increased in proportion to the increase in maintenance expenses, as a result, several companies are incurring losses. Therefore, the increase in maintenance expenses of rail freight services can impede the global rail freight market growth during the forecast period.

This rail freight market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Who are the Major Rail Freight Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

• BNSF Railway Co.
• Brookfield Business Partners L.P.
• Canadian National Railway Co.
• Canadian Pacific Railway Ltd.
• Colas SA
• CSX Corp.
• Dassault Systemes SE
• Deutsche Post AG
• SNTFM CFR Marfa SA
• WSP Global Inc.

This statistical study of the rail freight market encompasses successful business strategies deployed by the key vendors. The rail freight market is fragmented and the vendors are deploying various organic and inorganic growth strategies to compete in the market.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The rail freight market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies. 

Which are the Key Regions for Rail Freight Market?

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34% of the market's growth will originate from APAC during the forecast period. China, India, and Japan are the key markets for rail freight in APAC. Market growth in this region will be faster than the growth of the market in North America.

The lower cost of rail freight transportation and the significant increase in industrial and cross-border trade activities in developing countries in APAC, such as China and other countries will facilitate the rail freight market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

What are the Revenue-generating Destination Segments in the Rail Freight Market?

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The rail freight market share growth by the domestic segment will be significant during the forecast period. The growth is projected owing to the preference for rail freight by end-users due to the low direct cost associated with rail freight in the transportation of goods. In addition, rail freight also provides the facility to safely transport media that can lead to explosions or damage such as oil, petroleum, natural gas, coal products, chemical products, and other derivatives of crude oil. Such factors are expected to drive the growth in the market in focus during the forecast period.

This report provides an accurate prediction of the contribution of all the segments to the growth of the rail freight market size and actionable market insights on post COVID-19 impact on each segment.

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What are the Key Data Covered in this Rail Freight Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive rail freight market growth during the next five years
• Precise estimation of the rail freight market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the rail freight industry across APAC, Europe, North America, MEA, and South America
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of rail freight market vendors

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