Freight Cars Global Market Report 2024

The freight cars market size has grown steadily in recent years. It will grow from $178.67 billion in 2023 to $187.15 billion in 2024 at a compound annual growth rate (CAGR) of 4.7%. The growth observed during the historical period can be attributed to several key factors, including supportive government initiatives and schemes, the development of upcoming railway network projects, the digitalization of existing freight car networks, expansion in various end-user industries, and the establishment of trade agreements among countries.

The freight cars market size is expected to see steady growth in the next few years. It will grow to $225.91 billion in 2028 at a compound annual growth rate (CAGR) of 4.8%. The anticipated growth in the forecast period can be primarily attributed to factors such as rising government investments, an upsurge in transportation activities, an increase in road accidents leading to vehicle damage, the implementation of advanced fleet management practices within freight businesses, and a shift toward prioritizing fleet maintenance over new vehicle purchases. Notable trends that are expected to shape this period include technological advancements, a heightened emphasis on sustainability, initiatives to reduce carbon emissions, a greater adoption of automation in fleet management, and ongoing developments in products and services.

Government initiatives are poised to stimulate growth in the freight car market. For instance, in September 2021, India's government think tank, Niti Aayog, introduced the 'shoonya' initiative, which aims to fully electrify urban freight fleet vehicles within the next two years. This effort is part of a broader push to accelerate electric vehicle adoption and establish an ecosystem for them in the nation's transportation sector. Consequently, government actions aimed at bolstering rail freight will drive increased demand in the freight car market during the specified period.

The primary types of freight cars covered in this report include intermodal cars, tank wagons (designed for gases and liquids), and general freight cars. These freight cars can be further categorized by their application, serving industries such as coal, petroleum and chemicals, metals and minerals, automobiles, agricultural products, and various other applications. Additionally, they are segmented by their end-use industries, encompassing agriculture, construction, oil and gas, chemical, medical and pharmaceuticals, food and beverages, government and defense, automotive and transportation, as well as marine transport.

The freight car market research report is one of a series of new reports that provides freight car market statistics, including freight car industry global market size, regional shares, competitors with a freight car market share, detailed freight car market segments, market trends and opportunities, and any further data you may need to thrive in the freight car industry. This freight car market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The global economy's expansion is expected to act as a catalyst for the car freight market's growth. Economic growth results from investments in infrastructure, technology, capital goods, and consumer spending, among other factors. The car freight industry holds a pivotal role in the broader economy by facilitating efficient goods transportation, creating jobs, optimizing supply chains, and promoting trade. It contributes to economic growth by supporting businesses, expanding market reach, and fostering infrastructure development. As an example, in September 2023, according to the India Brand Equity Foundation (IBEF), India's robust economic growth in the initial quarter of FY23 propelled it past the United Kingdom, securing its position as the world's fifth-largest economy. This marks a promising start to India's post-pandemic recovery, following the impact of the COVID-19 pandemic.

Stringent regulations governing imports and exports pose a significant challenge to the growth of the freight car market. Imposing strict trade rules can reduce rail freight transportation, subsequently lowering the demand for freight cars. In 2020, India's Customs department implemented stringent regulations for the import of white goods under free-trade agreements (FTAs) to prevent the improper dumping of such commodities from non-producing countries. The goal is to prevent the misuse of trade relaxations provided by FTAs. India is also keen to introduce new regulations aimed at boosting domestic manufacturing and reducing imports, particularly from China. These efforts are intended to curtail the influx of lower-quality imports. Consequently, government-imposed trade regulations are expected to impede the growth of the freight car market during the forecast period.

Freight cars are now enabled with GPS tracking and this is likely to be an emerging trend in the freight car market. The efficiency of freight car transport will be augmented with the use of advanced GPS technologies. Rail operators' incorporation of GPS technologies into freight cars aids in managing the transport process, scheduling freight cars, maintaining a consistent delivery process, and reducing freight car theft. For instance, in June 2022, Indian Railways began real-time monitoring of trains (passenger and freight) using the Control Office Application (COA) system. The COA was designed by ISRO after collaborating with the Indian Railways to monitor the movement of freight cars even between two stations with GPS. Therefore, the demand for freight cars is expected to be increased with the incorporation of certain criteria such as real-time data and on-time deliveries.

Major companies operating in the freight cars market are introducing IoT solutions such as application of Globehopper and Edge telematic sensors in the freight cars and containers to gain a competitive edge in the market. The Globehopper Edge represents a self-sustaining wireless connectivity device that requires no maintenance and has the capability to transmit an extensive volume of data daily. This data originates from numerous onboard sensors, providing vital information about cargo within a container, including precise location, temperature, environmental conditions, and more. For instance, in May 2023, Nexxiot, a US-based technology provider for the transportation sector, launched an Artificial Intelligence-baesd app known as Globehopper Edge. By integrating cutting-edge sensors, gateways, and global connectivity, the Globehopper Edge stands as the most advanced cargo monitoring device globally. It not only offers current capabilities but also positions itself for the future, promising our customers the most precise and dependable cargo information available, guaranteeing unmatched accountability across all shipping modes.

In March 2021, Sojitz Corporation, a Japan-based manufacturing company specializing in the trading of goods and services, acquired Southwest Rail Industries Inc. for an undisclosed amount. Through this acquisition, Sojitz increases its capability to deliver excellent customer service, prompt responses, the capacity to customize leases to meet customers' needs, expand railway services in North America, and decarbonization and sustainability. Southwest Rail Industries Inc. is a US-based transportation company pioneering in providing freight rail coaches and cars to offer services for customers in the United States.

Major companies operating in the freight cars market include Canadian National Railway, DB Schenker, SBB Cargo AG, Union Pacific Railroad, Kansas City Southern, CSX Corporation, Norfolk Southern Corporation, Housatonic Railroad Company, Linfox Pty Ltd, Trinity Rail Group LLC, Greenbrier Companies, National Steel Car Ltd., American Railcar Industries Inc., FreightCar America Inc., The Andersons Rail Group, GATX Corporation, Union Tank Car Company, Trinity Industries Inc., CIMC Railcar, GB Railfreight, CRRC Corporation Limited, CSR Corporation Limited, Bombardier Inc., Siemens Mobility, Alstom, Stadler Rail AG, Kawasaki Heavy Industries Ltd., Hitachi Rail Italy SpA, Hyundai Rotem Company, Talgo Group, Newag SA, Skoda Transportation AS, CRRC Changchun Railway Vehicles

Asia-Pacific was the largest region in the freight cars market in 2023. North America was the second largest region in the freight cars market. The regions covered in the freight cars market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the freight cars market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada

The freight car market consists of sales of covered wagons, cargo beamers, and flat cars. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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