Rail Freight Market Report 2025

The rail freight market size has grown strongly in recent years. It will grow from $296.8 billion in 2024 to $316.15 billion in 2025 at a compound annual growth rate (CAGR) of 6.5%. The growth in the historic period can be attributed to growth in international trade, low cost of railway transportation, and growing sustainability in transportation.

The rail freight market size is expected to see strong growth in the next few years. It will grow to $387.32 billion in 2029 at a compound annual growth rate (CAGR) of 5.2%. The growth in the forecast period can be attributed to government support, global population growth and urbanization, increasing growth of intermodal transportation, and a surge in development and testing of autonomous trains. Major trends in the forecast period include strategic partnerships and acquisitions to improve financial strength, implementing precision scheduled railroading, using artificial intelligence (AI) to provide accurate analysis and real time transport operations, launching new advanced freight trains to aid in development of new and advanced products with advanced technologies, and using rail vehicle visibility tools.

The increasing demand for freight services is expected to drive the growth of the rail freight market in the future. Freight refers to items or merchandise transported from one location to another using various modes of transportation, such as ships, aircraft, trains, or trucks. Railways are often a preferred choice for transporting cargo over long distances due to their efficiency and cost-effectiveness. For example, in July 2024, the Bureau of Transportation Statistics, part of the US Department of Transportation (DOT), reported that Class I freight and operating revenues rose by 13.8% in 2022 compared to 2021, reaching a total of $80 billion in freight revenue and $84.5 billion in operating revenue. Therefore, the growing need for freight services is driving the expansion of the rail freight market.

The rising demand for rail transportation is expected to drive the growth of the rail freight market in the future. Rail transportation involves the movement of passengers or goods using rail systems, and rail freight plays a crucial role in the efficient and reliable transportation of goods by ensuring safe handling and optimal cargo performance. For example, in June 2024, the Office of Rail and Road, a UK government department, reported that between April 2023 and March 2024, freight movement in Great Britain reached 15.76 billion net tonne kilometers, reflecting a slight increase from the previous year's 15.73 billion net tonne kilometers. Therefore, the increasing demand for rail transportation is propelling the rail freight market.

To address drawbacks in rail freight transportation such as loss and theft, tracking and tracing systems utilizing GPS and GSM have been implemented by transportation organizations. These systems ensure comprehensive security and monetization of freight, leading to more effective and efficient transportation over short distances for smaller loads. The ViWaS project in Europe has introduced tracking technology equipped with smart telematics systems in rail freight.

Prominent companies in the passenger rail transport market are placing a strong emphasis on technological advancements to maintain their competitive positions. A notable example is the partnership between Nevomo, a Poland-based deep-tech company, and GATX Rail Europe, an Austria-based full-service railcar company, in May 2023. This collaboration aims to introduce a MagRail booster for rail freight. The MagRail booster components present a cost-effective solution for expanding the capacity of railway lines and enhancing efficiency in rail transport. These components can be seamlessly installed on conventional freight wagons supplied by GATX Rail Europe. The MagRail booster facilitates traffic automation and infrastructure electrification, providing increased flexibility, capacity, and improved dynamics. Its unique feature enables single wagons to operate independently, making it particularly suitable for last-mile areas such as cargo terminals and industrial facilities. This initiative showcases the commitment of these companies to leverage advanced technologies for the benefit of rail transportation.

Major companies operating in the rail freight market include Berkshire Hathaway Inc, China Railway Corporation, Canadian National Railway, Union Pacific Corporation, Norfolk Southern Corporation, DB Cargo UK (formerly EWS), Japan Freight Railway Company (JR Freight), Etihad Rail DB, Tiger Logistics India Limited, Kansas City Southern, SNCF, BNSF Railway, Atlas Logistics, Vale, Direct Rail Services, Imt Express, Quebec North Shore and Labrador Railway (QNS&L), Miracle Logistics Company Ghana Limited, Deutsche Bahn AG, Freightliner, Indian Railways, VLI Logística, Shree Shyam Logistics, Rumo, Orchid Global Sourcing, CG Logistics Pvt. Ltd, České dráhy (České Dráhy, A.s), Botswana Rail (BR), Delhi Cargo & Courier Services, MRS Logistics, Russian Railways, TransContainer, Om Logistics, Saudi Arabia Railways, Anshika Express Cargo, CSX Corporation, Transnet Freight Rail, Traxport, GB Railfreight, SLR Shipping Services LLC, RAIL1520 Ltd, América Latina Logística, Canadian Pacific, VSL Logistics and Freight forwarding solutions, Achievers Logistics Ghana.

Asia-Pacific was the largest region in the rail freight market in 2024. North America was the second largest region in the rail freight market. The regions covered in the rail freight market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the rail freight market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The rail freight market includes revenues earned by entities by transporting bulk goods from one place to another using trains. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

Rail freight is a transportation mode designed to convey goods from a loading point or goods station to an unloading point, which includes facilities for both loading and unloading heavy, bulk, and low-value goods. It offers fuel efficiency and specific solutions for the movement of goods, making it a preferred option compared to other transportation methods.

The primary categories within the rail freight market include intermodal, tank wagons, and freight cars. Freight cars are utilized for the transportation of goods, and the various freight types include containerized, liquid, commodities, and others, targeting both domestic and international destinations. Rail freight finds applications across diverse sectors such as the oil and gas industry, mining industry, logistics industry, post-service, and others.

The rail freight market research report is one of a series of new reports that provides rail freight market statistics, including rail freight industry global market size, regional shares, competitors with a rail freight market share, detailed rail freight market segments, market trends and opportunities, and any further data you may need to thrive in the rail freight industry. This rail freight 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 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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