Passenger Rail Transport Market Report 2025

The passenger rail transport market size has grown strongly in recent years. It will grow from $293.74 billion in 2024 to $317.6 billion in 2025 at a compound annual growth rate (CAGR) of 8.1%. The growth in the historic period can be attributed to emerging markets growth, rise in e-commerce and taxation.

The passenger rail transport market size is expected to see strong growth in the next few years. It will grow to $418.71 billion in 2029 at a compound annual growth rate (CAGR) of 7.2%. The growth in the forecast period can be attributed to technology, sustainability, high speed trains and emphasis on cutting carbon emissions. Major trends in the forecast period include adopting head on generation (HOG) technology to reduce their carbon footprints, increase profitability of operations, and reduce operating costs and other fuel related expenses, digitalization in transporting services, driver assistance systems, enhancing technology that ensures passenger safety, investing in connected mobility, obstacle detection assistance systems, sustainability to improve the environment, improve reliability of assets and enhance passenger experience while reducing costs.

The rising demand for railway passenger transport is anticipated to drive the growth of the passenger rail transport market in the future. Railway passenger transport refers to the movement of individuals via trains along designated railway tracks. This mode of transportation facilitates the conveyance of people along railroad routes. For instance, in October 2024, Eurostat, a government agency based in Luxembourg, reported that in 2022, rail passenger transport within the EU experienced a 50.9% increase compared to 2021. Thus, the increasing demand for railway passenger transport is a key factor propelling the growth of the passenger rail transport market.

The adoption of Advanced Driver Assistance System (ADAS) technology is gaining popularity in the rail transportation industry, aiming to optimize energy usage, improve operational management, enhance safety, and contribute to cost reduction. These systems offer automatic warning, protection, operation, supervision, and control functionalities, aligning with stringent government regulations for passenger safety. Globally, approximately 60 million units of advanced driver assistance systems have been produced. Notable companies providing these systems for locomotives include Thales Group, Alstom S.A., Bombardier Transportation, Hitachi Ltd., CRRC Corporation Limited, Ansaldo STS, and SIEMENS AG.

Major companies in the passenger rail transport market are concentrating on technological innovations to maintain their competitive edge. For example, in May 2023, Nevomo, a deep-tech company based in Poland, partnered with GATX Rail Europe, an Austria-based full-service railcar provider, to launch a MagRail booster for rail freight. The MagRail booster components present a cost-effective solution for enhancing the capacity of railway lines and improving efficiency in rail transport. They can be installed on conventional freight wagons provided by GATX Rail Europe. This technology facilitates traffic automation and electrification of infrastructure, providing increased flexibility, capacity, and improved dynamics. One of MagRail's standout features is its ability to allow single wagons to operate independently, making it particularly suitable for last-mile operations in locations such as cargo terminals and industrial sites.

In December 2022, Cottbusverkehr GmbH (CV), a Germany-based public transport company, partnered with Skoda Groto to deliver 15 more modern uni-directional three-unit trams for the city of Cottbus, Germany. Furthermore, Skoda has delivered an additional seven vehicles to Cottbusverkehr GmbH, supplementing the previously supplied units. Skoda Groto is a Czech Republic-based automobile manufacturing company that produces a range of cars and vehicles.

Major companies operating in the passenger rail transport market include Central Japan Railway Company, SNCF, Deutsche Bahn, West Japan Railway Company (JR-West), Indian Railways, East Japan Railway Company, MTR Corporation Ltd., Russian Railways, Canadian Pacific Railway Ltd., China Railways, KiwiRail Ltd., PT Kereta Api Indonesia (Persero), Abellio ScotRail, Arriva Rail London, Avanti West Coast, Caledonian Sleeper, Chiltern Railways, CrossCountry, East Midlands Railway, Eurostar, Govia Thameslink Railway, Greater Anglia, Great Western Railway, Hull Trains, Grand Central, Merseyrail, Virgin Trains, ScotRail, London Overground, České dráhy, Die Länderbahn, GW Train Regio, Emperor Franz Joseph Railway, Căile Ferate Române, Regiojet, Leo Express, The National Railroad Passenger Corporation (Amtrak), Hudson Bay Railway Co., Companhia do Metropolitano de São Paulo, Perurail, Belmond Andean Explorer, Ferrovías Central Andina, Nuevos Ferrocarriles Argentinos, Trenes Metropolitanos, Brazil Great Southern Railway, Ferrocarril Transandino, Saudi Railway Company, Israel Railways Ltd., Iraq Republic Railways Co., Middle East Rail, Turkish State Railways (TCDD), Arabian Railway Company, Egyptian National Railways (ENR), Passenger Rail Agency of South Africa (PRASA), Transnet SOC Ltd, Union of African Railways, Botswana Railways, Zambia Railways, National Railways of Zimbabwe, Nigerian Railway Corporation.

Asia-Pacific was the largest region in the passenger rail transport market in 2024. Western Europe was the second largest region in the passenger rail transport market. The regions covered in the passenger rail transport market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the passenger rail transport 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 passenger rail transport market includes revenues earned by entities by providing transportation because it is unaffected by traffic and adverse weather conditions and can carry large amounts of goods. 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.

Passenger rail transport is a mode of transportation that involves conveying people through wheeled vehicles designed to travel on railroads. These railroads can either operate on extensive networks with physical facilities, a workforce, and equipment spanning a large geographic area or cover shorter distances on local rail lines.

Within the passenger rail market, the primary types of passenger rail transport include medium-distance, long-distance, and short-distance passenger transport. Medium-distance passenger transport utilizes trains to convey passengers from one station to destinations situated at a moderate distance. The market segmentation encompasses service types, including transportation and services allied to transportation (such as the maintenance of railcars and rail tracks, cargo switching, and storage). Additionally, it is categorized by application, distinguishing between city and rural passenger rail services.

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