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The Europe rail freight transportation market size is forecast to increase by USD 3,189.8 billion at a CAGR of 0.83% between 2023 and 2028. The European rail freight transportation market is experiencing significant growth, driven by various factors. One key trend is the increasing exchange of coal and other bulk commodities via rail, as low oil prices make rail a more cost-effective alternative to truck freight. Additionally, the emergence of digital marketplaces and intermodal is streamlining the flow of goods and reducing administrative burdens. Rapidly growing economies in Europe, urbanization, and rising disposable income are also fueling demand for rail freight services. Moreover, the shift towards sustainable transportation solutions, such as rail, is gaining momentum due to the need to reduce air pollution. Tank wagons are another area of growth, as they are used to transport a wide range of liquids, including chemicals and fuels. Despite these opportunities, the market faces challenges, including growing competition from truck freight and the need to adapt to evolving customer demands. Overall, the European rail freight transportation market is poised for continued growth, driven by these trends and challenges.
The European rail freight transportation market is witnessing a steady recovery following the disruptions caused by the lockdowns and social distancing restrictions in the passenger transport sector. Rail freight has emerged as a preferred mode for transporting goods, particularly in the production sectors like building materials, iron, and steel. Intermodal traffic, which involves the use of multiple modes of transport, is gaining popularity due to its efficiency and cost-effectiveness. Carloads of cargo, including goods, are being transported via trains across Europe, contributing significantly to the freight volume. Rail transport organizations are implementing stringent security measures, including the use of the Global System for Mobile Communications (GSMA) and Global Positioning System (GPS) to ensure the safety of goods during transit.
Further, trecautionary measures like sanitization and social distancing at points of loading and unloading are also being strictly adhered to. Despite the challenges, the European rail freight transportation market is showing resilience. The market is expected to continue its growth trajectory, driven by the increasing demand for efficient and sustainable transportation solutions. However, concerns around lost and theft of cargo remain a significant challenge, necessitating continuous efforts towards enhancing security.
The market research report provides comprehensive data, with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The domestic segment is estimated to witness significant growth during the forecast period. The European rail freight transportation market encompasses the provision of logistics services for transporting various goods, including chemicals, nonmetallic minerals, building materials, iron, steel, and agricultural products such as coal, corn, wheat, soybeans, and cereals. Rail freight transportation in Europe is a crucial mode of transport due to its large load-carrying capacity, which is significantly greater than that of heavy goods vehicles. With the ability to transport the same quantity of freight as 64 trucks, railroads offer reliable and secure services.
Europe's extensive rail infrastructure and advanced technology systems enable efficient freight movement. During the forecast period, the rail freight transportation market is anticipated to grow due to technological advancements that increase the load capacity of rail freight cars. This will lead to a reduction in the number of vehicles required for transporting the same quantity of goods, thereby contributing to lower greenhouse gas emissions, including carbon dioxide.
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The domestic segment accounted for USD 35,812.70 billion in 2018 and showed a gradual increase during the forecast period.
Our market 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.
Increasing investments in market is the key driver of the market. The European rail freight transportation market is experiencing growth due to increasing investments from governments and market players in upgrading the rail network and introducing large-capacity trains. These efforts aim to enhance connectivity and facilitate the smooth movement of cargo and passengers. Notably, a significant USD6.38 billion investment is being made to complete missing infrastructure links and improve the sustainability, efficiency, and safety of transportation. This investment will contribute to the expansion of the rail freight market in Europe, as rail initiatives are a priority in the upcoming funding round. The focus on rail development is crucial for the production sector, as rail transport plays a vital role in the movement of goods, particularly coal, and intermodal traffic, which is essential for freight volume recovery.
Railway businesses stand to benefit from these improvements, as they will increase the capacity and competitiveness of the rail freight sector.
The emergence of digitalization in rail freight services is the upcoming trend in the market. Rail freight transportation in Europe is experiencing significant growth due to the implementation of digital technologies by operators. By automating and digitizing business processes, rail freight companies aim to reduce costs, enhance services, and increase revenue. The integration of the Internet, telecommunications, and social media in rail freight transportation is facilitating real-time data collection and analysis, enabling predictive maintenance, error reduction, and improved efficiency.
Moreover, smart connected devices and connected rail solutions generate vast amounts of data, which can be utilized to optimize operations, reduce risks, and create new growth opportunities through advanced onboard services. As a result, rail freight companies in Europe are leveraging digital transformation to improve productivity, streamline operations, and expand their market share.
Growing competition from alternate freight services is a key challenge affecting the market growth. The European rail freight transportation market faces competition from alternative freight services like road, air, and water, which may restrict market expansion during the forecast period. Road freight offers advantages such as door-to-door delivery and flexible scheduling, making it a preferred choice for many businesses. In contrast, rail freight operates on less flexible schedules and cannot directly connect from one business location or plant to another. Trains run between railyards, making them comparatively slower than trucks and less economically viable for short-distance cargo transportation.
Despite these challenges, rail freight remains a crucial component of the logistics sector, contributing significantly to intermodal traffic, carloads, and freight volume. Railway businesses continue to invest in infrastructure improvements and technological advancements to enhance efficiency and competitiveness. Coal remains a significant cargo category for rail freight, with ongoing demand from power generation and industrial sectors.
The market forecasting 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 market growth analysis strategies.
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.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key 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.
Rail transport plays a significant role in the European rail freight transport market, with trains carrying a vast array of goods from coal and chemicals to building materials and iron/steel. In 2020, European rail freight experienced a recovery from the decline caused by the lockdown and social distancing restrictions in the passenger transport sector. Intermodal traffic, which includes the carriage of goods using multiple modes of transport, has shown a notable increase in freight volume. Railway businesses have been investing in developing infrastructure, digital technology, and rolling stock to enhance reliability and monetize their services. Technological advances, such as GSM-R and GPS, enable real-time tracking and monitoring of cargo from the point of loading to the point of unloading. The European rail freight market is driven by the demand for efficient transportation of goods, particularly for longer distances and larger loads. Digital marketplaces and consolidation have also contributed to the growth of this sector.
However, infrastructure concerns, lost and theft, and security remain challenges. The European rail freight market is expected to witness continued growth due to the rapidly growing economies, urbanization, and rising disposable income. This, in turn, will lead to a flow of goods and reduced air pollution. The exchange of coal and other resources between countries is also expected to increase due to low oil prices. Fuel reduction and emission reduction are key priorities for railway businesses, with the adoption of smart telematics systems and tracking technology playing a significant role in achieving these goals. The use of tank wagons and freight cars for the transportation of chemicals and other hazardous materials is also on the rise. Despite these opportunities, the European rail freight market faces competition from road transportation and storage and warehousing. However, the advantages of rail freight, such as reduced energy consumption and the ability to transport heavy goods over long distances, make it an attractive option for businesses looking for cheap and efficient transportation solutions.
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Market Scope |
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Report Coverage |
Details |
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Page number |
127 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 0.83% |
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Market growth 2024-2028 |
USD 3,189.8 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
0.81 |
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Key companies profiled |
Baltic Rail AS, BLS Ltd, BOUYGUES, CTL Logistics Sp zoo, DB Schenker, Deutsche Bahn AG, Direct Rail Services Ltd., Freightliner Group Ltd, GETLINK SE, Globalink Logistics DWC LLC, Harsco Corp, Hupac Group, LINEAS SA, NTU and Transalex Network GmbH, PKP CARGO INTERNATIONAL Group, RheinCargo GmbH and Co. KG, Rhenus SE and Co. KG, SBB Cargo International AG, SNCF Group., and SNTFM CFR Marfa SA |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles,market forecast , fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
We can help! Our analysts can customize this market research report to meet your requirements Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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