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Rail Logistics Industry Expected to Reach $296.76 Billion by 2029 at 2.8% CAGR
Stay informed on tariff shifts, macro trends, and global economic changes-use code ONLINE30 to enjoy 30% off our global market reports.Rail Logistics Market Value Projection: How Much Will the Market Size by 2025?
The size of the rail logistics market has seen consistent growth in the past few years. It is predicted to rise from a value of $256.85 billion in 2024 to $265.53 billion in 2025, reflecting a compound annual growth rate (CAGR) of 3.4%. Factors contributing to the growth during the historical period include reduced transportation costs and modal shifts, environmental accountability, advances in infrastructure, and regulations related to cross-border freight transport.
What Will Be the Market Growth Forecat for Rail Logistics in 2029?
Expectations for the rail logistics market size suggest consistent growth in the upcoming years, projected to reach $296.76 billion by 2029 with a compound annual growth rate (CAGR) of 2.8%. Factors such as the increase in autonomous train research and development, the demand for freight wagons, the arrival of technologically-advanced, custom-made wagons, a rise in budget allocations, and the e-commerce and online retail growth are contributing to growth in the forecasted period. Key trends for this period include the incorporation of artificial intelligence and machine learning, the development of high-speed rail, the appearance of smart railways, the growth of rail logistics services in developing economies, and the expansion of intermodal transportation.
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What Are the Core Competitive Drivers in the Rail Logistics Industry?
The advancement of the rail logistics market is projected to be driven by an escalation in global trading. Global trading, or exchanging goods and services beyond national boundaries, is on the rise, thanks to a number of factors. This growth in global trade is guided by the boom in globalization, which is fueling the need for effective cross-border transportation facilities. The rising commodity volumes moving across international borders is making the need for cost-effective and efficient transportation solutions ever more urgent. For instance, data from the Bureau of Economic Analysis, an American governmental entity that produces official macroeconomic and sector statistics, revealed that in February 2024, there was an increase by $35.0 billion, or 1.2%, in 2023 to $3,053.5 billion in the exports of goods and services compared to 2022. As a result, the progressing global trade is anticipated to spur the expansion of the rail logistics market.
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Which Rail Logistics Market Segment Is Projected to See the Fastest Growth?
The rail logistics market covered in this report is segmented -
1) By Type: Intermodals, Tank Wagons, Freight Cars
2) By Operational Area: Domestic, International
3) By End User: Automotive, Manufacturing, Telecommunication, Retail, Technology
Subsegments:
1) By Intermodals: Container On Flat Car (COFC), Trailer On Flat Car (TOFC), Double Stack Containers
2) By Tank Wagons: Chemical Tankers, Food And Beverage Tankers, Oil And Gas Tankers, Agricultural Product Tankers
3) By Freight Cars: Boxcars, Flatcars, Hopper Cars, Gondola Cars, Refrigerated Cars
Which Trends Are Opening New Opportunities in the Rail Logistics Market?
Leading firms in the rail logistics market are transforming their services through pioneering technology, such as the all-encompassing digital experience center, to better cater to their clientele. This digital experience center acts as a focal point for the creation and deployment of state-of-the-art signaling resolutions tailored for urban, mainline, and freight operations. For instance, in December 2023, Alstom SA, a company based in France, unveiled an ultra-modern digital experience center. The initiatives at the center are engineered to elevate the efficiency of rail logistics, with the aim to incorporate integrated cybersecurity, comprehensive project testing, and projects related to urban, mainline, freight, and mining. Concurrently, it aims to foster innovation in remote system monitoring and troubleshooting. Furthermore, the center's architecture can accommodate over 7 million hours of engineering work for various projects.
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Who Are the Leaders in the Rail Logistics Market?
Major companies operating in the rail logistics market are Meta Platforms Inc., United Parcel Service Inc., FedEx Corporation, Mærsk A/S, Deutsche Bahn AG, Schenker Deutschland AG, Deutsche Bahn International Operations GmbH, Kuehne Nagel International AG, Union Pacific Corp., C.H. Robinson Worldwide Inc., Canadian National Railway Co., Nippon Express Holdings Inc., CEVA Logistics Inc., Geodis SA, Gebrüder Weiss GmbH, Trinity Industries Inc., Japan Freight Railway Co., Brookfield Business Partners LP, SBB Cargo International AG, VTG AG, Russian Railways OJSC, BLR Logistiks Ltd., Tschudi Logistics Holding AS, GeoMetrix Rail Logistics Inc., CTL Logistics Sp. z o.o, Rail Cargo Group, Interport Global Logistics Private Limited, Dan Transport Group A/S
Which Regional Rail Logistics Markets Offer the Greatest Growth Potential?
Asia-Pacific was the largest region in the rail logistics market in 2024. The regions covered in the rail logistics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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