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Global Rail Infrastructure Market Size, Share, Trends, COVID-19 Impact & Growth Forecast Report - Segmented By Infrastructure (Rail Network and Others), Type (Locomotive, Rapid Transit Vehicle and Railcar) and Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Industry Analysis (2024 to 2029)

Published: March, 2023
ID: 10760
Pages: 175
Formats: report pdf report excel report power bi report ppt

Global Rail Infrastructure Market Size (2024 to 2029)

The global rail infrastructure market is predicted to reach USD 50.25 billion in 2024 and USD 61.4 billion by 2029, growing at a CAGR of 4.09% from 2024 to 2029.

Global Rail Infrastructure Market Drivers:

The expansion of the rail infrastructure market can be associated with growing urbanization, increasing the need for cleaner, more efficient, faster transportation modes, and economic growth. Furthermore, the increasing population growth rate has led to a surge in traffic and is creating a strong demand for additional rail infrastructure, therefore, driving the rail infrastructure market. Rail infrastructure is the foundation that supports the railway transport system. It links railway stations, ports, and airports. The railway system is a crucial driver of social and economic development that generates opportunities for the financially backward class and facilitates economic growth that increases competitiveness. Rail infrastructure helps connect individuals to jobs, health services, and education daily. It allows for the supply of goods and services globally. Currently, the rail infrastructure market is trying to adapt to the latest technologies. A rapidly growing population has led to a rise in traffic and a robust demand for other rail infrastructure. Nonetheless, many nations lack sufficient capital or space to build more roads and railways.

Global Rail Infrastructure Restraints:

Factors such as surging fuel prices, and shrinking resources, which have led to green transport popularity in several countries are hindering the growth of the rail infrastructure market. Moreover, electric vehicles, electric motorcycles, rail transport, and rapid mass transit are adopted.

Impact of COVID-19 on the global rail infrastructure market: 

The sudden outbreak of the coronavirus pandemic has hit the travel and transport industry the worst. To prevent the spread of the virus across borders, several governments imposed lockdowns early in 2020. The effects of COVID-19 are particularly noticeable in passenger transport. By 2020, the traveling industry has seen a steep decline in the number of long-distance, regional, and urban passengers, triggered by the pandemic and social distancing regulations. A change in mobility behavior is already happening, with many people working from home and using private cars rather than public transport. The financial situation of several passenger rail operators and municipal transport companies is in crisis. They incur losses due to a drastic decrease in ticket revenue and the simultaneous high level of capacity offered to adhere to social distancing regulations. It is leading to a lack of funds for operation and even more so for investment. In various nations, the losses incurred by local government railways are compensated by population spending.

Nevertheless, due to the long lead times involved, the procurement of replacement vehicles that will be needed in the long term is carefully pushed forward. Investment in rail infrastructure will suffer significantly more than spending on new vehicles. Therefore, the market for rail infrastructure products for urban transport will grow only slightly at 0.4% over the next five years. High investment costs and the resulting project delays and cancellations will lead to the rail infrastructure market only having a marginal annual growth rate of 0.2% between 2019 and 2024.

REPORT COVERAGE:

REPORT METRIC

DETAILS

Market Size Available

2023 to 2029

Base Year

2023

Forecast Period

2024 to 2029

CAGR

18.75%

Segments Covered

By Infrastructure, Type and Region

Various Analyses Covered

Global, Regional, and country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities

Regions Covered

North America, Europe, APAC, Latin America, Middle East & Africa market

Market Leaders Profiled

Appointy, Acuity Scheduling, Melian Labs, Inc., MindBody, Setmore, SimplyBook.me, Square, Inc., SuperSaaS, Timetrade

 

This research report on the global rail infrastructure market has been segmented and sub-segmented based on the infrastructure, type and region.

Global Rail Infrastructure Market - By Infrastructure:

  • Rail Network
  • Others

The rise in population in urban areas is estimated to fuel the rail network segment soon. An increase in rail traffic is expected to boost investments in rail and rail track maintenance. 

Global Rail Infrastructure Market - By Type:

  • Locomotive
  • Rapid Transit Vehicle
  • Railcar

Locomotives are usually used to haul freight and passenger wagons for long-distance mainline transport. Nonetheless, vehicles such as metros, light rail vehicles, and subways are being used for intra-city and intercity transportation. 

Global Rail Infrastructure Market - By Region:

  • North America
    • The United States
    • Canada
    • Rest of North America
  • Europe
    • The United Kingdom
    • Spain
    • Germany
    • Italy
    • France
    • Rest of Europe
  • The Asia Pacific
    • India
    • Japan
    • China
    • Australia
    • Singapore
    • Malaysia
    • South Korea
    • New Zealand
    • Southeast Asia
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of LATAM
  • The Middle East and Africa
    • Saudi Arabia
    • UAE
    • Lebanon
    • Jordan
    • Cyprus

Asia-Pacific is estimated to lead the market growth due to the significant growing economies such as India, China, Japan, and South Korea. The region is experiencing considerable population growth. For instance, nations like China and India have a population of 1.38 billion and 1.31 billion, with the top two positions. The rolling stock industry in the region observes a rise in demand after a weak performance during the global recession. North America is witnessing a notable growth rate in the market for locomotives and rapid transit vehicles, positively impacting the rolling stock infrastructure industry. The strict fuel economy regulations in Europe are projected to be a significant market driver, as they will likely advance research to develop renewable energy use through new fuel and propulsion systems.

KEY MARKET PARTICIPENTS:

The major companies operating in the global rail infrastructure market include GE Company, Bombardier Transportation, Alstom, Siemens, Kawasaki Heavy Industries, National Railroad Passenger Corporation, BNSF Railway Company, Norfolk Southern Corp, The Kansas City Southern Railway Company, and Union Pacific Railroad Company. These players have adopted different strategies such as expansion and new product development to gain significant rail infrastructure market share. Bombardier Transportation has a comprehensive product portfolio that can meet both intercity and intracity transportation needs. It helps the company to supply application-specific transport solutions for cities based on existing infrastructure. The increasing demand for passenger rail in developing nations and additional services in developed countries will also offer new opportunities for the Germany-based company. The company has secured supply contracts for its products, which will help maintain a balanced revenue stream; however, Europe's changing economic scenario may affect future orders, as the majority of the company's revenue is derived from this region.

RECENT HAPPENINGS IN THE MARKET:

  • In July 2018, Canadian National Railway invested around USD 315 million to expand and strengthen Ontario's rail infrastructure in 2018.

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FAQ's

What is the current size of the global rail infrastructure market?

As of the latest report in 2024, the global rail infrastructure market is estimated to be valued at USD 50.25 billion.

Which regions contribute the most to the share of the rail infrastructure market globally?

The Asia-Pacific region holds the largest share in the global rail infrastructure market, driven by extensive railway development projects in countries like China and India.

How is the rail infrastructure market expected to grow over the next five years?

The rail infrastructure market is projected to experience a CAGR of 4.09% from 2024 to 2029, indicating steady growth driven by ongoing modernization projects and increasing demand for sustainable transportation.

What factors are influencing the growth of the rail infrastructure market in North America?

In North America, factors such as government initiatives to enhance public transportation, reduce congestion, and promote environmentally friendly modes of travel are driving the growth of the rail infrastructure market.

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