Train Industry Overview
The global train market size was valued at USD 66.4 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) 3.8% from 2022 to 2028.
Technological developments and expansion of rail network across the world are the major drivers to the train market. Developments in high speed rail technology such as magnetic levitation and hyperloop, hydrogen fuel cell technology for zero emission etc. are expected to propel the global train market growth.
Government initiatives to expand the long-distance rail networks across the world and improve public transportation systems are likely to drive the train market growth. For instance, Rail Baltica Project integrates Baltic States into European rail networks and acts as a catalyst for the economic corridor in Northeastern Europe, providing passenger and freight services.
Gather more insights about the market drivers, restrains and growth of the Global Train Market
The global outbreak of COVID-19 across the world had a negative impact on the global train market. Due to the imposition of lockdowns and restrictions, long-distance or intercity travel for business or tourism was banned. Passenger travel by rail declined by 30.0%, globally, in 2020 as compared with 2019. Slow and steady recovery is expected in the coming years due to the increased vaccination and relaxed regulations, amid uncertainty due to the new strain emergences.
Factors such as increasing the budget for railway development and rising demand for safe, reliable, and efficient transportation systems are driving the growth of this target market. Furthermore, increasing the use of public transportation services as a solution to reduce traffic congestion is expected to drive market growth. Furthermore, improvements in infrastructure within developing countries and increased mining and industrial activities provide significant growth opportunities for the players operating in the global market.
Increasing investment in the analytics systems by network operators in developed regions along with advancements targeted towards the enhancement of customer experience act as a major driving factor for the growth of the global train market. Smart solutions such as advanced vehicle control systems, advanced PIS, and various other systems provide information about the vehicle's real-time location, which can be used to monitor schedule compliance and provide passengers with information about the location of vehicles in transit. Providing passengers with accurate real-time information on the status and location of in-transit vehicles is expected to increase satisfaction.
Furthermore, the development of new fuel technologies and the use of hydrogen or solar panels for more sustainable solutions present lucrative opportunities for market players, during the forecast period. For instance, in 2021, Alstom, the UK's leading train manufacturer and maintenance supplier, and Eversholt Rail, the UK's leading train owner, and financier, signed a memorandum of understanding to deliver the UK's first new fleet of hydrogen-powered trains.
The growth of the global train market is restrained by the significant development in passenger cars and air travel. The increasing affordability of passenger cars, frequent car launches, and increasing purchasing power of the consumers are fueling the car market and consequently increasing intercity travel preference for cars. Additionally, the increasing affordability of air travel and expanding aviation industry is impacting the global train market for long-distance travel.
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- Railroads Market – The global railroads market size was valued at USD 295.80 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 4.4% from 2022 to 2030. The market is likely to be driven by continued investments in railway line projects and the expansion of railroad networks around the world.
- Smart Railway System Market – The global smart railway system market is expected to witness significant growth over the forecast period. Smart railway management includes smart railway systems that are instrumented and interconnected. It comprises devices & components, solutions, and services that help the rail companies to collect new information needed to monitor all railway-related operations more closely and accurately.
Train Market Segmentation
Grand View Research has segmented the global train market based on the distribution channel, and region:
Train Distribution Channel Outlook (Revenue, USD Million, 2017 – 2028)
Train Regional Outlook (Revenue, USD Million, 2017 – 2028)
- North America
- Asia Pacific
- Central & South America
- Middle East & Africa
Market Share Insights
- January 2021: Korail launched KTX-Eum high-speed long-distance train in South Korea, having a maximum speed of 260 km/h.
- September 2020: Eurail launched a mobile pass for use in 33 countries, through its digital app.
Key Companies profiled:
Some prominent players in the global train market include
- Deutsche Bahn AG
- SNCF Group
- MTR Corporation Limited
- Amtrak Corporation
- Via Rail Canada Inc.
- Korea Railroad Corporation
- China State Railway Co. Ltd.
- ÖBB Group
- Central Japan Railway Company
- NSW Train link
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Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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