The global rail infrastructure market is expected to exhibit strong growth, reaching USD 58.6 billion by 2030. As per the report titled "Rail Infrastructure Market Size, Share & Recession Impact Analysis, By Infrastructure (Rail Network, New Track Investment and Maintenance Investment), By Type (Locomotive, Rapid Transit Vehicle and Railcar), By Ownership (Private Rail Road and Public Rail Road), and Regional Forecasts, 2023-2030" observes that the market size in 2022 stood at USD 48.2 billion and USD 58.6 billion in 2030. The market is expected to exhibit a CAGR of 3.30% during the forecast period.
Mexican Ministries of Communications, Infrastructure, and Transportation (SICT) and Kansas City Southern have Established a Partnership
In July 2022, the Mexican Ministry of Communications, Transportation, and Infrastructure (SICT) and Kansas City Southern have announced a partnership to invest in the Celaya Railway Bypass. This project aims to finance new infrastructure improvements, up to a maximum of USD 196 million, for the Celaya-NBA Railway Line.
Advancement of Technology Will Drive the Industry
In the upcoming years, prospects for rail infrastructure will increase due to the growing adoption of cutting-edge technologies like the Internet of Things (IoT), Big Data, and artificial intelligence for improving railroad operations. Furthermore, numerous governments make significant investments in cutting-edge rail track electrification projects and other upgrade initiatives. For track electrification and railway signalling, the operators used cutting-edge technologies. In the US, there has been an increase in the completion and automation of rail inspections using cutting-edge technology like AI, machine learning, and machine vision. Moreover, sensors and cameras with machine vision capabilities are mounted on railcars or rails to evaluate various car components. The Federal Railroad Administration (FRA) updated its criteria for track safety and rail integrity in 2020 to lower costs, provide accurate and timely data collection and analysis, and protect the integrity of the system. The new standards' emphasis on creating cutting-edge inspection techniques and high-quality data will cause the train industry throughout the region to go digital.
Increased Regulatory and Legal Barriers to Constrain Market Expansion
Legal and regulatory limitations are one of the main obstacles that could prevent the development of rail infrastructure projects. These obstacles can take many different shapes and appear at various project development phases. Projects involving rail infrastructure construction could need a lot of permissions and approvals from different local, state, and federal government entities. Environmental impact studies, zoning laws, and open forums are all part of what may be a drawn-out and complicated process. Furthermore, in order to build train infrastructure, it is frequently necessary to negotiate or use eminent domain to take over private land. Property owners could contest these acquisitions, which could result in court battles and project delays.
Major Players Develop Acquisition Plans to Boost Brand Image
The leading businesses in the rail infrastructure market plan acquisitions to improve their brand recognition globally. For instance, In April 2021, CN made an approximately USD 30 billion offer for Kansas City Southern (KCS), sparking a competition with the Canadian Pacific Railway (CPR). In March 2021, CPR made a proposal of USD 25 billion for the business.
Recent Development:
Mexican Ministries of Communications, Infrastructure, and Transportation (SICT) and Kansas City Southern have Established a Partnership
In July 2022, the Mexican Ministry of Communications, Transportation, and Infrastructure (SICT) and Kansas City Southern have announced a partnership to invest in the Celaya Railway Bypass. This project aims to finance new infrastructure improvements, up to a maximum of USD 196 million, for the Celaya-NBA Railway Line.
Advancement of Technology Will Drive the Industry
In the upcoming years, prospects for rail infrastructure will increase due to the growing adoption of cutting-edge technologies like the Internet of Things (IoT), Big Data, and artificial intelligence for improving railroad operations. Furthermore, numerous governments make significant investments in cutting-edge rail track electrification projects and other upgrade initiatives. For track electrification and railway signalling, the operators used cutting-edge technologies. In the US, there has been an increase in the completion and automation of rail inspections using cutting-edge technology like AI, machine learning, and machine vision. Moreover, sensors and cameras with machine vision capabilities are mounted on railcars or rails to evaluate various car components. The Federal Railroad Administration (FRA) updated its criteria for track safety and rail integrity in 2020 to lower costs, provide accurate and timely data collection and analysis, and protect the integrity of the system. The new standards' emphasis on creating cutting-edge inspection techniques and high-quality data will cause the train industry throughout the region to go digital.
Increased Regulatory and Legal Barriers to Constrain Market Expansion
Legal and regulatory limitations are one of the main obstacles that could prevent the development of rail infrastructure projects. These obstacles can take many different shapes and appear at various project development phases. Projects involving rail infrastructure construction could need a lot of permissions and approvals from different local, state, and federal government entities. Environmental impact studies, zoning laws, and open forums are all part of what may be a drawn-out and complicated process. Furthermore, in order to build train infrastructure, it is frequently necessary to negotiate or use eminent domain to take over private land. Property owners could contest these acquisitions, which could result in court battles and project delays.
Major Players Develop Acquisition Plans to Boost Brand Image
The leading businesses in the rail infrastructure market plan acquisitions to improve their brand recognition globally. For instance, In April 2021, CN made an approximately USD 30 billion offer for Kansas City Southern (KCS), sparking a competition with the Canadian Pacific Railway (CPR). In March 2021, CPR made a proposal of USD 25 billion for the business.
Recent Development:
- In December 2021, Canadian Pacific Railway Ltd received the purchase of Kansas City Southern (CP). A total enterprise value of about USD 31 billion is assigned to the deal.
List of Key Players Profiled in the Report
- 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
- Union Pacific Railroad Company
Further Report Findings
- The market in North America is expected to gain a huge portion of the global Rail infrastructure market share in the coming years. The growth is being driven by the U.S., which is investing the most in building new tracks and expanding its freight rail network.
- The expanding contracts in the Canadian region for the expansion of the complete rail network are to blame for the expansion of the rail infrastructure market.
- In the Asia Pacific, the growth in this region is primarily driven by rapid economic development of developing countries such as Japan, South Korea, China, South Korea, and India
| Attributes | Details |
| Market Size in 2022 | USD 48.2 Billion |
| Market Forecast in 2030 | USD 58.6 Billion |
| Compound Annual Growth Rate | 3.30 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Infrastructure, By Type, By Ownership and By Geography |
| By Infrastructure |
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| By Type |
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| By Ownership |
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| By Region |
|
| Base Year | 2022 |
| Historical Year | 2016-2021 |
| Forecast Year | 2023-2030 |
