Globalization-related increases in demand for transportation, the rapid ageing of transportation infrastructure, corporate and governmental investments in the extension of rail infrastructure, and a growing need for faster transit are all factors driving the market's expansion. Intelligent transportation systems are chosen for incredibly efficient transportation services, such as traffic management, and are similar to those systems in that they incorporate information and communication technologies. The development of the rail infrastructure market is anticipated to be fuelled by these technologies' ability to increase railway safety and operating effectiveness. Over the projected period, the market's expansion is anticipated to be hampered by factors such as rising fuel prices and resource shortages.
The market for rail infrastructure may experience substantial short- and long-term effects from the recession. If individuals and businesses cut back on their spending during a recession, demand for rail transit may decrease. As a result, rail infrastructure providers may be unable to invest in new initiatives or upgrade the current system. A recession may also make investors more risk-averse and make securing finance for new train infrastructure projects harder. The ability of market participants to develop their infrastructure and satisfy client requests may be constrained as a result.
Increasing R&D for New Rail Systems to drive market growth
High-speed Rail (HSR) is a significant component of the urban rail network. By enhancing connectivity, HSR fosters socioeconomic dynamics and the fundamental elements of economic growth. Accessibility has improved as a result of the significant changes in rail infrastructure development. They altered how labor, capital, transportation, raw materials, and other resources were distributed across diverse geographic areas. The market for railroad infrastructure is also driven by the rise in R&D spending for the implementation of artificial intelligence (AI) and big data in railway signalling. Furthermore, it was discovered during the examination of trains that the primary cause of breakdowns or damage from train collisions was track clearance error. As a result of instances like these, the train signalling system has undergone major modification to lessen track clearance mistakes or delays. In addition, the use of AI has helped cut down on train signalling delays, which has helped speed up train arrival and departure times.
Increasing Inflation Rates to Limit Market Growth
The market for rail infrastructure is only one of the industries where inflation is being felt. Rising labour costs, rising raw material costs, and other issues impede market expansion in different locations. In addition, steel prices have been rising steadily from March 2020, going from USD 500 to USD 800, and by July 2021, they had doubled to USD 1,800. The entire rail infrastructure market is predicted to experience a decline in the upcoming years as a result of such a spike in raw material prices. Furthermore, there are inflationary pressures on labour and other essential building supplies like cement. With logistical difficulties and rising fuel prices, this factor is predicted to decrease raw material availability and increase global prices.
Based on infrastructure, the rail infrastructure market is segmented into rail network, new track investment and maintenance investment. The new track investment category dominated the market in 2022 as a result of the government's increasing budget allocation for infrastructure development in the rail system. Additionally, the U.S. House of Representatives passed a bill in November 2021 that included USD 550 billion in new funding and spending for rail transit and was worth USD 1 trillion for railway infrastructure and jobs.
Based on type, the rail infrastructure market is segmented into locomotive, rapid transit vehicle and railcar. The rapid transit vehicle category dominated the market in 2022. RTVs are a class of rail vehicles that have been specially created and optimized for use in urban rapid transit systems. RTVs normally run on specialized tracks or guideways and are electrically propelled. They are intended to run in urban transit networks at high frequency, with little time between trains, and offer great capacity and speed. RTVs are an important form of rail infrastructure in the urban transportation sector. They offer a quick, dependable, and effective form of transportation that can aid in easing traffic on roads and highways.
Based on ownership, the rail infrastructure market is segmented into private rail road and public rail road. The public rail road category dominated the market in 2022. The term "Public Rail Road" (PRR) in the context of public transit can be used to describe a variety of rail infrastructure components. PRR often refers to railroads run and owned by public authorities or the government rather than private businesses. Intercity rail services provide transportation between cities and regions. Public authorities, governmental organisations, or private businesses on PRR rails may offer intercity rail services.
North America is projected to hold the largest share of the rail infrastructure market over the forecast period. The U.S. spending the most on new track construction and expanding its freight rail network is what's causing the growth. The expanding contracts in the Canadian region for the extension of the entire rail network are responsible for the growth of the rail infrastructure market. Moreover, Wabtec, a rail technology provider, and CN, Canada's national rail carrier, agreed to adopt the PDS precision delivery system in a July 2022 deal. On the other hand, the Asia Pacific rail infrastructure market is anticipated to grow significantly. The market's most promising growth potential is the swift economic development of developing nations including Japan, South Korea, China, South Korea, and India. As a result of the expanding population and growth in rail transportation, numerous OEMs from across the world are investing in this region.
LIST OF KEY COMPANIES PROFILED:
- GE Company
- Bombardier Transportation
- Kawasaki Heavy Industries
- National Railroad Passenger Corporation
- BNSF Railway Company
- Norfolk Southern Corp
- The Kansas City Southern Railway Company
- Union Pacific Railroad Company
In March 2021, a contract to sell almost 1,400 km of non-core rail lines and assets in Michigan, Wisconsin, and Ontario to short-line operator Watco was announced by CN subsidiary WCL and Watco.
REPORT SCOPE AND SEGMENTATION
|Market Size in 2022
|USD 48.2 Billion
|Market Forecast in 2030
|USD 58.6 Billion
|Compound Annual Growth Rate
|Revenue (USD Million) and Volume (Kilo Tons)
|By Infrastructure, By Type, By Ownership and By Geography