Global Railway Transport Industry
The global railroad transport industry is expected to hit the $800 billion mark by 2015, according to research from Global Industry Analysts. Demand for rail transportation declined because of the economic recession. Freight volumes plummeted by as much as 30%, with the US and the EU particularly badly hit.
State stimulus packages and rescue plans launched in a bid to stimulate economic recovery encompassed initiatives for the transportation sector. Many of these packages are helping projects led by public sector rail operators, who rely on the government for funding.
Key Railway Transportation Market Segments
The world rail freight industry growth is expected to accelerate to a yearly rate of 8% between 2011 and 2016, bringing the market to almost $286 billion. The EU has a 43% share in the world global passenger rail sector.
Regional Railroad Industry Market Share
The global rail freight industry encompasses revenue generated through freight transportation by rail. Industry performance is expected to reach a yearly growth of almost 6% between 2011 and 2016. The global rail freight industry is expected to exceed $62 billion by the close of 2016.
The North American railroad market growth is expected to accelerate to exceed yearly growth of 7% for the five-year period ending 2016. The North American railroad sector is predicted to generate revenue of almost $153 billion by the end of 2016.
Railway Transport Market Outlook
A rapid increase in global population, along with urbanization, and economic development are all factors fuelling growth in the global railway transport sector. Growing awareness as to the negative impact of traffic congestion on the environment is also encouraging rail passenger traffic as an alternative to car travel. Rail transportation continues to benefit from the advantages it offers such as greater energy efficiency than water, road and air transportation, reports Global Industry Analysts.