North America – Rail Freight Transportation Market size to grow by USD 42.88 billion from 2022 to 2027, Low transportation cost of freight to drive the growth- Technavio

NEW YORK, Oct. 2, 2023 /PRNewswire/ — The North America – rail freight transportation market size is expected to grow by USD 42.88 billion from 2022 to 2027. However, the growth momentum of the market will decelerate at a CAGR of 7.47% during the forecast period. The market is segmented by end-user (petroleum and chemical, coal, metals and minerals, agriculture products, and others), mode of transportation (freight cars, tank wagons, and intermodal), and geography (US, Canada, and Mexico). The low transportation cost of freight is a key factor driving market growth. Compared with other transport modes, rail freight services are less costly and more efficient due to their ability to carry large volumes of cargo over longer distances. It is employed in the transport of agricultural products, for example, grains. In addition, Canada’s National Railway is the main railway operator for shipments of farm products throughout the Prairie. Canadian Pacific and CP Rail are also important railroad operators in this region. They’re shipping at a competitive price for grains and other agricultural products. They also provide various value-added services such as logistics, supply chain management, and marketing. Hence, these factors are expected to drive market growth during the forecast period. The report analyses the market size and growth and provides accurate predictions on the growth of the market. View a Free PDF Sample 

Key Highlights:

• The report recognizes the following as some of the key players in the rail freight transportation market in North America: Berkshire Hathaway Inc., Brookfield Business Partners LP, Canadian National Railway Co., Canadian Pacific Railway Ltd., CSX Corp., DB Schenker, Deutsche Post AG, DSV AS, GeoMetrix Rail Logistics Inc., Grupo Mexico SAB de CV, Harsco Corp., Hub Group Inc., Kerry Logistics Network Ltd., Norfolk Southern Corp., Patriot Rail Co., RSI Logistics Inc., Union Pacific Corp., United Parcel Service Inc.,  VIA Rail Canada Inc., and WSP Global Inc.
• Rail Freight Transportation Market in North America is fragmented in nature.
• Market to observe 7.68% YOY growth in 2023.

Market Dynamics:

Major Trend

• The increasing use of artificial intelligence (AI) in rail infrastructure technology is a major trend in the market.
• In rail freight transport, the use of artificial intelligence and Internet of Things technologies can be instrumental in increasing efficiencies, reducing costs, and improving safety.
• Furthermore, advanced track electrification projects, which are based on the next generation technologies to electricize railways and traffic signals, have been invested in by the governments of the US and Canada.
• For example, Canadian railways use Artificial Intelligence and Internet of Things technologies across their networks to improve predictive maintenance, train route planning, and fuel efficiency.
• Hence, these factors are expected to drive market growth during the forecast period.

Significant Challenge

• The growing competition from alternate freight services is a significant challenge restricting market growth.
• Some alternative freight services may include road, air, and ocean transport.
• Road freight gives flexibility in the timing of delivery so that it can be delivered to doorsteps. Compared to rail freight, airfreight can be transported more quickly. Likewise, the cost of maritime shipping is rather low as compared to rail transport.
• In addition, the growth of the freight rail market in this region can be slowed down by increasing investment in road and air infrastructure.
• Hence, these factors are expected to restrict market growth during the forecast period.

The report also covers information on upcoming trends and challenges. Explore detailed information by purchasing a report

Keg Segments:

The market share growth by the petroleum and chemical segment will be significant during the forecast period. These include oil companies engaged in the production, refining, and distribution of petroleum products such as crude oil, gasoline, diesel, chemicals, or all those related to industry. Oil and gas exploration and production firms, oil refineries, chemical manufacturing companies, distributors, and other related companies are part of this segment. In addition, freight railway transport for chemicals such as chlorine and sodium hydroxide that are used extensively in the fields of water treatment, pulp production, or pharmaceuticals is also carried out. Hence, these factors are expected to drive segment growth during the forecast period.

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Related Reports:

The railway wiring harness market size is estimated to grow at a CAGR of 4.82% between 2023 and 2027. The market size is forecast to increase by USD 443.29 million.

The rail freight market share is expected to increase by USD 29.29 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 2.15%.

ToC:

Executive Summary

Market Landscape

Market Sizing

Historic Market Sizes

Five Forces Analysis

Market Segmentation by End-user

Market Segmentation by Mode of Transportation

Market Segmentation by Geography

Customer Landscape

Geographic Landscape

Drivers, Challenges, & Trends

Company Landscape

Company Analysis

Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base comprises enterprises of all sizes, including over 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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