APAC Rail Freight Transport Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 4.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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APAC Rail Freight Transport Market Analysis
The size of the Asia Pacific Rail Freight Transport Market is USD 170 billion in the current year and is anticipated to register a CAGR of over 4% during the forecast period
- The rail freight digital transformation solution and services are creating new opportunities which are more agile to transform the rail freight digital transformation market share by developing new models and freight management systems to monitor the core operations of the rail freight digital transformation market.
- A well-functioning rail network provides the backbone of several countries' logistics sectors. Especially in countries like Australia, New Zealand or Indonesia, freight accounts for the larger share of railway traffic volumes given the long transport distances. South Korea and Thailand in terms of railway traffic volumes where support the reduction of road traffic and pollution in dense urban areas.
- Asia Pacific is expected to account for almost half of global freight activity by that time. Consequently, transport emissions might rise 48% from 2015 to 2050 at the regional level. With the onset of Covid-19, there was a surge in rail freight demand which led to growth in this sector as well as prompted the government of various countries to develop the railway network for the future.
APAC Rail Freight Transport Market Trends
This section covers the major market trends shaping the APAC Rail Freight Transport Market according to our research experts:
Investments in New and Existing Rail Systems
- The implementation of national transport strategies across the Asia Pacific region requires on the one hand investments in new rail infrastructure projects in order to expand the respective country's railway network and to increase connectivity. On the other hand, investments are needed to support the incremental renewal of existing systems.
- New projects aim to foster the modal shift from road to rail but also the decarbonisation of the railway operation itself. In several countries of the region the rail electrification rate is still relatively low. Accordingly, new railway projects provide an opportunity for implementation to benefit from electrification's substantial emission reduction potential, especially in the area of long-distance passenger and freight transport. At the same time, investing in existing rail systems exemplarily by replacing older and less efficient rolling stock with modern and environmentally friendly technology is also of high importance to utilise available resources and to optimise the decarbonisation impact.
China Leading the Market in the Region
- In 2022, China had the highest railway coverage compared to other listed countries in the Asia-Pacific region, amounting to 131 thousand kilometres. This was followed by India with a railway coverage of 68 thousand kilometres in 2022. China has altered its strategy for the rail sector in its 14th five-year plan from 2021-2025 from network growth to enhancing efficiency. The state railway is changing course, according to the Chinese Railway Market Study, which was published on May 10. Digitalization and automation are now expected to play a more significant role than network growth.
- The Chinese rail technology market will rise over the next five years, this growth will be fueled by digital advances, particularly the dynamically expanding after-sales sector, rather than newline development and new rolling stock.
- The OEM market is predicted to increase rapidly for the freight wagon, EMU, and LRV segments. For years, Chinese rail technology firms have made significant investments in the study and advancement of contemporary technology. The strategic plan "Made in China 2025," released by the central government in 2015, focuses particularly on high-tech industries, including a portion of the rail industry, which is now mostly controlled by foreign corporations.
APAC Rail Freight Transport Industry Overview
The Asia Pacific Rail Freight Transport Market is moderately consolidated in nature, with a mix of global and local players. Major players include China State Railway Group Co. Ltd., Aurizon Holdings Ltd., M & W China Limited, Japan Freight Railway Co., Indian Railways, and many more. According to industry sources, the rail industry has been facing huge competition from its similar service providers, road and air transporters, since the last decade. Many countries are heavily investing in railroad infrastructural developments, and investments are especially huge in China and India. International companies hold a large market share by acquiring or joining hands with local companies in many regions. At the country level, most of the markets seem to be concentrated with the presence of one or two major players.
APAC Rail Freight Transport Market Leaders
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China State Railway Group Co. Ltd.
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Aurizon Holdings Ltd.
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M & W China Limited
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Japan Freight Railway Co.
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Indian Railways
*Disclaimer: Major Players sorted in no particular order
APAC Rail Freight Transport Market News
- September 2022 - KiwiRail has signed a supply contract, supported by a fifteen-year maintenance contract, with French multinational Alstom for a once-in-a-generation upgrade to its Train Control System (TCS). The Train Control team manages the movement of freight, commuter and scenic trains across New Zealand and this new computer control system will provide greater automation, resiliency, and safety across the national rail network
- July 2022 - On 29 July 2022, Aurizon completed the acquisition of One Rail Australia (ORA) for USD 2.35 billion. The acquisition is transformative for Aurizon and aligned with our growth strategy, delivering the scope and scale with new customers, new regions and greater exposure to new economy commodities such as copper, manganese and rare earth.
APAC Rail Freight Transport Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
- 2.1 Analysis Methodology
- 2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Current Market Scenario
- 4.2 Technological Trends
- 4.3 Government Regulations and Initiatives
- 4.4 Insights into Transport Corridors in Key Regions
- 4.5 Review and Commentary on the Freight Transportation Costs by Rail
- 4.6 Elaboration on Key Trade Agreements Related to Rail
- 4.7 Impact of COVID-19 on the Market (Short-term and Long-term Impact on the Market and the Economy)
- 4.8 Insights into Key End Users of the Rail Freight Sector
5. MARKET DYNAMICS
- 5.1 Market Drivers
- 5.2 Market Restraints
- 5.3 Market Opportunities
- 5.4 Porter's Five Forces Analysis
6. MARKET SEGMENTATION
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6.1 By Type of Cargo
- 6.1.1 Containerized (Includes Intermodal)
- 6.1.2 Non-containerized
- 6.1.3 Liquid Bulk
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6.2 By Destination
- 6.2.1 Domestic
- 6.2.2 International
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6.3 By Country
- 6.3.1 India
- 6.3.2 China
- 6.3.3 Australia
- 6.3.4 Japan
- 6.3.5 Indonesia
- 6.3.6 Thailand
- 6.3.7 Rest of Asia-Pacific
7. COMPETITIVE LANDSCAPE
- 7.1 Overview (Market Concentration and Major Players)
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7.2 Company Profiles
- 7.2.1 OBB-Holding AG
- 7.2.2 China State Railway Group Co. Ltd.
- 7.2.3 Aurizon Holdings Ltd.
- 7.2.4 M & W China Limited
- 7.2.5 Qube Holdings Ltd.
- 7.2.6 Japan Freight Railway Co.
- 7.2.7 PT Kereta Api Indonesia
- 7.2.8 Indian Railways
- 7.2.9 Pacific National Group
- 7.2.10 KiwiRail Ltd.*
- *List Not Exhaustive
- 7.3 Other Companies
8. FUTURE OF THE MARKET
9. APPENDIX
APAC Rail Freight Transport Industry Segmentation
Rail freight transport is the usage of railroads and trains to transport cargo on land. It can be used for transporting various kinds of goods or some of the way between the shipper and the intended destination. The report includes a complete background analysis of the rail freight transport market, which includes an assessment of the sector and contribution of the sector in the economy, market overview, market size estimation for key segments, key countries and emerging trends in the market segments, market dynamics, and key freight statistics. The report also covers a detailed analysis of the impact of COVID-19 on the market.
The Asia Pacific Rail Freight Transport Market is segmented by cargo type (containerized (intermodal), non-containerized, and liquid bulk), destination (domestic and international), service type (transportation and services allied to transportation), and by country (India, China, Australia, Japan, Indonesia, Thailand and Rest of Asia-Pacific). The report offers the market size and forecasts in volume (thousand metric ton) and value (USD billion) for all the above segments.
| By Type of Cargo | Containerized (Includes Intermodal) |
| Non-containerized | |
| Liquid Bulk | |
| By Destination | Domestic |
| International | |
| By Country | India |
| China | |
| Australia | |
| Japan | |
| Indonesia | |
| Thailand | |
| Rest of Asia-Pacific |
APAC Rail Freight Transport Market Research FAQs
What is the current Asia Pacific Rail Freight Transport Market size?
The Asia Pacific Rail Freight Transport Market is projected to register a CAGR of greater than 4% during the forecast period (2024-2029)
Who are the key players in Asia Pacific Rail Freight Transport Market?
China State Railway Group Co. Ltd., Aurizon Holdings Ltd., M & W China Limited, Japan Freight Railway Co. and Indian Railways are the major companies operating in the Asia Pacific Rail Freight Transport Market.
What years does this Asia Pacific Rail Freight Transport Market cover?
The report covers the Asia Pacific Rail Freight Transport Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Asia Pacific Rail Freight Transport Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Asia Pacific Rail Freight Transport Industry Report
Statistics for the 2024 Asia Pacific Rail Freight Transport market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Asia Pacific Rail Freight Transport analysis includes a market forecast outlook to (2024to2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
