Market Size of China-Europe Rail Freight Transport Industry
Study Period | 2020 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 12.70 Billion |
Market Size (2029) | USD 40.30 Billion |
CAGR (2024 - 2029) | 25.99 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
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China-Europe Rail Freight Transport Market Analysis
The China-Europe Rail Freight Transport Market size is estimated at USD 12.70 billion in 2024, and is expected to reach USD 40.30 billion by 2029, growing at a CAGR of 25.99% during the forecast period (2024-2029).
- The development of a rail network between China and Europe is part of the long-term strategy of the government of China, to achieve global connectivity through its One-Belt-One-Road (OBOR) initiative. The strategy aims to restore and develop the ancient Silk Road between China and Europe, by encouraging investment in Eurasian transport and logistics, including rail networks, to boost Chinese trade and investment and economic integration.
- Owing to the rising capital costs and wages in coastal areas, many manufacturing and production companies are relocating their plants to inland cities in China, which are far away from the Chinese commercial coastal lines. The companies like HP find it difficult to export products to Europe since the commodities need to travel thousands of kilometres east to the seaports and ship them back to the west of Europe. The development of railroads has offered companies in reducing transit times and shipping of goods from the production site directly to the Countries in Europe.
- According to China Railway, the trains have transported 972,000 twenty-foot equivalent units of cargo this year, a 5% increase from the same period last year. With 82 routes, the trains may now go to 200 cities across 24 nations in Europe, creating a transportation system that spans the whole continent. 53 different categories of goods, including grain and timber, apparel and accessories, and autos and parts, are all transported by trains. China has worked hard to boost train capacity by modernizing domestic transportation systems and coordinating infrastructure development with foreign railways. The average daily freight volume for the China-European freight train services on the eastern route increased by 41.3% from 2020 to 2022.
- The cooperation between Chinese regions, Russia, and other European countries is expected to lead to the evolution and growth of manufacturing activities across the network. This situation is anticipated to create further opportunities for the rail operators and rail freight forwarding service providers, to look after the supply chains of the manufacturing companies involved in the region. The European exports to China by rail mainly consist of metals and metal products, and chemicals, while minerals consist of machinery and equipment, minerals and chemical raw materials.
China-Europe 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. A complete background analysis of the China-Europe Rail Freight Transport Market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact is included in the report.
The China-Europe Rail Freight Transport Market is Segmented by Cargo Type (Containerized, Non-Containerized, Liquid Bulk), and Service Type(Transporation, Services Allied to Transportation). The report offers the market size and forecasts in volume (thousand metric tons) and value (USD billion) for all the above segments.
By Cargo Type | |
Containerized (Intermodal) | |
Non-containerized | |
Liquid Bulk |
Service Type | |
Transportation | |
Services Allied to Transportation |
China-Europe Rail Freight Transport Market Size Summary
The China-Europe Rail Freight Transport Market is experiencing significant growth, driven by China's strategic One-Belt-One-Road initiative, which aims to enhance global connectivity by reviving the ancient Silk Road. This initiative has led to substantial investments in Eurasian transport and logistics, particularly rail networks, to facilitate Chinese trade and economic integration with Europe. The relocation of manufacturing companies to inland cities in China, away from coastal areas, has increased the demand for efficient transport solutions. The development of railroads has significantly reduced transit times, allowing for direct shipping of goods from production sites in China to various European countries. The expansion of rail routes and modernization of ports along the China-Europe corridor have further enhanced the capacity and efficiency of rail freight transport, supporting the growing trade volume between the two regions.
The market is characterized by intense competition, with major international players like China Railway Corporation, Deutsche Post DHL Group, and others dominating the forwarding services sector. The rapid increase in rail connections between China and Europe has intensified competition, making rail freight a viable alternative to other transport modes in terms of speed and cost. Collaborative efforts, such as the partnership between Alstom and ENGIE for hydrogen-powered locomotives, highlight the industry's focus on innovation and sustainability. The market's growth is also supported by strategic alliances, like the one between Shanghai Way-easy Supply Chain and Nurminen Logistics, aimed at improving logistics and rail freight services. As infrastructure development continues to reduce transport costs and times, the China-Europe Rail Freight Transport Market is poised for further expansion, offering lucrative opportunities for rail operators and freight forwarding service providers.
China-Europe Rail Freight Transport Market Size - Table of Contents
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1. MARKET INSIGHTS DYNAMICS
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1.1 Current Market Scenario
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1.2 Market Overview
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1.3 Market Dynamics
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1.3.1 Drivers
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1.3.2 Restraints
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1.3.3 Opportunities
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1.4 Value Chain / Supply Chain Analysis
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1.5 Porters 5 Force Analysis
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1.5.1 Threat of New Entrants
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1.5.2 Bargaining Power of Buyers/Consumers
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1.5.3 Bargaining Power of Suppliers
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1.5.4 Threat of Substitute Products
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1.5.5 Intensity of Competitive Rivalry
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1.6 Technological Advancements in Rail Freight Transport
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1.7 Overview of Global Rail Freight Transport
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1.8 Pricing Analysis and Revenue analysis of Rail Freight Transport Market
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1.9 Insights on Dry ports
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1.10 Government Regulations and Initiatives
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1.11 Regional insights on Rail Freight Transport Market
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1.12 Impact of COVID-19 on the market
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2. MARKET SEGMENTATION
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2.1 By Cargo Type
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2.1.1 Containerized (Intermodal)
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2.1.2 Non-containerized
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2.1.3 Liquid Bulk
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2.2 Service Type
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2.2.1 Transportation
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2.2.2 Services Allied to Transportation
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China-Europe Rail Freight Transport Market Size FAQs
How big is the China-Europe Rail Freight Transport Market?
The China-Europe Rail Freight Transport Market size is expected to reach USD 12.70 billion in 2024 and grow at a CAGR of 25.99% to reach USD 40.30 billion by 2029.
What is the current China-Europe Rail Freight Transport Market size?
In 2024, the China-Europe Rail Freight Transport Market size is expected to reach USD 12.70 billion.