India 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 | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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India Rail Freight Transport Market Analysis
The size of the India air freight market is estimated at around USD 15 billion in the current year and is anticipated to register a CAGR of over 4% during the forecast period.
- The Rail Logistics project will assist India in diverting more traffic from the road to the rail, improving the efficiency of freight transportation while lowering annual GHG emissions by millions of tonnes. Additionally, the project will encourage more private-sector investment in the railroad industry.
- The fourth-largest rail network in the world, Indian Railways (IR), moved 1.2 billion tonnes of freight during the fiscal year that ended in March 2020. However, just 17% of India's freight is moved by rail; 71% of it is conveyed by road. Volumes have been constrained, and shipping speeds and reliability have suffered due to IR capacity restrictions. Since trucks have been gaining market share throughout the years, IR has been losing market share; in 2017-18, its market share was 32%, down from 52% a decade earlier.
- Road freight accounts for about 95% of the freight sector's emissions, making it the biggest source of GHG emissions. Additionally, trucks were involved in 15.8% of all fatal road transport-related accidents and 12.3% of all traffic fatalities in 2018. Rail emits about one-fifth of the GHG emissions from trucks. With IR expecting to become a net-zero carbon emitter by 2030, rail has the ability to reduce 7.5 million tonnes of carbon dioxide and other greenhouse gases annually.
India Rail Freight Transport Market Trends
This section covers the major market trends shaping the India Rail Freight Transport Market according to our research experts:
Digitization in Railways have increased the dependency on rail freight transport
- In the railway sector, AI has a wide range of uses, including asset management, proactive maintenance, and emergency notification. Neural networks and deep learning algorithms help schedule trains more efficiently and cut down on delays. Additionally, cutting-edge passenger information systems enhance transportation services and raise customer satisfaction.
- The Train Brain, a Swedish firm, creates AI algorithms to increase the dependability of public transportation. The startup's technology offers real-time traffic simulations, reporting, and delay forecasting. To forecast the rail network, the technology analyses data from GPS or signalling systems as well as train timetables. The Train Brain enables passengers tobetter-educateducated commute or trip plans and rail operators to make data-driven traffic planning decisions.
- Cedar AI, a US-based firm, provides artificial intelligence solutions to assist rail operators in increasing yard productivity. The startup's AI-powered technology interfaces with current software to guarantee observance of safety regulations while operating the rail yard. The platform assists rail operators in streamlining yard operations, reducing workload, and enhancing the safety of train handling. Thus, digital development provides a unique edge for railways not just to stay relevant, but also to increase their share in the overall logistics market in india.
Increasing use of decarbonization strategies is driving the market
- Governments are attempting to further decarbonize the rail industry even though trains are the most environmentally friendly mode of transportation thanks to aggressive net-zero emissions objectives. The most popular decarbonization strategies involve switching from diesel to electric, hydrogen fuel cell, or battery-powered trains. Rail operators employ electric locomotives that draw their power from renewable resources like solar or wind to further reduce CO2 emissions.
- Across industries, including railroads, Australian start-up Core Environmental Systems provides communities and end-users with energy storage solutions. The startup's Enviro Cell - Train, created expressly to meet the needs of the rail industry, addresses the standard batteries' crank power limitations. In the process, the launch decreases, and in some cases completely eliminates, financial losses for train operators while also boosting rail transportation efficiency. By optimizing train operations and giving rail a competitive edge over both road and air transport, digitization is poised to lower the climate impact of logistics. Also developed rail infrastructure has reduced distance covered by freight operations and progressively improved the india rail freight transport system.
India Rail Freight Transport Industry Overview
Increasing pressure on road transport and lower tariffs within rail transport have led to giving significant rise in competition in the India rail freight transport market. Indian Railways, OM Logistics Limited , Shiprocket, V-Xpress , Delhi Cargo Courier Services, BDG International India Pvt Ltd, Freight Mart Logistics are major market participants in India Rail Freight Transport Market. The competition amongst service providers is further heightened by the strict regulatory requirements that must be met. Businesses participate in M&A transactions to develop their product lines and expand regionally.
India Rail Freight Transport Market Leaders
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Indian Railways
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OM Logistics Limited
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Shiprocket
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V-Xpress
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Delhi Cargo Courier Services
*Disclaimer: Major Players sorted in no particular order
India Rail Freight Transport Market News
- October 2022 - Indian Railways finalizes tender to procure 90,000 freight wagons by 2025. The investment will be around INR 1 trillion. The tender notice for the procurement of 90,000 wagons was floated in March 2022.
- June 2022 - The World Bank's Board of Executive Directors approved a USD 245 million loan to support India's efforts to modernize rail freight and logistics infrastructure. The Rail Logistics project will help India shift more traffic from road to rail, making transport-both freight and passenger-more efficient and, reducing millions of tons of greenhouse gas emissions (GHG) each year. The project will also incentivize more private-sector investment in the railway sector.
India 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 Method
- 2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
- 4.1 Current Market Scenario
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4.2 Market Dynamics
- 4.2.1 Drivers
- 4.2.2 Restraints
- 4.2.3 Opportunities
- 4.3 Value Chain / Supply Chain Analysis
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4.4 Porter's Five Forces Analysis
- 4.4.1 Threat of New Entrants
- 4.4.2 Bargaining Power of Buyers/Consumers
- 4.4.3 Bargaining Power of Suppliers
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
- 4.5 Technological Advancements
- 4.6 Government Regulations and Key Initiatives
- 4.7 Spotlight on the Effects of the Belt and Road Initiative (BRI)
- 4.8 Elaboration on Key Trade Agreements Related to Rail
- 4.9 Review and Commentary on the Freight Transportation Costs by Rail
- 4.10 Insights into Key End Users of the Rail Freight Sector
- 4.11 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
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5.1 Service
- 5.1.1 Transportation
- 5.1.2 Services Allied to Transportation (Maintenance of Railcars and Rail Tracks, Switching of Cargo, and Storage)
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5.2 Cargo Type
- 5.2.1 Containerized (Includes Intermodal)
- 5.2.2 Non-containerized
- 5.2.3 Liquid Bulk
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5.3 Destination
- 5.3.1 Domestic
- 5.3.2 International
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concentration Overview
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6.2 Company Profiles
- 6.2.1 Indian Railways
- 6.2.2 OM Logistics Limited
- 6.2.3 V-Xpress
- 6.2.4 Shiprocket
- 6.2.5 Delhi Cargo Courier Services
- 6.2.6 BDG International India Pvt Ltd
- 6.2.7 Freight Mart Logistics
- 6.2.8 Anshika Express Cargo
- 6.2.9 Transvoy Logistics India Limited
- 6.2.10 Speedofreight Logistics Pvt Ltd*
- *List Not Exhaustive
7. FUTURE OF INDIA RAIL FREIGHT TRANSPORT MARKET
8. APPENDIX
India Rail Freight Transport Industry Segmentation
From a point of loading or a goods station to a point of unloading, goods are transported by rail. These products, such as coal, building supplies, iron, and steel, are frequently large and heavy. Along with the transportation of large items, the rail freight market also offers this service. Service providers provide value-added services and logistics. Loading and documentation, unloading, services, and packaging are a few of them. A complete background analysis of the India 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, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact, is covered in the report.
The India Rail Freight Transport Market is Segmented by Cargo Type (Containerized (Intermodal), Non-containerized, and Liquid Bulk), Destination (Domestic and International) and Service Type (Transportation and Services Allied to Transportation). The report offers market size and forecasts for India Rail Freight Transport Market in value ( USD Billion ) for all the above segments.
| Service | Transportation |
| Services Allied to Transportation (Maintenance of Railcars and Rail Tracks, Switching of Cargo, and Storage) | |
| Cargo Type | Containerized (Includes Intermodal) |
| Non-containerized | |
| Liquid Bulk | |
| Destination | Domestic |
| International |
India Rail Freight Transport Market Research FAQs
What is the current India Rail Freight Transport Market size?
The India 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 India Rail Freight Transport Market?
Indian Railways, OM Logistics Limited, Shiprocket, V-Xpress and Delhi Cargo Courier Services are the major companies operating in the India Rail Freight Transport Market.
What years does this India Rail Freight Transport Market cover?
The report covers the India Rail Freight Transport Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the India Rail Freight Transport Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
India Rail Freight Transport Industry Report
Statistics for the 2024 India Rail Freight Transport market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. India Rail Freight Transport analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
