India Rail Freight Transport Market Size (2024 - 2029)

The India rail freight transport market is poised for growth as initiatives to shift traffic from road to rail are expected to enhance freight transportation efficiency and reduce greenhouse gas emissions significantly. Despite Indian Railways' extensive network, its market share has been declining due to capacity constraints and competition from road transport, which dominates the freight sector. The rail sector's potential to lower carbon emissions and attract private investment is crucial for its expansion, aiming to reclaim and grow its market share in the coming years.

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Market Size of India Rail Freight Transport Industry

India Rail Freight Transport Market Summary
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

India Rail Freight Transport Market Major Players

*Disclaimer: Major Players sorted in no particular order

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 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
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India Rail Freight Transport Market Size Summary

The India rail freight transport market is poised for significant growth, driven by strategic initiatives aimed at enhancing the efficiency and sustainability of freight transportation. Despite being the fourth-largest rail network globally, Indian Railways currently moves a small fraction of the country's freight, with the majority still relying on road transport. This shift is crucial as road freight is a major contributor to greenhouse gas emissions. The Rail Logistics project is a key initiative designed to redirect traffic from roads to rail, thereby improving efficiency and reducing emissions. This project is expected to attract increased private-sector investment in the railway industry, further bolstering its capacity and market share. The integration of advanced technologies, such as artificial intelligence, is also playing a pivotal role in optimizing rail operations, enhancing reliability, and improving customer satisfaction.

The competitive landscape of the India rail freight transport market is intensifying, with major players like Indian Railways, OM Logistics Limited, and others vying for market share. The market is characterized by increasing pressure on road transport and favorable tariffs within rail transport, which are driving competition among service providers. Regulatory requirements are stringent, prompting companies to engage in mergers and acquisitions to expand their offerings and geographical reach. Recent investments, such as the procurement of freight wagons and international financial support for infrastructure modernization, underscore the commitment to enhancing rail freight capabilities. These developments, coupled with the push towards decarbonization through the adoption of electric and alternative fuel trains, position the rail sector as a more sustainable and competitive option in the logistics market.

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India Rail Freight Transport Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Current Market Scenario

    2. 1.2 Market Dynamics

      1. 1.2.1 Drivers

      2. 1.2.2 Restraints

      3. 1.2.3 Opportunities

    3. 1.3 Value Chain / Supply Chain Analysis

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Technological Advancements

    6. 1.6 Government Regulations and Key Initiatives

    7. 1.7 Spotlight on the Effects of the Belt and Road Initiative (BRI)

    8. 1.8 Elaboration on Key Trade Agreements Related to Rail

    9. 1.9 Review and Commentary on the Freight Transportation Costs by Rail

    10. 1.10 Insights into Key End Users of the Rail Freight Sector

    11. 1.11 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 Service

      1. 2.1.1 Transportation

      2. 2.1.2 Services Allied to Transportation (Maintenance of Railcars and Rail Tracks, Switching of Cargo, and Storage)

    2. 2.2 Cargo Type

      1. 2.2.1 Containerized (Includes Intermodal)

      2. 2.2.2 Non-containerized

      3. 2.2.3 Liquid Bulk

    3. 2.3 Destination

      1. 2.3.1 Domestic

      2. 2.3.2 International

India Rail Freight Transport Market Size FAQs

The India Rail Freight Transport Market is projected to register a CAGR of greater than 4% during the forecast period (2024-2029)

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.

India Rail Freight Transport Report Snapshots

INDIA RAIL FREIGHT TRANSPORT Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)