View all newsletters
Receive our newsletter – data, insights and analysis delivered to you
  1. News
October 2, 2020

UNIFE study predicts steady growth for rail despite Covid-19

The global rail technology market is expected to grow by 2.3% annually over the next five years, despite an 8% slump registered in 2020 due to the Covid-19 pandemic.

By Ilaria Grasso Macola

The global rail technology market is expected to grow by 2.3% annually over the next five years, despite an 8% slump registered in 2020 due to the Covid-19 pandemic.

The data – which is part of a study conducted by consultancy firm Roland Berger on behalf of Association of the European Rail Supply Industry (UNIFE) – covered 65 countries, jointly comprising more than 98% of global rail traffic.

“The rail transport market has been hit by the pandemic, which has temporarily interrupted the strong growth that we were experiencing,” said UNIFE chairman Henri Poupart-Lafarge.

“Nevertheless, after a challenging 2020 we are confident that the various stimulus plans together with the increasing demand for sustainable mobility solutions will lead to a solid market recovery, translating into a 2.3% compound annual growth rate between the periods 2017-19 and 2023-2025.”

In the last three years, the sector has grown annually by 3.6%, reaching more €177bn in 2019, with rolling stock, rail control solutions and infrastructure markets featuring as the main drivers.

Rolling stock went up by 6.8% reaching €61.9bn, while rail control solutions and infrastructure markets grew by 4.1% and 2.3%, reaching €16.8bn and €32.6bn respectively.

Since 2018, the railway’s installed base has increased steadily, as the global rail network was extended by 23,000km and 20,000 vehicle units were introduced.

Geographically, Asia-Pacific and Western Europe underwent the biggest growth, whereas Africa and the Middle East witnessed a decline of 1.2%.

“The Asia-Pacific region and Western Europe made the largest contribution to the positive development of the entire market with 5.3% and 3.8% respectively,” explained Roland Berger partner Andreas Schwilling.

Macro trends will also have a positive effect on the market, whose volume is expected to reach €204bn by 2025.

“Urbanisation, global population growth and growing environmental awareness will lead to higher passenger numbers, while digitalisation and automation will make the rail sector more attractive,” he said.

“Despite the impact of Covid-19 throughout 2020, overall in recent years there has been momentum for international train travel,” commented Eurail general manager Carlo Boselli.

“Environmental friendliness of rail travel is relevant in the decision about the mode of transport for a holiday for 71% of Interrailers in 2019, according to our own research.”

The study highlighted that international trade barriers are increasingly becoming an impediment to rail growth. In the last two years, the global market share available to European companies shrunk from 63% to 62%.

“A level playing field is crucial for efficient rail systems, and we call on institutions to ensure that competition is fair as a means of preventing any further decline in market accessibility,” commented UNIFE director general Philippe Citroën.

 

 

 

 

Related Companies

Free Report
img

Navigate your business through the ‘new normal’

COVID-19 continues to dominate headlines the world over. It has already affected our lives forever. The way we work, shop, eat, seek medical advice, and socialize will all be different in the future. Quite how different remains to be seen, but all industries must plan for multiple eventualities.  Faced with an explosion of conflicting information on how to plan and implement successful recovery strategies, decision-makers are in dire need of a single, reliable source of intelligence.   GlobalData’s COVID-19 Executive Briefing gives you access to unparalleled data and insights to successfully navigate the uncertain road to recovery across the world’s largest industries. Understand every aspect of this disruptive theme by delving into: 
  •  COVID-19 infection update, with statistics on the spread, testing by country, as well as the latest data on vaccines and therapeutic developments 
  • Economic impact overview, covering stock market indices, GDP, unemployment rates, policy responses & GlobalData’s economic recovery scorecards 
  • Sector developments, with access to sector insight summaries, cross-sector indices and the leaders and laggards in each industry vertical 
Whatever your company’s imminent strategic plans, the long-lasting impact of COVID-19 must not be overlooked. Find out how to futureproof your business operations – download our report today. 
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The railway industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU