France Rail Freight Transport Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The France Rail Freight Transport Market is Segmented by Cargo Type (Containerized (Intermodal), Non-containerized, and Liquid Bulk) and by Service Type (Transportation and Services Allied to Transportation). The report offers the market size and forecasts for the France Rail Freight Transport Market in volume (thousand metric tons) and value (USD billion) for all the above segments.

France Rail Freight Transport Market Size

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France Rail Freight Transport Market Summary
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Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR > 5.00 %
Market Concentration Medium

Major Players

France Rail Freight Transport Market Major Players

*Disclaimer: Major Players sorted in no particular order

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France Rail Freight Transport Market Analysis

The France rail freight transport market is anticipated to register a CAGR of more than 5% over the forecast period.

  • By the introduction of an energy savings certificate (ESC) program accessible to shippers, France has strengthened its effort to hasten the changeover of freight transport modes. The announcement of the proposal was made in November 2022 by the Ministries of Energy Transition and Transport, highlighting the fact that rail transportation uses six times less energy than driving.
  • The French government will now assist in mitigating the additional transportation expenses incurred when converting from road to rail freight to encourage shippers to convey products by train. The energy cost "break" comes out to be almost 13% of the average cost of a tonne-kilometer (t-km), which is calculated at 3.3 cents per t-km.
  • The goal of France's national rail freight development strategy is to double the country's modal share of goods, from 9% in 2019 to 18% in 2030, and then to 25% in 2050. The methods for doing this centre on increasing the appeal of rail, both practically by upgrading the calibre of freight train slots and financially by establishing help programs to make up for the higher prices compared to road transport. Since 2021, France's rail freight industry has been growing again after three years of stagnation, particularly at the national railroad utility and operator SNCF. Rail accounted for 10.7% (2021) of surface freight transport, up from 9.6% in 2020, and is likely to continue growing.
  • A representative of the Alliance 4F (Fret Ferroviaire Français du Futur), which brings together major rail freight operators in France, demanded the Ministry of Transport emphasize the critical role of rail freight in the decarbonization of the economy and green planning and consider its targeted and effective promotion, especially in the current energy crisis. First, a system to aid rail freight businesses in coping with skyrocketing energy expenses needs to be developed. The performance and dependability of the rail network should also be improved. The Alliance has requested from the Ministery a specific State mandate for SNCF Réseau.

France Rail Freight Transport Market Trends

This section covers the major market trends shaping the France Rail Freight Transport Market according to our research experts:

High fuel prices pushing transporters shift towards rail freight driving the market

In comparison to their neighbours in Europe, French consumers have so far been incredibly fortunate and have experienced little to no increases in their electricity costs. This is so that the government's price controls on gas and electricity, which were both set to expire at the end of 2022, will not be able to raise rates over 4%. Gas rates can increase by a maximum of 15% starting in January 2023, while electricity costs can increase by a maximum of 15% starting in February 2023. This will cost the typical home an additional 20 euros (USD 20.70) every month.

Although it will be a challenging winter in all of Europe, international European road freights reached a new high in Q3 2022. However, as volumes start to decline, freight rates start to soften through September and October 2022. In Q3-22, all costs for the 1,270-kilometer trip between Paris and Madrid rose to a new record high. Contract rates have increased 2.7% Q-o-Q and 21.8% Y-o-Y to an average of EUR 1,570 (USD 1624.93) per voyage (EUR 1.24/km (USD 1.28/KM)) on the head haul from Madrid to Paris.

Due to the increase, diesel expenses may now make up 50% of operating transport costs, compared to their typical 1/3 share. Up until the end of 2022, there will likely be a growing driver shortage, with an estimated 40% increase in open truck driver employment. The European economy is characterized by weaker demand and consumption when seen from the perspective of global inflation. Although the rise in road freight rates is slowing down, as a result, the trend is still upward. Road carriers are experiencing a labour scarcity that is reducing the amount of capacity that is available and driving up their overall expenses.

France Rail Freight Transport Market - Motor vehicle fuel prices, France, in Euro per Liter, 2022

Increase in rail freight demand supported by government driving the market

Since 2021, France's rail freight industry has been growing again after three years of stagnation, particularly at the national railroad utility and operator SNCF. From 9.6% in 2020 to 10.7% last year, rail's share of surface freight transit increased, and it is anticipated that it will continue to do so in 2022. The goal of France's national rail freight development strategy is to double the country's modal share of goods, from 9% in 2019 to 18% in 2030, and then to 25% in 2050. The strategies for accomplishing this centre on increasing the appeal of rail, both operationally by boosting the calibre of freight train slots and financially by establishing help programs to offset the increased expenses compared to road transport.

Supply networks are being increasingly impacted as the situation in Eastern Europe persists. Some production processes are no longer as easily accessible due to the absence of raw materials like crude, or are no longer commercially feasible as the price of oil and gas, as a result of the decision to exclude Russian oil and gas supplies. Other expenditures increase together with the cost of diesel. The planet will be affected by this ripple effect. Heat, gas, and fuel prices are projected to increase for European consumers. Fuel supply chain disruptions may also have an impact on food costs, leading to a rise in economic protectionism and insecurity in the world's poorer regions.

France Rail Freight Transport Market - Goods transported by railways, France, in Thousand Tonnes, 2017-2021

France Rail Freight Transport Industry Overview

The France Rail Freight Transport Market is partially fragmented and highly competitive with the presence of major international players. Major players include SNCF Logistics, NVO Consolidation SAS, Martin Bencher Group, Ace-Trans Transportation and Logistics, Med Europe Terminal, and many others. The market is mainly dominated by regional and global players providing maximum services to their customers. The shifting of transporters towards rail freight in European countries due to fuel price surge is driving the market and attracting new players to enter the market. 

France Rail Freight Transport Market Leaders

  1. SNCF Logistics

  2. NVO Consolidation SAS

  3. Martin Bencher Group

  4. Ace-Trans Transportation and Logistics

  5. Med Europe Terminal

*Disclaimer: Major Players sorted in no particular order

France Rail Freight Transport Market - Competitive Landscape
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France Rail Freight Transport Market News

  • November 2022: VIIA, the French transportation corporation, launched a new rail freight service connecting the southern French port of Sete with the Valenton terminal, which is 15 kilometres from Paris. The commerce of DFDS Ro-Ro cargo leaving the Yalova terminal in northwest Turkey by sea is anticipated to increase as a result of this new connection. Given that Paris is a significant consumption hub, the new connection will boost both the regional French and Spanish traffic.
  • November 2022: Waters Nestle From 2025, VITTEL mineral water will be transported throughout France by a freight train that runs on hydrogen. Alstom will create the ground-breaking technology, and ENGIE will supply the hydrogen. According to Nestle, the new method will enable green traction of locomotives on non-electronically powered rail sections. This implies that a single locomotive may deliver goods along the entire route.

France Rail Freight Transport Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS AND DYNAMICS

    1. 4.1 Current Market Scenario

    2. 4.2 Market Overview

    3. 4.3 Market Dynamics

      1. 4.3.1 Drivers

      2. 4.3.2 Restraints

      3. 4.3.3 Opportunities

    4. 4.4 Value Chain / Supply Chain Analysis

    5. 4.5 Industry Attractiveness- Porters Five Forces Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 Technological Advancements in Rail Freight Transport

    7. 4.7 Overview of Global Rail Freight Transport

    8. 4.8 Pricing Analysis and Revenue analysis of Rail Freight Transport Market

    9. 4.9 Insights on Dry ports

    10. 4.10 Government Regulations and Initiatives

    11. 4.11 Regional insights on Rail Freight Transport Market

    12. 4.12 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Cargo Type

      1. 5.1.1 Containerized (Intermodal)

      2. 5.1.2 Non-containerized

      3. 5.1.3 Liquid Bulk

    2. 5.2 Service Type

      1. 5.2.1 Transportation

      2. 5.2.2 Services Allied to Transportation

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Overview (Market Concentration, Major Players)

    2. 6.2 Company Profiles (including Mergers, Acquisitions, Joint Ventures, Collaborations, and Agreements)

      1. 6.2.1 SNCF Logistics

      2. 6.2.2 NVO Consolidation SAS

      3. 6.2.3 Martin Bencher Group

      4. 6.2.4 Ace-Trans Transportation and Logistics

      5. 6.2.5 Med Europe Terminal

      6. 6.2.6 Deutsche Bahn AG (DB Group)

      7. 6.2.7 United Parcel Service Inc.

      8. 6.2.8 Railcoop

      9. 6.2.9 Europorte France

      10. 6.2.10 Atir Rail

      11. 6.2.11 Regiorail France SAS

      12. 6.2.12 Touax Rail Ltd.*

  7. 7. FUTURE OF THE MARKET

  8. 8. APPENDIX

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France 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 France 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 France Rail Freight Transport Market is Segmented by Cargo Type (Containerized (Intermodal), Non-containerized, and Liquid Bulk) and by Service Type (Transportation and Services Allied to Transportation). The report offers the market size and forecasts for the France rail freight transport market 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
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France Rail Freight Transport Market Research FAQs

The France Rail Freight Transport Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)

SNCF Logistics, NVO Consolidation SAS, Martin Bencher Group, Ace-Trans Transportation and Logistics and Med Europe Terminal are the major companies operating in the France Rail Freight Transport Market.

The report covers the France Rail Freight Transport Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the France Rail Freight Transport Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

France Rail Freight Transport Industry Report

Statistics for the 2024 France Rail Freight Transport market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. France 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.

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France Rail Freight Transport Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)