Market Size of United States Rail Freight Transport Industry
| 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
*Disclaimer: Major Players sorted in no particular order |
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US Rail Freight Transport Market Analysis
The size of United States Rail Freight Transport Market is USD 69.1 billion in the current year and is anticipated to register a CAGR of over 9% during the forecast period.
- The Association of American Railroads estimates that the U.S. freight rail network runs approximately 140,000 miles of privately owned track in all states but Hawaii. It transports one-third of all exports from the United States and around 40% of all long-distance freight.
- As consumer spending and trade levels grow due to the COVID-19 (coronavirus) pandemic, freight volumes and demand for rail transportation are expected to rise. Therefore, consumer and industry demand for products will rise, driving up industrial output levels.
- The demand for such high-speed, fuel-efficient services will increase, which will benefit operators in the rail transportation sector. North America's most significant market was the United States, where Class I railways often ranked among the top providers of freight transportation services.
- Based on freight revenue, BNSF Railway, Union Pacific Corporation, CSX Corporation, and Norfolk Southern were consistently ranked among the top 20 worldwide freight firms in 2020. By mid-2021, Class I railways had surpassed railroads in the Asia-Pacific area as some of the biggest railroad firms in the world.
- North American freight railways begun to bounce back from the COVID-19 pandemic's harmful effects by 2021. Union Pacific's economic performance in 2021 was restored to pre-pandemic levels with freight revenue of about USD 20.2 billion. Other Class I railways also saw a comparable rise.
- In December 2021, Canadian Pacific finalized the acquisition of competitor Class I railroad Kansas City Southern to maintain its competitiveness in the area. The company was projected to expand operations throughout the three major nations in the area as a result of the merger, with the United States expected to account for about half of the company's revenue.
