Europe Rolling Stock Freight Wagons Market is expected to reach US$ 4,958.53 Mn by 2028

Integration of Technology to Provide Growth Opportunities for Europe Rolling Stock Freight Wagons Market during 2021–2028

According to our latest market study on “Europe Rolling Stock Freight Wagons Market Forecast to 2028 – COVID-19 Impact and Analysis – by Type and Material,” the market was valued at US$ 3,413.09 million in 2021, and it is projected to reach US$ 4,958.53 million by 2028; it is expected to grow at a CAGR of 5.5% from 2021 to 2028.

The European government and the European Rail Freight Association (ERFA) are developing measures to upgrade and restructure railway infrastructure by providing improved traffic control, scheduling systems, and signaling. The significant growth of the Europe-Asia railway line, especially in China, is a major factor driving rail freight growth in Europe, resulting in increased trade between the two regions. According to ERFA, more than 500,000 tons of freight were transported by rail between China and Europe in 2016. 180,000 tons of cargo was shipped from China to Western Europe. Recent industry advances include the use of train-flow planning tools and big data analytics in rail freight operations to minimize redundant and premature train stopping and breaking, as well as transportation delays. In addition, the use of advanced GPS technology and the introduction of intelligent systems in goods wagons are expected to improve the productivity of the Europe rail freight transportation market.

Mobile applications, cloud computing, Internet of Things (IoT), blockchain, and big data are being widely adopted across European rail freights, providing useful data for strategic decisions and more personalized services. They can also assist in achieving objectives such as energy savings, operational planning, and cost reduction. Thus, the integration of technology with rail freight wagons is expected to increase the efficiency of goods transportation, thereby providing growth opportunities to the European rolling stock freight wagons market over the forecast period.

The Europe rolling stock freight wagons market is segmented on the bases of type, material, and country. Based on type, the market is segmented into covered wagons, flat wagons, tank wagons, open-top wagons, hopper wagons, and special wagons. The hopper wagons segment held the largest market share in 2020. Based on material, the rolling stock freight wagons market in Europe is segmented into steel, cast iron, and alloys. The alloys segment is projected to register the highest CAGR during the forecast period. By country, the market is broadly segmented into Germany, France, Italy, the UK, Russia, Switzerland, Sweden, Poland, Norway, and Rest of Europe. In 2020, Russia accounted for the significant share in the Europe market.

Lucrative Country in Rolling Stock Freight Wagons Market, 2020 and 2028 (%)

Impact of COVID-19 Pandemic on Europe Rolling Stock Freight Wagons Market

In the first half of 2021, European railway networks seem to be facing financial difficulties. The year began ominously, with COVID-related losses for passenger and freight services, obliterating any hope for recovery in the months ahead. In comparison to passenger traffic, rail freight had a relatively minor effect. According to the Community of European Railway (CER), freight operators lost between 3% and 32% of their revenue in 2020. However, during the COVID-19 pandemic, rail freight transportation proved to be resilient. Though planes were grounded around the world and some container ships were refused entry to ports, trains continued to run almost nonstop from China to Europe, carrying essential supplies at times. According to rail freight organizers, in the first half of 2020, 5,122 trains ran on the Silk Road linking China and the West. Rail freight, which is normally limited by price and delivery times, has become more flexible during the pandemic after governments in the Netherlands and France reduced track access tariffs.

Additionally, owing to the negative impact on other rail freight routes, the European governments announced relief aid schemes for freight wagon transport operators. For instance, Germany's single-wagon rail freight transport companies will be eligible for up to EUR 600 million in government funding. The scheme was authorized by the European Commission under EU State aid law. The scheme, which will run until November 30, 2025, will allow for the “modal shift” of freight traffic from road to rail, lowering the cost of single-wagon rail freight transport.

The outbreak of the COVID-19 and the travel restrictions imposed across Europe impacted the manufacturing of freight wagons, owing to supply chain disruption. However, the growing reliability on rail freight transport between countries such as China and Europe created the demand for Freight wagons. The above-mentioned government schemes to aid the COVID-19 impacted sectors, including rail freight transport, are expected to enhance the market growth in the near future

Altaivagon, CRRC Corporation Limited, ELH Waggonbau Niesky GmbH, Nick. Kioleidis SA, NYMWAG CS a.s., Rail Cargo Group, RM RAIL, REWAG, S.C. AstraRail Industries S.A., Skinest Grupp AS, Tatravagónka a.s. Poprad, TMH, UWC RPC PJSC, Uralvagonzavod, and VTG AKTIENGESELLSCHAFT are among the major companies operating in the Europe rolling stock freight wagons market.

The report segments the Europe rolling stock freight wagons market as follows:

By Type

• Covered Wagons
• Flat Wagons
• Tank Wagons
• Open-top Wagons
• Hopper Wagons
• Special Wagons

By Material

• Steel
• Cast Iron
• Alloys

By Country

• Germany
• France
• Italy
• UK
• Russia
• Poland
• Switzerland
• Sweden
• Norway
• Rest of Europe