PUBLISHER: The Business Research Company | PRODUCT CODE: 1664652
PUBLISHER: The Business Research Company | PRODUCT CODE: 1664652
Railroad construction encompasses various activities, including track laying and ballasting. This process involves placing railway sleepers and tracks onto the track bed and includes tasks such as grading, drainage, and the installation of rails, crossties, and ballast.
The primary train types associated with railroad construction include metro trains, light rail, bullet trains, and high-speed rail (HSR). Metro trains serve as a form of interurban transportation connecting urban settlements or cities within a metropolitan area. Railroad construction can involve different types such as new construction and renovation, catering to applications in both urban and rural settings.
The rail road construction market research report is one of a series of new reports from The Business Research Company that provides rail road construction market statistics, including rail road construction industry global market size, regional shares, competitors with rail road construction market share, detailed rail road construction market segments, market trends, and opportunities, and any further data you may need to thrive in the rail road construction industry. This rail road construction market research report deliver a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The rail road construction market size has grown steadily in recent years. It will grow from $220.13 billion in 2024 to $227.93 billion in 2025 at a compound annual growth rate (CAGR) of 3.5%. The growth in the historic period can be attributed to industrialization and economic development, expansion of trade routes, government investments in infrastructure, resource transportation for extractive industries, military and strategic considerations.
The rail road construction market size is expected to see steady growth in the next few years. It will grow to $267.73 billion in 2029 at a compound annual growth rate (CAGR) of 4.1%. The growth in the forecast period can be attributed to continued urbanization and population growth, globalization and international trade growth, focus on sustainable transportation, infrastructure modernization and upgrades, energy and resource transport. Major trends in the forecast period include modernization of existing rail infrastructure, railway safety enhancements, public-private partnerships (PPPs), global connectivity initiatives, innovations in materials and construction methods.
The increasing demand for rail freight transport is projected to drive the growth of the railroad construction market in the future. Rail freight refers to the movement of commodities via trains, as opposed to air, ocean, or road transit, enabling a larger volume of cargo to be delivered over greater distances. The rise in railroad freight can stimulate railroad construction since more trains will be necessary to enhance rail freight transport. For example, in June 2023, Statistics Netherlands (CBS), a national statistical office based in the Netherlands, reported that rail freight transportation reached 44.5 million metric tons of goods in 2022, marking a 4.3% increase compared to the previous year. Additionally, container freight rose by 4.7% to 19.6 million metric tons in 2022 compared to 2021. Therefore, the growing demand for rail freight transport is fueling the growth of the railroad construction market.
The globalization of trade is expected to boost the railroad construction market in the coming years. The globalization of trade refers to the interconnected and borderless exchange of goods, services, and capital on a global scale. Railroad construction supports and enhances this globalization by providing efficient and interconnected transportation networks for moving goods across regions and countries. For instance, in October 2023, a report from the World Trade Organization (WTO), a Switzerland-based organization that facilitates international trade and resolves trade disputes, indicated that the value of global merchandise trade grew by 0.8% in 2023, with a projected increase of 3.3% expected for 2024. Thus, the globalization of trade is driving the railroad construction market.
Product innovations are emerging as a significant trend in the railroad construction market. Major companies in this sector are developing creative solutions to maintain their competitive edge. For example, in December 2023, Kazakhstan, through a government initiative, commenced the construction of a rail link to China, which is anticipated to increase trade between the two countries by 20 million tonnes. The project includes the establishment of a third border crossing at Bakhty-Chuguchak and aims to enhance throughput capacity from 28 to 48 million tonnes by 2027. This initiative will involve private investment and the creation of various infrastructure components, with a commitment to sourcing 85% of materials locally.
Major companies in the railroad construction sector are focusing on versatile excavators, particularly crawler-based excavators. Mecalac, a US-based manufacturer of compact construction equipment, introduced the 136MRail rail-road excavator in the North American market in October 2022. This crawler-based excavator, equipped with factory-integrated hi-rail, caters to Class 1 railroads, light rail, and industrial rail operations. With functions combining excavation with exceptional lifting, towing, and loading capabilities, the 136MRail is versatile and suitable for a range of service and maintenance tasks in both on and off-rail environments.
In August 2022, RailWorks Corp, a US-based construction and maintenance rail contractor, strengthened its capabilities by acquiring H&H Engineering Construction, Inc. This strategic acquisition enhances RailWorks Corp's capacity to provide expanded services to clients, as H&H Engineering Construction, Inc. is a US-based contractor specializing in rail maintenance and construction services for transit, ports, freight railroads, and industrial firms.
Major companies operating in the rail road construction market include Railroad Construction Company Inc., SNCF Group, Union Pacific Corporation, OAO Rossiyskie zheleznye dorogi, Burlington Northern and Santa Fe Railway, CSX Corporation, Canadian Pacific Railway Ltd., Deutsche Bahn, JSC Russian Railways, Kansas City Southern Railway, Canadian National Railway Company, Norfolk Southern Corporation, China Railway Engineering Group Company Limited, China Railway Construction Corporation Group, Larsen & Toubro Ltd., China Communications Construction Group Ltd., Actividades de Construccion y Servicios SA, Skanska USA Inc., Kiewit Corporation, Bechtel Corporation, Fluor Corporation, The Lane Construction Corporation, Granite Construction Inc., Walsh Group Ltd., Turner Corporation, Whiting-Turner Contracting Company, Clark Construction Group LLC, PCL family of companies, Tutor Perini Corporation, Dragados USA Inc., Flatiron Construction Corporation, Zachry Group, Skanska AB, Vinci SA, Bouygues SA, ACS Group, Ferrovial SA
Asia-Pacific was the largest region in the rail road construction market in 2024. The regions covered in the rail road construction market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the rail road construction market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The rail road construction market includes revenues earned by entities by constructing and laying ballast beds, steel rail, railway fish plates, rail clips, and railroad tie plates. The market include new construction, additions, alternations, and repairs. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Rail Road Construction Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on rail road construction market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for rail road construction ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The rail road construction market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.