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NEW YORK, Feb. 3, 2022 /PRNewswire/ — The “Rail Freight Market by Destination (domestic and international) and Geography (APAC, Europe, North AmericaMEA, and South America) – Forecast and Analysis 2022-2026” report has been added to Technavio’s offering. With ISO 9001:2015 certification, Technavio is proudly partnering with more than 100 Fortune 500 companies for over 16 years. The potential growth difference for the rail freight market between 2021 and 2026 is USD 29.29 billion. The report also identifies the market to witness an accelerating growth momentum at a CAGR of 2.15% during the forecast period.
To get the exact yearly growth variance and the YOY growth rate, Talk to our analyst.
Key Market Dynamics:
- Market Driver
The low cost of rail freight and robust investments in freight corridors are some of the key market drivers. The cost of transporting goods to far-off places through rail freight is lesser than road and airfreight. For instance, the cost of transporting goods via rail freight between China and Europe is about 80% lesser than airfreight. Furthermore, the rise in fuel prices are leading to a surge in road freight charges and airfreight operations. These factors are driving the popularity of rail freight services among shippers. Moreover, in domestic freight transport, rail freight is more economical than both air and road transports due to the low direct cost associated with rail freight. These factors will impact the rail freight market positively during the forecast period.
- Market Challenges
However, factors such as increasing maintenance expenses will challenge market growth. The increase in maintenance cost of rail infrastructure and the non-competitive pricing of rail freight is another negative factor that can hamper the growth of the global rail freight market during the forecast period. The maintenance cost of railways includes the cost of maintaining and upkeeping trains, stations, loading docks, and signaling systems. The average maintenance cost is around 25%-30% of the total operating cost of rail freight. Thus, the maintenance cost of railway companies constitutes a significant part of their expenditure.
To learn about additional key drivers, trends, and challenges available …
Full story available on Benzinga.com
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