$62.3bn
$XX.Xbn
594k
1
$X.Xbn
The Freight Rail Transport industry is expected to generate $62.3 billion in 2022, up by 3.9% from 2021. Over the five years to 2022, industry revenue is expected to grow at an annualized 4.1%. In 2022, approximately 118 establishments operate in the industry, employing about 593,881 workers and paying total wages of $6.3 billion. In the first nine months of 2022, the total railway freight volume turnover increased by 9.6%, and is forecast to increase to 3.5 trillion ton-kilometers for the whole year.Due to the limited scale of China's railway system, existing rail freight capacity in China can no longer meet the rapidly growing demand for domestic transportation. Between 2006 and 2010, the Chinese government allocated $160.0 billion to expand the railway network in China to over 90,000 kilometers. By the end of 2021, the length of China's railways in operation had reached 150,000 kilometers, among which the length of high-speed railways in operation has reached 40,000 kilometers, China's railway capacity increased greatly. However, growth of China's total railway length slowed down in recent years, with an annualized growth rate of 4.0% from 2017 to 2022. Although a large proportion of this investment is dedicated to railways for passenger traffic, the investment will free up existing railways for freight traffic.In 2013, the railway freight volume turnover only accounted for less than 2% of total social freight volume turnover, and the proportion increased to 15.2% in 2021. With stable development of economy, railway transportation will give full play to its advantages in reducing social logistics costs. With the further market-oriented reform of railway freight transportation, railway transportation will make greater contribution to reducing social logistics costs, and the proportion of railway freight volume turnover will keep increasing in the next five years to 2027.Over the next five years, the government will open the industry to more private and foreign investment. The newly formed China Railway Corporation will also implement reforms to rail transport pricing. These reforms could significantly affect the industry, as freight transport pricing is currently market driven. ACMR-IBISWorld forecasts that revenue will increase at an annualized rate of 3.2% to reach $73.0 billion in 2027.
Industry revenue has grown at a CAGR of 4.1 % over the past five years, to reach an estimated $62.3bn in 2024.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2022 | Revenue ($short_0)
2022 |
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There are no companies that hold a large enough market share in the Freight Rail Transport in China industry for IBISWorld to include in this product.
Industry revenue is measured across several distinct product and services lines, including Medium-distance transportation of freight , Long-distance transportation of freight and Short-distance transportation of freight . Medium-distance transportation of freight is the largest segment of the Freight Rail Transport in China.
The Freight Rail Transport industry in China operates railways for the transportation of freight across China. The industry comprises state-owned railways as well as local railways (invested and operated by local governments) for transferring freight or cargo. The management and operation of railway terminals and station facilities is not included in this industry.
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Freight transport turnover has been increasing. Railways work as one of the basic means of land transportation in China, and the freight transport turnover by railways increa...
Learn about an industry's products and services, markets and trends in international trade.
Railway freight transportation is most competitive within medium-distance transportation. The medium-distances are often too long for road transportation and too short for wa...
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
North China is the largest market for railway freight transportation. The geographic distribution of the industry's businesses largely reflects the distribution of primary re...
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
This industry has high concentration level. The railway system is monopolized by the government, and there is only one player, China State Railway Group Co., Ltd., engaged in...
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China Railway is the only enterprise within this industry. China Railway is the primary driving development force, making decisions as to when and where to build new railways...
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This industry is highly capital intensive. The necessary infrastructure, the dedicated and often inflexible rolling stock associated with railway operations generate large de...
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This industry maintains high profit margins. In 2023, profits account for 16.9% of revenue, and the high profit margins mainly come from the high market share concentration a...
Including values and annual change:
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Key data sources in China include:
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These sources include:
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The market size of the Freight Rail Transport industry in China is $62.3bn in 2024.
There are 1 businesses in the Freight Rail Transport industry in China, which has declined at a CAGR of 0.0 % between 2019 and 2024.
The market size of the Freight Rail Transport industry in China has been growing at a CAGR of 4.1 % between 2019 and 2024.
Over the next five years, the Freight Rail Transport industry in China is expected to grow.
Freight transportation services and Freight train marshalling operations are part of the Freight Rail Transport industry.
The level of competition is low and increasing in the Freight Rail Transport industry in China.