$107.8bn
$XX.Xbn
139k
650
$XX.Xbn
Demand for rail transportation has been turbulent in recent years. The outbreak of COVID-19 greatly hindered demand as industrial producers and manufacturers temporarily halted operations in 2020. Also, oil prices plummeted in 2020, making truck transportation more attractive since its route planning is more flexible and freight rates per ton are often low, further hindering demand. Nonetheless, the reopening of the economy enabled railroad companies to recover in 2021. Overall, industry-wide has been growing at a CAGR of 2.5% to $107.8 billion over the past five years, including a 4.3% decline in 2023 as oil prices fall, reducing surcharge revenue for railroad companies.
Industry revenue has grown at a CAGR of 2.4 % over the past five years, to reach an estimated $107.8bn in 2023.
Market size is projected to decline over the next five years.
Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
---|---|---|---|---|
Burlington Northern Santa Fe, Llc | 27,653.2 | 10,046.6 | 36.3 | |
Union Pacific Corp | 22,728.3 | 9,252.4 | 40.7 | |
Csx Corporation | 14,655.0 | 5,655.0 | 38.6 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Industry revenue is measured across several distinct product and services lines, including Bulk freight, Intermodal services and Passenger services. Bulk freight is the largest segment of the Rail Transportation in the US.
Bulk freight enjoyed heightened demand as commodity prices rise
The Rail Transportation industry comprises companies that operate railroads across the United States. This includes large railroads (Class 1 railroads) and regional and local line-haul railroads that carry freight and passengers. This industry does not include scenic and sightseeing rail transportation, street railroads, commuter rail or rapid transit.
Purchase this report to view all 4 major companies in this industry.
NAICS 48211 - Rail Transportation in the US
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Rail companies endured pandemic lows. COVID-19 tanked demand for railroad companies, but they more than recovered following the reopening of the economy.
Learn about an industry's products and services, markets and trends in international trade.
Demand for bulk freight increased alongside commodity prices. Domestic production of goods ramping up to take advantage of the favorable price environment has benefitted bulk...
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Railroad companies locate near ports. While railroad companies do not export products directly, the industry acts as a land bridge to transport goods from the West Coast to t...
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.
Well established Class-1 railroads discourage new entrants. These large Class-1 rail companies continuously acquire smaller companies, increasing market share concentration.
Learn about the performance of the top companies in the industry.
Burlington Northern and Union Pacific dominate the industry. These companies compete to control the transport of goods from the Plains and West Coast.
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Rail companies enjoy various forms of government support. Rail companies received federal aid following the outbreak of COVID-19. The recently passed Bipartisan Infrastructur...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Profit takes a dive because of turbulent demand and higher costs. Slowing growth in 2023 and high fuel costs have hindered profit late.
Including values and annual change:
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Unlock comprehensive answers and precise data upon purchase. View purchase options.
The market size of the Rail Transportation in the US industry in United States is $107.8bn in 2024.
There are 650 businesses in the Rail Transportation in the US industry in United States, which has grown at a CAGR of 1.1 % between 2018 and 2023.
The market size of the Rail Transportation in the US industry in United States has been growing at a CAGR of 2.4 % between 2018 and 2023.
Over the next five years, the Rail Transportation in the US industry in United States is expected to decline.
The biggest companies operating in the Rail Transportation market in United States are Burlington Northern Santa Fe, Llc, Union Pacific Corp and Csx Corporation
Operating line-haul railroads and Operating short line railroads are part of the Rail Transportation in the US industry.
The company holding the most market share in United States is Burlington Northern Santa Fe, Llc.
The level of competition is moderate and steady in the Rail Transportation in the US industry in United States.