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Summary of our market study
The global rail transport market is estimated at $500 billion, with an average annual growth rate of 5%. Passenger transport is worth over $300 billion.
The French rail network covers more than 30,000 km.
Rail industry production is dominated by rolling stock and signalling equipment. The French rail industry is a major player on the world market.
Government investment in rail is strong, and includes a 3.5 billion euro renewal plan for regional trains, and projects such as the Grand Paris Express (40 billion euros of investment). Public funding strongly influences the passenger rail market, which distinguishes it from the freight sector characterized by the participation of private entities.
The market is changing as the sector opens up to competition.
Despite a sharp drop in revenue during the pandemic, SNCF posted steady sales growth in the early 2010s. Passenger-kilometres in particular are between 95 and 105 billion.
Freight transport fluctuates between 85 and 95 million tonnes.
Players in the rail sector
- Alstom - Giant of the rail transport industry.
- Canada's Bombardier was acquired by Alstom
- Siemens - Alstom's main rival on the international rail transport market
- Thales - Leader in the signalling and control equipment sector.
- Hitachi - A major global player which acquired Ansaldo Breda .
- CRRC - From China, CRRC is the world's largest supplier of rail transport equipment.
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Summary and extracts
1 Market overview
1.1 Overview of the rail industry market
The rail industry refers to all economic activities relating to the production, sale and maintenance of vehicles for transport on railways. hicles, both passenger and freight, sometimes referred to as "freight".
The global rail market is growing , and is expected to continue to do so over the next few years. The production of rail technology accounts for a significant proportion of sales in this market.
The French passenger and freight transport market is following this global growth trend, in which it plays an important role.
France is also one of Europe's leading countries, behind Germany, in terms of train use as a means of transport, in terms of the number of kilometers traveled by individual passengers. Similarly, in terms of track built, the French and German networks dominate the European market.
The production of rail technologies is divided as follows: rolling stock, followed by signalling equipment, infrastructure works and other miscellaneous equipment. We also note theimportance of the digitalization of trains (for people) and the investments made to improve the consumer experience.
The passenger rail market is directly linked to public funding, unlike the freight sector, which is made up of numerous private players.although appreciated for its lower environmental footprint, rail transport faces stiff competition and aggressive pricing policies in the air, bus and river freight markets. The forthcoming liberalization of the sector is set to shake up the market with the arrival of new players. SNCF is focusing in particular on renewing its offer.
1.2 A growing global market underpinning increased trade
Global market characteristics
The global rail transport market was estimated at ***.* billion US dollars in ****, and is expected to reach a size of ***.* billion US dollars by ****, with a CAGR (***) of *.*% over the same period. Passenger transport, in particular, is expected to grow at a CAGR of *.*% to reach US$***.* billion ...
1.3 A mature French market
Since ****, the total length of rail lines operated in France has been steadily decreasing, falling in * years from over **,*** kilometers to less than **,*** kilometers. This decline can be explained by a number of factors: these may include a drop in demand for rail links in certain regions or areas, or the ...
2 Demand analysis
2.1 Breakdown of demand for rail transport equipment
France is one of Europe's leading manufacturers of railway rolling stock, thanks to its industry and its leading railway equipment manufacturers (***).
The main source of activity for the French rail industry is rolling stock construction. This is followed by the manufacture of signalling, safety and control equipment, the manufacture of parts, ...
2.2 Passenger and freight transport: indirect determinants of demand for rail transport equipment
At national level, **% of passenger transport demand (***).
Naturally, as trains are used for longer, more occasional journeys, demand for rail transport is less regular:
Frequency of train and RER use by the French in their daily commute France, ****, in % Source: ****
Whether for personal or business travel, demand for rail transport is ...
2.3 Demand for rolling stock boosted by government investment plans
As the leading player in regional development, the French government regularly invests in the development and maintenance of the rail network. Investments are made in the form of multi-year financing plans for various projects. These projects are designed, financed and managed not only by the French government, but also by local ...
2.4 Direct determinants of national demand for railway equipment
The main determinants of demand for railway equipment are :
The obsolescence of the equipment used in France. An example of equipment that could be a source of a further increase in demand for rail equipment is the average age of rail tracks: ** years in France, almost twice as old as in ...
2.5 Demand trends based on Covid-19 effects
Rail transport was heavily impacted by the health crisis at the start of ****, in the same way as other modes of transport. The regulatory measures introduced in the first half of **** (***) had a major impact on passenger transport, but also on overall economic activity, which may have had an impact on ...
3 Market structure
3.1 French rail market players and the upcoming overhaul
The players in this market can be divided into three categories:
Rolling stock manufacturers, such as Alstom, Bombardier, Siemens... Signalling and control equipment manufacturers, such as Thales, Hitachi via its subsidiary Ansaldo STS France... Equipment manufacturers (***), such as Wabtec, Knorr Bresme, KTK Seats...
The number of players in the rolling stock ...
3.2 General structure of the French rail market
If we focus on the French railway structure and study the evolution of the number of locomotives, we see that both diesel and electric locomotives are decreasing in number sincelectric locomotives have been declining in number since ****, in roughly equivalent numbers, bearing in mind that electric locomotives are slightly less numerous ...
3.3 Characteristics of rail companies
Within the French rail system, there are the rail companies responsible for passenger and freight transport, as well as the infrastructure managers responsible for the following tasks:
Access for railway companies to the rail infrastructure of the network for which they are responsible, including the allocation of traffic slots (***) Operational management ...
4 Offer analysis
4.1 A range of products driven by needs and technologies
The characteristics of the trains marketed by manufacturers depend mainly on the type of transport and customer targeted (***).
The train prices offered by manufacturers are generally fixed intenders, and negotiations make these prices volatile.
It should be noted that the train offer is more extensive for passenger transport, which can be ...
4.2 Summary of digital trends and developments
Good growth prospects for the French rail industry
Forecasts for growth in the international passenger and freight transport market, the sustained attractiveness of the French rail industry and government investment plans in the French rail sector are the main reasons behind the positive growth outlook for the French rail industry.
The ...
5 Regulations
5.1 Regulations governing the rail market
Railway-related activities are subject to a number of legal constraints. The most significant legal texts are listed below (***). There is a growing convergence of rail standards and regulations on a European scale with the aim of harmonizing and facilitating the transport of people and goods.
Ona national scale, the law of ...
6 Positioning the players
6.1 Segmentation
Main players in the French rail market :
- Société nationale des chemins de fer français (SNCF)
- Alstom
- Bombardier
- Siemens
- Wabtec
- Lineas France
- Captrain
- Millet Wagons
- Transdev
- Rail Logistique Europe
- Thales
- Trenitalia
- Le Train Voyage
- Lahaye global logistics
- TSO (NGE Groupe)
- RENFE
- Railcoop
- Getlink
- Europorte (Getlink)
- Eurostar
- DB Cargo France
- Colas Rail (Bouyghes)
- Railpool
- Ermewa Steem Group
- VTG
- Combronde Groupe
- Touax
List of charts presented in this market study
- Estimated growth in rail transport market sales
- Ranking of world countries by rail network quality index
- Global rail market CAGR for 2021-2023 compared with 2015-2017, by region
- Intercity passenger rail sales in the main European countries
- Rail freight sales in major European countries
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Latest news
Defense: Thales quadruples mortar shell production in the Loiret region of France - 18/06/2024
- - Ammunition production capacity at Thales' La Ferté-Saint-Aubin plant: currently at 20,000 rounds per year, planned to increase to over 80,000 rounds per year by 2026.
- - French army ammunition orders: 3,000 rounds in 2022, 15,000 rounds in 2023. Deliveries scheduled between the last quarter of 2024 and 2029.
- - Brazilian Air Force acquires two Ground Master 200 Multi Mission radars from Thales.
- - Thales order book in 2023: 45.3 billion euros, up 10%.
- - Thales sales forecast for 2024: between €19.7 and €20.1 billion, with organic growth of 4-6%.
Thales plans to invest in Atos for defense and intelligence - 30/04/2024
- - Thales is considering the acquisition of the Mission Critical Systems (MCS) division of Defense and Security within BDS.
- - Thales's recent €3.6 billion acquisition of Imperva positions Thales in the world's Top 5 in cyber.
- - The MCS division generates annual revenues of €200-300 million. This amount represents part of the BDS portfolio estimated at 1.5 billion euros.
Thanks to Hitachi's takeover of Thales' rail business, Italy's Mer Mec arrives in France - 15/04/2024
- - Sale of Hitachi's German, British and French signaling activities to Italian company Mer Mec.
- - Founded in 1970, Mer Mec is mainly involved in signalling, electrical traction and telecommunications for the rail industry. It is present in 73 countries and belongs to the Angel Group.
- - The Italian rail specialist already works with RATP and SNCF in France
- Purchase price of Thales GTS by Hitachi Rail: 1.7 billion euros.
- - The European Commission and the British competition authority had given the green light to Hitachi Rail's €1.7 billion takeover of Thales GTS (the French group's rail activities). The only condition was that the Japanese manufacturer make a number of divestments.
- - Number of employees at Hitachi Rail STS France (ex-Ansaldo STS): over 600.
Transdev yields to the lure of international business - 20/03/2024
- -Total sales in 2023: up 21% to 9.33 billion euros
- - Share of business in France in 2023: 29.3% of sales, versus 35.2% in 2022
- - Acquisition of First Transit in the United States: adds 1.1 billion in sales
- - Share of US business in 2023: 25%, versus 15% last year
- - Investment in France in 2022: 135 million, rising to 250 million in 2023
- - Net profit: stable at 20 million euros
- - Change in network ridership after the health crisis: France virtually equivalent to pre-Covid (-2%), Germany +15%, Ile-de-France -9% compared to 2019, Netherlands -20%, Stockholm region -16%, United States -25%
All the lights are green for Thales, except in the space sector - 06/03/2024
- - Order intake for 2023: 23.1 billion euros
- - Last year's sales: 18.4 billion euros
- - Acquisition of US company Imperva
- - Planned acquisition of Cobham Aerospace Communications
- - Number of new hires planned in France for 2024: 7,000
- - Number of employees redeployed within the Thales Alenia Space group: 1,300.
Trenitalia changes its boss for France - 08/01/2024
- The main France-Italy railway line will not reopen before the end of 2024.
- The reopening of this line has been delayed by last summer's landslides near Modane, Savoie.
- In December 2021, Trenitalia launched the first Frecciarossa TGVs on the Paris-Lyon-Turin-Milan route in competition with SNCF.
- Trenitalia recently celebrated the milestone of two million customers on the French market.
- Frecciarossa TGVs should soon also be operating on the Paris-Strasbourg route.
- Trenitalia plans to create a maintenance center in 2027 for the entire French fleet of red TGVs, at Bezannes, on the southern outskirts of Reims.
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