5 Insights That Will Define the Rail Transport Industry in 2023 and beyond
Mariia Solianik
Entrepreneur. Logistics expert. Adviser. Managing Partner and Co-founder @ Amadeus Marine Ltd / CEO and Co-founder @ Lunar Light
After a four-year gap, InnoTrans 2022, the world's largest trade show focused on the rail transport industry, is back. This year's event brought together 2,800 exhibitors from 56 countries in Berlin. The event theme was the Future of Mobility, and here are insights that will define the industry in the coming years.??
Stable growth
Driven by considerable investments, the rail supply market has grown by 3.6% per year from 2015–2017 to 2017–2019, with its volume reaching today EUR 177.2 bn p.a. One of the forecasts predicts that the market will rise even more. It is expected to increase by 2.3% by 2025, with its annual volume of approximately EUR 204 bn p.a.
Zero level of climate impact
One of the experts' primary tasks is to make the transport industry climate neutral by 2050. Rail – whether for mainline, urban/suburban or freight transportation – has significant environmental advantages compared to other modes. Consequently, a modal shift to rail is a crucial driver to decarbonizing the overall industry while simultaneously providing a growth opportunity for the rail supply industry.
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General infrastructure development
The expansion of high-speed rail, which everyone sees potential in, is hindered by infrastructural boundaries rather than physical ones. For example, each country issues its driving license. Because of this, companies must change the driver and crew during international trips. It's time-consuming and makes rail transport less attractive in terms of time than air travel.?
If to organize a unified infrastructure and win a time advantage over air transportation, rail transport is capable of taking a leading position for several reasons. It is environmentally friendly, the least dependent on fuel types, and the safest of all existing modes.
Regional focus and road transport as a growth area
According to a study by ?eské dráhy, a.s. and Michal Krapinec , an average Czech citizen drives 26 kilometers a day – three by bus, three by train, and 20 by car. These findings make cars competitors of regional rail transportation, fostering a change in the strategy and giving insight into a new growth area. To compete with cars, trains must be easy to access, affordable and reliable. The latter is especially important since an accurate and well-functioning schedule makes it possible to plan your time.
Industry digitalization
Digitalization plays an essential role in making trains an attractive transport mode. It applies to all stages: a ticket purchase and the opportunity to get comfortable access to the transport service – which is especially true for international transportation since each country has its railway operator. In addition, digitalization is significant in optimizing routes, making transportation as efficient as possible, and providing systematic technical support for replacing parts.