European rail suppliers lose 97 billion euros annually to trade barriers

European railway equipment suppliers are losing approximately 97 billion euros in annual business opportunities due to trade barriers that limit their access to foreign markets. According to the ‘World Rail Market Study’ published by UNIFE and conducted by Bain & Company, access to global markets for European suppliers has declined to 56% from 59% in 2024, a downward trend spanning nearly two decades.

While global governments are increasing investment in rail infrastructure to reduce emissions, countries such as China, India, and the United States are stimulating domestic production. This makes it difficult for foreign suppliers to compete for contracts, particularly in markets where they are forced to manufacture locally or operate through joint ventures.

Despite these challenges, the global rail market is projected to grow at an annual rate of 3.2%, rising from 221 billion euros (2023-2025) to 266.8 billion euros (2029-2031). The Asia-Pacific region remains the largest market, with significant growth expected in India, while high growth is also anticipated in Africa and the Middle East, specifically in Egypt, Morocco, and Saudi Arabia.

At the InnoTrans trade fair in Berlin, industry leaders highlighted a ‘fourth revolution’ in rail, focusing on smarter and more efficient systems. Innovations presented include battery-powered electric trains, regional trains capable of operating in heavy snow, and remote-controlled prototypes designed to address labor shortages.