Market Introduction

The global multimodal transportation in railway management system market was valued at USD 6 billion in 2023 and grew at a CAGR of 8% from 2024 to 2033. The market is expected to reach USD 12.95 billion by 2033. The increasing demand for efficient and seamless logistics will drive the growth of the global multimodal transportation in railway management system market.

Multimodal in railway management systems represents transport organization using railway, road, sea and air transport to transport goods or passengers. It builds on the efficiencies of each mode of transport so as to achieve the best result starting from the management of the supply chain down to the final delivery of goods and services. Although the primary benefit of multimodal transportation in railways is door-to-door transport. When it connects with other forms of transport like trucks used for first and last leg connectivity, it helps in reaching odd locations and cuts down overall time and cost likely to arise while transporting goods or people. Multimodal transportation is sustainable in the sense that it relieves traffic congestion on the roads, and decreases the volume of carbon dioxide in the atmosphere. Since rail transport is relatively cheaper in terms of energy utilization than road transport means, the integration of the two transport systems can considerably reduce the emission of greenhouse gases. In railways, the system is often supplemented by modern technologies and informational support like control systems, planning tools, and computerized transfer stations that guarantee perfect compatibility between the modes. Furthermore, multimodal systems flexibility and scalability enable operators to adjust the transport routes and the schedules to meet the demand. This is especially useful in industries like the electronics retailing or the automotive and goods transportation sectors which rely on perfect managerial coordination of inputs to satisfy consumers.

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Recent Development

• Etihad Rail, the company in charge of creating and running the National Railway Network in the United Arab Emirates, has chosen Hitachi Rail to provide a Mobility-as-a-Service (MaaS) solution. The system would offer passengers an integrated digital platform for the 900 km of railway that run from Ghuweifat, on the Saudi border, to Fujairah. Booking tickets, arranging trips, and making payments are just a few of the mobility services that this platform will oversee.

Market Dynamics

Drivers

The increasing demand for seamless logistics – the increasing demand for efficiency in logistics processes is an essential factor that has fostered multimodal transportation in railway management systems. Multimodal transportation is encouraged more by the forces of globalization and increase in international trade. With continued expansion of international commerce and the growth of internet-based businesses or e-commerce, corporates encounter the problem of satisfying consumers expectations for expedited delivery solutions that are also efficient and economical. Multimodal transport, which combines rail transport with other transport means such as trucks, ships and aircrafts solves this problem by providing efficient and timely door-to-door transport. For industries such as retail, automotive and manufacturing, where timely delivery of products is a significant factor, the multimodal system supports optimum selection of transportation modes and minimizes the transit time, with better visibility of the supply chain. This integration helps to make the movement of goods from one region to the other more efficient endeavour thus satisfying the ever-growing demand for fast, flexible and reliable solutions to logistical problems in an intensely for connected global economy. The evolution of intermodal terminals, logistics centres and dedicated rail routes enables transfer of cargo from rail to road or any other mode of transport more easily. Technological advancements in infrastructure resulting from government policies facilitate interaction between transport networks from different modes leading to effective multimodal systems.

Restraints

High initial investment costs – The creation of the multimodal integrated network is associated with major investments in several fields. First of all, construction of new infrastructure or upgrading of inter-modal depots entails high capital investments. Rail lines also require expansion or additional facilities to accommodate elevated traffic and various types of commodities that would form part of the supply chain system. Beside the physical facilities there is the cost of integrating technology that will enhance multimodal transportation. Sophisticated systems for monitoring, routing, sharing, and controlling the movement and location of the cargo are critical to the correct performance of multi-modal systems. Such hardware solutions, such as certain software programs, sensors or automation tools are costly with hefty initial expense and annual expenses. Such costs can prevent the usage of higher efficiency multimodal solutions, especially in areas with restricted funding or where the other modes of transport are already existent.

Opportunities

Technological advancements – The innovation in railway systems has contributed greatly to improving the performance of multimodal transports. An introduction of information communication technology including real time tracking logistics, big data analysis, and intelligent transportation system for multimodal transport has had an impact on the movement of goods. Automation and the application of artificial intelligence in the planning and running of the operations enhance suitability, resourcefulness and timeliness in operation of multimodal systems. Furthermore, economic sustainability and environmental factors are becoming major drivers for multimodal transport systems. Growing consciousness of the effects of climate change and increasing government regulations have forced firms to seek green solutions in managing their vehicle logistics. Energy utilization in rail transport is relatively lower per tonne-kilometre than road or air transport, which makes it act as a key factor in reducing logistics network emissions. Through integrating rail into a supply chain network of transport modes, firms are able to lower their exposure to high emission road transport, hence decreasing supply chain CO2 emissions. therefore, technological advancements and government support will drive the future growth of the multimodal transportation in railway management systems market.

Segment Analysis

Regional segmentation analysis

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. Asia Pacific emerged as the most significant global multimodal transportation in railway management system market, with a 34% market revenue share in 2023.

The Asia Pacific has emerged as the largest market in the multimodal transportation in railway management systems market due to reasons such as increased economic growth, increased train links and rail importance in international commerce. It has noted that under the leadership of countries such as China, India, and Japan, the region has invested considerably on infrastructure improvement, which has enhanced integration of transport modes. These investments are aimed at developing and reorganizing rail tracks, constructing terminals for through transportation and developing ports and logistic centres for cargo exchange between different modes of transport. For example, China is in the forefront in the emergence of high-speed rail development and the development of the belt and road system which enhances the connection of rail transport with road and marine transport. Increased business and consumer need for e-commerce and retail especially in Asian giants such as China and India mean that there is need for a multimodal means of transport that guarantees fast transport of goods making rail the ideal long haul freight transport. Also, the enhanced mobility that has come with expansion in cities and the growing concern towards environmentally friendly transport solutions in the Asian pacific region.

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• In Abu Dhabi, United Arab Emirates, PTV Group will supply the real-time traffic prediction engine for a multimodal transportation system. The business, which is a division of Umovity, will work with ST Engineering Urban Solutions as a subcontractor to use their PTV Optima solution. Road traffic control will be the first aspect of the system, and as part of Abu Dhabi's Transportation Mobility Management Strategy 2030, other forms of transportation, such as rail, will eventually be integrated.

Transport mode Segment Analysis

The transport mode segment is divided into rail, road, sea and air. The road segment dominated the market, with a market share of around 65% in 2023. Rail has remained the most popular transport mode in the railway management systems market as they are considered to be the most efficient, cost-effective and capable of transport large volumes of goods over a long range. Rail networks act as the central part of multimodal systems and are more reliable and sustainable for the transportation of bulk sectors. Trains have the flexibility of bearing large tons, which – in turn – makes the cost of transport per ton highly favourable, mainly for long-haul freight. Furthermore, other technologies including electrification and the high-speed freight trains have enhanced the dominance of rail transport through enhanced transit time and operation.

Cargo type Segment Analysis

The cargo type segment is divided into freight cargo and passenger transportation. The freight cargo segment dominated the market, with a market share of around 86% in 2023. The freight cargo segment is the largest in the multimodal transportation in railway management systems market because of its importance to international trade. Rail most of the time is appropriate in the movement of large volumes of mass-produced products. Huge capacity of handling big volume of cargo over long distance at comparatively lower cost makes rail transport an inevitable mode of transporting goods. Combining rail transport with other means of transport like truck, ship, and even air increases the efficiency of moving freight cargo thus enabling effective delivery services at manageable costs. The prominent role of the freight cargo in multimodal systems is explained by rising need for cost-effective and flexible supply chains for the constantly expanding need for global goods. In addition, the increase freight in transportation is facilitated by the increase in e-commerce and global trade since they depend heavily on freight transport. Consequently, freight cargo continues to be the key motivator behind the multimodal transportation market which is beneficial for economic development and improvement of logistics.

• According to the railway transport news portal Railway Supply, Poland has received the most financing of any EU nation for projects funded by the European Union's Connecting Europe Facility (CEF), totaling €129.4 million. About 550 million Polish zlotys, or four investments in roads, railroads, and an intermodal terminal, are covered by this assistance. Half of the total investment cost, or about 1.1 billion zlotys, is covered by the subsidy. The modernization of the Skernewice–Lukow railway line and the building of a new railway bridge across the Vistula River in Gora Kalwaria are among the projects that have been funded. Enhancing passenger comfort and safety, expanding capacity, and improving track conditions are the goals of the modernization. To increase the effectiveness of train operations, sophisticated railway traffic management technologies will be put into place.

Service type Segment Analysis

The service type segment is divided into door-to-door service, port-to-port service, and terminal-to-terminal service. The door-to-door service segment dominated the market, with a market share of around 44% in 2023. The door-to-door service type get rid of the problems traditionally associated with organizing transshipment through various means of transport by presenting the whole chain as a coordinated system that guarantees delivery of goods from the place of their origin to the final destination. Such services are quite useful in areas with growing markets such as e-commerce, retail business, and manufacturing firms where time is of the essence. Among the various causes for the positioning of door-to-door services as the dominant service type is their convenience that outweighs that of other services. Door-to-door services increases the transparency of logistics to ensure that cargo status is well monitored from door to door which is crucial in ensuring quality and timely delivery. The growing trend towards one- and two-day delivery services in e-commerce has also extended the growth of door-to-door services.

End user industry Segment Analysis

The end user industry segment is divided into retail and e-commerce, automotive, manufacturing, agriculture and food, chemicals and fertilizers, pharmaceuticals, construction and heavy equipment, and others. The retail and e-commerce segment dominated the market, with a market share of around 35% in 2023. The retail and e-commerce industry in particular is one of the key drivers in the multimodal transportation market as there is a need to provide efficient, fast, and relatively cheap delivery solutions for this sector. Multimodal systems extend their utility to retailers and e-commerce businesses by helping them deliver products from the warehouses to the doors of the consumers at minimum transportation costs. This sort of integrated solution enables e-commerce companies to fine-tune their logistics networks, minimize downtime time, and still operate at a low cost. Since e-commerce companies continue demanding shorter transit time especially with introduction of same day delivery and next day delivery, this has necessitated the adoption of MM transportation.

Technology Segment Analysis

The technology segment is divided into tracking and monitoring systems, automation and AI, digital platforms and software, and data analytics. The tracking and monitoring systems segment dominated the market, with a market share of around 46% in 2023. Automotive systems, including tracking and monitoring ones, remain a visible technological sector in the MM transportation market, as they significantly influence the quality, visibility, and reliability of logistics activities. Since multimodal transportation is the combination of rail, road, sea, and even air transport systems, effective monitoring and control of these systems are required in real time. GPS and RFID systems, and other IoT sensors, constantly inform the status and position of the cargo in transit and prevent delays and theft of shipments. These capabilities improve decision making and co-ordination among transport operators thus improving the performance of the complex multimodal supply chain. Customers and the business now call for a transparent environment which means an increase in demand for platform that provides information’s on real-time tracking, predictive analysis and auto-generated updates. Further, through supporting route optimization, lowering of fuel utilization, and the effective reduction of negative effects on the environment, this technology plays an important role in fostering the development of sustainable multimodal transport systems.

Some of the Key Market Players

• C.H. Robinson
• CEVA Logistics
• China COSCO Shipping Corporation
• DB Schenker
• Deutsche Bahn AG
• DHL Supply Chain
• FedEx Logistics
• Kintetsu World Express
• Kuehne + Nagel
• Maersk Line
• Panalpina
• SNCF Logistics
• XPO Logistics

Report Description

• Market Introduction
• Market Dynamics
• Segment Analysis
• Some of the Key Market Players