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Freight Rail Transport in Germany - Market Research Report (2014-2029)

Veton Hoxhaj Veton Hoxhaj Frankfurt, Germany Last Updated: November 2024 WZ H49.20DE

Revenue

€10.5bn

2024

€10.5bn

Past 5-Year Growth

Profit

€XXX.Xm

Employees

34,060

Businesses

254

Wages

€X.Xbn

Freight Rail Transport in Germany industry analysis

The rail freight sector is facing internal and external challenges that are having a negative impact on its growth and profit margins. As many manufacturing companies are mostly located in the hinterland, goods have to be transported to seaports, for example, which also benefits the rail freight companies. However, their economic activities are severely restricted by the overloaded railway network in Germany. Unlike in many other European countries, goods trains have to share the tracks with high-speed trains, among others, which have priority. In addition, there are currently numerous construction sites on the railway network. Within the industry, for example, there is still too little focus on modern IT solutions when it comes to pricing. The main competitors, the haulage companies, are the main beneficiaries of the industry's various weaknesses. In addition to these challenges, the industry was particularly affected by the economic consequences of the coronavirus pandemic in 2020. The production volume of German industry slumped sharply in the meantime, meaning that fewer goods had to be transported by rail. A decline in industry turnover was therefore recorded in 2020. In 2024, industry turnover is expected to fall by 1.2% and amount to 10.5 billion euros. Since 2019, it has fallen by an average of 1.1% per year.The Ukraine war has caused crude oil prices to rise, making the operation of diesel locomotives more expensive and thus leading to higher transport prices. However, rail freight transport is already highly electrified, so the overall impact is limited. Rail freight transport can even partially benefit from the high crude oil prices. As road freight transport is predominantly diesel-powered, rising crude oil prices lead to significant cost increases in road freight transport. As a result, rail freight transport, which is more heavily electrified, can improve its competitiveness compared to road freight transport. In the current year, both the prices for industrial electricity and crude oil are at a higher level than before the war in Ukraine.For the period from 2024 to 2029, IBISWorld forecasts average annual industry growth of 1.5% and an industry turnover of 11.3 billion euros in 2029. The number of industry players and employees is expected to increase over the next five years. The German government is supporting the relatively environmentally friendly rail freight sector as a measure to combat climate change, which should benefit the industry. Nevertheless, the industry's development is likely to continue to be impacted by bottlenecks and construction sites on the rail network until 2029.

Trends and Insights

  • The European Union has expressed serious concerns about state subsidies for railways in France and Germany. Deutsche Bahn could be forced to cede parts of its business to private competitors in order to ensure fair competition.
  • The transport of metals and steel and products made from them accounts for the largest share of industry revenue. A similarly large share is generated by the transport of mining products.
  • The eastern region has the largest proportion of companies in the sector. This is partly due to the fact that there are many logistics centres there, which often also have a connection to the rail freight network.
  • Most of the industry players work as subcontractors for one of the relatively few companies in the sector that also operate freight railways themselves. Only DB Cargo has a double-digit market share, but it has been in a crisis situation for years.

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  • Market estimates from 2014-2029
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 1.1 % over the past five years, to reach an estimated €10.5bn in 2024.

Trends and Insights

The industry is expecting fines due to state subsidies

  • The European Union has expressed serious concerns about state subsidies for the railways in France and Germany.
  • Additional trends and insights available with purchase
Freight Rail Transport in Germany
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Due to increasing environmental awareness, single wagonload transport is likely to gain in importance

  • Single wagonload transport plays a key role for the industry in achieving climate targets. Around two million tonnes of CO2 and 40,000 truck journeys per day can be saved in Germany each year through single wagonload transport.

Biggest companies in the Freight Rail Transport in Germany

Company
Market Share (%)
2024
Revenue (€m)
2024
DB Cargo AG
6,000.0
SBB Cargo Deutschland GmbH
91.2
TX Logistik AG
79.4

To view the market share and analysis for all 4 top companies in this industry, view purchase options.

Products & Services Segmentation

Freight Rail Transport in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Transport of metals and metal products, Transport of mining products and Transport of chemical products. Transport of metals and metal products is the largest segment of the Freight Rail Transport in Germany.

Trends and Insights

The transport of metals and metal products, in particular tinplate rolls for packaging production, dominates current industry turnover

  • The transport of metals and steel and their products will account for the largest share of industry turnover in the current year. For example, goods trains are often used to transport rolls of tinplate.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The industry comprises freight transport by rail vehicles. Services such as the operation of freight railway stations, the actual freight handling process and warehousing are not part of the industry.

What's included in this industry?

Transport of metals and metal productsTransport of mining productsTransport of chemical productsTransport of other goods

Companies

DB Cargo AGSBB Cargo Deutschland GmbHTX Logistik AG

Purchase this report to view all 4 major companies in this industry.

Related Terms

INTERMODAL TRANSPORTINTERMODAL COMPETITIONREVENUE MANAGEMENTTONNE-KILOMETRESFRACHTRATESINGLE WAGONLOAD TRAFFICWHOLE TRAIN TRANSPORTCOMBINED TRANSPORT

Industry Code

WZ 2008

WZ 49.20 - Freight Rail Transport in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

The European Union has expressed serious concerns about state subsidies for railways in France and Germany. Deutsche Bahn could be forced to cede parts of its business to pri...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

The transport of metals and steel and products made from them accounts for the largest share of industry revenue. A similarly large share is generated by the transport of min...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

The eastern region has the largest proportion of companies in the sector. This is partly due to the fact that there are many logistics centres there, which often also have a ...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

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.

Analyst insights

Most of the industry players work as subcontractors for one of the relatively few companies in the sector that also operate freight railways themselves. Only DB Cargo has a d...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

DB Cargo has developed a transport solution for large quantities of hydrogen. This development is part of the response to the growing demand for hydrogen as an energy source ...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of DB Cargo AG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of SBB Cargo Deutschland GmbH's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of TX Logistik AG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for one additional company

Detailed analysis

  • Description and key data for DB Cargo AG, and factors influencing its performance in the industry
  • Description and key data for SBB Cargo Deutschland GmbH, and factors influencing its performance in the industry
  • Description and key data for TX Logistik AG, and factors influencing its performance in the industry
  • Description, key data and performance trends for one additional company

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The renewed increase in production volumes offers the industry growth potential. If industrial production picks up, more goods need to be transported, from which the rail fre...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Only negative profit margins have been achieved in the last five years. This is due to structural problems such as an overloaded railway network and the only major player in ...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Freight Rail Transport industry in Germany in 2024?

The market size of the Freight Rail Transport industry in Germany is €10.5bn in 2024.

How many businesses are there in the Freight Rail Transport in Germany industry in 2024?

There are 254 businesses in the Freight Rail Transport industry in Germany, which has grown at a CAGR of 0.3 % between 2019 and 2024.

Has the Freight Rail Transport industry in Germany grown or declined over the past 5 years?

The market size of the Freight Rail Transport industry in Germany has been declining at a CAGR of 1.1 % between 2019 and 2024.

What is the forecast growth of the Freight Rail Transport industry in Germany over the next 5 years?

Over the next five years, the Freight Rail Transport industry in Germany is expected to grow.

What are the biggest companies in the Freight Rail Transport market in Germany?

The biggest companies operating in the Freight Rail Transport market in Germany are DB Cargo AG, SBB Cargo Deutschland GmbH and TX Logistik AG

What does the Freight Rail Transport in Germany include?

Transport of metals and metal products and Transport of mining products are part of the Freight Rail Transport industry.

Which companies have the highest market share in the Freight Rail Transport in Germany?

The company holding the most market share in Germany is DB Cargo AG.

How competitive is the Freight Rail Transport industry in Germany?

The level of competition is high and increasing in the Freight Rail Transport industry in Germany.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • Freight Road Transport in Germany
  • Pipeline Transport in Germany
  • Inland Freight Water Transport in Germany

Complementors

  • Sea & Coastal Freight Water Transport in Germany

International industries

  • Rail Transportation in the US
  • Rail Transportation in Canada
  • Rail Freight Transport in Australia
  • Rail Transport in New Zealand
  • Freight Rail Transport in the UK

View all industries in Germany

Methodology

How are IBISWorld reports created?

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.

What data sources do IBISWorld analysts use?

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 Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

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:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

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.

How does IBISWorld forecast its data?

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.