EU rail suppliers miss €97B annually due to market barriers

by@Reuters

Summary

European rail suppliers are losing out on approximately €97 billion annually due to trade barriers that limit their access to foreign markets, as reported in the 2026 World Rail Market Study. This study, which encompasses 66 countries responsible for nearly all global rail traffic, indicates that European companies can only access 56% of the world's rail markets, a decline from 59% in 2024. The increased focus on domestic manufacturing by countries like China, India, and the US adds to these challenges, as such policies require foreign suppliers to navigate complex local partnerships to bid for contracts. Despite these hurdles, the global rail market is projected to grow, reaching €266.8 billion by 2031, as governments worldwide continue to invest in rail infrastructure to promote sustainability and reduce emissions from more carbon-intensive transportation methods.

Analysis

UNIFE: UNIFE is the European Rail Supply Industry Association, a key industry body for rail suppliers across Europe. It regularly commissions market studies to track global opportunities and challenges for its members. Director General Enno Wiebe highlighted concerns over declining market access in the most recent report. Enno Wiebe: Enno Wiebe serves as Director General of UNIFE, the European Rail Supply Industry Association. He provided commentary on the 2026 World Rail Market Study, noting positive industry growth alongside concerns about shrinking global access for European firms. Bain & Company: Bain & Company is a global management consulting firm that conducts in-depth industry analyses. It prepared the 2026 World Rail Market Study for UNIFE, covering rail markets across 66 countries that represent nearly all global rail traffic. European Rail Supply Industry Association: The European Rail Supply Industry Association represents companies supplying equipment and services to the European rail sector. Also known as UNIFE, it works to promote the interests of its members in international markets and policy discussions. The association commissioned the latest World Rail Market Study to examine access barriers facing European suppliers. Market Expansion: The rail sector has largely recovered from pandemic disruptions with strong order books, supporting continued global growth despite access limitations for European companies. Sustainability Push: Governments worldwide are boosting rail infrastructure spending to lower emissions by shifting passengers and freight from road and air transport. Domestic Manufacturing Focus: Nations including China, India, and the US are emphasizing local production, which restricts foreign rail suppliers from bidding on contracts without local partnerships or in-country requirements.

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