EU rail suppliers miss out on €97 billion a year due to closed markets, study says

By Gianluca Lo Nostro

Sept 22 (Reuters) - European rail suppliers are shut out of about €97 billion ($111 billion) worth of annual business as trade barriers restrict their access to foreign markets, data from the 2026 World Rail Market Study showed on Tuesday.

Governments worldwide have been boosting investment in rail infrastructure as part of a wider push to cut emissions and shift passengers and freight away from more carbon-intensive road and air transport. But even as the industry grows, European companies are missing out as the fastest-growing markets become harder to enter.

The study, conducted by Bain & Company for the European Rail Supply Industry Association, or UNIFE, covers 66 countries accounting for 99% of global rail traffic and is published every two years.

EU rail suppliers have access to just 56% of the world's rail markets, down from 59% in the 2024 study, extending a decline that has lasted nearly two decades.

Countries such as China, India and the US have stepped up efforts to boost domestic manufacturing, making it harder for foreign suppliers to compete for contracts.

The study considers a market inaccessible when foreign suppliers cannot bid directly for contracts or face requirements to build products locally, operate through joint ventures or perform services such as maintenance in-house rather than outsourcing them.

Despite the growing challenges, the global rail market is expected to grow to €266.8 billion in 2029-2031 from €221 billion in 2023-2025, an average annual growth rate of 3.2%. Rail has largely recovered from the supply-chain disruptions and demand slump caused by the COVID-19 pandemic.

"Strong global growth and full order books for the industry are very positive, however seeing global access for the European Rail Supply Industry decline for the third study in a row is concerning," UNIFE Director General Enno Wiebe said in a statement.

($1 = 0.8716 euros)

(Reporting by Gianluca Lo Nostro in Gdansk; Editing by Milla Nissi-Prussak)