The U.S. rail infrastructure market is projected to reach $5.93 billion by 2025, according to Hexa Research. The market is expected to witness lucrative growth on account of increasing population and demographics in this country. The United States is becoming an urbanized country, and it is anticipated that rail will cover a larger network of metropolitan areas. Growing population and effective investment in transportation infrastructure is anticipated to add to rail infrastructure market growth over the forecast period. According to the U.S. Department of Transportation, Federal Railroad Administration, the U.S. rail industry consists of 140,000 rail miles operated by class 1 railroads, 510 local railroads, and 21 regional railroads. Industry also provides 221,000 jobs across the United States and also offers various public benefits such as reducing highway fatalities, logistics cost, greenhouse gases and fuel consumption, road congestion, and public infrastructure maintenance cost. Rising passenger volume, increasing number of rail routes and network, rolling infrastructure and stock, growing awareness regarding passenger rail are anticipated to boost the U.S. rail infrastructure market over the forecast period. Increasing investment to modernize and expand the capacity of the rail system and to purchase the needed equipment is anticipated to grow the U.S. rail infrastructure market over the forecast period. However, growing dominance from automobiles and airplanes is anticipated to be the key restraint for the U.S. rail infrastructure market.
According to U.S. Department of Commerce, U.S. freight operators invested more than $600 billion from 1980 to 2015 for the maintenance and expansion of train fleets and rail infrastructure.
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