Primarily driven by Asia-Pacific and Europe, the global high-speed rail market has been growing at a significant rate.
A new study by BCC Research is predicting that this market will grow from $102.3 billion in 2013 to $112 billion in 2014 at a year-over-year growth rate of 9.5%.
In addition, the market is predicted to grow at a five-year compound annual growth rate of 3.6%, to reach $133.4 billion in 2019.
With the recovery of the global economy, high-speed rail track installation activities have geared up globally, the report says. In the North American region, with traffic congestion in different corridors, Canada, the U.S. and Mexico have started investing in high-speed rails. In Europe, high-speed rail is in strong demand to connect Poland, Germany, Spain, Italy, the Netherlands, the U.K. and other European regions.
Aesthetics, speed and safety are driving the market for high-speed rail, which in turn has resulted in technology that ensures that high-speed rail infrastructure meets global standards. Additionally both increasing energy prices and environmental concerns are major considering in a transportation system’s costs.
“Lower-emission and high-speed travel resulting in shorter transportation times will drive the high-speed rail market in the future,” says BCC Research analyst Aneesh Kumar.
“In addition, favorable legislation and regulations focusing on the reduction of CO2 emissions and saving energy are contributing to the growth of the high-speed rail market. As the number of cities row, high-speed rail could provide a boost to the second-tier cities that are geographically near the 'mega-cities' by reducing travel times and providing greater access to metropolitan hubs.”
