EU Rail Companies Lose Out on €97 Billion a Year Because of Closed Markets

European companies that build trains and rail equipment are missing out on about €97 billion — roughly $111 billion — in business every single year. That is because many countries around the world have put up trade barriers that make it very hard for outside suppliers to sell their products there. A major new study released on Tuesday, September 22, showed just how serious this problem has become for Europe's rail industry.

The study was carried out by the research firm Bain & Company for a group called UNIFE, which stands for the European Rail Supply Industry Association. It looked at 66 countries that together handle 99% of all train traffic on the planet. The report is published every two years and gives a detailed picture of who can sell what, and where, in the global rail business.

Governments all over the world have been spending more money on trains and rail systems. They want to cut down on pollution by moving people and goods away from cars, trucks, and airplanes, which produce more carbon emissions. Even though the overall rail market is growing, European companies are finding it harder and harder to get a share of that growth.

Right now, EU rail suppliers can only reach 56% of the world's rail markets. That number was 59% just two years ago, and it has been dropping for nearly 20 years. This steady decline means European companies are being shut out of more and more potential customers every year.

Countries like China, India, and the United States have been working hard to keep rail contracts at home. They do this by setting rules that require foreign companies to build products locally, partner with a local business through a joint venture, or handle services like maintenance themselves. When foreign suppliers cannot freely bid for contracts, the market is considered closed or inaccessible.

Even with these challenges, the global rail market is still expected to grow significantly. The study predicts it will reach €266.8 billion between 2029 and 2031, up from €221 billion between 2023 and 2025. That is an average growth rate of 3.2% per year, and the industry has mostly recovered from problems caused by the COVID-19 pandemic.

UNIFE Director General Enno Wiebe said the growing market is good news, but warned that the continued drop in market access is a serious concern. He stated that strong growth and full order books are positive signs, but seeing access decline for the third study in a row is worrying. European leaders and industry groups are expected to keep pushing for fairer trade rules so their companies can compete on equal footing.