European Commission adopts 9th report on development of the rail market

The ninth Rail Market Monitoring Report (RMMS) analyses developments in the EU rail market from 2018 to 2022.

Traffic Volumes and Recovery

Prior to the pandemic, rail traffic was steadily increasing. Passenger and freight volumes rose at an annual rate of around 3% until 2019. However, COVID-19 restrictions caused a sharp drop in passenger rail traffic by 46% in 2020, while freight traffic declined by 8%. By 2022, passenger traffic had rebounded to 96% of pre-pandemic levels, reaching 395.5 billion passenger-kilometers, while freight traffic reached 416 billion tonne-kilometres, nearly matching 2019 levels.

Market Opening and Competition

The market share of competitors (i.e., operators other than incumbents) increased significantly between 2018 and 2022. In rail freight, new entrants represented 49% of the market in 2022 (up from 39% in 2018). In the public service obligation (PSO) passenger market, their share rose to 21% (+8 points from 2018), and in the commercial passenger market, to 12.6% (+6.6 points). This trend was driven by EU railway market opening packages, boosting competition and leading to more choice, lower prices and better services for passengers.

Employment and Demographics

Approximately 900,000 people were employed in the EU railway sector in 2022. The workforce remains predominantly male (77%), although the share of women increased slightly since 2020. While the proportion of employees aged 30 or under at both infrastructure managers and major railway companies showed a slight increase compared to 2020, ageing remains a concern: in 2022, 42% of railway workers were over 50 years old.

Infrastructure and Investment

As of 2022, the EU rail network spanned about 202,000 km, 57% of which electrified. The high-speed network grew to over 12,000 km - a 10.4% increase since 2018. Infrastructure spending rose significantly from €38.7 billion in 2018 to €50.8 billion in 2022, with expenditures nearly evenly split between maintenance, renewals, upgrades, and new infrastructure. However, inflation reduced the real impact of the increase in nominal spending.

Sustainability and Modal Share

Rail accounted for only 0.3% of total transport-related greenhouse gas emissions in 2022, despite carrying 8.1% of passengers and 16.6% of freight within the EU. Rail's modal share of land passenger transport rose slightly from 7.8% in 2018 to 8.1% in 2022, surpassing pre-pandemic levels. Conversely, rail's modal share in land freight transport declined from 18.7% to 17.2% over the same period.

Challenges and Outlook

While competition has increased and rail remains the most sustainable transport mode, challenges persist. These include ageing infrastructure, staff shortages, congestion, and slow deployment of digital systems like the European Rail Traffic Management System (ERTMS). Nonetheless, rail is set to play a central role in achieving the EU's climate and mobility goals under the European Green Deal and the Sustainable and Smart Mobility Strategy.

2025 Rail Market Monitoring Report