Germany Rail Industry
Overview
In 2024, the German rail industry directly supported 56,000 jobs and generated USD 17,47 billion in annual revenues. While manufacturers of rail vehicles and components generated almost USD 12.23 billion, revenues from rail infrastructure suppliers increased by nearly 12.5% to USD 5.24 billion. For the past 10 years, exports on average have accounted for 40% of revenues generated by the German rail industry. New orders from both domestic (ca. USD 15 billion) and international (USD 6.3 billion) customers decreased to USD 21.2 billion (-14,9% from 2023), well above the level of the past five years.
The German railroad network has a route length of around 39,200 km (24,500 miles) and the largest rail and network operator is Deutsche Bahn Group with approx. 33,400 km (20,900 miles). Traffic on the German rail network has been growing rapidly: between 1994 and 2024, passenger rail traffic increased by more than 50% while freight rail traffic has increased by almost 90%. Trains now cover more than one billion kilometers annually on the Deutsche Bahn network alone.
In 2024, regional rail transport (SPNV) in Germany reached approximately 63 billion passenger-kilometers, continuing to account for the majority of rail passenger transport. Long-distance rail transport (SPFV) recorded around 47 billion passenger-kilometers. At the same time, rail freight transport performance declined to roughly 127 billion ton-kilometers. In total, German railways transported around 2.88 billion passengers and 367 million tonnes of freight in 2024.
Today, around 90% of rail transport performance on German rail networks is electrically powered, while approximately 62.5% of the national rail network is electrified. Nearly all long-distance rail transport operates electrically, alongside more than 90% of rail freight transport and around 80% of regional passenger rail services. As a result, the German rail industry plays a crucial role in supporting sustainable mobility and reducing transport-related greenhouse gas emissions. This is particularly important as the transport sector still accounts for roughly one fifth of Germany’s total CO₂ emissions. Germany continues to pursue ambitious climate targets, including a substantial reduction in emissions by 2030 and climate neutrality by 2045.
Market Structure
The German rail industry is deeply integrated and consists of around 250 companies of various sizes, including leading global system suppliers & integrators, a significant number of international medium-sized suppliers, including many “hidden champions” of the rail industry, as well as innovative startup companies. Small and medium-sized enterprises (SMEs) play a particularly important role within the sector and contribute substantially to rail component manufacturing, engineering, and production in Germany. The industry covers the entire rail value chain, including rolling stock, infrastructure, signaling technology, digital systems, and rail services.
Opportunities
Germany continues to significantly expand investments in its national rail infrastructure in order to improve network reliability, increase transport capacity, and support climate neutrality targets. Following earlier investment programs, the German federal government approved approximately €108 billion in funding for rail infrastructure modernization between 2025 and 2029. In parallel, Germany established a €500 billion special infrastructure and climate fund designed to accelerate investments in transport, rail modernization, and sustainable infrastructure projects.
Germany continues to significantly expand investments in its rail infrastructure in order to improve network reliability, increase capacity, and support the country’s long-term climate goals. In 2025, gross investment in Germany’s rail infrastructure reached a record level of around €22 billion, with more than €23 billion planned for 2026 alone. Deutsche Bahn and DB InfraGO are focusing particularly on the modernization of the existing network, including the renewal of thousands of switches, overhead lines, signaling systems, and roughly 2,300 kilometers of track. Major investments are also being directed toward digitalization, station modernization, and corridor upgrades as part of Germany’s long-term rail modernization strategy. The railway sector additionally continues to expand its workforce in order to support the growing volume of infrastructure projects and network maintenance activities.
Challenges for the industry exist due to the uncertain long-term planning and investment strategy by customers (e.g. rail operators and national & sub-national governments), as well as inflation and especially high energy prices
Opportunities exist for U.S. suppliers of innovative technologies and solutions that address current challenges/opportunities and are compliant with corresponding EU regulation and industry standards. German companies are generally open to working with US companies. Limitations may exist in case of procurement tenders by German/EU rail operators — in this case a legal presence in the European Union and/or strategic partners may be required.
Relevant Events in Germany:
• InnoTrans, Berlin
• Railway Forum, Berlin
Contact:
Kelly Smith-Glover
Commercial Specialist
U.S. Commercial Service Munich, Germany
P: +49-89-288-769
Kelly.Smith-Glover@trade.gov