European rail equipment manufacturers are missing out on around €97 billion in potential annual business because of restrictions that make it harder for foreign companies to enter several major rail markets.

A new global rail market study covering 66 countries found that European suppliers currently have access to about 56 percent of the worldwide rail market. The figure has fallen from 59 percent in the previous study conducted in 2024.

The restrictions include requirements for local production, partnerships with domestic companies and limits on how foreign suppliers can provide maintenance and other services.

Despite these challenges, the global rail industry is expected to expand significantly. The market is projected to increase from about €221 billion during 2023 to 2025 to approximately €266.8 billion during 2029 to 2031.

The study said continued investment in rail infrastructure is supporting industry growth as countries expand transportation networks and seek alternatives to more carbon intensive forms of travel and freight movement.