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Railroad Tie Market to Gain Substantial Traction as the Demand for Speedy Means of Transport Heightens Worldwide: Fortune Business Insights™

The global railroad tie market size is projected to showcase promising growth over the next few years owing to the widening adoption of concrete railway sleepers around the world, finds Fortune Business Insights™ in its report, titled “Railroad Tie Market Size, Share & Industry Analysis, By Type (Wooden Tie, Concrete Tie, Steel Tie, Other), By Application (Train, Subway, Other) and Regional Forecast, 2021-2028”. Railroad ties made from concrete offer a vast array of advantages compared to those offered by the traditional wooden ties. For example, concrete sleepers are denser and stronger than their wooden counterparts, allowing them to withstand greater track and train loads. Moreover, concrete does not change in composition or structure during weather changes, which is usually the case with wooden materials. As a result, concrete ties last much longer than wooden sleepers and require fewer replacements. For track circuited lines, concrete sleepers are ideal as they provide efficient insulation, thereby preventing any reaction to rain, snow, or heat. Lastly, concrete railway ties require less maintenance, which brings down the overall cost of building and operating a track and also ensures fewer track closures. The increasing utilization of concrete railroad sleepers is, thus, fueling the growth of this market.

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Fortune Business Insights™ lists out a few of the renowned companies present in the railroad tie market. They are as follows: 

  • IntegriCo
  • Gross & Janes Corporation
  • Nisus Corporation
  • Koppers Inc.
  • Peterson Astec Industries Inc.
  • Lankhorst Mouldings
  • Austrak Pty Ltd
  • Sannosuke Kobayashi Co. Ltd.
  • A&K Railroad Materials, Inc.
  • Tank Fab
  • Vossloh


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Restraining Factor

Environmental & Health Hazards of Railroad Ties May Impede Growth

One of the top reasons why railway ties, especially those made from wood, are witnessing decreasing demand is the health and environmental risks posed by these objects. The main issue is the use of creosote, which is used to coat wooden sleepers to ensure longevity and bolster their ability to withstand harsh climates and heavy loads. Creosote, unfortunately, is an oily derivative produced by the distillation process of coal tar, which is hard to get rid of and is highly flammable. This chemical also has considerable health hazards. For example, constant exposure to creosote can lead to chemical burns, trigger respiratory problems, increase the risk of cancer, cause eye irritation, and in extreme cases, death. Railroad workers having prolonged exposure to creosote are extremely vulnerable to the ill-effects of this chemical. As a result of the threats posed by creosote, railway companies and even governments are actively reducing their dependence of wooden sleepers and are rapidly adopting concrete and steel railroad ties.


Regional Insights

North America to Occupy Top Market Position Supported by Strong Railroad Infrastructure

Geographically, North America is set to lead the railroad tie market share during the upcoming decade owing to the well-established railroad infrastructure and network across the US and Canada. Furthermore, robust operations of subway networks in North America will also support the growth of the regional market. On the other hand, in Europe, particularly in Germany, the rising uptake of steel rail ties is expected to be the primary growth driver for the regional market. Expansion of railway coverage, introduction of subway systems, and growing adoption of modern railroad technologies are factors that will propel the market in Asia Pacific.


Market Segmentation:

By Type

  • Wooden Tie
  • Concrete Tie
  • Steel Tie
  • Other

By Application

  • Train
  • Subway
  • Other

By Geography

  • North America (U.S. and Canada)
  • Europe (UK, Germany, France, Italy, Spain, and Rest of Europe)
  • Asia Pacific (Japan, China, Taiwan, India, South Korea, Southeast Asia, and Rest of Asia Pacific)
  • Latin America (Brazil, Mexico, and Rest of Latin America)
  • Middle East & Africa (South Africa, GCC, and Rest of the Middle East & Africa)

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Competitive Landscape

Key Players to Focus on Gaining Competitive Edge via Strategic Acquisitions

The acquisition of fellow competitors is allowing key players to cement their position in the market. These takeovers are expanding the product portfolios of the acquiring companies as well as giving them access to technologies, infrastructures, R&D facilities, and distribution networks of the acquired entities. Besides this strategy, companies are also exploring avenues to widen their presence in emerging markets and are also entering into collaborations with other players to further entrench their market position.


Industry Development:

  • January 2019: Vossloh AG announced the successful acquisition of Austrak Pty Ltd., a leading concrete sleeper manufacturer based in Australia. This move will enable Vossloh to boost its vertical integration in the Australian rail infrastructure domain and strengthen its railroad sleeper portfolio in the Australian market.


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