Asia's Rail Sector: Growth, Sustainability, and the Rise of Experiential Travel

ASIA, January 2026 — The global train market is demonstrating steady, long-term expansion, presenting substantial opportunities for the travel industry across leisure, corporate, and experiential tourism segments. Valued at approximately USD 71.82 billion in 2024, the market is projected to grow at a CAGR of 3.6%, reaching nearly USD 105.98 billion by 2035. Passenger rail travel, currently exceeding 1 billion users annually, is expected to rise to 1.28 billion by 2030, fueled by population growth, urbanization, and a strong emphasis on sustainability.

Long-term growth is anticipated to be particularly robust in Asia, with passenger-kilometers traveled in East and Northeast Asia projected to increase nearly five-fold by 2052, underscoring rail's growing importance in regional and cross-border travel. Sustainability is emerging as a critical purchasing driver, with rail recognized for its significantly lower carbon emissions per passenger compared to air and road travel, positioning it as a low-impact alternative.

This evolving landscape highlights the resurgence of slow travel and luxury train journeys, where the experience itself becomes the primary attraction. These offerings cater to high-yield travelers seeking immersion, comfort, and exclusivity, featuring curated itineraries with fine dining, spacious accommodations, and expert-led excursions. Simultaneously, "affordable luxury" options are attracting younger demographics seeking meaningful, lower-impact travel.

Technological advancements, including AI for predictive maintenance and automation in urban networks, are enhancing operational efficiency and passenger experience. The acceleration towards electric and alternative-fuel trains, such as hydrogen-powered options, further strengthens rail's credentials as a future-proof, climate-aligned transport solution. Rail is thus being repositioned from a practical mode of transport to a high-value tourism experience, creating new revenue streams for the travel trade.