Our competition report discusses current business and competition-related developments in the transport markets. It also highlights environmental and climate-related data. Some key points from the report are summarised below:
- Rail expands its share of the passenger transport market in 2019
Rail companies saw the highest rate of growth of any mode of transport in the German passenger transport market in 2019. Transport volume rose by 2.1%, with market share climbing to 8.9% (2018: 8.8%). The market shares of road and domestic air travel in Germany remained constant at 83.8% and 0.9% respectively. Public road transport saw its market share fall to 6.4% (2018: 6.5%), due in part to a drop in scheduled long distance bus services.
- Challenging market for rail freight transport
Rail freight transport faced challenges in 2019 due to weak economic growth and particularly to falling demand from industries such as steel, coal, chemicals and automotive manufacture, which make extensive use of rail freight services. In addition, some traffic shifted back to inland waterway transport, which had lost business to rail companies in 2018 due to low river levels. Rail freight operators' market share fell to 18.1% (2018: 18.7%), while road haulage stagnated at 72.1%.
- Intramodal competitive pressure remains high
In 2019, DB's competitors further increased their share of the train kilometres ordered in regional and local rail passenger transport to 36% (2018: 35%). In freight transport, DB Cargo's competitors raised their market share to 55.8% (2018: 54.9%).
- Higher demand for train paths in 2019
Operating performance on DB's rail network rose by 0.5% in 2019 to 1,090 million train-path kilometres. The growth was mainly due to increased demand for train paths in long distance transport and additional orders in regional transport. The share of operating performance attributable to non-DB-Group rail companies continued to rise, reaching 33.8% in 2019 (2018: 32.2%).
- Covid-19 pandemic slows demand for passenger and freight transport
Transport volumes will fall considerably in 2020. In the passenger transport market, the decline in private motorised transport is projected to be 15%; the decline in rail transport could be twice as high. In the freight transport market, rail transport volume is projected to fall by 12% year on year; road transport volume, by 10%.
- Climate protection remains a key challenge
Climate targets will be impossible to meet unless traffic is shifted to rail. Rail offers the important benefit of powering more than 90% of its transport volume with electricity. In 2019, green electricity made up 60% of DB's traction power, a much higher percentage than in the public power grid. A DB long distance train running on 100% green electricity emits practically no greenhouse gases, unlike cars or aircraft. Compared with lorries, rail freight transport generates 80% lower emissions.