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Rail Industry Report 2025 | StartUs Insights

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Accelerate Productivity in 2025

Reignite Growth Despite the Global Slowdown

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The Rail Industry Report 2025 offers a detailed analysis of emerging technologies, startups’ momentum, and capital flows shaping the global rail ecosystem. It explores innovation patterns, workforce dynamics, and geographical hubs assisting changes across freight, passenger, and infrastructure segments. Additionally, the report assesses investment behavior, startup growth, and intellectual property activity to illustrate how the sector is evolving in response to new mobility demands and sustainability goals.

The rail report also highlights key trend areas such as hydrogen propulsion, integrated mobility services, and regenerative braking. A selection of startup profiles demonstrates how automation, predictive maintenance, and modular construction redefine operational efficiency. These insights provide industry stakeholders with a clear view of the strategic shifts and innovation potential influencing the next phase of rail development.

Executive Summary: Railway Sector Outlook 2025

  • Industry Growth Overview: Research reports estimate the rail industry will grow to USD 781.2 billion by 2030. Besides, our platform’s data shows a slight annual contraction of 2.18%.
  • Manpower & Employment Growth: The global rail workforce stands at 8.4 million, with 312 200 new employees added in the past year.
  • Patents & Grants: The industry holds 347 420 patents filed by 97 257 applicants, with the United States (82 209) and China (66 326) leading global filings. Additionally, 2231 grants have been awarded.
  • Global Footprint: Key country hubs include India, the USA, the UK, China, and Germany, with top city clusters in London, Mumbai, New Delhi, New York City, and Bangalore.
  • Investment Landscape: Investor activity remains decent, with 6024 funding rounds completed, backed by more than 5800 investors, supporting over 2089 companies. The average deal value is USD 106.3 million.
  • Top Investors: The combined investment value from the top 10 investors exceeds USD 16 billion, led by companies like European Investment Bank (USD 2.9 billion), SoftBank Vision (USD 2.5 billion), KKR (USD 2.1 billion), Solidium (USD 1.9 billion), and Delivery Hero (USD 1.3 billion).
  • Startup Ecosystem: Five innovative startups include Sahay AI (AI automated defect system), Contrack (prefabricated rail infrastructure), RAYHAWK (autonomous railcar loading), TechInn (smart depot solutions), and Purple Transform (AI-powered safety platform).

 

 

Methodology: How we created this Railway Sector Report

This report is based on proprietary data from our AI-powered StartUs Insights Discovery Platform, which tracks 7 million global companies, 20K+ technologies and trends as well as 150M patents, news articles and market reports. This data includes detailed firmographic insights into approximately 7 million startups, scaleups, and tech companies. Leveraging this exhaustive database, we provide actionable insights for startup scouting, trend discovery, and technology landscaping.

For this report, we focused on the evolution of the railway over the past 5 years, utilizing our platform’s trend intelligence feature. Key data points analyzed include:

  • Total Companies working in the sector
  • News Coverage and Annual Growth
  • Market Maturity and Patents
  • Global Search Volume & Growth
  • Funding Activity and Top Countries
  • Subtrends within the railway

Our data is refreshed regularly, enabling trend comparisons for deeper insights into their relative impact and importance.

Additionally, we reviewed trusted external resources to supplement our findings with broader market data and predictions, ensuring a reliable and comprehensive overview of the rail market.

What Data is used to create this Railway Industry Outlook?

Based on data provided by the StartUs Insights Discovery Platform, we observe that the railway market stands out in the following categories relative to the 20K+ technologies and trends we track.

These categories provide a comprehensive overview of the market’s key metrics and inform the future direction of the market.

  • News Coverage & Publications: More than 6420 news articles were published in the last year.
  • Funding Rounds: Our data records the closure of more than 6024 funding rounds.
  • Manpower: The rail sector employs more than 8.4 million workers and added 312 200 new employees in the past year.
  • Patents: The industry holds 347 420 patents.
  • Grants: With 2231 grants awarded, the rail sector ranks highly in research and government-backed development support.
  • Yearly Global Search Growth: It experienced a 13.71% increase in global search interest in the last year.

Explore the Data-driven Railway Outlook for 2025

The heatmap visualizes key activity and concentration zones within the global rail industry. The sector comprises 40 718 companies, including 3961 startups, supported by a global workforce of 8.4 million people and 312 200+ new hires

Further, there has been a 2.18% dip in industry growth over the past year.

Moreover, innovation remains strong, with 347 420 patents and 2231 grants assisting advancements in rail technology, safety, and infrastructure.

The global railway network stretches across more than 1.3 million route-kilometers, making it one of the most extensive transportation systems in the world. The United States leads with the longest rail network, followed by Russia, China, India, Canada, Germany, and France.

Meanwhile, the most active country hubs include India, the USA, the UK, China, and Germany, while London, Mumbai, New Delhi, New York City, and Bangalore emerge as key city centers leading the sector’s innovation and business activity.

A Snapshot of the Global Railway Market

Despite a modest annual industry contraction of 2.18%, the rail sector maintains a strong foundation of innovation and enterprise activity.

 

 

The global railroads market reached a value of USD 589.9 billion in 2024 and is projected to grow to USD 781.2 billion by 2030 with a CAGR of 4.8%. Key drivers include the expansion of high-speed rail, growing electrification, and rapid digitalization, with high levels of regional development observed in the USA, China, India, Germany, and the UK.

Additionally, the USA rail market is valued at USD 115.8 billion in 2024, while China is projected to grow at a 6.3% CAGR, reaching USD 132.2 billion by 2030.

 

 

Rail logistics, including freight transport, warehousing, intermodal services, and digital platforms, was valued at USD 416.8 billion in 2024 and is expected to expand at a 5.4 % CAGR through 2034.

Meanwhile, the market for railway equipment, covering locomotives, rolling stock, signaling, and supporting infrastructure, is projected to reach USD 98.53 billion in 2025. The rolling stock market was valued at nearly USD 54.6 billion in 2023, with the Asia-Oceania region holding the largest market share.

The global rail construction pipeline holds a total value of USD 6 trillion, with North-East Asia, particularly China, contributing 39.5%. South Asia (India), Western Europe (UK, Germany), and North America (USA) follow as major contributors. Annual spending on pipeline projects reaches USD 508.8 billion in 2025 and climbs to USD 627.1 billion in 2026.

Similarly, the rail industry holds a substantial patent portfolio of 347 420 patents, filed by 97 257 unique applicants worldwide. However, yearly patent growth declined slightly by 0.97%. The USA leads global patent issuance in this sector with 82 209 patents, followed by China with 66 326.

 

 

Likewise, annual rail-sector patent data reveal a spike in China’s filings after 2013. By contrast, the EU leads in high-value patents, those seeking international protection, followed by China, Japan, Korea, and the USA.

Further, the industry hosts 3961 startups, with 611 in early-stage development, indicating ongoing interest and entrepreneurial momentum. Additionally, 1998 mergers and acquisitions (M&A) reflect active corporate consolidation and strategic growth.

 

Explore the Funding Landscape of the Rail Market

The rail industry continues to attract investor interest, with over 6024 funding rounds closed to date and more than 5800 investors participating across the sector. These investments supported over 2089 companies. The average investment value per round stands at USD 106.3 million.

 

 

Additionally, between FY22 and FY26, the Infrastructure Investment and Jobs Act (IIJA) provides a total of USD 102 billion for rail funding, comprising USD 66 billion in advance appropriations, which is the pre-approved funding set aside for future years.

With India, the 2025 Railway Budget included allocation of about INR 2.65 lakh crore for capital expenditure, public-private partnership (PPP) investments, and large-scale infrastructure initiatives.

Who is Investing in the Railway Market?

The combined funding value from the top investors exceeds USD 16 billion, showcasing major financial backing for innovation and growth in the rail sector. Here’s how leading investors have contributed:

 

 

  • European Investment Bank deployed USD 2.9 billion across 9 companies. The EIB Board approved about EUR 2.6 billion in funding for transport projects. This includes the acquisition of new regional passenger trains in Germany and the development of a rail link between Prague and the city airport in the Czech Republic.
  • SoftBank Vision committed USD 2.5 billion to 5 companies
  • KKR channeled USD 2.1 billion into 2 companies
  • Solidium backed at least 1 company with USD 1.9 billion in funding
  • Delivery Hero provided USD 1.3 billion across 8 rail-focused companies
  • Wabtec Corporation supported 8 companies with a total of USD 1.2 billion
  • Eiffage allocated USD 1.2 billion across 2 companies
  • FEMSA contributed USD 1.2 billion to at least 1 company
  • CPP Investments financed 3 companies with a total of USD 1.1 billion
  • CriteriaCaixa directed USD 1.1 billion toward at least 1 strategic investment

Top Rail Innovations & Trends

Discover the emerging trends in the railway market along with their firmographic details:

 

 

  • Regenerative Braking: Though a more mature innovation, regenerative braking improves energy efficiency in rail systems. It shows a slight decline with an annual rate of 2.61%. With 200 companies and a workforce of 17 200 employees, including 1500 recent additions, this trend contributes to sustainability goals.
  • Mobility as a Service (MaaS): As digitalization reshapes rail connectivity, MaaS offers multi-modal transport options. This segment reports a 16.78% annual growth rate by showing the demand for integrated transport systems and user-centric mobility solutions. There are 753 companies active in this space, employing 77 100 people, with 6200 added in the last year.
  • Hydrogen Trains: Hydrogen-powered trains are gaining strong momentum as the industry moves toward low-emission transport solutions. It experiences an annual growth rate of 20.23%. With 127 companies focused on this domain, it employs 32 300 people, including 8061 new hires.

5 Top Examples from 3900+ Innovative Railway Startups

The five innovative startups showcased below are picked based on data including the trend they operate within and their relevance, founding year, funding status, and more. Book a demo to find promising startups, emerging trends, or industry data specific to your company’s needs and objectives.

Sahay AI enables AI-led Automated Rail Defect Identification

US-based startup Sahay AI develops an integrated railway inspection system with AI, robotics, and real-time data analytics. It includes the Sahay App, a mobile solution that enables engineers to log findings in real time. Also, it tracks efficiency, generates custom alerts, and accesses inspection histories synced to the cloud.

Additionally, the startup builds LARR-E, a mountable hardware unit with precision sensors, geotagging capabilities, and predictive analytics to detect faults and estimate downtime. Its Track Dashboard feature provides real-time data visualization, asset tracking via Google Maps, historical playback, and centralized management of work orders and personnel. These tools together predict failures, map track health region by region, and streamline deployment without disrupting rail schedules.

Contrack develops a Prefabricated Rail Infrastructure System

Polish startup Contrack developed a prefabricated track system that combines steel tram turnouts, special crossings, and curved track sections with reinforced concrete slabs. This system includes different products designed for specific functions in the system. For instance, CONTRACK PBR includes concrete slabs for tram turnouts that combine steel components with reinforced concrete. CONTRACK PBP provides prefabricated crossing slabs for installation under electric traction lines and connects with existing tracks.

 

 

Further, CONTRACK PBL offers concrete arch slabs for non-standard curved crossings, using monolithic reinforced concrete. The CONTRACK WM insert module creates a welded connection between steel turnout parts and the main track. The CONTRACK PBPW includes concrete slabs with built-in leveling systems to handle stress from thermal expansion in the rail. Thus, this system reduces lifecycle costs by eliminating wet construction steps.

RAYHAWK streamlines Autonomous Railcar Loading

Canadian startup RAYHAWK develops an autonomous railcar loading system that integrates computer vision, machine learning, and automated motion control to streamline rail loading operations. The system operates through a gantry with a multi-camera vision setup that detects the position and condition of railcar lids and latches in real time.

Further, RAYHAWK runs a 3-axis industrial tool using object tracking and motion control algorithms to perform tasks such as latch opening, lid removal, car inspection, and sampling.

 

 

Also, the system incorporates predictive maintenance modeling to minimize downtime and improve operational reliability. It supports cleaning functions, including snow and debris removal from the railcar lid. Thus, the startup improves safety, reliability, and speed of loading bulk materials in railcars.

TechInn advances Remote Rail Vehicle Condition Monitoring

Czech startup TechInn offers TechMon, a remote monitoring and control system that monitors the condition of rail vehicles and alerts operators to faults or anomalies as they occur. The system uses AI to analyze large datasets, sends live notifications, and records parameter data for visualization and maintenance planning.

Alongside, TechDrive is a robot platform that supports multiple control modes such as autonomous guided vehicles (AGV), autonomous mobile robots (AMR), and manual. It handles payloads ranging from 600 to 1100 kg to suit task-specific requirements. These solutions streamline vehicle servicing, minimize unplanned downtime, and boost efficiency.

Purple Transform offers an AI-powered Railway Safety Platform

UK-based startup Purple Transform provides SiYtE, an AI platform that works with existing cameras and sensors to improve operations and safety in the railway environment. The platform collects, analyzes, and reflects the real-time data on a dashboard.

Thus, the platform assists in remote monitoring of rail assets, detecting environmental risks, managing energy use, and tracking compliance with rules and standards. Also, it predicts risks, supports better decisions using data, and protects workers on-site.

Gain Comprehensive Insights into Rail Trends, Startups, and Technologies

The Railway Industry Report 2025 presents a sector that experiences steady growth, an expanding workforce, and increased investment. As the industry advances, it gains support from governments, infrastructure agencies, and private investors.

The emergence of innovative startups and fast-growing sub-sectors drives progress in technology, flexible operations, and integrated transport solutions. The rise of agile startups and niche innovators is reshaping the operation of rail systems. They aid with advanced technology, deployment models, and integrated mobility solutions across regions.

Get in touch to explore 3900+ startups and scaleups, as well as all market trends impacting railway companies.

 



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London-Berlin trains on the drawing board for UK-German rail taskforce | Rail industry

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12 hours ago

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July 17, 2025

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Plans for possible direct trains from London to Berlin will be drawn up by a joint UK-German taskforce, reigniting hopes for better rail connections across Europe.

The partnership, announced as part of the bilateral treaty to be signed by the British prime minister, Keir Starmer, and his German counterpart, Friedrich Merz, could eventually lead to direct rail services between the two countries after previous plans for London-Frankfurt trains hit the buffers.

The Department for Transport described the agreement as a “significant step forward”, with direct trains the most eye-catching part of a commitment to collaborate in enhancing sustainable transport links and mobility.

Germany has also agreed to allow some arriving UK airline passengers to use passport e-gates at its airports by the end of August, the Cabinet Office said.

Since Brexit, UK travellers have needed to queue to have their passports manually stamped, rather than use automated gates, at EU airports.

A joint taskforce will bring together transport experts from Germany and the UK to tackle the issues that have blocked such services in the past, including commercial, safety and technical requirements, and, not least, border arrangements.

The transport secretary, Heidi Alexander, raised the possibility of visiting Checkpoint Charlie “direct from the comfort of a train”, adding that the government was “determined to put Britain at the heart of a better-connected continent”.

She said: “The Brandenburg Gate, the Berlin Wall and Checkpoint Charlie – in just a matter of years, rail passengers in the UK could be able to visit these iconic sights direct from the comfort of a train, thanks to a direct connection linking London and Berlin.

“This landmark agreement – part of a new treaty the prime minister will sign with Chancellor Merz today – has the potential to fundamentally change how millions of people travel between our two countries, offering a faster, more convenient and significantly greener alternative to flying.

“The economic potential is enormous. A direct rail link would support the creation of jobs and strengthen the vital trade links that underpin our economic relationship with Germany. British businesses will have better access to European markets, whilst German companies will find it easier to invest and operate in the UK.”

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The deal follows a similar memorandum of understanding signed with Switzerland in May to explore direct services.

While direct trains to new European countries may be at least a decade away, the international train operator Eurostar has spoken of its ambition to open new routes to Frankfurt and Geneva. Other potential rival operators, including Virgin, are hoping to start cross-Channel services.

Opening new routes has been difficult due to commercial viability, different track and train systems, and border requirements and station capacity. Eurostar’s longest direct route to date, London to Amsterdam, has had to overcome numerous difficulties, largely linked to border security and passport control, since its delayed inception in 2018.

The demand for direct London-Berlin trains is unclear. Passengers can travel between the UK and German capitals in about 10 hours, changing in Brussels and Cologne.



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Regulator’s report on rail assistance ‘shows it is still failing to acknowledge right to turn up and go’ – Disability News Service

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14 hours ago

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July 17, 2025

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The rail regulator has been asked why it has failed to do more in an annual report to stress disabled people’s right to “turn up and go” when accessing the railway network.

The Office of Rail and Road (ORR) released new figures this week which showed that satisfaction with booked passenger assistance on the rail network had plateaued, with one in 10 disabled passengers still not even being met at the station after booking help.

The proportion of passengers who received all the assistance they booked also remained stable in 2024-25 at just 78 per cent.

This was even lower for passengers with a “learning, concentrating or remembering disability” (73 per cent); with mental health conditions (72 per cent); those who are neurodivergent (72 per cent); and passengers with a communication impairment (73 per cent).

There were also figures showing what proportion of passengers were satisfied with the assistance they received, with the booking process, and with the helpfulness and attitude of staff.

But there were no similar figures to show the levels of satisfaction for disabled passengers who turn up at a rail station and request assistance with their journey without booking it in advance, which is their legal right.

The report on disabled people’s experiences of Passenger Assist was released alongside ORR’s Annual Rail Consumer Report.

Accessible transport campaigners have been highlighting for years the failure of the rail industry and successive governments to ensure disabled people’s right to spontaneous travel by denying their right to turn up and go (TUAG) across the rail network.

The ORR annual report appears to underline that failure by focusing on pre-booked passenger assistance.

It says only that it is “working with industry to strengthen the quality of data on turn up and go assistance requests”, and that it expects the “quality and completeness to improve over time”.

The only TUAG figures released by ORR this week show the number of TUAG requests made in 2023-24 and 2023-24 (about 312,000 in 2023-24 and about 491,000 in 2024-25), although notes published alongside these figures show they are likely to be unreliable*.

It is the first time such TUAG figures have been published.

Doug Paulley, one of the disabled activists who has highlighted the right to TUAG in his campaigning, said he had a “significant concern” about ORR’s “concentration on assistance booking rather than TUAG” in its “uninspiring” report.

He said ORR did not have reliable or useful statistics on how well rail companies were doing on TUAG.

He said: “Everything they measure or do is about booked assistance: satisfaction with booked assistance, recompense for failed booked assistance…

“It feels like they try to avoid mentioning or acknowledging our right to turn up and go.”

He said this was a “disturbing and counter-productive trend”.

Responding to these concerns, ORR said it was exploring with rail operators “how we might get a better picture of the experience of passengers who request assistance on demand”, including the potential for TUAG passengers to be asked to take part in its existing passenger survey of experiences of assistance.

ORR released figures in the Passenger Assist report that ranked each rail operator on their performance on booked passenger assistance.

It showed that Northern Trains was the worst performer, with only 70 per cent of disabled passengers who were met at the station then receiving all the assistance they had booked, with Transport for Wales (74 per cent) and West Midlands Trains (74 per cent) also performing poorly.

The best performer was London North Eastern Railway (85 per cent).

The annual report notes how ORR has raised concerns through the year about passenger assistance; the reliability of help points at stations; communications between staff at boarding and destination stations when arranging passenger assistance; the reliability of passenger lifts at stations; the provision of accessible rail replacement vehicles; and the complaints process for disabled passengers.

The report points to annual data that shows a 42 per cent increase in the number of faults across the rail network that put lifts out of service for over a week, in 2024-25 compared with the previous year.

Commenting on the report, Stephanie Tobyn, ORR’s director of strategy, policy and reform, said: “Ensuring that disabled passengers consistently receive the support they need to travel by train requires clear focus, collaboration and a commitment to continuous improvement.

“Our latest survey shows that overall passenger satisfaction has plateaued, and we know that, in some instances, assistance failures can leave passengers feeling powerless and frustrated.”

She said that a new rating system on passenger assistance would “help us target our efforts and use resources effectively, focusing on working with those operators where improvement is most needed to deliver better outcomes for passengers”.

*ORR says in its notes that the only TUAG requests recorded are those noted by staff via the Passenger Assist system, while not all rail operators are yet using this system to record TUAG requests, and any requests booked less than two hours before departure are treated as TUAG

Picture by ORR

 

A note from the editor:

Please consider making a voluntary financial contribution to support the work of DNS and allow it to continue producing independent, carefully-researched news stories that focus on the lives and rights of disabled people and their user-led organisations.

Please do not contribute if you cannot afford to do so, and please note that DNS is not a charity. It is run and owned by disabled journalist John Pring and has been from its launch in April 2009.

Thank you for anything you can do to support the work of DNS…



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Over-dependence bulk freight hamstrings railway revenues: Study – Industry News

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14 hours ago

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July 17, 2025

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The Indian Railways‘ over-dependence on bulk commodities like coal, iron ore and cement is hurting its growth potential and exposing it to the competitive pressure from other modes of freight transportation, a PwC-FICCI report said.

Strategic Opportunities

The unreliable services coupled with inflexible routes and poor timeliness are affecting the railways’ potential to grab a bigger market share in the “high-value” non-bulk commodities space, it said.

Even though the rail transport, particularly over long distances, offers inherent cost efficiencies compared with road transport, its infrastructure, terminal operations, and rolling stocks are not designed to handle the fast-growing segments like e-commerce, pharmaceuticals, FMCG, consumer durables and automobiles.

“These commodities demand more flexible, time-sensitive, door-to-door logistics, which road transport is better equipped to provide, rendering rail less competitive for such segments,” the report noted.

In the past five years, a large part of the railways’ freight volume growth – 5.6% CAGR – is contributing by a narrow set of traditional bulk commodities. Currently, coal dominates the railways’ freight basket accounting for arounf 50% of the freight volumes, followed by cement and iron ore, contributing around 10% each. But the growth in these bulk commodities are slowing down due to the structural limitations within rail logistics. On the other hand, the growth in emerging non-bulk commodities stood at 10% over the same period.

“A network that is optimised for bulk train operations may struggle to accommodate growing demand for parcel/lightweight goods or automobile transport, leading to capacity mismatches and service shortfalls,” it adds.

However, the report said that targeted interventions can boost the movement of lightweight commodities and enable greater diversification of the rail freight portfolio. “In India, more than 90% of the non-bulk freight market is transported by road. By contrast, in developed countries such as the US, 66% of non-bulk freight is moved by road, with rail or rail-intermodal systems accounting for a substantial 30%. This modal imbalance presents a strategic opportunity for IR to expand its footprint in the non-bulk segment,” the report noted.

Challenges

Though the railways has made efforts in the recent years to promote non-bulk segment. For instance, Joint Parcel Product–Railways Cargo Service (JPPRCS) scheme was introduced in 2023 to provide end-to-end logistics solutions for parcel. Similarly, Parcel Cargo Express Train (PCET) was launched this year to boost the transport of commodities like rubber and pineapples. But the modal share of rail for parcel-based cargo and lightweight commodities still remains low. The report further said that railways needs to adopt a commodity-specific approach to terminal planning, asset deployment and service design to diversify its commodity portfolio.

“Another opportunity lies in the automobile sector, specifically two-wheelers and passenger vehicles, which fall under the low rail share category but exhibit strong growth forecasts. The railways has focused on this segment by modifying the AFTO scheme, introducing modern rolling stock (NMG and BCACBM coaches) and assisting the development of new automobile loading terminals. These efforts have increased the modal share of rail in automobile transport from 1.2% in FY14 to approximately 20% in FY24,” the report said.



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