France’s high-speed rail sector—Europe’s largest—is experiencing a major transformation as European competitors move in to challenge the long-standing dominance of the state-run operator SNCF. Buoyed by growing demand for sustainable travel and regulatory reforms, foreign railway companies and start-ups are intensifying efforts to capture a share of the lucrative French market.
Trenitalia and Renfe Lead the Charge
This summer marked a symbolic shift when an Italian-operated high-speed train ran from Paris to Marseille, marking a notable expansion for Trenitalia beyond its existing Paris-Lyon-Milan route, launched in 2021. Spanish operator Renfe has also strengthened its presence, launching international services from Lyon to Barcelona and Marseille to Madrid.
While SNCF still operated 98% of all high-speed rail travel in France last year, it expects competition to impact one-third of its routes by 2030, particularly on its most popular lines.
New Players Enter the Scene
Several French and European startups are planning to launch services in the coming years:
- Proxima aims to operate routes between Paris-Bordeaux and Paris-Rennes, with 12 trains already ordered from Alstom.
- Le Train is preparing to serve western France.
- Kevin Speed, a new low-cost operator, plans to connect Paris to Lyon and Lille by 2030 and is in the process of raising nearly €1 billion in funding.
“France is the biggest market in Europe. It’s not going to open twice,” said Laurent Fourtune, CEO of Kevin Speed.
A Market Ripe for Competition
The liberalisation of France’s railways began in 2020 under EU directives, allowing competitors to enter through open access—paying tolls to the SNCF subsidiary SNCF Réseau, which manages the rail infrastructure.
According to France’s Transport Regulatory Authority (ART), high-speed rail reached a record 67 billion passenger-kilometres last year, underscoring the market’s potential. This has attracted operators despite the high fixed costs, steep French tolls, and logistical challenges, such as train delivery delays and Alpine landslides, which have disrupted some cross-border routes.
Impact on Prices and Services
Increased competition is already yielding benefits for consumers. SNCF has lowered fares in response, with prices rising less than inflation since 2019. Additionally, operators are placing more emphasis on service quality.
“SNCF is starting to adjust its prices, and we also see an effect on the quality of service,” said rail consultant Edouard Homberg. He noted, however, that new entrants are commercial businesses and may focus only on profitable routes, potentially putting pressure on services to less-populated areas.
Opportunities and Obstacles
While competition is growing, foreign players still hold small market shares — Trenitalia and Renfe each account for about 1%. Obstacles such as:
- High toll fees in France (compared to Italy),
- Delays in receiving trains, and
- Natural disruptions like landslides,
have slowed progress.
“Fixed costs are very high in the early years,” acknowledged Marco Caposciutti, CEO of Trenitalia France, which lost around 900,000 passengers due to the closure of the Paris-Milan route following landslides.
Still, network manager SNCF Réseau welcomes the new competition. “We need this competition to invest in the network,” said commercial director Hélène Vasseur. More operators mean more toll revenues, which can fund infrastructure improvements.
The Road Ahead
The French market continues to attract serious investors. Proxima has secured €1 billion from Antin Infrastructure Partners, and Kevin Speed is pursuing similar funding by the end of the year.
As France’s rail network continues to open up, more operators are expected to enter the fray. For consumers, this could mean more options, better services, and lower fares—provided the system can overcome its logistical bottlenecks.
