Far more significant than the novelty of traveling by train was that the railway enabled the industrialization of Sweden. The greatest obstacle to large-scale production had previously been the lack of efficient transportation of goods.

After the first sections were inaugurated in 1856, new railways were rapidly constructed between Sweden's cities. State investments in national lines were soon followed by private initiatives to build shorter routes.

With the railway came the ability to transport large weights and volumes year-round over long distances in a short time and at a low cost. Previously, this had been entirely unthinkable.

Industries were established in rural areas along the railways. Brickworks, sawmills, and sugar refineries were placed near their various raw materials. New employment opportunities led to the emergence of new communities.

The industries in the country's growing cities and communities attracted more and more workers to move and abandon the countryside. Instead of producing their own food, people now bought what they were going to eat..

The railway could supply cities with fresh produce while goods to and from abroad were transported between ports and the inland. Special waste and latrine cars transported urban waste away for disposal outside the city.

Within Sweden, the railway connected regions with import and export needs. The last severe famine years in Norrland, due to crop failures, occurred in 1867-69. After the railway was extended through Norrland in the 1870s, similar catastrophes could be avoided.