Track Laying Equipment Market Size, Share & COVID-19 Impact Analysis, By Type (New Construction Equipment and Renewal Equipment), By Application (Heavy Rail and Urban Rail), and Regional Forecast, 2023-2030

The global track laying equipment market size was valued at USD 540.9 million in 2022. The market is projected to grow from USD 559.9 million in 2023 to USD 828.6 million by 2030, exhibiting a CAGR of 5.8% during the forecast period.

Track laying equipment is also known as track construction equipment. It is a machine used for laying tracks for railway and metro infrastructure projects.  The equipment is primarily used in the construction and maintenance of railway tracks, subways, and tram lines. It plays a crucial role in the transportation infrastructure sector, enabling the efficient and safe movement of trains and other rail vehicles.

The market for track laying is closely tied to infrastructure development, including the expansion and maintenance of railway networks, urban transit systems, and high-speed rail projects. Government investments in transportation infrastructure can have a significant impact on market growth.

For instance, according to the Financial Budget of the U.S., the U.S. President Biden announced that the U.S. government planned to invest around USD 16.4 billion in the construction of new 25 passenger rail projects across Amtrak’s Northeast Corridor. Also, the growing demand for high-speed and efficient rail networks, which enhances the demand for this equipment.

In addition, technological advancements, such as automated rail fixing machines, are expected to boost the global track laying equipment market share. The increasing need for railway networks in both developed and developing economies has led to a significant increase in the need for railway laying equipment. All such factors contribute positively to the track laying equipment market growth.

COVID-19 IMPACT

Halted Construction Related Activities and Supply Chain Disruptions during the COVID-19 Pandemic Restricted the Market Growth

Due to travel and movement restrictions, the COVID-19 pandemic negatively affected the market growth and reduced demand. In addition, closures and plant shutdowns caused disruptions in manufacturers' supply chains. In addition, the pandemic caused a decrease in global trade and economic activity, which has also affected the tracked machinery market. The overall impact of the COVID-19 pandemic on the rail facilities market has been negative, with reduced demand and disruption of production and supply chains. Also, major manufacturers registered a drop in the net sales generated by BEML India, Matisa, which reduced the market growth. For instance, Vossolh AG's net sales increased by 4.3% in 2020 as compared to 2019.

However, as governments relax regulations and allow greater mobility, the industry should recover quickly. As the world begins to recover from the pandemic and economic activity increases, the demand for crawler equipment is likely to recover. Rapid implementation of stimulus packages by various countries and rising infrastructure development projects are expected to boost market growth during the forecast period.

LATEST TRENDS

Technological Advancements in Track Laying Equipment to Boost Market Growth

Major players, such as Plasser and Theurer, Techne Kirow GmbH, Matisa, Geismar, and BEML India, and others are engaged in introducing new technologically advanced track laying machines for the market. Also, Original Equipment Manufacturers (OEMs) are engaged in adopting new products for track maintenance products.

For instance, in August 2021, Chengdu Aigre Mechano-Electronic Equipment Co Ltd. introduced a new ballast track laying machine at Xishuangbanna Station at China Laos railway line. These new track laying machines have an area of 500-meter long. It is an automatic machine, and it is enabled with Internet of Things (IoT) and AI technology.

In addition, in February 2020, Indian Railways secured a contract to provide technologically advanced laying equipment for Dedicated Freight Corridor (DFC) projects. The new construction machinery has features, such as high accuracy and high-speed operations. The output of these machines usually operated from 300 meters to 1.5 km.

Increasing penetration of technological convergence of artificial intelligence, automation, design, and machine learning, which acts as the trends in the global market during the forecast period.

DRIVING FACTORS

Increasing Need for Enhanced Rail Infrastructure Network to Drive Market Growth

Increasing demand for improvements and expansion of the rail infrastructure network are the factors that contribute positively to the market growth. A rising population growth, urbanization, and widespread digitalization across the globe require the electrification of railway projects. Also, this could involve upgrading existing rail lines, building new ones, modernizing stations, and investing in advanced technologies for rail transportation. Such factors create the demand for these equipment and drive market growth. This expansion is due to the increased need for new railways, especially in growing countries such as China and India. In addition, the market is seeing an increase in the number of infrastructure owners and railway companies purchasing new track machines to improve their operations.

Moreover, major government initiatives for investing in the construction of new railway infrastructure projects and renovating transport infrastructure projects drive the growth of the market. For instance, according to the Minister of Railways & Textiles, the Indian government planned to invest USD 715 billion to expand the railway transport infrastructure by 2030. Such factors drive the market growth.

RESTRAINING FACTORS

High Capital Investments and Operating Costs to Impede Market Growth

Track-laying machines can be made up of materials, such as metal, steel, and many others. The cost of these materials fluctuates in nature, and the price of these materials is changing day by day. Along with this equipment carrying huge repair and maintenance costs, this can be a significant barrier for smaller construction companies or those in regions with limited budgets for infrastructure development. For instance, according to the U.S. Geological Survey, the cost of steel increased by 2.2% in 2022 as compared to 2020. Such a huge cost associated with these systems is restraining market growth.

SEGMENTATION

By Type Analysis

The New Construction Equipment Segment Dominates owing to Rising Government Investments in New Railway Projects

Based on type, the market is categorized into new construction equipment and renewal equipment.

The new construction equipment segment dominates the market and is projected to grow with substantial growth during the forecast period. This is owing to rising urbanization and modernization across the globe. Also, government initiatives for investment in railway electrification and railway connectivity drives the market growth.

The renewal equipment segment is set to grow with moderate growth due to the increasing demand for such machines to replace damaged or old tracks. Also, the growing demand for safe railway systems and increasing government investment in renovation railway projects drives the market growth.

By Application Analysis

Heavy Rail Segment Dominates the Market due to Need for High-Speed Railway Network

Based on application, the market is divided into heavy rail and urban rail.

The heavy rail segment dominates the market and is expected to grow with the highest growth during the forecast period due to rising demand for high speed, heavier structure, and energy-efficient railway networks. Also, track laying equipment is used in heavy rail is specifically designed to handle the construction and maintenance of railway tracks used by heavy freight trains and passenger trains.

The urban rail segment is projected to grow with stable growth, owing to rising urbanization across the globe. Additionally, the increasing expansion of railway infrastructure in urban areas is boosting the segment growth.  

REGIONAL INSIGHTS

The market report covers an in-depth scope and deep-dive analysis of five main regions: North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

Asia Pacific dominates the market owing to rapid urbanization and the need for efficient transportation has fueled the railway infrastructure development across Asia Pacific countries. High-speed rail, metro systems, and freight railways are being expanded and modernized, driving the demand for track laying equipment. Additionally, the development of high-speed rail networks, especially in countries, such as China and Japan, has led to a substantial demand for advanced track laying operations to ensure the precision and safety of high-speed rail systems. For instance, in 2022, the Indian government planned to invest around USD 793.5 million in three railway metro projects in Haryana. Such growth in the automotive sector flourishes the demand for track laying equipment.

China Dominates the Market due to Rising Investments in Rail Infrastructure

China has one of the world’s most extensive and rapidly growing railway networks. Its high-speed rail and freight rail expansion projects have driven significant demand for track laying equipment. The government of China initiated new ambitious railway expansion projects, such as China Belts, and Road initiative, which contribute substantially to the market. For instance, the Green Finance & Development Center based in China quoted that, in 2023, around USD 7.3 billion in investment was obtained from China Belts and Road Initiative for the expansion of railway infrastructure.

North America is anticipated to grow with stable growth during the forecast period due to rising investment in new infrastructure projects and maintenance of existing railway infrastructure across the U.S. and Canada. North America has one of the most extensive and busiest freight rail networks across the globe. The movement of goods by rail requires robust and well-maintained tracks, driving demand for track laying and maintenance equipment. Additionally, the adoption of advanced technologies in track laying equipment, including automation and digital monitoring systems, is improving the efficiency and precision of railway track construction and maintenance.

Europe is projected to grow with moderate growth during the forecast period, owing to various European countries having aging railway infrastructure that requires modernization and upgrading. This creates a steady demand for track laying operations to maintain safety and efficiency. In addition, government investments in new railway infrastructure projects are boosting market growth in the region.

Middle East & Africa and Latin America are expected to grow with moderate growth during the forecast period due to increased focus on urban transit systems, including metros and light rail. These projects contribute to the demand for track laying equipment. Also, major countries, such as UAE, Saudi Arabia, South Africa, and others are planning to invest in new railway projects.

KEY INDUSTRY PLAYERS

Market Players are Adopting Key Developmental Strategies to Intensify the Market Competition

Key players, such as Plasser and Theurer, CRRC Corporation Ltd, and Geismar, are adopting product development, acquisition, and product launch as key strategic moves for enhancing their product portfolio and also to improve the supply chains through diversified geographies. For instance, in 2021, Plasser American, a subsidiary of Plasser & Theurer launched a new fully mechanized track-laying machine for the construction of a new railway line and also to modernize the railway projects. Such factors are driving the market growth.

LIST OF KEY COMPANIES PROFILED:

• Plasser and Theurer (Austria)


• Techne Kirow GmbH (Germany)


• Weihua (China)


• Matisa (Switzerland)


• CRRC Corporation Limited (China)


• Geismar (China)


• Salcef Group S.p.A. (Italy)


• Enviri (Harsco Corporation) (U.S.)


• BEML India (India)


• Vossloh AG (Germany)

KEY INDUSTRY DEVELOPMENTS:

• October 2021: Alstrom launched a new track laying machine for the construction of 46 kilometers of single-track metro line in Paris. This project requires an investment of USD 153.5 million.  


• September 2021: Solytek launched a new track laying gantry F 40 TR for railway construction and renovation projects. This machine has features, such as a very quick work cycle and a radio-controlled machine.


• January 2021: Stabirail introduced a new slab construction track laying equipment for the construction of new and renovated old railway projects. It has features, such as minimizing human error and quick & efficient placement, and requires overall costs.

REPORT COVERAGE

The global market report covers a detailed depth analysis of the type, and application. It provides information about leading players in the track laying equipment and their business overview, product offerings, investments (R&D and expansions), revenue analysis, types, and leading applications of the product. Besides, it offers insights into the competitive landscape, trends analysis, SWOT analysis, and current market trends and highlights key drivers and restraints. In addition to the abovementioned factors, the research reports encompass several factors contributing to the market's growth in recent years.

REPORT SCOPE & SEGMENTATION