"Market Intelligence for High-Geared Performance"

Locomotive Market Size, Share & COVID-19 Impact Analysis, By Propulsion Type (Diesel and Electric), By End User (Passenger and Freight), By Technology (IGBT Module, GTO Module, and SiC Module), By Component (Rectifier, Alternator, Motor, and Others), and Regional Forecast, 2023-2030

Region : Global | Format: PDF | Report ID: FBI103285

 

KEY MARKET INSIGHTS

Play Audio Listen to Audio Version

The global locomotive market size was valued at USD 10.55 billion in 2022. The market is projected to grow from USD 11.72 billion in 2023 to USD 21.32 billion by 2030, exhibiting a CAGR of 8.93% during the forecast period.


The locomotive is a crucial part of the train system; it is a specific type of train car that runs the whole train set. It is a self-propelled train car that generates energy by burning fuel or running on electricity. It is used to push or pull the other train cars, helping transport goods and passengers globally from one point to another.


The increased carbon emission and degradation in air quality globally have created an alarming concern. Thus, major governments are focused on reducing their carbon footprint and aiming toward sustainable mobility to reduce fossil fuel dependency and promote green energy transportation. This further led to the integration of electrification technologies across multiple modes of road transport, including road and rail vehicles. Major railway ministries globally are actively expanding their rail network with electric lines to integrate electric locomotives to haul passengers and cargo shipments globally. Thus, the market is expected to witness a drastic change in operations, with more nations integrating electric units in their operation fleets.


COVID-19 IMPACT


Increase in Rail Infrastructure Projects Post-pandemic to Propel the Market Growth


The government-enforced lockdowns and economic crisis induced due to the COVID-19 pandemic affected in various ways, including restricting mobility. The conditions induced by the pandemic severely impacted the transportation and logistics industry, including this industry. Nearly all the manufacturing companies were either planning to introduce or were in the process of increasing their production capacity to serve the demand.


The industry witnessed a rapid recovery in 2021 as major players resumed their development and manufacturing processes based on individual capacity. The year 2021 witnessed an increased number of deliveries in locomotives due to outstanding order backlogs from existing contracts. Additionally, the global rail industry started witnessing various project initiations, and the market started recovering. With various R&D efforts resuming, the market witnessed new technological trends, contracts, and demand across various regions globally.


LATEST TRENDS


Autonomous and Smart Trains are an Emerging Trend in the Market


Autonomous trains are emerging as an innovative solution to enhance the utilization of trains in cities and urban areas with reliability. Technologies, such as real-time data transmission systems and advanced sensor technology, fuel the development of autonomous trains in the locomotive industry. For instance, in November 2022, Alstom successfully demonstrated its autonomous shunting locomotive at Breda in the Netherlands. The vehicle is equipped with advanced obstacle-detection capabilities and provides positive results during its tests.


Moreover, significant players and railway corporations have adopted the automatic train control system to enhance the exchange of data, minimizing technical errors and gaining confidence among the passengers. Governments of various countries have started the pilot testing and adoption of autonomous trains on their tracks. For instance, in June 2022, Alstom, with the help of the German Aerospace Centre and TU Berlin, shifted the pilot project focused on developing autonomous trains to digitalize rail passenger transport in Germany to the next phase. Various players are highly focused on penetrating the rail market by introducing unique smart products due to the high scope of returns from various government and private contracts.


Request a Free sample to learn more about this report.


DRIVING FACTORS


Increasing Freight Transportation and Cargo Logistics Drives Market Growth


As the population is increasing, the difficulty in transportation is increasing, resulting in traffic congestion and pollution emitted by the vehicles on the road. Due to this, railway transit has become a prime mode of transport to travel within or across cities for daily commuting. Moreover, mass transit of the people by rail offers people cost-efficient and time-efficient traveling.


Major countries, such as India, the U.S., and China, are aiming toward transporting cargo through rails instead of on roads to reduce the carbon footprint of the freight industry and promote sustainable mobility. Additionally, railway networks across the globe are actively flushing out diesel to promote green energy and environmental sustainability in freight transportation. For instance, according to the Association of American Railroads, in the U.S., One-third of all U.S. exports and approx. 40% of the long-distance freight volume is transported on the U.S. Freight rail network.


Rapid Urbanization and Expansion of Rail Transportation to Drive Market Growth


During the COVID-19 pandemic, the e-commerce segment witnessed a surge in demand as the goods the end user required were delivered to him without accessing the stores, decreasing contact and mitigating the risk of the COVID-19. This method has continued after the pandemic and is increasing with the substantial flow. For instance, in June 2022, Indian Railways announced that the freight loading, including e-commerce logistics and other logistics, during May 2022 was 131.7 million tonnes (MT), which was 14.7% more than the previous year in May 2021.


The efficient work of e-commerce to handle its logistics operation with a particular share carried through freight trains. Relying on freight rail also offers lower carbon emissions compared to road freight transportation. Thus, the increase in e-commerce logistics demand propels the locomotive market growth over the forecast period. As major countries globally focus on expanding their rail network for passenger and freight transportation, the demand is also expected to incline with this rapid expansion in the rail industry, further propelling market growth.


RESTRAINING FACTORS


High Cost Associated with Electric Locomotives is expected to Hinder the Growth of Market


Besides being a substantial mode of transport, the railway network requires a significant amount of capital and maintenance costs to establish and operate. The entire unit harbors multiple components and complex electrical systems and diesel systems in diesel-electric locomotives, which contributes toward the high manufacturing and component cost. Additionally, the individual component cost further adds up to the overall vehicle cost.


The electric locomotive costs are higher compared to diesel-electric locomotives due to the locomotives harboring electrification systems. Additionally, the rail networks also need to be electrified for the smooth functioning of electric propulsion on rail tracks. These substantial infrastructure changes bore high capital costs. Some of the other factors include the lower fuel efficiency of diesel locomotives. Out of all the component costs, the locomotive accounts for the highest cost, and poor technical performance adds up to higher fuel consumption, further increasing the operational cost.


SEGMENTATION


Propulsion Type Analysis


Major Rail Economies Globally Are Focused on Integrating Electric Locomotives, Boosted the Segment Growth


Based on the propulsion type, the market is segmented into diesel and electric.


The electric segment held the largest market share in 2022 and is anticipated to continue its domination during the forecast period. It is the fastest-growing segment with the highest CAGR. As the leading rail economies of the globe are inclining toward the use of green energy for a better sustainable future, the electrification of trains plays a significant role in this revolution. Thus, the increase in interest in environmental safety and green energy will drive market growth over the long term.


The diesel segment held a decent market share in 2022. The segment growth is attributed to the high demand for freight rail transportation and the low infrastructural cost of engines to operate on existing tracks. The market for diesel locomotives is expected to lower with the increasing integration of electric locomotives in the rail industry.


By Component Analysis


Increased Number of Components Integrated in Locomotives Fueled the Others Segment Growth


Based on component, the market is segmented into rectifier, alternator, motor, and others.


The others segment dominated the global market share in 2022 owing to the increasing number of components used in locomotives to improve the efficiency of the machine. Additionally, the others segment is a summation of all the major and minor components required in the locomotives to operate at their optimum efficiency. These factors contribute toward the greater market share of others in the component segment.


The motor segment accounted for the highest growth rate owing to the high focus from major players on developing and deploying higher efficiency traction motors to reduce power loss and increase the overall power distribution to the wheels.


The alternator and rectifier segments also accounted for a decent market size in 2022 and are expected to grow at a substantial growth rate.


To know how our report can help streamline your business, Speak to Analyst


By Technology Analysis


The High Switching Speed and Low Cost of IGBT Modules Contributed to Segment Growth


Based on technology, the market is segmented into IGBT Module, GTO Module, and SiC Module.


The IGBT Module led the market share in 2022 and is expected to continue its dominance during the forecast period. The demand is attributed to low cost, higher switching frequency, and lower power loss compared to GTO modules, which were previously integrated into the older models. These factors contribute toward the market share of this segment during the forecast period.


SiC Modules are expected to grow at the highest rate owing to the additional benefits they offer compared to GTO modules and IGBT power modules and are highly efficient. The GTO module had a decent share in 2022. The market for GTO is expected to witness lower growth in the coming years.


By End User Analysis


Increasing Demand for Passenger Rail Transportation Fostered Segment Growth


Based on the end user, the market is divided into two segments: passenger and freight.


The passenger segment held the major market share in 2022 owing to higher demand for public transportation in various European regions. Moreover, the growing focus from European and Asian governments on promoting sustainable and green energy transportation is one of the major factors contributing to the market demand for the passenger segment.


The freight segment is expected to register the highest CAGR as a result of the trend of electrification technology in vehicles. Increasing freight rail expansion in various regions to reduce road transportation dependency and promote carbon neutrality drives market growth.


REGIONAL INSIGHTS


High Demand for Rail Transportation in Asia Pacific countries is Expected to Drive the Market for Locomotives


Asia Pacific Locomotive Market Size, 2022 (USD Billion)

To get more information on the regional analysis of this market, Request a Free sample


Asia Pacific held the largest locomotive market share, and it stood at USD 5.01 billion in 2022. The factors include increased passenger as well as freight activities—high demand and frequency operations of the rail industry and rolling stock industry in Asia. The rapid rail expansion and other train projects in various Asia Pacific countries contribute to the market growth and demand in the region.


Europe and North America also accounted for significant market sizes and are expected to show substantial growth in the market due to the high demand for passenger and freight transportation demand in both regions. Additionally, the increased government investments to increase the rail infrastructure and introduce green energy vehicles are further expected to drive the market growth.


The rest of the world is expected to grow at the highest growth rate owing to increased focus from African and Latin American regions to revive and expand their existing and new railroad lines with electrification technologies.


Furthermore, expansion in rail freight transportation in Europe is expected to influence the market growth of freight transportation in neighboring regions to cater to greater logistics demand.


KEY INDUSTRY PLAYERS


Major Players in the Market Are Concentrated on Expanding their Network Through Rail Contract Procurements.


The competitive landscape for this industry consists of a few established key players. The market is consolidated in nature, as all the leading rail companies have developed a robust network of supply to leading railway ministries globally. It is observed that both global and regional players have a diverse product portfolio with a high focus on geographic business expansion.


The global industry consists of key players, such as CRCC, Alstom, Transmashholding, Stadler, Wabtec Corporation, and Siemens. Key players operate on different levels. Companies, such as CRCC Corporation and Transmashholding are some of the largest manufacturers of locomotives. They majorly operate in domestic and regional markets with a lack of presence outside their countries and regions. CRCC is a key player in the market, accounting for the largest market share in this industry. Other major players, such as Alstom Stadler Siemens, on the contrary, are highly active in global markets, procuring contracts from North America to major Asian and European countries to boost their market presence.


LIST OF KEY COMPANIES PROFILED:



  • TMH (Russia)

  • CRCC Corporation (China)

  • Wabtec Corporation (U.S.)

  • Alstom (France)

  • Siemens AG (Germany)

  • CAF (Spain)

  • Stadler (Switzerland)

  • Kawasaki Heavy Industries Ltd. (Japan)

  • Hyundai Corporation (South Korea)

  • Titagarh Wagons (India)


KEY INDUSTRY DEVELOPMENTS:



  • May 2023:  Indian Railways provided Bangladesh Rail with 20 broad gauge locomotives as a gesture fulfilled by the Indian government during its Prime Minister Sheikh Hasina’s visit to India in October 2019. The supply of these is aimed toward improving the rail transport system in Bangladesh

  • February 2023: The Indian Rail Ministry announced the integration of hydrogen fuel cell locomotives into its existing fleets. Indian Railways aims to push sustainable mobility and began designing and manufacturing processes.

  • April 2023: California Air Resources Board (CARB) passed its new bill for its in-use locomotive aimed toward reducing emissions emitted from it operated within the State. According to the newly passed regulations, operators are now to put into a spending account, and the amount to be fined will be determined based on the emitted emission of respective locomotives operating within the State.

  • October 2022:  Wabtec Corporation signed a contract with a European rolling stock leasing company, Akiem, to provide the necessary maintenance of critical locomotive component fleets in Europe. Under the 5-year service contract, the company will be working closely on the maintenance and reconditioning of Brake components, pantographs, and Heating, Ventilation, And Air Conditioning (HVAC) of Akiem’s PRIMA and TRAXX fleets, which operate in France and Germany.

  • May 2022: Canadian Railway announced the start of testing of its hauling freight operations, integrating electric locomotives powered by battery and hydrogen fuel cell propulsion systems.


REPORT COVERAGE


The market report provides a detailed Locomotive market analysis and focuses on key aspects such as leading companies, product types, and leading product Technology. Besides this, the market report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market's growth over recent years.


An Infographic Representation of Locomotive Market

To get information on various segments, share your queries with us



Report Scope & Segmentation










































ATTRIBUTE



DETAILS



Study Period



2019-2030



Base Year



2022



Estimated Year



2023



Forecast Period



2023-2030



Historical Period



2019-2021



Growth Rate



CAGR of  8.93 %  from 2023 to 2030



Unit



Value (USD billion) & Volume (Units)



Segmentation



Propulsion Type



  • Diesel

  • Electric


By Component



  • Rectifier

  • Alternator

  • Motor

  • Others


By Technology



  • IGBT Module

  • GTO Module

  • SiC Module


By End User



  • Passenger

  • Freight


By Geography



  • North America (Propulsion Type, By Component, By Propulsion Type, By Technology)

    • U.S. (By  Propulsion Type)

    • Canada (By   Propulsion Type )

    • Mexico (By   Propulsion Type )



  • Europe (Propulsion Type, By Component, By Propulsion Type, By Technology)

    • U.K. (By Propulsion Type)

    • Germany (By Propulsion Type)

    • France (By Propulsion Type)

    • Russia (By Propulsion Type)

    • Rest of Europe (By Propulsion Type)



  • Asia Pacific (Propulsion Type, By Component, By Propulsion Type, By Technology)

    • China (By  Propulsion Type )

    • India (By  Propulsion Type )

    • Japan (By Propulsion Type )

    • Rest of Asia Pacific (By Propulsion Type)



  • Rest of the World (Propulsion Type, By Component, By Propulsion Type &  By Technology)






Frequently Asked Questions

Fortune Business Insights says that the market was valued at USD 10.55 billion in 2022 and is projected to reach USD 21.32 billion by 2030.

The market is expected to register a growth rate of (CAGR) 8.93% during the forecast period 2023-2030.

Rapid urbanization and expansion of rail transportation to drive market growth.

Asia Pacific led the global market in 2022.

Passenger was the leading end-user segment.

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts

Speak to an Expert
  • Nov, 2023
  • 2022
  • 2019-2021
  • 249

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization
Request Customization Banner

Automotive & Transportation Clients

Toshiba
Deloitee
Hitachi
Bosch
GM

Related Reports

Client Testimonials

“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”

- U.S.-based biotechnology company focussing on treatment of chronic pain.

“Kudos to your team. Thank you very much for your support and agility to answer our questions.”

- Europe-based provider of solutions to automate data centre operations.

“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”

- India-based manufacturer of industrial and specialty intermediates with a strong global presence.

“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”

- One of the largest cosmetics company in the world.

“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”

- U.S. based startup operating in the cultivated meat market.

“We received the below report on the U.S. market from you. We were very satisfied with the report.”

- Global hearing aids manufacturer.

“I just finished my first pass-through of the report. Great work! Thank you!”

- U.S. based solar racking solutions provider.

“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”

- World’s leading advisory firm.

“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”

- Germany based machine construction company.

“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”

- Japanese manufacturing company of stationery products.

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.
X