Locomotive Market Size, Share & COVID-19 Impact Analysis, By Technology Type (IGBT Module, GTO Thyristor, and SiC Module), By Propulsion Type (Diesel and Electric) and Regional Forecasts, 2020-2027

The global locomotive market size was valued USD 18.16 billion in 2019 and is projected to reach USD 23.83 billion by 2027, exhibiting a CAGR of 10.3% during the forecast period.

A locomotive engine is a rail transport vehicle that is powered by diesel or electricity to push or haul the train along its track. Some trains have their self-propelled load-carrying vehicles. These engines perform push-pull operations in which the engines are present at the front, rear, or at both ends of the trains. Electric locomotives are widely preferred over diesel engines as they offer high performance, reduces pollution levels, as well as provide lesser energy and maintenance costs. The increasing urbanization, increasing population, and rising traffic congestion on roads are the major contributors to the rising popularity of these products among the general public. Expansion of rail networks in various developed, as well as developing nations and the rising concern of environmental sustainability among people, will aid the growth of the market.

Moreover, the government and private organizations are investing largely in developing rail infrastructure for high-speed trains and freight transport. Railway organizations are also working towards making railway the cheapest, safest, and comfortable transport medium for the commuters. For instance, The Indian Government has allocated a budget to the Indian Railways for the fiscal year 2019-2020 which is significantly higher than that of the previous year. The allocation is expected to be used for the construction of new rail lines and track doubling as well as for procurement and maintenance of rolling stock and revamping of signals and telecom networks which is expected to propel the locomotive market growth.

COVID-19 Impact on Market

The outbreak of COVID-19, that initiated in Wuhan, China, has spread across the world.  The breakdown of the logistics and transportation system has brutally impacted the global economy. The COVID pandemic situation, a rapid increase in infected patients, and the complete lockdown have forced people to stay at home. Along with the loss of human lives and labor productivity, this condition is likely to impact several sectors and general lifestyle over a long period. This COVID-19 pandemic is expected to impact individual behavior with respect to work style, consumption, and travel.

The transportation industry has been widely exposed to the recent coronavirus outbreak condition and is currently in unprecedented uncertainty. The policies imposed by the government as well as other agencies to maintain social distancing, hygiene protocols, and lockdown. This will slow down or shut down the production and consumption activities for a tentative time causing businesses and retail sectors to close. Many regions have closed their borders and imposed curfew nationwide resulting in a drastic fall in transport activities. The public transport will be severely affected owing to their limited operability during the lockdown and also by the new policy of social distancing.

The railway department has shut down all the passenger train services and has limited its freight transport services with a reduction in demand for commodities and disturbed supply chain. Also, the nature of the virus, being active on surfaces for a long period, and the fear of infection raised in the minds of the population, the people may avoid traveling for insignificant reasons. The proximity of seating arrangements, the longer traveling time would be the least option with the people. Hence, over the next few years there won't be much passenger load on the locomotive and coupled with a low number of passengers the operational cost of the products is expected to increase making it difficult for the companies to operate at non-viable routes.

LATEST TRENDS

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Increasing Use of Autonomous Engines to Accelerate the Market Growth

Autonomous locomotives are automated transit systems that are operated automatically without any human involvement and are monitored from the control station. These products travel short and long distances for transporting people and freight. A centralized control system that controls over all the trains and a predefined railway network and infrastructures are the chief components that assist the intelligent movement of the autonomous locomotive engines within the specified cities and metros. The autonomous transit system for long distances involves different technology for functioning as various sensors and self-driving algorithms are installed within these products. The autonomous products are employed with Communication-Based Train Control (CBTC) technology which enables the communication between the trains and the device on the track for managing the rail traffic. This technique enables accurate identification of train locations, bogey alignments, and rail stability thereby ensuring greater efficiency and safety of both the device and the passengers.

The autonomous products operate with higher frequencies having the capability of transporting a large number of passengers and freights at a faster pace compared to road transport. The population across the globe is increasing rapidly and is expected to double in the coming years. Owing to the advances in infrastructures, adoption of advanced technology, and expansion in the industrial sector, a large part of the world population is expected to urbanize. In such a rapidly changing world, the transport system is also estimated to be incredibly effective leaving no room for human errors. Therefore, the autonomous technology is expected to set a trend in the global market. For instance, the Russian Railway Authorities set up the first trial to test the functioning of the autonomous train on the Shcherbinka railway test ring in the vicinity of Moscow. The train is equipped with Automated Train Operation (ATO) which enables emergency stopping in case of any obstacles on the track.

DRIVING FACTORS 

Rising Demand for Fuel Efficient Products Coupled with Increasing Environmental Concerns to Aid the Market Growth

Globally, the volume of vehicles on the road has increased over the past decade. The high demographic rate, developing road infrastructures, and a surge in disposable income of people are the major reasons for the growth of automobiles. The high vehicle rate has led to traffic congestion thus giving rise to several problems such as physical and mental health problems, accidents, and also wastage of valuable time. Also, the rising traffic is leading to high emission of toxic gases leading to environmental pollution and global warming. These engines mainly run on diesel and electricity. Several governments as well as private authorities are working towards developing fuel-efficient products to curb the rising environmental problems. Also, they are investing a large percentage on adopting sustainable sources of energy to power the locomotives. Technological advancements will also contribute to the growing demand for the product.

The dual-mode as well as the hydrogen-powered products are witnessing huge demand in the railway industry. The dual-mode products can run on diesel through places that are not economical to be electrified and also make use of overhead electric cables using electric motive power through places with electrified rails. This feature enables to reduce the dependency on fuels thus leading to lower fuel emission. The hydrogen-powered locomotive does not require cables and runs on hydrogen fuel which is placed on the roof and generates electric energy by mixing hydrogen and oxygen. This system emits only steam and water as by-products. The development in the rail sector and the shift towards public transport are factors expected to boost the growth of the market.

Rapid Growth in Population and Rising Traffic Congestion on Road to Boost the Market Growth

Over the past few years, the population rate has increased which has propelled the growth of the automobiles across the globe thus leading to traffic congestion on roads. The high rate of traffic congestion has led to various health problems such as back injuries, whiplash injuries, and also mental stress problems. The rail networks in various regions are expanding at a faster pace, and also several rail projects are coming up in cities to enable easy commuting. Additionally, the rising vehicle emissions, increasing safety concern, and greater demand for faster commutes has increased the preference of individuals for rail transport. Moreover, the legal authorities are also working towards expanding the rail networks and investing in developing high-speed trains to meet the growing demand for public transport. All these factors are leading to the high penetration of normal as well as switchers locomotives in the global market.

RESTRAINING FACTORS

Capital Intensive Rolling Stock as well as High Cost of Maintenance Likely to Hamper the Market Growth

The increasing inclination of individuals towards railway transport is leading to a high demand for these products in recent times. The rising traffic congestion and problems related to it are the major reasons for the shift in the mode of transport. Additionally, the development in rail infrastructure, inexpensive fares, environment friendly and faster mode of transport are factors for the high penetration in the global market. Therefore, this has led to high investment in rolling stock by the legal authorities. Recent advances in rail infrastructure, the introduction of high-speed trains for passengers as well as for freight transport, adoption of advanced technology, expansion of rail networks, and the various upcoming rail projects across cities require a large amount of investment. All these investments may not be fulfilled owing to the limited budget allocated by the government. Moreover, the regular maintenance and replacements of parts and components may lead to high spending.

SEGMENTATION

By Technology Type Analysis

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IGBT Module Segment is Expected to Hold the Largest Market Share

Based on the technology type, the market is segmented into the IGBT module, GTO thyristor module, and SiC module. Insulated Gate Bipolar Transistors (IGBTs) are power electronics used in the traction system of electric and diesel-electric trains. They generally replace the gate turn-off Thyristor GTO owing to their lighter weight than GTO modules thus offering constructive advantages. IGBT consists of three terminals such as the emitter, collector, and gate and are commonly used for traveling long distances to transport passengers and freight. As the power controlling capability of IGBT modules was expanded, they became progressively popular for use in higher-powered locomotives. As compared to conventional transistors, IGBT modules function at very high currents. The switching frequency of IGBT modules is much higher compared to the GTO Thyristor module. This reduces the current required as well as the heat generated, thereby providing smaller and lighter units. The high switching frequencies enables smooth acceleration process and also reduces the traction noise.

The growing adoption of dual-mode products which run on diesel as well as electricity are expected to aid the growth of IGBT modules during the forecast period. SiC module is also expected to show exponential growth in the global market in the coming years. The silicon carbide (SiC) module reduces the weight and size of the traction motor as well as inverter system to a great extent as compared to the conventional inverters. The utilization of low power devices that are made of silicon carbide (SiC) enable the development of lighter, smaller, and simpler designed inverters and traction motors. The growing trend of lightweight rolling stock is pervading in the global market along with the rising demand for greater performance, higher efficiency, as well as the adoption of advanced technologies in power devices which is expected to create a high demand for SiC modules in the market.  

By Propulsion Type Analysis

Diesel Segment Holds the Largest Share in the Global Market

Based on the propulsion type, the market is segmented into diesel and electric. The diesel propelled segment holds the largest share in the market. A diesel locomotive consists of a diesel engine that works as a traction supplier. Various types of diesel products are developed which generally differ in terms of their ability to transfer mechanical energy to the driving wheels. Diesel fuel is stored in the fuel tank which is supplied by an electric fuel pump to power the engine. Diesel fuel has a high preference owing to the economic cost, greater availability, and lesser volatility. The diesel electric engine is the main component of the diesel-electric locomotive which is connected to the main generator that converts the mechanical energy to electrical energy in the engine. The energy is then delivered to the traction system through circuits present in several switch-gear modules. The rising adoption of diesel-electric products has reduced the dependence of engines on diesel fuel. The dual-mode product is gaining high demand across the globe owed to its various advantages. The electric segment is projected to show significant growth in this market. High efficiency, quiet operation compared to diesel variants, and additional benefits such as regenerative braking which can further improve the operation are factors responsible for the increased popularity of electric products. Furthermore, electric products require less reciprocating parts which reduce the track maintenance and they are increasingly being used on advanced rail networks for freight transportation. Hence, these factors are likely to fuel the adoption of electric products.

REGIONAL INSIGHTS

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Asia Pacific holds the largest locomotive market share in the global market and is expected to hold its dominating position during the forecast period owing to the high population rate, rising urbanization, and expansion in the rail network. Some of the developing and developed economies including India, China, and Japan prefer railways as the primary mode of transport to a large extent. The high volume of automobiles in these countries coupled with the high rate of traffic congestion on road has created a massive shift from road transport towards rail transport. Also, the increasing health problems such as back injuries, whiplash injuries, and mental stress are compelling individuals to opt for public transport rather than traveling by private vehicles. The expansion of rail networks have linked most of the cities to one another and has enabled the commuters to have a fast, easy, comfortable as well as safe journey. Also, the governments in this region are investing heavily in infrastructure development, high-speed trains and providing economical fares, along with enhanced comfort, and safety.

Europe is projected to exhibit steady growth in the market over the forecast period owing to the presence of a large number of rail material manufacturers as well as a wide rail network. North America is likely to show good growth in the market aided by a robust local manufacturing base particularly for diesel engines. Furthermore, regulations such as the Buy American Act which compels foreign rolling stock manufacturers to create local production sites is likely to fuel the demand for the product in this region.

KEY INDUSTRY PLAYERS

CRRC Corporation Limited Is the Leading Company

CRRC Corporation Limited is the world's largest supplier of rail transit components with a wide range of product lines and leading technologies. The company is mainly into manufacturing, designs, sales, repair, lease, and various technical services for rolling stock, urban rail transit vehicles, and all types of electronic and electrical equipment and management services. The company is putting a foot forward in developing highly efficient solutions for sustainable development for railway transportation. The merger between CNR and CSR to form CRRC has increased its global footprint and also increased the international competitiveness among the leading players in the market. For example, Hitachi has increased its operations in Europe by involving new strategies, including the shift of its global rail headquarters to the UK. Hence, Hitachi has significantly increased its operations in two key markets in Europe, Italy, and the UK. Furthermore, leading players such as Alstom have adopted aggressive expansion strategies to maintain their position in the global market. For instance, Alstom attempted to create a merger with Siemens Mobility, a leading rail manufacturer, which was ultimately blocked by the European Union. Hence, increasing consolidation efforts are likely to fuel intense competition and increased R&D in the market.

LIST OF KEY COMPANIES PROFILED:

• Bombardier Transportation (Canada)


• Alstom (France)


• Hitachi Ltd (United Kingdom)


• AEG Power Solutions (Netherlands)


• Siemens Mobility (Germany)


• Wabtec Corporation (U.S.)


• Toshiba International Corporation (U.S.)


• CZ LOKO, a.s. (Czech Republic)


• CRRC Corporation Limited (China)


• Hyundai Corporation (South Korea)

KEY INDUSTRY DEVELOPMENTS

• March 2020 – CZ Loko announced the plan to manufacture three new hybrid locomotives- DualLiner 2000, DualShunter 2000, and EffiLiner 2000. These locomotives are expected to be out in the market by the year 2023. They are based on HybridShaunter 400 that utilizes battery power and also has a CAT C4.4 backup diesel engine having an output power of about 130kW.


• February 2019 – Wabtec Corporation has created a merger with GE Transportation. This merger launched Wabtec as a Fortune 500, a leader of global transportation and logistics by merging Wabtec's wide range of freight, electronics, and transit products with GE Transportation's best class service, equipment, and digital solutions in the mining, marine, and other industries.

REPORT COVERAGE

The locomotive market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product.

An Infographic Representation of Locomotive Market

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Besides this, the report offers insights into the market trends and forecasts and highlights key locomotive industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market over recent years.

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