Locomotive Market to Grow at a CAGR of 8.1% over 2025 to 2032; Rising Population and Road Congestion to Drive the Growth of the Market

The global locomotive market size was valued at USD 13.80 billion in 2024. The market is projected to grow from USD 14.42 billion in 2025  to USD 24.85 billion by 2032, exhibiting a CAGR of 8.1% during the forecast period. Fortune Business Insights™ presents this information in its report titled “Locomotive Market Size, Share & Industry Analysis, By Propulsion Type (Combustion (Diesel and Hydrogen) 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, 2025-2032”.

As a significant part of the train systems, locomotives propel and steer an entire train set. To address environmental concerns, countries are increasingly adopting electric automobiles over fuel-based ones. Electrification of rail networks is gaining momentum globally, driven by sustainability goals. This shift is expected to transform railway operations, reduce emissions, and enhance the integration of green technologies across transportation systems.  

The COVID-19 pandemic led to the temporary halt of manufacturing and testing activities, leading to downsizing of the production targets in factories. Post-pandemic, the demand for electric trains with government’s focus on sustainable mobilty and low carbon emissions has boosted the demand for locomotives simulteanoulsy.

Stadler Secured a Deal to Supply 11 Hybrid Locomotives to Switzerland’s RhB and MCBahn

In December 2024, Stadler won a contract worth SFR 100 million (USD 112 million) to deliver 11 hybrid locomotives to Swiss rail operators, Rhaetian Railway (RhB) and Matterhorn Gotthard Bahn (MCBahn). The new fleet, built in Bussnang, combines electric and diesel capabilities, supporting versatile operations and modernizing the existing rail infrastructure.

Increasing Freight Transportation to Accentuate Market Growth

Rising population and road congestion are pushing demand for efficient mass transit systems such as railways. Rail transport offers cost-effective and low-emission travel for both passengers and freight. Governments are shifting freight movement from road to rail to lower carbon footprints, particularly models that emit lower carbon. Countries such as India, the U.S., and China are investing in rail networks. This transition supports the locomotive market growth.   

However, high upkeep costs could deter the growth of the market.    

Industry Participants Focus on Partnerships to Stay Ahead of Competition

Leading companies such as Hitachi Rail, Siemens AG, and Wabtec Corporation shape a competitive locomotive market, supported by innovation, sustainability efforts, and global expansion. The market spans diesel, electric, hybrid, and next-gen platforms such as hydrogen. As environmental regulations tighten, especially in Europe and North America, manufacturers are investing in digital tech, low-emissions engines, and predictive maintenance to stay ahead.

List of Key Players Mentioned in the Report

• Progress Rail (U.S.)
• General Electric Company (U.S.)
• Anglo Belgian Corporation NV (Belgium)
• Toshiba Corporation (Japan)
• Cummins Inc. (U.S.)
• CRRC Corporation Limited (CRRC) (China)
• San Engineering (India)
• Alstom SA (France)
• Siemens AG (Germany)
• Kawasaki Heavy Industries, Ltd. (Taiwan)
• Kolomensky Zavod (Russia)
• Bharat Heavy Electricals Limited (BHEL)
• Chittaranjan Locomotive Works (India)
• CAF, Construcciones y Auxiliar de Ferrocarriles, S.A. (Spain)
• Hyundai Rotem Company (South Korea)
• Stadler, Inc. (Switzerland)
• Hitachi Rail Limited (U.K.)
• Republic Locomotive (U.S.)
• Wabtec Corporation (U.S.)
• Medha (India)

Key Industry Development

• April 2025- Progress Rail signed a 15-year agreement with Egyptian National Railways to modernize 100 locomotives and support 141 units. This initiative enhances Egypt’s rail performance and underscores Progress Rail’s commitment to global rail system development.

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/locomotive-market-103285

Further Report Findings

• Asia Pacific captured the key locomotive market share in 2024, with a value of USD 7.22 billion, driven by high rail demand and frequent operations. Countries such as India, China, and Japan, are rapidly expanding rail networks as a primary transportation mode. Ongoing training projects and large procurement contacts continue to boost demand. The region is also shifting to electric locomotives to reduce emissions, exemplified by India’s launch of a 9,000 HP electric freight engine in May 2025.  
• In 2024, Europe secured the second-largest market share in the market, supported by eco-friendly policies and robust rail manufacturing. Germany stands out as a key contributor, both in production and export.

• As per component, the market is segmented into alternator, motor, rectifier, and others. The motors segment accounted for the highest growth rate as these motors improving overall power distribution to the wheels while reducing power losses.

Table of Segmentation