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The global locomotive market size stood at USD 10.55 billion in 2022. The market is anticipated to rise from USD 11.72 billion in 2023 to USD 21.32 billion by 2030, recording a CAGR of 8.93% from 2023 to 2030.
Fortune Business Insights™ presents this information in its report titled, “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”. The locomotive is a major component of the train system, operating the entire train set. It is a self-propelled train car that either burns fuel or runs on electricity. Increasing concern about carbon emissions and degradation in air quality is pushing governments to concentrate on decreasing their carbon footprint. Increasing adoption of sustainable mobility by governments to lower fossil fuel dependency and encourage green energy transportation is driving market expansion.
Increase in Project Initiatives in the Rail Industry Post-Pandemic to Support Market Expansion
The implementation of lockdowns by governments and the economic downturn caused by the COVID-19 pandemic had several effects, including a decrease in mobility. Almost all production units planned to introduce new models or increase their production capacity to meet the demand.
But in 2021, the industry bounced back quickly as key market participants started their production facilities and development on their terms. Moreover, an increase in project initiatives in the rail industry is expected to boost market expansion in the coming years.
CARB Passed its New Bill for its In-use Locomotive to Lower Emissions within the State
In April 2023, to decrease emissions from locomotives operating within the State, the California Air Resources Board (CARB) secured its new bill for its in-use locomotive. According to recently passed laws, operators must now deposit funds into a spending account, and the punishment amount will be based on the emissions of the specific locomotives operating in the State.
Growing Emphasis on Green Energy and Environmental Sustainability in Freight Transportation to Propel Market Progress
A rise in obstacles in transportation due to population growth results in traffic problems and pollution emitted by vehicles on the road. As a result, railway transit is gaining traction as a key mode of transport for daily commutes within or across cities. Rail-based mass transit makes it possible for people to travel quickly and affordably. To lower the carbon footprint of the freight industry and encourage sustainable mobility, key countries, such as India, the U.S., and China, are transporting cargo through rails instead of on roads. Increasing emphasis on green energy and environmental sustainability in freight transportation is driving the locomotive market growth.
On the other hand, the high cost of locomotives is hampering market expansion.
Key Market Players Focus on Diverse Product Portfolios to Boost their Revenues
The existence of well-established companies is expected to fuel market expansion in the coming years. Top rail companies are engaged in the development of a strong network of supply to leading railway ministries globally. International and local market players are offering diverse product portfolios to boost their business expansion.
Notable Industry Development
September 2023 – The national rail network of Ireland collaborated with Latvia on the creation of a hydrogen locomotive and started testing them for shorter-distance freight transit.
List of the Companies Profiled in the Report:
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Further Report Findings-
Table of Segmentation
CAGR of 8.93 % from 2023 to 2030
Value (USD billion) & Volume (Units)
By End User