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Railway Passenger Coaches Market Size, Share & COVID-19 Impact Analysis, By Coach Type (Standard Sitting, Sleeper, and Others), By Capacity (Up to 50, 50-100, and Above 100), By Train Type (Metro Rail, Passenger Train, and Others), and Regional Forecasts, 2023-2030

Last Updated: July 01, 2024 | Format: PDF | Report ID: FBI107542



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The global railway passenger coaches market size was valued at USD 15.94 billion in 2022. The market is projected to grow from USD 16.48 billion in 2023 to USD 21.98 billion by 2030, exhibiting a CAGR of 4.2% during the forecast period.

A railway passenger coach is a railroad car designed to carry passengers. A passenger coach can also be associated with a sleeper coach, a baggage coach/carriage, and a dining coach. Moreover, the demand for these coaches is influenced by increasing demand for efficient and comfortable transportation along with government initiatives towards infrastructure & technology development. Furthermore, due to rising transportation demand in growing economies, the railway passenger coaches market share is projected to develop steadily in the coming years.


Modification in Passenger Coaches for Safety Has Sustained the Market During & Post Pandemic

The COVID-19 pandemic has significantly impacted railway passenger coaches market growth, affecting the industry's demand, supply, and overall development. With travel restrictions and lockdowns in place, there has been a significant reduction in passenger demand for rail transportation. Many people worked from home, and non-essential travel was discouraged or prohibited. This reduced revenues for rail companies and slowed demand for new coaches.

In addition, the pandemic also disrupted the supply chains, with manufacturers facing challenges procuring raw materials and components. This has led to delays in the production and delivery of new passenger coaches. For instance, the Indian Railways modified its passenger coaches to prevent the spread of the COVID-19 virus. Furthermore, the hands free compartment of Indian Railways were converted into a foot-operated water tap and cleanser allocator, foot-operated toilet entryway (exterior), foot-operated flush valve, and many other usable commodities.

In addition, the COVID-19 pandemic has significantly impacted the market, with reduced passenger demand, delayed projects, supply chain disruptions, and increased focus on safety and hygiene. However, adopting new technologies may have long-term benefits for the industry. Overall, the COVID-19 pandemic has significantly impacted this market, with reduced passenger demand, delayed new projects, supply chain disruptions, and increased focus on safety and hygiene. However, adopting new technologies may have long-term benefits for the industry.


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Surging Demand for Environment Friendly, High-Speed Trains, and Advanced Coaches to Aid Market Proliferation

One of the key trends in this market is the increasing demand for energy-efficient and environment friendly railway coaches. Governments and railway operators worldwide are implementing measures to lessen their carbon footprint and encourage sustainable transportation, driving the need for more efficient and eco-friendly rail vehicles.

  • For instance, in September 2022, Indian Railways equipped 65,000 coaches with LED lights. This saved 6,50,00,000 Kwh units of energy-saving major cost, and 4920 tonnes of CO2 emission will be reduced. This contributes to the energy efficiency and environment goals of the railways.

Another trend is the growing popularity of high-speed trains, which offer faster travel times and greater passenger convenience. Many countries have plans to expand and upgrade existing high-speed rail networks, which is expected to drive demand for new high-speed passenger coaches.

In November 2022, China exported 46 wide-gauge passenger coaches to Pakistan railways. These railway coaches can run up to at 160 Km/per hour.


Growing Urbanization and Population to Propel Market Growth

Urbanization and population growth often result in increased transportation demand as people must commute to work, school, or other activities. In 2021, during the COVID-19 pandemic, the China Rail Transport carried 2,540 million passengers. The year 2019 recorded the highest passenger commute over the decade, with 3,570 million passengers traveling in a year. Rail transportation, including passenger coaches, provide an efficient and reliable way to move many people across urban and suburban areas.

As cities become more crowded, traffic congestion can become a significant problem, leading to increased travel times, and environmental concerns. Railways provide an alternate transportation mode which is faster, more efficient, and more environmentally friendly. This ultimately derives the demand for passenger railway coaches in highly populated areas.

Additionally, as cities develop, transportation systems need to be extended to meet the wants of the developing populace. This often involves the construction of new rail lines and the purchase of new passenger coaches to serve these new routes.

  • For instance, in January 2022, the Central Railway of Mumbai opened the fifth rail line between Thane and Diva in the down direction. This will help improve the traffic between Mumbai and the extended suburbs.


Availability of Alternatives and Regular Maintenance to Hamper Railway Passenger Coaches Market Growth

Depending on the distance and location, other modes of transportation, such as airplanes, can offer faster travel times than railways, hampering the demand for market growth thus affecting railway demand due to time constraints. Other modes of transportation can be more accessible to passengers, particularly those living in areas where railways are unavailable. For example, buses and cars can be more easily accessed in rural areas or areas with limited public transportation options.

Moreover, coaches require regular maintenance and repair to ensure safety and comfort. These costs can be high, and if managed ineffectively, they can impact the profitability of railway companies. This can damage the reputation of railway companies & make it more challenging to attract passengers.

Railway passenger coaches must comply with various regulatory requirements related to safety and maintenance. These regulations can be complex and expensive, particularly for smaller railway companies or those with limited resources.


By Coach Type Analysis

Rising Demand for Urban Transportation Made Standard Sitting Coaches Dominant in the Market

By coach type, the market is categorized as standard sitting, sleeper, and others. Sleeper coaches offer comfortable sleeping arrangements for overnight journeys. As long-distance transportation increases, this segment has shown positive trends. The European rail authorities reopened a few sleeper train routes, such as Brussels to Vienna, Brussels to Prague, Munich to Paris, and Zurich to Amsterdam in 2021. Considering the response, they have also planned to begin Brussels to Warsaw and Zurich to Barcelona routes in 2024. This contributes to the growth of the sleeper segment.

The standard sitting segment is dominant, holds the largest market share, and continues to dominate in the forecast period. The increase in metro rails, mono rails and high-speed trains made this segment rise. Luxury coaches offer enhanced comfort, various amenities, entertainment systems, observatory coaches, and high-end dining facilities to cater to affluent passengers. Thus rising demand for  such rail systems will proportionally  boost other segments in the market.

By Capacity Analysis

Need For Mass Transportation Created Demand For The 50-100 Segment In The Market

By capacity, the segment is categorized into up to 50, 50-100, and above 100. Intercity travel infrastructure is developing, such as metros, thus creating demand for the 50-100 capacity segment. This segment provides more cost-efficient solutions for smaller routes and helps reduce operational costs, making it a dominant segment in the market.

The up to 50 segment is suitable for local transportation and short-distance routes. Their agility to move across crowded spaces makes them ideal for regional rail networks for smaller towns and cities. Thus, they show considerable growth in the market.

The above 100 segment is the fastest growing segment in the market. Its growth is attributed to a growing demand for mass transportation at high-density routes such as commuters or intercountry trains. It promotes more sustainable transport modes as they can accommodate more passengers. 

By Train Type Analysis

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Metro Segment To Be Fastest Growing Owing To Increasing Demand For Faster Transportation Mode In Cities

By train type, the market is categorized into the metro rail, passenger train, and others.

Currently, the metro rail segment is the fastest growing segment in this market. Its growth is attributed to increasing urbanization and the requirement for smaller sizes and faster and high-frequency modes of transportation for commuters. Metro has higher efficiency, reliability, and lower emissions than other trains. This attributes to segment growth in the upcoming years.

The passenger train segment has also showcased considerable growth during the forecast period. Its development is driven by government initiatives to develop infrastructure and increase tourism.

Others segment has also showcased a significant change in the market. An increase in the number of tourist and specific train travelers has created demand for dedicated observation coaches and luxury coaches, which has anticipated the growth of others segment during the forecast period.

  • For example, In April 2023, Indian Central Railways announced adding Vistadome couches in its Mumbai Goa Tejas express train to enthrall passengers’ journeys.


Asia Pacific Railway Passenger Coaches Market Size, 2022 (USD Billion)

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Geographically, the market is divided into North America, Europe, Asia Pacific, and the Rest of the World.

Asia Pacific has the most high-speed rail networks, with countries such as China and Japan investing in developing rail infrastructure. This region has a dense population creating a requirement for reliable transportation. Economic evolution has led to increased demand for railway passenger coaches making the region dominant in the market.

Europe's proven rail network created significant demand for passenger coaches. The region has invested in developing speed rails and other technologies for the growing demand making it the fastest growing market.

North America and the Rest of the World have rail transport facilities. The regional government has also invested in creating significant demand for passenger coaches in this region. Advancement in North American rail infrastructure and rail technologies using AI is boosting its regional rail coaches market.

          • For instance, in March 2023, Siemens Mobility announced an investment of investing USD 220 million to construct an advanced manufacturing and rail services facility in Lexington, North Carolina, showcasing substantial growth. North America and Rest of the World have rail transport facilities. The regional government has also invested in creating significant demand for passenger coaches in this region, showcasing substantial growth.


Diverse Product Portfolio and Technological Innovation Makes CRRC a Market Leader

CRRC Shandong Co., Ltd. is a wholly-owned subsidiary of CRRC Corporation and a railway equipment manufacturer in the railway passenger coach industry. It was established in Beijing, China, in 2015. CRRC is the world’s largest rolling stock manufacturing company, and its railway passenger coaches are in demand in many countries around the globe. Its passenger coach products range from high-speed to commuter trains, making it suitable for all customer needs. As a state-owned company, CRRC benefits from strong government support, which helps it compete globally. The company is upgrading its portfolio to eco-friendly products, especially concerning environmental regulations. For instance, In February 2023, CRRC launched the first hydrogen-energy urban train in China via a joint venture with Chengdu Rail Transit. The train has a capacity of the speed of 160 Km/h with a 600 Km battery life.


  • Alstom (France)

  • CRRC Sifang Co., Ltd.(China)

  • Stadler Rail AG (Switzerland)

  • Kawasaki Heavy Industries, Ltd. (Taiwan)

  • Siemens AG (Germany)

  • Hitachi (U.K.)

  • SKODA TRANSPORTATION a.s. (Czech Republic)

  • TALGO (Spain)


  • Jupiter Wagons Limited (India)

  • Transmashholding (TMH) (Russia)


  • April 2023: The Russian-Indian consortium of Transmashholding (TMH) and Rail Vikas Nigam Limited (RVNL) India announced the signing of a supply agreement with Indian Railways. This contract is worth USD 1.7 billion to open an Indian subsidiary to manufacture 120 16-car Vande Bharat Express high-speed trains jointly.

  • March 2023: Siemens Mobility announced an investment worth USD 220 million to construct an advanced manufacturing and rail services facility in Lexington, North Carolina. The new site, of around 200 acres, will consist of a passenger coach manufacturing factory and a first-of-its-kind locomotive and passenger coach overhauls facility.

  • February 2023: Kawasaki showcased the R211 open gangway subway train at the Metropolitan Transportation Authority (MTA) Coney Island Yard in Brooklyn, New York. Kawasaki has received orders for 1,175 R211 cars comprising a base contract of 535 cars and an additional 640 cars.

  • December 2022: Cottbusverkehr GmbH (CV), the public transport company from the city of Cottbus, Germany, contracted with Skoda Groto to deliver 15 more modern uni-directional three-unit trams. This represents another success of the Group in the German market.

  • May 2022: Medha Servo Drives (India) signed a joint venture agreement with Swiss railway manufacturer Stadler Rail to establish a new rail coach manufacturing factory in Telangana, India. Stadler Rail has invested around USD 129 million will own majority of interest in the joint venture.


An Infographic Representation of Railway Passenger Coaches Market

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The market report provides detailed market analysis and focuses on key aspects such as leading companies, product types, end-users, design, and technology. Besides this, the report offers depth analysis & 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.

Report Scope & Segmentation



Study Period


Base Year


Estimated Year


Forecast Period


Historical Period


Growth Rate

CAGR of 4.2% from 2023-2030


Value (USD Billion)


By Coach Type

  • Standard Sitting

  • Sleeper

  • Others

By Capacity

  • Up to 50

  • 50 – 100

  • Above 100

By Train Type

  • Metro Rail

  • Passenger Train

  • Others

By Geography

  • North America (By Coach Type,  By Capacity,  & By Train Type)

    • U.S. (By Train Type)

    • Canada (By Train Type)

  • Europe (By Coach Type,  By Capacity,  & By Train Type)

    • Germany (By Train Type)

    • France (By Train Type)

    • Poland (By Train Type)

    • Spain (By Train Type)

    • Rest of Europe (By Train Type)

  • Asia Pacific (By Coach Type,  By Capacity,  & By Train Type)

    • China (By Train Type)

    • India (By Train Type)

    • Australia (By Train Type)

    • Japan (By Train Type)

    • Rest of Asia Pacific (By Train Type)

  • Rest of the World (By Coach Type,  By Capacity,  & By Train Type)

Frequently Asked Questions

Fortune Business Insights market research says the global market size was valued at USD 15.94 billion in 2022. The global market is projected to grow to USD 21.98 billion by 2030.

The market is expected to register a CAGR of 4.2% during the forecast period 2023-2030.

Urbanization and population growth propels the market growth in the forecast period.

Asia Pacific region led the global market in 2022.

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