Rolling Stock Market Size, Share & Industry Analysis, By Type (Locomotive, Passenger Carriages, and Wagons), By Application (Passenger and Freight), By Propulsion (ICE and Electric), and Regional Forecast, 2025-2032

The global rolling stock market size was valued at USD 52.11 billion in 2024 and  is projected to grow from USD 53.57 billion in 2025 to USD 70.87 billion by 2032, exhibiting a CAGR of 4.10% during the forecast period. Asia Pacific dominated the global market with a share of 46.23% in 2024.

Rolling stock is a term used to denote all vehicles that move on rail wheels, encompassing both unpowered and powered vehicles. It includes locomotives, passenger carriages, and wagons. Key components of Rolling stock include car body, car body fittings, power system, guidance, auxiliary systems, propulsion, braking system, interiors, on-board vehicle control, Passenger Information System (PIS), communication system, cabling & cabinets, door system, Heating, Ventilation and Air-Conditioning (HVAC), lighting, tilt system, and coupler.

Favorable trends in passenger and freight transportation will drive market growth over the coming years. Increasing demand for transportation is expected to significantly boost passenger and freight activity by 2050. Asia Pacific and Latin America will exhibit the most significant growth opportunities during the forecast period, supported by the expansion of railway networks in emerging economies. Various urban rail projects are set to gain traction in Latin America. In December 2024, the World Bank Board approved USD 660 million in funding to support Türkiye's efforts to expand its electric rail transportation network. This initiative aims to enhance the efficient movement of goods nationwide, boost exports, create jobs, and reduce Greenhouse Gas (GHG) emissions.

The global rolling stock market is led by major players such as CRRC Corporation Limited, Siemens AG, Alstom SA, Kawasaki Heavy Industries Ltd., and Wabtec Corporation, among others. CRRC dominates with advanced manufacturing capabilities and diverse solutions, while Siemens focuses on technological innovation and smart systems. Alstom excels in sustainable transport solutions, which fuels the competitive edge in the market.

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Market Dynamics

Market Drivers

Rising Urbanization and Expanding Urban Rail Networks to Bolster Market Growth

One major driving factor for the global rolling stock market is the increasing demand for urban rail transit systems, particularly in emerging economies. Rapid urbanization, population growth, and the need for sustainable transportation solutions have fueled the expansion of urban rail networks worldwide. According to the International Association of Public Transport (UITP), urban rail systems are expected to grow from 182 in 2019 to over 250 by 2030.

In cities struggling with traffic congestion and air pollution, urban rail transit offers efficient, reliable, and environmentally friendly mobility options. Governments and city authorities are investing heavily in expanding and modernizing their urban rail networks to meet growing passenger demand and address urban mobility challenges.

China has emerged as a key driver, with ambitious plans to expand its urban rail transit systems. The country's Five-Year Plans prioritize the development of high-speed rail, metro, and light rail networks, with significant investments allocated to equipment procurement. China Railway Corporation (CRC) aims to extend the country's high-speed rail network to 38,000 kilometers by 2025, driving demand for rolling stock.

Similarly, India is witnessing rapid growth in its urban rail transit sector, with metro rail projects underway in several major cities. The government's Smart Cities Mission and initiatives, such as the Atmanirbhar Bharat (Self-Reliant India) campaign emphasize sustainable urban transportation. The Delhi Metro Rail Corporation (DMRC) added over 500 new metro cars to its fleet in 2022, stimulating demand for railway equipment manufacturers.

The increasing emphasis on sustainable urban mobility and government investments in urban rail infrastructure is expected to propel the global rolling stock market growth.

Market Restraints

Capital Intensive Nature of the Rail Industry May Hamper Market Growth

High capital investments in rolling stock manufacturing and railway infrastructure development may hamper market growth in the future. Moreover, increased costs related to technology integration may negatively influence market growth. Intense competition in the industry will further pressure cost optimization. Rail customers’ buying behavior is influenced by various factors, including the mode of transport, choice of carrier, and most importantly, price. Such factors contribute to stringent cost control measures, thereby affecting manufacturing activities.

A stringent regulatory environment may affect industry growth within the forecast period. These regulations compel rail companies to compete fairly and effectively, posing challenges. Decarburization trends fueled by rising awareness regarding lowering carbon emissions will drive the electrification of trains in future. However, this will require additional capital, thereby affecting the market growth.

Market Opportunities

Fleets Modernization Initiatives Presents Growth Opportunity in the Market

Many countries, especially in Europe, North America, and Asia, operate outdated rail systems that require substantial upgrades. Replacing older trains with modern, energy-efficient trains improves reliability, safety, and performance. As governments and private companies invest in fleet modernization, demand is rising for advanced trains equipped with cutting-edge technology such as electric propulsion, automation, and improved fuel efficiency. Additionally, the need for reducing carbon emissions further drives the replacement of older, less environmentally friendly trains. This shift creates a substantial market for manufacturers and operators to supply new high-performance trains that meet the needs of modern transportation systems. 

In January 2025, Northern Trains unveiled plans to modernize its fleet by introducing up to 450 sustainable trains, aiming to enhance travel across the Northern network. This initiative involves five manufacturers, including major companies such as Alstom, CAF, Hitachi, Siemens Mobility, and Stadler, competing to supply advanced electric-only and bi-mode trains that meet sustainability standards. The focus is on trains capable of transitioning to electric or battery operation over time, supporting the U.K.’s net-zero emissions goal. With 60% of Northern’s current fleet over 30 years old, the upgrade aims to reduce maintenance costs and improve passenger experience. Framework agreements are expected by 2026, with deliveries starting in 2030, marking a significant step in regional travel modernization.

Market Challenges

Competition from Alternative Transportation Models May Pose Challenge to Market Demand

Competition from alternative transportation modes, such as road and air travel, poses a challenge to the growth of the global market by offering more flexible, cost-effective, and convenient options. Trucks and cars provide on-demand, door-to-door services, making them more attractive for short-distance and freight transport. Similarly, air travel is favored for long-distance journeys due to its speed and convenience. In many regions, these alternatives often outperform rail in terms of flexibility, accessibility, and pricing, reducing the demand for rail transport. This competition pressures rail operators to modernize and offer competitive services, which can be difficult without significant investments in infrastructure and new trains, ultimately slowing market growth during the forecast period.

Rolling Stock Market Trends

Rising Adoption of Electric Trains is Set to Gain Traction in the Future

The popularity of electric trains is rising rapidly owing to their numerous benefits. Unlike diesel locomotives, these trains do not require high-grade coal and are free from producing coal dust. Diesel locomotives often need time to start as their internal combustion engines require warming up, whereas electric trains, including electric locomotives and passenger cars, do not face such issues. Additionally, electric trains have lower repair & maintenance requirements compared to other locomotives. Running and maintenance costs of electric trains are comparatively lower than diesel locomotives.

Electric trains' large capacity and easy scheduling make them highly suitable for traffic congestion in urban and suburban regions. These trains are less complex, have greater reliability, and are environment-friendly. Electric trains are not prone to sudden and temporary overloading, as they can draw additional energy from the supply network when needed. Moreover, regenerative braking systems can be employed in electric trains to promote energy savings. The center of gravity of electric trains is low due to lower heights compared to steam locomotive technology, enabling them to navigate curves at higher speeds safely.

In December 2024, Amtrak planned to debut its NextGen Acela fleet in spring 2025, featuring 28 high-speed electric trains for the Northeast Corridor. This USD 2.45 billion project aims to enhance the rider experience, reduce emissions, and create jobs. The new trains would replace the current Acela fleet, offering faster travel with speeds of up to 160 mph, more comfortable seating, personal outlets, USB ports, and free Wi-Fi. The fleet, which is 95% made in the U.S., will cut energy consumption by 20% and support over 1,300 new jobs. This investment aligns with Amtrak's efforts to improve infrastructure, boost the economy, and provide sustainable, reliable service to travelers.

Impact of COVID-19

Manufacturing delays and halted projects led to a slowdown in the production and delivery of new trains. Lockdowns and social distancing measures reduced passenger demand, particularly for commuter and long-distance rail services, leading to financial losses for operators. Several governments prioritized health and safety over infrastructure development, leading to delays or cancellations of planned rail projects. The freight sector experienced mixed impacts, with some regions experiencing increased demand due to a surge in online shopping, while others faced declines in goods movement. Overall, the pandemic caused uncertainty, resulting in the postponement of investments in fleet renewal and modernization.

Segmentation Analysis

By Type

Shift Toward Modern Passenger Carriages Drive Market Growth

Based on type, the market is categorized into locomotive, passenger carriages, and wagons.

The passenger carriages segment held the majority of the rolling stock market share of 60% in 2024 and is predicted to maintain the fastest CAGR throughout the study period. The shift toward modern, visually appealing carriages creates a market opportunity for manufacturers to supply innovative and upgraded trains, spurring investment in advanced technologies and customization. This trend toward modernization encourages other operators worldwide to follow suit, further fueling demand in the passenger carriages market. In December 2024, Amtrak introduced its first passenger car featuring the new Phase VII livery, marking a step in fleet modernization and enhanced customer satisfaction. Initially exclusive to locomotives, the Phase VII design now appears on passenger cars, starting with the Iroquois River. The sleek design combines dark blue, red, and white arcs, with accent colors indicating different classes. Amtrak plans to roll out the new livery across its fleet, with 44 cars expected by year-end and additional rollouts continuing into 2025, reinforcing its brand identity and improving customer experience.

The wagons segment holds the second-largest market share by rolling stock product type in 2024, driven by increased demand for efficient freight transportation, particularly due to rising global trade and e-commerce. Innovations in wagon design, such as eco-friendly materials and improved cargo capacity, are enhancing operational efficiency. Additionally, investments in rail infrastructure and the need to modernize aging fleets are boosting demand for advanced, durable wagons for both bulk and specialized cargo, sustaining growth in this segment over the forecasted period.

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By Application

Increased Urbanization, Government Investments, and Sustainable Transportation Practice Augment Passenger Segment Development

Based on application, the market is divided into passenger and freight.

The passenger segment dominated the market in 2025 with a share of 64%, and is expected to grow at the highest CAGR during the forecast period (2025-2032). Factors such as urbanization, increased demand for sustainable transportation, and government investments in rail infrastructure are driving segmental growth. Moreover, the rising need for efficient, reliable, and fast urban and intercity transportation, along with the shift toward greener options, propels the demand for modern passenger railcars worldwide.

In February 2025, The Massachusetts Bay Transportation Authority (MBTA) announced the start date for South Coast Rail passenger service, set for March 24, 2025, pending Federal Railroad Administration (FRA) approval. For the first time in 65 years, communities such as Taunton, Freetown, New Bedford, Middleboro, and Fall River would regain access to passenger rail service. The service aims to reduce congestion, improve mobility, and support economic development. MBTA completed station construction and safety system testing, with operator training underway. The service will include 15 trips on the Fall River line, 17 on the New Bedford line, and late-night service.

The freight segment also held a sustainable share in the market in 2024 and is anticipated to grow with a significant CAGR of 4.00% during the forecast period (2025-2032). Increasing global trade, e-commerce, and demand for efficient, cost-effective cargo transportation fuels the demand for the segment. Innovations in rail logistics, such as improved cargo capacity and energy-efficient freight cars, enhance operational efficiency. Additionally, infrastructure investments and the growing need for sustainable transport solutions are supporting global supply chains, reducing environmental impact, and driving the growth of the segment.

By Propulsion

Electric Propulsion Leads with Amplified Demand for Energy Efficient Propulsion Systems

Based on propulsion, the market is divided into ICE and electric.

The electric segment dominated the market in 2025 by holding a substantial share of 4.30%, and is expected to grow at the highest CAGR during the forecast period (2025-2032). The segment is driven by the growing demand for energy-efficient, eco-friendly transport, urbanization, and supportive government policies. Electric propulsion types such as overhead electric lines and battery-electric systems are favored due to lower emissions, reduced operating costs, and advancements in electrification infrastructure. Additionally, increasing investments in rail networks and a push for sustainable mobility further boost the adoption of electric-powered rolling stock worldwide.

• In April 2025, Stadler expanded its Salt Lake City manufacturing facility to include North America's first electric train battery charging station. This addition supports the development of battery-powered trains for U.S. transit systems, including Metra in Chicago and a demonstration project with Utah State University.

The ICE segment held a supportable market share of 99% in 2025. The Internal Combustion Engine (ICE) segment is sustained by factors such as the high cost and infrastructure requirements of electrification, especially in regions with limited rail networks. ICE locomotives offer operational flexibility and are essential for freight services in areas lacking electrified tracks. Additionally, advancements in hybrid propulsion systems and fuel-efficient technologies are enhancing the appeal of ICE-powered rolling stock, ensuring their continued relevance in the evolving rail industry.

ROLLING STOCK MARKET REGIONAL OUTLOOK

North America

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North America holds a significant share of the global market with a valuation of USD 8.59 billion in 2025, attributed to increasing investments in rail infrastructure, fleet modernization, and a focus on sustainable transportation solutions. Demand for high-speed trains, efficient freight systems, and eco-friendly options, such as electric and hybrid trains, fuels market growth. Additionally, government initiatives and private-sector partnerships aimed at enhancing connectivity, reducing congestion, and supporting economic development further drive the expansion of the region.

In November 2024, Amtrak received funding for 13 projects aimed at modernizing the Northeast Corridor (NEC) to alleviate bottlenecks and enhance passenger rail service in the North America region. These initiatives are aimed at improving infrastructure, reducing travel times, and supporting economic growth. Key projects include expanding New York Penn Station, modernizing Washington Union Station, and replacing aging bridges such as the Sawtooth Bridges in Kearny, NJ. The funding from the Federal-State Partnership for Intercity Passenger Rail Program will also support signal upgrades and catenary system improvements, ensuring more efficient rail operations.

The U.S. market holds a significant share of the market valued at USD 6.07 billion in 2025 in the North American region. The U.S. rolling stock market is driven by strong economic growth, robust industrial output, and increased consumer demand for railway transportation solutions. Advancements in technology, such as automation and smart systems, and government investments in infrastructure development also drives the market growth in the country. Moreover, rising urbanization and the need for efficient freight and passenger transport further fuel demand. Additionally, sustainability initiatives promote the adoption of energy-efficient rail systems, boosting market growth in the country.

Europe

Europe is the second largest market, anticipated to capture the valuation of USD 15.99 billion in 2025 and to grow at the significant CAGR of 3.70% during the forecast period (2025-2032). In Europe, the market is driven by investments in high-speed rail networks, fleet modernization, and a strong focus on sustainability. The U.K. market is growing significantly and is expected to reach a value of USD 1.13 billion in 2025. European governments are prioritizing green transportation solutions to reduce emissions, leading to increased demand for electric and hydrogen-powered trains. Additionally, the growing emphasis on intercity connectivity, urbanization, and cross-border rail services, along with EU funding for infrastructure projects, contributes to the growth of the market in the region. Germany is estimated to be worth USD 3.81 billion in 2025, while France is projected to be valued at USD 2.09 billion in the same year.

In October 2024, the European Commission granted CPK PLN 162 million (USD 41.3 Million) in financial support through the "Connecting Europe Facility" (CEF). This funding is designated for designing a 155-kilometer railway section connecting Sieradz, Kalisz, Pleszew, and Poznań. The section is a crucial part of Poland's future "Y" route, which will serve as the backbone of the country's High-Speed Rail network, enhancing connectivity and modernizing rail infrastructure.

Asia Pacific

The rolling stock market in Asia Pacific dominated the market and was valued at USD 23.53 billion in 2023and USD 24.09 billion in 2024. This region is projected to grow at a CAGR of 4.0% during the forecast period. The growth in the regional market is driven by rapid urbanization, increasing public transportation demand, and government investments in rail infrastructure. Technological advancements such as IoT and 5G integration enhance operational efficiency, while high-speed trains and metro systems address traffic congestion and environmental concerns, further fueling market growth in the region. Moreover, governments across the region are pushing train electrification owing to its environmental and economic benefits. For instance, in February 2023, the Ministry of Railways reported that 3,375 Route kilometers (RKM) were electrified in 2022 – 2023, displaying 38% growth than 2021 – 2022. In April 2023, Haryana became India's first state to have a 100% electrified network. Market value of India is estimated to be worth USD 3.91 billion in 2025.

In June 2021, China launched a fully electrified bullet train in the Himalayan region of Tibet. This train connects the provincial capital, Lhasa and Nyingchi, reducing travel time by 1.5 hours. This train is capable of around 10 million tons of freight transport capacity per year. In 2019, the Chinese government invested USD 120 billion into the rail construction project as a decarbonization program. China’s five-year plan (2016 – 2020) set a target of building 30,000 km of high-speed rail to connect 80% of major cities. China market value is expected to be USD 16.52 billion in 2025.

Japan’s Shinkansen Bullet Train network expansion project is expected to support industry growth. The Shinkansen network includes the Hokkaido line from Aomori to Hakodate, with plans to extend Sapporo by 2030. In August 2021, South Korea released its fourth national railway plan with an investment of USD 100 billion. The initiative focuses on emphasizing green transportation, covering 44 projects spanning 1,448 kilometers, with the network expected to expand by 125%. Japan is poised to capture a market value of USD 1.64 billion in 2025.

Rest of the World

The rest of the world comprises Latin America and the Middle East & Africa. The market within the region is driven by infrastructure development, urbanization, and the need for more efficient transportation systems. Governments are investing in rail networks to improve connectivity and reduce traffic congestion. Additionally, there is a growing demand for sustainable and energy-efficient solutions, such as electric and hybrid trains, to address environmental concerns. Public-private partnerships and international funding also play a key role in advancing rail projects across these regions. The ROW is poised to be valued at USD 4.25 billion in 2025.

In January 2025, Brazil unveiled a USD 17 billion freight rail plan, aiming to place 40% of the country’s cargo on rail by 2035, reducing highway traffic and improving safety. After years of stagnation, rail freight volumes have steadily increased, with last year marking a historic transport record. The plan involves 5,000km of rail lines, with a mix of public and private investments. Private companies will bid based on the least public funding required. Key projects include expanding the Transnordestina line and connecting major freight corridors.

Competitive Landscape

Key Industry Players

Major Players Focus on Partnerships to Bolster their Market Position

CRRC Corporation Limited, Alstom, Hyundai Rotem Company, Siemens Mobility, GE Transportation, Wabtec Corporation, Hitachi Railway Systems, CISC Transmashholding, Stadler Rail, and Kawasaki Railcar Manufacturing Co., Ltd. are major players in the rolling stock industry. These key players adopt strategies such as product differentiation & development, strategic partnerships, and expansion of distribution networks to strengthen their market position. In July 2022, CRRC tied with Titagarh Wagons to supply 216 coaches for Bangalore’s Metro Phase 2.

• In January 2023, Siemens Mobility was awarded a USD 3.31 billion contract from Indian Railways to deliver 1,200 locomotives with 9,000 horsepower (HP). The deliveries will be provided over eleven years, and the company will offer 35 years of full-service maintenance.

In January 2021, Alstom completed the acquisition of Bombardier Transportation for USD 6.06 Billion. This acquisition solidifies Alstom’s leadership in the sustainable mobility industry. The newly formed entity has a combined pro forma revenue of around USD 17.29 billion and a backlog of USD 78.32 billion. In March 2023, the Ministry of Transportation of Egypt was awarded a contract worth USD 474 million to CJSC Transmashholding for providing maintenance services for 12 years. Such initiatives will help the company to gain a competitive advantage and increase profitability.

LIST OF KEY ROLLING STOCK COMPANIES PROFILED:

• CRRC Corporation Limited (China)
• Alstom SA (France)
• Siemens Mobility (Germany)
• Hyundai Rotem Company (South Korea)
• GE Transportation (U.S.)
• Wabtec Corporation (U.S.)
• Hitachi Rail Limited (U.K.)
• CJSC Transmashholding (Russia)
• Stadler Rail Ag (Switzerland)
• Kawasaki Railcar Manufacturing Co., Ltd. (Japan)
• Skoda Transportation (Czech Republic)
• CAF, Construcciones y Auxiliar de Ferrocarriles, S.A. (Spain)

KEY INDUSTRY DEVELOPMENTS:

November 2024: Morocco’s Railways (ONCF) awarded a contract to a consortium of Ineco and the local engineering firm CID for the preliminary design of Oued Zem-Beni Mellal railway in central Morocco. This marks Ineco’s third contract in Morocco in 2024, making the country the leading market for new railway contracts, with a total value of EUR 2.27 million (USD 2.4 million).

July 2024: Alstom, a global leader in smart and sustainable mobility, signed a EUR 2.8 billion (USD 3.03 billion) framework agreement with Hamburger Hochbahn AG to deliver up to 374 new metro trains for fully and semi-automated operations. Alstom will also equip the 25 km long, fully automated U5 metro line with the innovative Urbalis CBTC system. The first order under this agreement includes 48 metro trains and CBTC equipment for the U5 line's initial section, with a total value of approximately EUR 670 million (USD 724.9 million).

July 2024: Alstom secured a EUR 4 billion (USD 4.3 billion) contract from go.Rheinland and Verkehrsverbund Rhein-Ruhr (VRR) to supply 90 commuter trains in the Cologne -Bahn network. The agreement includes a 34-year full-service maintenance contract, covering the entire lifecycle of the fleet.

May 2024: CRRC Zhuzhou Electric Locomotive (CRRC Zelc) and CRRC Shandong partnered with Hungary's Acemil to establish new rolling stock production facilities in Hungary. Acemil, a private investment fund active in multiple sectors, has a strategic partnership with Rail Cargo Hungary. The agreements, signed include a rolling stock production center, and facilities for fleet maintenance, training, and R&D. CRRC Shandong aimed to collaborate on wagon production and assembly in Hungary.

February 2024: The Public Works Bureau Macau awarded a contract to supply rolling stock and railway systems for the East Line of Macau’s Light Rapid Transit (LRT) network. Top Builders and the Hou Chon Consortium, part of a joint venture headed by Mitsubishi Heavy Industries, have been awarded a contract valued at USD 432 million.

February 2024: Siemens Mobility founded a leasing subsidiary, Smart Train Lease (STL), to allow short-term and flexible leasing of its Mireo Smart trains in Europe. STL would offer battery, hydrogen, and electric multiple-unit trains to operators for on-demand leasing.

January 2024: Israel Railways signed two contracts worth approximately USD 1.7 billion for the supply of additional rolling stock. This would enable ISR to operate eight-car sets with more than 1,200 seats. The contract includes an option to order additional coaches with ‘product evolution’ to allow the operation of 10-car sets.

April 2023: A Siemens-led consortium made a partnership with Gujarat Metro Rail Corporation to provide project management and rail electrification technologies for the Ahmedabad Metro Phase 2 and Surat Metro Phase 1.

April 2023: Siemens Mobility planned to expand its manufacturing and service facility in Munich-Allach to cater to growing requirements associated with locomotives and services.

March 2023: Stadler and Trenitalia signed an agreement to supply 50 Eurolight Dual Locomotives with full service maintenance for 10 years, expandable to 10 years.

REPORT COVERAGE

The global rolling stock market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, and segmentation by type, application, and propulsion. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors contributing to the industry's growth in recent years.

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Report Scope & Segmentation