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The global rolling stock market size was USD 40.71 billion in 2019 and is projected to reach USD 52.92 billion by 2027, exhibiting a CAGR of 10.4% during the forecast period.
Railway transportation system is experiencing an extensive transformation over the past few years as the demand for rail transport has increased substantially. In various countries, they are not only an integral part of the national infrastructure but also contribute considerably to a sustainable future. Providing reliable infrastructure equipment is a vital part of attaining high levels of safety. It refers to rail transit vehicles, which includes both powered and unpowered vehicles such as railcars, wagons, coaches, locomotives, as well as vehicles used for support services. Factors such as reliability, cost efficiency coupled with the facilitation of easy transportation have propelled the adoption of these by end-users for transportation of goods, as well as passenger services. However, there is a growing consensus that both the cost to the government and the price to passengers have risen excessively. Hence, planning the structure and volume of these products has been an increasing area of focus for the manufacturing companies to achieve maximum efficiency of rail transport, as well as forecasting the demand for these transport facilities.
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Increased OEM Market Share as a Result of Greater Consolidation is a Prominent Trend
Greater adoption of new integrated solutions, increasing capital investment for research and development, and the continual push towards the after-sale market have been primarily driving the competitive pressure among OEMs. Coupled with these, expansion strategies have also been contributing to the growth. Hence, many small and medium players are repositioning themselves, either being taken over or exiting the industry. Thus, there has been an intensification of consolidation owing to the efforts by manufacturers to improve their competitive position globally or locally. This consolidation has led to an exponential increase in the market share of the top 10 OEMs over the past few years. Furthermore, the under-utilization of production facilities is likely to contribute to the increased consolidation among the key players.
Usage of Advanced Maintenance and Data Analytics is Driving the Market Growth
The service business is likely to be the key area of growth for the manufacturers. Advancements in remote monitoring, digital solutions, and big data analytics have enabled conventional rolling stock OEMs to adapt to their current business offerings successfully and provide targeted and scalable solutions. The increasing use of big data analytics has allowed the OEMs to take over a greater number of tasks in the service business from owners and rail operating companies. Hence, OEMs, in addition to the sale of new vehicles, can also generate value from service and maintenance over the vehicle’s complete lifecycle. Furthermore, the end-users’ preference towards asset availability further contributes to this progress. The use of remote support and predictive maintenance solutions facilitates this progress as it enables the OEMs to provide enhanced service models such as greater reliability in the committed provision of the available rolling stock fleet. For example, the HealthHub platform launched by Alstom enables advanced maintenance via decision-making assistance and effectively monitors fleet availability. Hence, OEMs are likely to benefit from the expansion into the service sector as rail operators lack the scale to develop such solutions in-house.
Increasing Passenger Transport to Avoid Traffic Congestions Will Favor Market Growth
The demand for automotive vehicles has increased considerably owing to the growing income levels of consumers which has led to a rise in the traffic congestions in major urban areas across the globe. Hence, government initiatives to integrate rapid transit networks to improve transport systems have increased considerably. Also, greater commuter inclination towards cost-effective yet eco-friendly means of transportation has increased the popularity of high-speed train networks. Hence, the developed countries in particular, are advocating the use of such urban transit systems. Furthermore, the developing countries are also increasing their financial commitment to enhance their railway infrastructure. For instance, a capital investment of USD 3.9 billion by the Canadian National Railway in the Saskatchewan province is enabling innovations in locomotives, rail infrastructure, and promoting growth from all commodity segments. Hence, these factors are likely to boost the rolling stock market growth.
Refurbishment and Restoration of Existing Rolling Stock to Hamper Growth
Increasing demand for reducing the travel costs of passengers and greater vehicle capacity is propelling the practice of refurbishment of rolling stock. Also, the need to lessen the cost burden on industries aiming to utilize rail transport for goods transportation would contribute to the refurbishment practice. Rapid population growth, particularly in developing countries is compelling rail operators to increase the available fleet to accommodate passenger growth. However, several rail companies are unable to satisfy the growing demand with the existing capacity. Hence, the refurbishment of the rolling stock fleet is a suitable alternative to improve energy efficiency and reliability concerns of the current fleet. At the same time, it also enhances the vehicle capacity and enables the rail operators to address the rising volume requirements. For example, Eversholt Rail in the U.K., refurbished its fleet of 30 four-car Class 321 electric multiple units (EMU) under the Renatus upgrading program. The modernization is expected to deliver cost-effective transformation, prevent major fleet breakdowns, and provide passengers with a comfortable experience comparable to a new train. Hence, the rail operators are less inclined to purchase new vehicles as rolling stock refurbishment programs provide a viable alternative to complete overhaul of the existing fleet. This factor is likely to restrain the growth of this market.
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Rapid Transit Vehicle Segment to Dominate the Global Market
Based on product type, the market is segmented into locomotives, rapid transit vehicles, and wagons. The rapid transit vehicles (RTV) segment is anticipated to show significant growth in the market owing to their reliability and efficiency, coupled with their ability to provide comfortable high-speed operation. Rapid transit vehicles consume a lesser amount of energy per passenger-kilometer in comparison to the road-based transportation systems and they usually use electricity for operation. Furthermore, the technological advancement of automated trains and greater development focus on technologies such as magnetic levitation trains are likely to impact the growth of the rapid transit vehicle segment. The wagons segment is projected to show steady growth in this market owing to the increasing demand among various industries for the transportation of goods. Greater demand for energy goods such as gasoline and coal is likely to fuel the demand for tank and flat wagons, leading to the growth of this segment. Furthermore, the transportation of bulk commodities to metallurgical and power generation facilities is a key area that requires the use of rail wagons as a cost-effective solution. Also, the reliability of various types of wagon such as open wagons, hopper wagons, and platform wagons, coupled with the initiatives by various governments to enhance transportation infrastructure is expected to positively impact the growth of this segment. The locomotives segment is also expected to show good growth in this market as a result of the expansion of rail networks, particularly in the developing countries, coupled with rapid urbanization which has created demand for sustainable transport systems and solutions.
Passenger Rail Segment to Lead Growth in this Market
Based on application type, the market is segmented into passenger rail and freight rail. The passenger rail segment is anticipated to show good growth in this market over the forecast period. The demand for passenger rails has increased constantly as they are mass transit systems and hence, provide more cost-effective transportation, as compared to roadways. Increasing urbanization, coupled with greater consumer inclination towards trams, high-speed trains, metros, and others owing to their fast transportation service and economic benefits are responsible for the growth in this segment. The freight rail segment is expected to show steady growth in this market attributed to its wide range of applications in industries such as construction, oil and gas, automotive, and others. Furthermore, the introduction of automated systems and the increasing share of intermodal transportation service is likely to boost the growth of this segment.
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The market in Asia-Pacific is characterized by increasing rail infrastructure development, particularly in China and India. In China, the efforts to rapidly expand the high-speed train network under the eight horizontal and eight vertical high-speed rail network program has been proposed by the China Railway Corporation (CRC). The program would enable the expansion of high-speed mileage to 38,000 km in 2025 and improve the existing railway infrastructure which would permit the purchase of multiple unit trains that can reach speeds of 350 km/h. Furthermore, the innovation has also been a key area of focus for the CRC, such as the development of the Chinese Train Control Systems which has resulted in the successful deployment of China-standard Electric Multiple Units (CEMU). Also, the Belt and Road Initiative (BRI) via projects such as the China-Europe Railway Express has further advanced the role of railways in freight transportation. These factors are likely to fuel the purchase of new vehicles and hence lead to the dominance of APAC in this market. Europe is expected to exhibit good growth in the market. Increasing share of the rolling stock value chain being captured by the tier-1 suppliers has resulted in the increased collaboration efforts with OEMs on R&D for new vehicles. Also, countries such as the U.K. and Germany have enhanced the utilization of light rail systems. These factors are responsible for the good growth of the market in this region. North America is also projected to show steady growth in this market. Stricter emission standards in this region have resulted in a higher price of locomotives and consequently, a greater focus on the modernization of the existing assets leading to the medium utilization of production capabilities. Hence, these factors are responsible for the steady growth of the market in this region.
Diverse Portfolio is Expected to Help Companies in Retaining Their Leading Positions
CRRC Corporation Limited continues to lead almost all market segments. The manufacturer’s product portfolio includes electric locomotives, diesel locomotives, electric multiple units, diesel multiple units, metro cars, light rail vehicles, coaches, wagons, high-speed trains, as well as track machinery. It is likely to boost its position in the market. The company specializes in the leasing and refurbishment of vehicles, manufacturing, while also investing heavily in R&D activities to further the development of innovative vehicles in the rail industry.
However, Alstom, Siemens Mobility, and Bombardier have also retained their positions in the competitive landscape with Alstom, particularly increasing its market share via key partnerships and acquisitions in North America and Europe. Furthermore, the presence of companies such as Trinity Industries which provides specialized manufacturing in the freight wagon segment is likely to provide intense competition to the globally established players. This is projected to certainly influence the global market as these companies are anticipated to drive the rolling stock innovation during the forecast period.
The rolling stock market research 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 Rolling Stock Market
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Besides this, the report offers insights into the market trends and highlights key rolling stock 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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Value (USD billion) & Volume (Thousand Units)
By Product Type
By Application Type
Fortune Business Insights says that the market size was USD 40.71 billion in 2019 and is projected to reach USD 52.92 billion by 2027.
In 2019, the market value stood at USD 40.71 billion.
The market is projected to grow at a CAGR of 10.4% in the forecast period (2020-2027).
The passenger rail segment is expected to be one of the leading segments in this market during the forecast period.
OEMs are aggressively expanding their service business models via the use of advanced maintenance and data analytics which is a key factor driving the market.
CRRC Corporation Limited is the leading player in the global market.
Asia-Pacific dominated the market in terms of share in 2019.
Increasing use of public rail transport services and greater budgetary allocation for railway development are factors expected to propel the adoption.
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