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The Key Strategy Adopted by Major Players to Gain Traction in the Locomotive Market is Agreements/Partnerships/Supply Contracts/Joint Ventures
The locomotive market for power conversion system plays an important role in the current industrial scenario, in terms of reducing the weight and power loss, while switching the state of current from AC to DC and vice-versa. The power conversion components such as rectifier, inverters, auxiliary power unit, traction motors, and alternators are essential for the locomotive power conversion. The locomotive power conversion system market is projected to grow at a CAGR of 2.92% during the forecast period, to reach a market size of USD 4.27 Billion by 2021. This growth can be attributed to factors such as increased need for energy efficient solutions for power conversion, technological advancements in power modules and population shift from rural to urban areas. The increasing number of investors and government initiatives has also prompted rolling stock manufacturers to use the advanced power conversion technology such as IGBT module (insulated-gate bipolar transistor).
The key strategy adopted by major players to gain traction in the locomotive power conversion system market is agreements/partnerships/supply contracts/joint ventures. This strategy accounted for ~64% of all strategies adopted by companies. For instance, in February 2016, Toshiba Corporation (Japan) signed a supply contract with Nishi-Nippon Railroad Co., Ltd. (Japan). Toshiba Corporation will provide all the key electrical components along with fully enclosed induction motors and variable-voltage, variable-frequency (VVVF) inverter systems, plus auxiliary power supply systems, air conditioners and the automatic train stop (ATS) system. These components will be installed on the new 9000 Series trains in two- and three-car configurations. New product development is another key growth strategy adopted by key players operating in this industry. For instance, Hitachi Ltd (Japan) has developed a silicon carbide (SiC) hybrid inverter which is compatible with 1,500V DC overhead power supply. The new SiC inverter led the manufacturer to reduce the size and weight of the inverter along with minimal power loss. The soft-gate control technologies were implemented to reduce the power loss when switching from direct current to alternating current. The new inverter is 40% smaller and boasts 35% reduced power loss as compared to mainstream inverters. Companies that adopted this strategy include Bel Power Solutions (U.S), Absopulse Electronics LTD. (Canada), Artesyn Embedded Technologies (U.S), and Hitachi Ltd (Japan).
The locomotive power conversion system market is dominated by a few global players, and comprises several regional players. Some of the key manufacturers operating in the market are Hitachi Ltd. (Japan), Siemens AG (Germany), CRRC Corporation Limited (China), Bombardier Inc. (Canada), Alstom S.A. (France) and ABB (Switzerland)
Companies such as Bombardier Inc.have adopted supply contracts as a primary strategy to retain their leading position in the locomotive power conversion system market. For instance, ABB signed a supply contract worth of USD 200 Million with SJ, Swedens state-owned rail operator. Under this contract, ABB supplied the electrical systems for all 36 ‘SJ 2000’ high speed trains. These electrical equipment are designed for more reliable power supply and reducing energy consumption. The equipment is expected to be delivered by 2019.The company has a supply contract with a number of OEMs and the governments, such as Metrolinx (Canada), Abellio Group (The Netherlands), the U.K. government and Renfe Operadora (Spain) to increase its geographical presence.
Hitachi Ltd (Japan) has adopted new product launch as key strategy to strengthen its market position. The company has invested in the R&D activities and developed a silicon carbide (SiC) hybrid inverter which is compatible with 1,500V DC overhead power supply. This new SiC inverter led the manufacturer to reduce the size and weight of the inverter along with minimal power loss. The soft-gate control technologies were implemented to reduce the power loss when switching from direct current to alternating current. The new inverter is 40% smaller and boasts 35% reduced power loss as compares to mainstream inverters.
Locomotive Market by Power Conversion Components (Rectifier, Inverter, Alternator, APU & Traction Motor), Technology (IGBT module, GTO Thyristor Module & SiC Module), Rolling Stock Type and Region - Global Trends and Forecast to 2021
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