Rolling Stock Market by Component Product Type (Locomotive, Rapid Transit, & Coach), Locomotive Technology (Conventional, Turbocharged, & Maglev), Application (Passenger Transportation & Freight transportation) & Region - Global Forecast to 2028
[391 Pages Report] The global rolling stock market is estimated to be 54.6 USD Billion in 2023 and is expected to reach 65.6 USD Billion by 2028, at a CAGR of 3.8%.
In emerging economics, urbanization and population growth has increased the need for upgraded public transportation systems, including metros, high-speed trains, and trams. Trains are becoming efficient, faster and very much appealing to passengers and freight operators as they continue to develop technologically. Government around the world are also financing and renovating policies, and additionally expanding stock fleet for rolling stock especially for railway network and public transit support. Asia Oceania and the European region has major market players such as CRRC Corporation Limited (China), Alstom SA (France), Siemens AG (Germany), Stadler Rail AG (Switzerland) and others that offer a rolling stock with advanced features for end-use applications. Implementing new technologies and rising government investment in the railway industry drive the rolling stock market in this region. For instance, in May 2024, The Japan International Cooperation Agency (Jica) signed an agreement to lend up to Yen 140.7bn (USD 900 Mn) for Phase 1 of the MRT metro East-West Line project in Jakarta with the government of Indonesia.
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Market Dynamics:
Driver: Rising demand for freight transport
Increasing global trade and economic activities have increased the demand of efficient and reliable transportation of goods around the world. For bulk goods and long-distance rail transport is preferred as its cost-effective and reliable, for freight wagons and locomotives driving up its demand. Furthermore, the swift expansion of online shopping necessitates the adoption of effective logistics and supply chain strategies. Within the logistics network, the importance of rail freight transportation is on the rise, resulting in an increased need for freight trains for the movement of goods.
The China State Railway Group reported that in 2023, the freight trains transporting goods between China and Europe made 17,000 trips, carrying 1.9 million twenty-foot equivalent units (TEUs), indicating a significant rise of 18% compared to the previous year's 6%. Moreover, information from China Railway Container Transport (CRCT) stated that in the same year, there were 17,523 journeys and 1,901,949 TEUs moving around, with 9,343 trips going from west to east and 8,180 trips allocated for the movement of goods from east to west.
Restraint: Refurbishment of existing rolling stock
The demand for lower travel costs and the necessity to enhance vehicle capacity have both strengthened the market for rolling stock refurbishment. It is necessary to expand the current fleet to handle the rising passenger demand. The rolling stock of various rail franchises currently has a capacity that is insufficient to handle the rising demand. Refurbishment is therefore a practical option for increasing capacity and offers a chance to fix known reliability issues, enhance train energy efficiency, and modernize vehicles to meet needs.
Notable examples of refurbishment programs are Eversholt’s (UK) upgrading project and the Renatus program. The program involves modernizing 30 four-car class 321 EMUs leased by Abellio Greater Anglia (UK). The financial constraints in acquiring new trains also contribute to the increasing number of rolling stock refurbishment programs. In July 2022, The Passenger Rail Agency of South Africa (PRASA) has awarded five contracts worth a total USD 459.3 million for the refurbishment of rolling stock across the network. The five years contract have been awarded to Armature Technology, CTE Investment, Karabo Nhlamolo Project Cooperative, TMH Africa and YNF Engineering, with 380 and 400 EMU cars to undergo heavy maintenance and rehabilitation work every year. Additionally, Chrysalis Rail announced re-opening its South Wales depot for rolling stock maintenance, the latest rolling stock refurbishment projects, and overhaul projects. The new rolling stock market forecast is expected to be impacted due to the increase in refurbishment programs and the opening of factories for rolling stock refurbishment. Refurbishing existing rolling stock reduces the need to purchase new vehicles and is expected to therefore restrict the market growth.
Opportunity: Retrofitting of diesel-electric trains
According to Worldwiderail (website), diesel locomotives cost around USD 0.5-USD 2 million, and an electric locomotive cost more than USD 6 million. Hence, it is more viable to retrofit a diesel locomotive with battery systems than to buy a new one. For instance, in the US, many General Electric locomotives, currently owned by several North American railroads, are being rebuilt with cab upgrades and electrical and safety systems. Re-manufacturing locomotives cost about 40% less than purchasing a new locomotive. Indian Railways, for instance, has reduced the cost incurred in diesel to electric conversion to as low as USD 0.3 million. The growing market for diesel retrofitting is driving the demand for energy storage systems, such as backups and power supply units. In addition to the above, replacing the diesel motor with an electric drive will also reduce the onboard weight and further improve the efficiency of railways. For instance, in September 2023, Ireland’s railway network operator Iarnród Éireann (Irish Rail) has enlisted retrofit company DIGAS to convert one of its freight diesel locomotives to operate with hydrogen as part of a €1.5m (USD 1.6 Mn) proof of concept project.
Challenge: High overhaul and maintenance costs
Rolling stock needs to be periodically overhauled to ensure its reliability. However, regular maintenance and overhaul of rolling stock are highly expensive. For example, the annual maintenance cost of a high-speed trainset is USD 1 million. In addition to the cost of components that must be replaced regularly, infrastructures such as depots and berthing sites need to be maintained. Rolling stock requires long-term maintenance when the train has reached half its operational life. This includes maintenance of vehicle electrical, mechanical, and hydraulic components. Large investments are required for such maintenance. In February 2024, Alpha Trains has signed a minimum ten-year full-service maintenance agreement with Stadler covering all of its recently ordered EURO9000 locomotives. The contract covers preventive, corrective and heavy maintenance of the vehicles for a minimum of ten years from the delivery of the 12 locomotives ordered by the company from Stadler in October 2023.Hence, the additional recurring expenses of overhaul and maintenance are expected to hinder the growth of the rolling stock market.
Market Ecosystem
Electric locomotive segment is expected to be the largest growing segment during the forecast period
In the locomotive segment market, the electric locomotives are expected to dominate. High performance, rapid speed, minimal upkeep expenses, and emission-free operation support their popularity around the globe. Electric locomotives are frequently more effective than their diesel locomotives, which lead to substantial financial benefits over total life of operation. They also require less maintenance and have a longer operational life. Significant investments in the electrification of railway networks have also increased the growth rate of electrified railway networks, thus increasing the demand for electric locomotives worldwide. In February 2024, a major part of the Regio S-Bahn Donau-Iller network around Ulm in southern Germany is scheduled for electrification, as announced by the states of Bavaria and Baden-Württemberg. This initiative aims to electrify key routes on the predominantly diesel-operated network and to introduce new stations and improvements to passenger services. Additionally, in March 2024, Turkish state-owned train manufacturer Türasas and TCDD Tasimacilik have agreed to supply 95 E5000 electric locomotives. The transition from diesel to electric or the purchase of new hybrid trains is anticipated to further stimulate the market.
The Asia Oceania market is projected to hold the largest share by 2028
Due to increased production, domestic demand, and capacity expansions by rolling stock manufacturers the Asia Oceania region is expected to be the largest market for rolling stocks. The region have some of the fastest-growing economies in the world, including China and India which creates opportunities for rolling stock manufacturers. Governments in these countries have recognized the growth potential of the rolling stock market. Further, in May 2024, KOREAN rolling stock manufacturer Woojin Industrial Systems has been awarded a USD 210 Mn contract by Los Angeles County Metropolitan Transportation Authority (LACMTA) to upgrade 74 metro cars built in 1999 by Ansaldo Breda of Italy. Expansion in the number of stations and route length is expected to boost the demand for metro systems in the future. Also, The presence of reputed rolling stock manufacturers like CRRC Corporation Limited, Alstom SA, and Hyundai Rotem Company have also augmented the demand for electric locomotives in this region. In January 2023, Siemens AG signed a contract to supply and service freight trains in India for USD 3.25 billion . Though this contract Siemens AG will deliver 1,200 electric locomotives and provide servicing for 35 years. Thus, such development will drive the rolling stock market is Asia Oceania region.
Key Market Players
The global rolling stock market is dominated by major players such CRRC Corporation Limited (China), Alstom SA (France), Siemens AG (Germany), Stadler Rail AG (Switzerland), and Wabtec Corporation (US). These companies offer extensive products and solutions for the Railway industry; and have strong distribution networks at the global level, and they invest heavily in R&D to develop new products.
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|
Report Metric |
Details |
|
Market Revenue in 2023 |
USD 54.6 billion |
|
Estimated Value by 2028 |
USD 65.6 billion |
|
Growth Rate |
Poised to grow at a CAGR of 3.8% |
|
Market Segmentation |
Product Type, Locomotive Technology, Component, Application, and Region |
|
Market Driver |
Increasing electrification of railway networks |
|
Market Opportunity |
Big data applications in rail industry |
|
Geographies covered |
Asia Oceania, Europe, North America, Middle East & Africa and Rest of the World |
This research report categorizes the rolling stock market based on Product Type, Locomotive Technology, Component, Application, and Region.
Based on the Product type:
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Locomotives
- Diesel Locomotives
- Electric Locomotives
- Electro-Diesel Locomotives
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Rapid Transit
- Diesel Multiple Unit (DMU)
- Electric Multiple Unit (EMU)
- Light Rails/Trams
- Subways/Metros
- Monorails
- Coaches
- Wagons
- Others
Based on the Locomotive Technology:
- Conventional Locomotives
- Turbocharged Locomotives
- Maglev
Based on the Component:
- Train Control Systems
- Pantographs
- Axles
- Wheelsets
- Traction Motors
- Passenger Information Systems
- Brakes
- Air Conditioning Systems
- Auxiliary Power Systems
- Gearboxes
- Baffle Gear
- Coupler
Based on the Application:
- Passenger Transportation
- Freight Transportation
Based on the Region:
-
Asia Oceania
- China
- Japan
- India
- South Korea
- Australia
- Malaysia
-
North America
- US
- Mexico
- Canada
-
Europe
- Germany
- France
- Spain
- Italy
- Uk
- Switzerland
- Austria
- Sweden
-
Middle East and Africa
- South Africa
- UAE
- Egypt
- Iran
-
Rest of the World
- Brazil
- Russia
- Argentina
Recent Developments
- In April 2023, Siemens Mobility expanded its manufacturing and services facility in Munich-Allach in order to meet the growing demand for locomotives and services. The factory will be enlarged to 80,000 m2 from its current 50,000 m2 to provide additional capacities for processing new orders, optimizing production and logistics flows within the facility, and adding more office space.
- In March 2023, Alstom SA inaugurated a new production site in Valmadrera (Lecco, Italy) dedicated to railway electrification. The new plant will develop and manufacture power transmission components for railway, metro, and tram lines.
- In January 2023 CRRC Corporation Ltd. (China) has developed the 1st train of Qingyuan Maglev train. It adopts a 3-car formation, with cabs at both ends of the train and a carriage equipped with a mixture of vertically arranged double-row seats and horizontally arranged seats. With a total seating capacity of 315 people, the train can hold 500 passengers, and support different speeds in "3+3" formation.
- In November 2022, Deutsche Bahn AG (DB) concluded a development partnership for long-distance rail transport with Siemens AG following a tender. In the first half of 2023, the two companies will work together on developing their vision of a new-generation high-speed train. Once the concept has been completed, a further tender is expected to follow in the second half of 2023 for the development, construction, and certification of the new fleet.
- In September 2022, Siemens Mobility presents the Mireo Plus B battery train to the public for the first time at InnoTrans 2022. The Landesanstalt Schienenfahrzeuge Baden-Württemberg (SFBW) has ordered 27 Mireo Plus B trains from Siemens Mobility in 2020. The two-car electric trainsets with 120 seats can operate on rail routes with or without overhead power lines. Delivery of the multiple units is scheduled between June and December 2023.
- In June 2022, Wabtec Corporation completed its acquisition of Collins Aerospace’s ARINC rail solutions business segment, a rail dispatch and back-office system provider.
- In May 2022, India-based Medha Servo Drives signed a joint venture (JV) agreement with Swiss railway rolling stock manufacturer Stadler Rail AG for a new rail coach manufacturing factory in the Indian state of Telangana.
Frequently Asked Questions (FAQ):
How big is the rolling stock market?
The global rolling stock market was valued at USD 54.6 billion in 2023 and is expected to reach USD 65.6 billion by 2028, at a CAGR of 3.8% from 2023 to 2028.
What are different countries covered in Asia Oceania region for rolling stock market?
The countries covered in the rolling stock market report are China, Japan, India, and South Korea.
Who are major players in the global rolling stock market?
Companies such as CRRC Corporation Limited (China), Alstom SA (France), Siemens AG (Germany), Stadler Rail AG (Switzerland), and Wabtec Corporation (US) fall under the winners' category.
What are the new market trends impacting the growth of the rolling stock market?
The key market trends or technologies that will have a significant impact on the rolling stock market in the future include Rolling Stock Refurbishment, Digitalization of Railways, Articulated and Non-Articulated Trains, Autonomous Trains.
What are the restraining factors impacting the growth of rolling stock market?
Research and development, production, and maintenance all need large investments in the rolling stock sector. This expenditure may pose a considerable barrier to entry for new market entrants and may restrict the ability of current market participants to grow their businesses or create new goods. Additionally, economic downturns can affect the rolling stock market by lowering demand for transportation services and reducing the amount of capital available for rolling stock investment. Policies like trade taxes or regulations may also have a negative impact on the development of the rolling stock market.
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The study involved four major activities in estimating the current size of the rolling stock market. Exhaustive secondary research was done to collect information on the market, the peer market, and the parent market. The next step was to validate these findings, assumptions, and sizing with the industry experts across value chains through primary research. The top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, market breakdown and data triangulation processes were used to estimate the market size of segments and subsegments.
Secondary Research
Secondary sources referred to for this research study included rolling stock industry organizations [American Railway Association (ARA), Brazilian Association of the Railroad Suppliers (ABIFER), China Railway Society (CRS), China Academy of Railway Sciences (CARS), Gulf Cooperation Council (GCC), Indian Railway Conference Association (IRCA), Indian Railway Institute of Electrical Engineering (IRIEEN), International Union of Railways (UIC), Japan Association of Rolling Stock Industries (JARI), Mexican Association of Railway], corporate filings [such as annual reports, investor presentations, and financial statements], and trade, business, whitepapers, and databases, and articles from recognized associations and government publishing sources. The secondary data was collected and analyzed to arrive at the overall market size, which was further validated by primary research.
Primary Research
Extensive primary research was conducted after acquiring an understanding of the rolling stock market through secondary research. Several primary interviews were conducted with market experts from both the demand (railway operators, system integrators, country-level government associations, and trade associations) and supply (OEMs and component manufacturers) sides across major regions, namely, North America, Europe, Asia Oceania, the Middle East & Africa, and the Rest of the World. Approximately 40% and 60% of primary interviews were conducted from the demand and supply sides, respectively . The primary data was collected through questionnaires, emails, and telephonic interviews. In the canvassing of primaries, various departments within organizations, such as sales, operations, and administration, were considered to provide a holistic viewpoint in this report.
Brief sessions with highly experienced independent consultants were conducted to reinforce findings from primaries after interacting with industry experts. This, along with the in-house subject matter experts’ opinions, led to the findings, as described in the remainder of this report.
In the primary research process, various primary sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for the report. The primary sources from the supply side included industry experts, such as Chief Executive Officers (CEOs), Vice Presidents (VPs), marketing directors, technology and innovation directors, and related key executives from various key companies and organizations. The primary sources from the demand side included end users, such as Chief Information Officers (CIOs), consultants, service professionals, technicians and technologists, and managers at public and investor-owned utilities.
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Market Size Estimation
Multiple approaches were adopted for estimating and forecasting the rolling stock market. The first approach involved estimating the market size by summation of revenue generated through the sale of rolling stock. The top-down and bottom-up approaches were used to estimate and validate the size of the global market and to estimate the size of various other dependent submarkets in the overall market. The research methodology used to estimate the market size includes the following details. The key players in the market were identified through secondary research, and their market shares in respective regions were determined through primary and secondary research. The entire procedure included studying the annual and financial reports of top market players and extensive interviews with industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares and breakdowns were determined using secondary sources and verified through primary sources. All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.
Bottom-Up Approach: Rolling Stock Market
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Top-Down Approach: Rolling Stock Market
Data Triangulation
After arriving at the overall market size through the above-mentioned methodology, this market was split into several segments and subsegments. The data triangulation and market breakdown procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact market value data for the key segments and subsegments. The extrapolated market data was triangulated by studying various macro indicators and regional trends from both the demand- and supply-side participants.
Market definition
Rolling stock refers to railway vehicles. They are powered as well as unpowered vehicles such as locomotives, railroad cars, coaches, and wagons. Rolling stock is used for freight and passenger transport and plays a vital role in the transport infrastructure of a city or country. Rapid urbanization and industrialization and the increasing use of public transport to reduce traffic congestion are the key factors driving the growth of the rolling stock market.
Key Stackholders
- Senior Management
- Finance/Procurement Department
- R&D Department
- End User/Operator
Report Objectives
- To segment and forecast the rolling stock market size in terms of volume (units) and value (USD million/billion)
- To define, describe, and forecast the market based on product type, locomotive technology, Component, Application, and region.
- To segment and forecast the market by product type [Locomotives (Diesel Locomotives, Electric Locomotives, Electro-Diesel Locomotives), Rapid Transit (Diesel Multiple Units, Electric Multiple Units, Light Rail/Trams, Subways/Metro, Monorail), Coaches, Wagons, and Others]
- To segment and forecast the market by Locomotive Technology (Conventional Locomotives, Turbocharged Locomotives, and Maglev)
- To segment and forecast the market by Application type (Passenger Transportation and Freight Ttransportation)
- To segment market by Component (Train Control Systems, Pantographs, Axles, Wheelsets, Traction Motors, Passenger Information Systems, Brakes, Air Conditioning Systems, Auxiliary Power Systems, Gearboxes, Baffle Gear, and Coupler)
- To forecast the market size with respect to key regions, namely, North America, Europe, Asia Oceania, Middle East & Africa and Rest of the World
- To provide detailed information regarding the major factors influencing the market growth (drivers, challenges, restraints, and opportunities)
- To analyze technological developments impacting the market
- To analyze opportunities for stakeholders and the competitive landscape for market leaders in the rolling stock market
- To strategically analyze markets with respect to individual growth trends, prospects, and contributions to the total market.
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To study the following with respect to the market
- Value Chain Analysis
- Ecosystem Analysis
- Technology Analysis
- Trade Analysis
- Case Study Analysis
- Patent Analysis
- Regulatory Landscape
- Conference and Events
- Macro-economic Factor
- Average Selling Price Analysis
- Buying Criteria
- To strategically profile key players and comprehensively analyze their market share and their core competencies.
- To track and analyze competitive developments such as deals (joint ventures, mergers & acquisitions, partnerships, collaborations), new product development, supply contract and other activities carried out by key industry participants
Available Customizations
With the given market data, MarketsandMarkets offers customizations in line with the company’s specific needs.
- Rolling stock market, by technology type at the country level (For countries covered in the report)
- Rolling stock market, by product type at the country level (For countries covered in the report)
Company Information
- Profiling of additional market players (Up to 5)
Generating Response ...
Growth opportunities and latent adjacency in Rolling Stock Market
what is the market size for rolling stock market and also want to more details about forecast year 2022 to 2027.