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
[382 Pages Report] The global rolling stock market was valued at $54.6 billion in 2023 and is expected to reach $65.6 billion by 2028, at a CAGR of 3.8% from 2023 to 2028. The global demand for rail vehicles is fueled by the rising population in urban areas, which puts significant pressure on the existing transportation infrastructure and necessitates expanding the network infrastructure. This has, in turn, increased the demand for rolling stock during the last few years.
Inadequate infrastructure and degradation of air quality are some of the key concerns in major metropolitan cities. High gasoline prices, traffic congestion, and greenhouse gas emissions are some of the other challenges for city dwellers. In such a scenario, public transportation offers several benefits over private conveyance. Urban transit systems help reduce traffic congestion and are more energy-efficient than other modes of transport. They also offer commuters a cost-effective alternative to personal transportation and help reduce their carbon footprint. Rolling stock is predominantly used for passenger transportation in the Asia Oceania and European regions. According to the International Union of Railways’ 2022 synopsis, Asia Oceania and Europe accounted for 85% and 11% of the total passenger kilometer (million) traveled, respectively. Asia Oceania and 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. The implementation of new technologies and the rising government investment towards railway industry drive the rolling stock market in this region. For instance, in its Union budget 2022-23, the Indian government allocated Rs. 140,367.13 crore (USD 18.40 billion) to the Ministry of Railways.
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Market Dynamics:
Driver: Increasing electrification of railway networks
Rising concerns regarding a greener environment have increased the demand for non-polluting and energy-efficient transport systems globally. Additionally, the oil-importing countries are also planning to reduce their oil dependency, thereby looking for an alternative energy source. As a result, most countries prefer electricity as a source of energy for various rolling stocks. This resulted in the increasing electrification of railway networks all over the world. Therefore, the demand for electric locomotives and EMUs is rising at a rapid pace globally. Countries are also replacing their old diesel locomotives and DMUs with electric locomotives and EMUs, respectively.
For instance, in 2021, South Korea announced its plan to completely phase out all diesel-hauled passenger trains in the country and replace them with new electric bullet trains by 2029. In March 2022, the Germany-based industry association VDV announced that the German rail network will be further electrified in the coming years. This could, however, be done at a faster pace by doing away with a preliminary environmental impact assessment and the planning approval requirement. In Germany, currently, around 60% of the railway lines are electrified. The VDV advocates a degree of electrification of 75% of the network. This will provide the necessary boost to the rolling stock industry. Currently, the electrification of railway networks is higher in Russia, Japan, and South Korea. India also has a well-electrified rail network. Currently, three zones of Indian railways have achieved 100% electrification: Kolkata Metro, West Central Railway, and East Coast Railway.
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 market for new rolling stock 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: Big data applications in rail industry
An improved travel experience, including onboard internet and entertainment, smart tickets, automated fare collection, and door-to-door services, is something that passengers are increasingly looking for. Currently, players in the transportation sector are looking into how to leverage big data collected from passengers' smart devices to perhaps enhance the economic models of urban rail networks and the caliber of services. Real-time prediction algorithms, scalable data structures, big data communications, and the use of visualization tools are the main goals of using big data and big data analytics.
Application of big data analytics can assist in understanding organizational, technological, and operational problems associated with railway transportation, as well as its effects on the economy. Big data analytics delivers data on the Traffic Management System (TMS), TMS decision-making, remaining life, maintenance-related service, and energy resources. Additionally, it enables rail operators to forecast ridership numbers and improve their product lineup. Big data makes it possible to better analyze the state and prognosticative behavior of rolling stock. Therefore, big data and intelligent rail systems can lower maintenance costs, minimize raks, and increase safety in the railway industry. The Central Organization for Modernization of Workshops (COFMOW), Indian Railways, awarded a contract to Wabtec Corporation in 2022 for its online monitoring of rolling stock (OMRS) project. This makes it possible to find problems with wheels, brakes, bearings, axes, and other parts for all maintenance, speeding up turnaround and improving safety.
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 need to be replaced regularly, there is also the need for the maintenance of infrastructures such as depots and berthing sites. Rolling stock requires long-term maintenance when the train has reached half its operational life. This includes maintenance of electrical, mechanical, and hydraulic components of the vehicle. Large investments are required for such maintenance. In April 2022, Alstom SA signed a long-term maintenance contract with Alpha Trains Group, one of Europe's leading rail vehicle rental companies. In December 2022, VR FleetCare won a contract under a tender organized by the Helsinki Metropolitan Area Rolling Stock for the refurbishment of Flirt electric train bogies.
The Rapid transit segment is expected to be the largest growing segment during the forecast period
Increasing urbanization is the major reason for the growth of intercity and intracity transportation. Increasing adoption of rolling stock and rising investments by governments for infrastructure developments are expected to propel the growth of the rapid transit segment. In January 2023, LE TRAIN, France's leading private high-speed train operator, and Talgo signed an agreement in Bordeaux for the future development of a fleet of high-speed trains adapted to the French market and based on the leading high-speed Avril platform. In August 2022, Hyundai Rotem signed a USD 656 million contract to locally produce rolling stock for the Cairo Metro. The company will produce 40 trains comprising 320 carriages for Metro lines 2 and 3 alongside the National Egyptian Railway Industries Company (NERIC). The firm will also provide maintenance services for eight years. In January 2022, Strukton (Netherlands), a railway company, entered into a contract with the Stockholm Regional Council for the expansion of metro lines. Thus, with such new projects aimed toward rail connectivity, the demand for rolling stock will increase during the forecast period.
CRRC Corporation Limited (China), Alstom SA (France), Siemens AG (Germany), Stadler Rail AG (Switzerland), etc., offer a DMUs, EMUs, Light rail and Metro for end-use applications. So, the rapid transit segment is estimated to grow significantly over the forecast period.
The Asia Oceania market is projected to hold the largest share by 2028
The Asia Oceania region is the largest market for rolling stocks due to increased production, domestic demand, and capacity expansions by rolling stock manufacturers. The region comprises some of the fastest-growing economies in the world, including China and India, offering opportunities for rolling stock manufacturers. Governments in these countries have recognized the growth potential of the rolling stock market. According to official data of Indian Railways, USD 23.5 billion (Rs. 191,162 crores) of revenue has been earned so far in the current fiscal year (FY23), China is also planning to invest USD 155 billion in expanding the railway network in the Yangtze River Delta (YRD) region under its 14th five-year plan period (2021-25). Japan is a technology leader in the rolling stock market. The country is continuously investing in the development of innovative technologies in rolling stock. Previously, the rolling stock industry in South Korea was dependent on technologies developed by France and Japan. However, companies such as Hyundai Rotem are bringing technological developments in the country’s rolling stock market.
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:
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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):
What is the current size of the rolling stock market?
The current size of the rolling stock market is estimated at USD 54.6 billion in 2023.
What are different countries covered in Asia Oceania region for rolling stock market?
The countries covered in report for rolling stock market are China, Japan, India, South Korea.
Who are major players in the global rolling stock market 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 rolling stock 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 rolling stock 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 rolling stock 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.