Rolling Stocks Market

Rolling Stock Market Growth Analysis

The rolling stock market surpassed US$ 50 Billion in 2020. Increasing urbanization and the need for faster transportation is influencing the market positively.

Manufacturers of rolling stock are focusing on quicker transportation of for various media. Also, increasing focus on ease and comfort while traveling is driving growth. Thus, the market is expected to surpass a CAGR of 4% from 2021-2031, to reach US$ 77 Billion.

Rolling Stock Market Historical Trends 2016-2020 Vs Future Outlook 2021-2031

According to Fact.MR, over the last five years (2016-2020), the market expanded to reach a revenue of over US$ 50 Billion in 2020. Increasing congestion in urban areas, and focus on environmentally friendly options for the functioning of rails is driving the growth of the rolling stock industry.

Prospects temporarily dipped in the first half of 2020, attributed to transport constraints imposed due to the COVID-19 pandemic. However, rising demand for transporting essentials such as food and pharmaceutical products sustained sales. From 2021 to 2031, the industry is expected to surpass a CAGR of 4% through 2031.

Will Consistent Predictive Maintenance Improve Rolling Stock Asset Management?

Investments in rolling stock are highly cost-intensive, with a typical lifecycle of a maximum of one to two years. Consequently, repair and maintenance services provided by rolling stock manufacturers are aimed at optimizing and increasing the average age of rolling stock.

Incorporation of predictive maintenance has changed the course of rolling stock asset management wherein connected technologies, remote monitoring, digital analysis, and big data analytics have paved new ways in the traditional business model for services in the market for rolling stock.

Future forecast of the new rolling stock sales is likely to stabilize as investors seek more cost and return-oriented from rolling stock OEMs. Real-time monitoring and predictive maintenance services have helped optimize value propositions thereby strengthening the repair and maintenance services in the rolling stock landscape.

How are Passenger Coaches Increasing Profitability for Rolling Stock?

As safety and comfort of passengers remain the prime focus of new or under-maintenance rolling stock, their replacements are frequent as compared to other types such as multiple units, locomotives or freight wagons.

Passenger coach rolling stock have been deemed the most maintenance-intensive category as they are subjected to maximum utilization by passengers. For instance, the Indian Railways (IR) is increasingly procuring shipments of Linke-Hofmann-Busch (LHB) coaches to enhance travel experience and reduce chances of accidents.

Manufacturers in the rolling stock market, particularly passenger coaches, are set to witness profitability in the coming future by procuring steady and new tenders of passenger coach rolling stock.

How are Rolling Stock Becoming Prime Means of Transport De-carbonization?

With railways gaining prominence as a primary means of sustainable mobility, there have been assertive project proposals to remove diesel trains from the railway transportation infrastructure.

Additionally, proposals to connect other low-carbon transportation modes with railways such as bicycle sharing and facilities of their parking at railway stations are underway. The European Commission has made greater strides in promoting de-carbonization of the transport sector to achieve greenhouse gas reduction.

The Rail Safety and Standards Board (RSSB), U.K., has announced funding competitions to support the government-led initiative of removal of diesel trains from Britain’s railway by 2040. India has also prioritized railway de-carbonization.

To achieve the carbon emission reduction targets, projects to shift from diesel-powered rail network to an electrified rail network is proposed wherein significant steps are underway in the same direction.

Rolling stock Marketplace Exhibits Heavy Consolidation

The rolling stock industry remains highly consolidated with the top 5 players - CRRC Corporation Limited, Bombardier Transportation, Alstom Transport, GE Transportation and Siemens, who hold significant revenue shares in the market.

Competition remains intense in the rolling stock market, with CRRC Corporation at the forefront, which continues to face a fierce competition from Bombardier and GE.

Additionally, J-TREC. Alstom, Siemens, Kawasaki Heavy Industries and PESA are other leading contenders who are engaged in product innovation and expansion of their product portfolio.

Country-wise Analysis

Why are India and China attracting Investments in the Rolling Stock Market?

Ever increasing population in countries such as India and China is heightened demand for trains as an effective mode of transport, fueling expansion of the rolling stock industry. Both countries are likely to collectively yield nearly 60% revenue across Asia.

For instance, the government of India is focusing on developing metros in urban cities for instant connectivity. In addition, continuous technological advancements in China have spurred the growth of the rolling stock industry. Initiatives such as the National Development and Reform Committee (NDRC) approved US$ 12.86 Bn high-speed rail project are spurring rolling stock sales in China.

What are the Growth Prospects across the U.S. Market?

In 2020, passenger transportation dominated the U.S. market. Advancement in technology for locomotives and continuous development for safe travel is boosting the demand for rolling stock.

Thus, the rolling stock industry is expected to surpass a CAGR of 5% in the projected forecast period. Additionally, expansion of existing sub-urban and metro rail projects as well as inter-state railway infrastructure are collectively expanding sales.

Category-wise Insights

Why are Locomotives Gaining Popularity?

The locomotive rolling stock is receiving stimulus due to constant advancements in loco technology adopted by the manufacturers. A CAGR exceeding 4% is projected for this segment.

In addition, stringent rules and regulations by the government for fuel efficiency make locomotive a desirable option. Thus, the use of locomotives that work on electric power is propelling the market for rolling stock.

How are Freight Wagons Sales Fueling Overall Rolling Stock Demand?

Fact.MR’s report investigates that demand for freight wagons are anticipated to account for more than 50% rolling stock demand in forthcoming years. A surging logistics industry is primarily fueling this expansion.

Rapid urbanization and industrial development is spurring transportation demand for various goods and freight items, prompting investments in railway infrastructure, especially across developing economies.

Competitive Landscape

Manufacturers of rolling stock are focusing on providing agility, comfort and fuel efficiency.

• CRRC Corporation Limited (CRRC), a rolling stock giant signed a strategic agreement with TÜV Rheinland, a global technical service provider – to improve their collaborative services including international compliance testing and certification of rolling stock in September 2018.
• Siemens announced the investment of 200 million euros to start rolling stock factory at Goole in the East Riding of Yorkshire, UK in March 2018. In April, the company got approval from the Orange County Transportation Authority to supply vehicles for the county’s Streetcar project.
• In May 2021, Siemens Mobility and Stadler jointly won a € 114.5 million (US$ 135 million) contract to provide the Lisbon Metro with a state-of-the-art signalling system and a new fleet of modern trains, with the latter agreeing to supply 14 three-car metro trains

Report Scope

Report Attributes	Details
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Key Regions Covered	North America Latin America Europe East Asia South Asia Oceania  Middle East & Africa
Key Market Segments Covered	Product Type Application Region
Key Companies Profiled	CRCC Corporation Limited Alstom CAF Hyundai Rotem Company CJSC Transmash Holding Siemens Staddler Rail AG Kawasaki Heavy Industries Ltd Hitachi Rail Limited Bombardier

Key Segments Covered

• Product Type

  • Locomotives Rolling Stock
  • Passenger Coaches Rolling Stock
  • Multiple Units Rolling Stock
  • Freight Wagons Rolling Stock

• Application

  • Freight Application
  • Passenger Application