Fact.MR, a market research and competitive intelligence provider, states that the rolling stock market surpassed US$ 50 Bn 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 Bn.
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Key Points Covered in Rolling Stock Industry Analysis
- Market estimates and forecast 2016-2031
- Key drivers and restraints impacting market growth
- Segment-wise, Country-wise, and Region-wise Analysis
- Competition Mapping and Benchmarking
- Market Share Analysis
- Key Product Innovations and Regulatory Climate
- COVID-19 Impact on Rolling Stock Market and How to Navigate
- Recommendation on Key Winning Strategies
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 Bn 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.
An Adaptive Approach to Modern-day Research Needs
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.
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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.
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.
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.
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
Historical Data Available for
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Key Regions Covered
Key Market Segments Covered
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Available upon Request
Key Segments Covered
- Locomotives Rolling Stock
- Passenger Coaches Rolling Stock
- Multiple Units Rolling Stock
- Freight Wagons Rolling Stock
- Rolling Stock for Freight Application
- Rolling Stock for Passenger Application
- FAQs -
According to Fact.MR, demand for rolling stock in 2020 surpassed US$ 50 Bn
Demand for locomotives is likely to expand at over 4% CAGR until 2031
The rolling stock market is expected to surpass a value of US$ 77 Bn by 2031.
Between 2016 and 2020, rolling stock sales expanded at around 4% CAGR
The rolling stock market is expected to surpass 4% CAGR between 2021 and 2031.
Increase in congestion in urban areas, changing infrastructure and fuel efficiency are the key trends driving rolling stock sales
China and India are the most lucrative region for the growth of rolling stock, yielding 60% of total demand
CRCC Corporation Limited, Alstom, CAF, Hyundai Rotem Company, CJSC Transmashholding, Siemens, Staddler Rail AG, Kawasaki Heavy Industries Ltd, Hitachi Rail Limited and Bombardier are some prominent manufacturers.
The rolling stock industry is expected to register a CAGR of around 5% throughout North America.
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