The global rolling stock market is currently valued at $54.6 billion in 2023 and is projected to witness substantial growth, reaching $65.6 billion by 2028, at a compound annual growth rate (CAGR) of 3.8% during this period.
Several factors are contributing to the anticipated rise in the rolling stock market, including the increasing adoption of emissions-free transportation methods and favorable government policies, such as subsidies, along with the growing trend of railway electrification.
Governments worldwide, both in developed and developing countries, have initiated smart transportation initiatives in recent years. The integration of cutting-edge technologies like cloud computing, the Internet of Things (IoT), 5G, and artificial intelligence (AI) has played a pivotal role in the expansion of the smart railways ecosystem. This growth is further fueled by a focus on enhancing and modernizing rail infrastructure, substantial investments in urban and inter-urban segments, regulatory measures to enhance safety, and the proliferation of smart city projects across regions. These factors are expected to drive the demand for technologically advanced rolling stock globally in the coming years.
Countries such as Germany, France, and the UK in Europe are actively promoting the use of rapid transit systems to alleviate traffic congestion. In nations like India, China, Egypt, Brazil, and Gulf countries, significant investments are being made in the development of metro systems, a response to the burgeoning urban population in these regions. These investments are set to boost the demand for rolling stock during the forecast period.
Key Insights:
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Europe: Europe is poised to be the second-largest market for rolling stock in 2023 in terms of value. It serves as a major hub for renowned Original Equipment Manufacturers (OEMs), including Alstom SA (France), Stadler (Switzerland), Talgo (Spain), Siemens AG (Germany), and Construcciones y Auxiliar de Ferrocarriles (Spain). European railways are equipped with advanced technologies, encompassing wireless radio connections, wireless data transmissions, eco-friendly cars, and features designed for passenger comfort. Although high-end technology adoption is more pronounced in Western European countries like the UK, Germany, France, and Spain, opportunities for rolling stock OEMs to expand their presence in Eastern Europe are also emerging. The European Union (EU) Railway has set ambitious targets, including constructing a 31,000-kilometer high-speed rail track by 2030.
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Electric Locomotives: The electric locomotive segment is expected to lead the global rolling stock market by locomotive type. Electric locomotives derive power from overhead wires or storage batteries. The electrification of railway tracks is on the rise, driven by the goal of reducing vehicle emissions. Both Asia Oceania and Europe are investing significantly in electrifying railway tracks. For example, as of March 2023, Indian Railways had electrified 90% of its network. European countries have plans to electrify 70% of their rail network by 2025, including extending and electrifying existing track lengths. Government incentives, such as tax breaks and subsidies, are promoting the use of electric locomotives. These locomotives are considered more environmentally friendly than their diesel counterparts because they produce no emissions during operation.
Major Players
The global rolling stock market features key players such as CRRC Corporation Limited (China), Alstom SA (France), Siemens AG (Germany), Stadler Rail AG (Switzerland), and Wabtec Corporation (US). These companies offer a wide range of products and solutions for the railway industry, maintain robust global distribution networks, and allocate substantial resources to research and development, driving innovation and the creation of new products.
The global rolling stock market is poised for significant growth, underpinned by the increasing focus on sustainable and technologically advanced rail transportation solutions.
To know more about business opportunities in Rolling Stock & Systems, please join our upcoming conference “3rd Urban Infra Business Summit & Awards 2023” scheduled on 7th December 2023 at the India International Centre, New Delhi.
