Hybrid Train Market Outlook - 2027
The global hybrid train market size was valued at $16.2 billion in 2019, and is projected to reach $23.9 billion by 2027, growing at a CAGR of 6.6% from 2020 to 2027. Technological advancements in battery and hybrid systems are significantly driving the hybrid train market, as innovations in energy storage, battery efficiency, and power management enable trains to run longer distances with reduced emissions and lower fuel consumption.
Introduction
A hybrid train is a type of rail vehicle that combines two or more different power sources for propulsion, typically blending traditional diesel engines with electric systems or batteries. Unlike conventional trains that rely solely on diesel or electricity, hybrid trains use multiple power systems to optimize fuel efficiency and reduce emissions. The diesel engine or internal combustion engine (ICE) can provide the necessary power for non-electrified tracks, while the electric motors or battery systems offer a cleaner, more efficient alternative when operating on electrified lines or during lower-speed travel. This combination allows hybrid trains to switch between power modes, depending on the operational requirements, such as track electrification, speed, or environmental regulations.
Market Dynamics
Advancements in battery and energy storage technologies are significantly driving the demand for hybrid trains by making them more efficient, reliable, and environmentally friendly. With the continuous development of high-capacity batteries, such as lithium-ion and solid-state batteries, hybrid trains are able to store more energy and operate for longer periods without relying on fossil fuels. These advancements allow hybrid trains to switch seamlessly between diesel and electric modes, enabling them to travel through non-electrified sections of railways while minimizing emissions. The improvements in battery technology also enhance the efficiency of regenerative braking systems, which capture and store energy that would otherwise be wasted, further reducing the need for conventional fuel sources. All these factors are expected to drive the demand for the hybrid train market during the forecast period.
The transition from traditional diesel-powered trains to hybrid systems requires substantial financial resources for research and development, as well as to produce new technologies. This includes the development of advanced battery systems, electric motors, and sophisticated control systems that integrate the various power sources effectively. Rail operators and manufacturers must allocate significant budgets for these innovations, which can deter potential investors and stakeholders who may be reluctant to commit to such large expenditures without guaranteed returns. All these factors are expected to hamper the growth of the hybrid train market during the forecast period.
As countries and regions increasingly invest in electrification to enhance the efficiency and sustainability of their transportation systems, hybrid trains become a crucial part of this transition. Hybrid trains can seamlessly operate on both electrified and non-electrified tracks, providing a versatile solution that allows rail operators to optimize their routes without the need for complete electrification. This adaptability is particularly valuable in regions where electrification is still underway or where certain sections of the rail network remain diesel dependent. All these factors are anticipated to offer new growth opportunities for the global hybrid train market throughout the forecast period.
Market Segmentation
The hybrid train market is segmented on the basis of propulsion type, application, operating speed, and region. By propulsion type, it is categorized into electro-diesel, battery operated, hydrogen powered, gas powered, and solar powered. On the basis of application, it is bifurcated into passenger and freight. On the basis of operating speed, it is segmented into less than 100 km/hr, 100-200 km/hr, and more than 200 km/hr. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Propulsion Type
By propulsion type, the on-grid segment held the largest market share in 2019, owing to rise in demand for electro-diesel trains from the joint electrified and non-electrified trains from the railway industry across the globe. In addition, electro-diesel locomotive offers benefits, including reliability, sustainability, reducing emissions of harmful substances, and others. These features are anticipated to increase the demand for electro-diesel hybrid trains in the coming years.
By Propulsion Type
Electro-Diesel Hybrid Train is projected as the most lucrative segment.
By Application
On the basis of application, the passenger segment dominated the global market in 2019, in terms of share, owing to increasing importance of hybrid trains and to reducing the traffic and pollution from road transport. Moreover, rise in demand for traveling safely, reliability, connectivity, and rising urbanization are the key factors driving the passenger hybrid train market growth in the coming years.
By Application
Passenger application is projected as the most lucrative segment.
By Operating Speed
By operating speed, in 2019, the 100-200 km/hr segment held the largest market share, owing to increase in demand for electro-diesel trains, which generally possess operating speed in between 100-200 km/hr. In addition, other propulsion types, including hydrogen fuel cell powered, battery operated, and other hybrid trains are now mostly produced with maximum speed in the range of 100-200 km/hr, which in turn, is expected to drive the growth of the market during the analyzed time frame.
By Operating Speed
100-200 km/hr is projected as the most lucrative segment.
By Region
Europe registered the highest share in the hybrid train market in 2019, in terms of revenue, and is anticipated to maintain its dominance over the forecast period. This is attributed to rise in adoption of hybrid train from economies such as Germany, France, Spain, and the UK in the region. In addition, rise in urbanization and rail infrastructure construction activities in European countries is increasing the demand for hybrid trains, which further drives the growth of the hybrid train market during the forecast period. Moreover, increase in government initiatives toward reducing carbon emissions is expected to fuel the market growth from 2020 to 2027.
By Region
Europe holds a dominant position in 2019 and would continue to maintain the lead over the forecast period.
COVID-19 impact on the market
Lockdown imposed due to the outbreak of the COVID-19 pandemic has resulted in temporary ban on the import & export and transportation activities, thereby disrupting the supply chain and hampering the market growth in the second, third, and fourth quarter of 2020. However, the market is expected to recover either later this year or by the first quarter of 2021 as the demand for hybrid trains from the transport and railway industry increases.
Competitive Landscape
The key players operating in the hybrid train industry adopt key strategies to stay competitive in the market. Key growth strategies, such as product launch, agreement, joint venture, and partnerships, are adopted by the key players, including Alstom SA, Siemens AG, Bombardier, Inc., CRRC, Wabtec Corporation, and Stadler Rail AG.
For instance, Wabtec Corporation acquired RELCO Locomotives, a locomotive overhaul and maintenance industry player. Through this acquisition, Wabtec Corporation aimed to expand freight services capabilities and capacity to support growth in the remanufacturing and repair business. Furthermore, Bombardier, Inc. partnered with Hitachi Rail SpA. This partnership is aimed at supplying 14 very high-speed Frecciarossa-1000 trains to Italian railways and providing maintenance services for the new trains.
Key Benefits for Stakeholders
The report includes in-depth hybrid train market analysis of different segments and provides estimations between 2020 and 2027.
A comprehensive analysis of the factors that drive and restrict the growth of the global hybrid train market is provided.
Porter’s five forces model illustrates the potency of buyers & sellers, which is estimated to assist the global hybrid train market players to adopt effective strategies.
Estimations and forecasts are based on factors impacting global market growth, in terms of value.
Key market players are profiled to gain an understanding of the strategies adopted by them.
This report provides a detailed analysis of the current global hybrid train market trends and future estimations from 2020 to 2027, which helps identify the prevailing market opportunities.
Hybrid Train Market Report Highlights
| Aspects | Details |
 By PROPULSION TYPE |
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 By APPLICATION |
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 By OPERATING SPEED |
|
 By Region |
|
 Key Market Players | Kawasaki Heavy Industries, Ltd., BALLARD POWER SYSTEMS, INC., Wabtec Corporation, China Railway Rolling Stock Corporation, ALSTOM SA, Bombardier, Inc., Stadler Rail AG, SIEMENS AG, Hyundai Rotem Company, TOSHIBA CORPORATION |
Analyst Review
Rapid urbanization is the key factor attributed to the leading position of Asia-Pacific in the global hybrid train market growth. The Asia-Pacific region is further expected to provide lucrative opportunities to the leading hybrid train manufacturers, owing to its huge potential to set up manufacturing plants and surge in demand for hybrid trains from the railway industry in the region.
Rapid growth in adoption of hybrid trains to reduce environmental concerns regarding pollution is the key factor driving the growth of the market. In addition, rise in demand for electro-diesel locomotive for passenger and freight applications, owing to its advantages over conventional ones is expected to fuel the market growth in the coming years. Moreover, rise in demand for different fuel options, such as hydrogen fuel cells, solar-powered, battery-operated, gas-powered, and others, to run hybrid trains is expected to create lucrative opportunities for the market during the forecast period.
The renowned global market leaders, such as Alstom SA, Siemens AG, CRRC, Stadler Rail AG, and Bombardier, Inc., are adopting various key growth strategies to strengthen their market position. Furthermore, these companies are focused on product launch, agreement, partnership, and acquisition to cater to the increase in demand for hybrid trains.
Among the analyzed regions, Asia-Pacific is likely to account for the highest revenue growth rate in the hybrid train market over the forecast period, followed by Europe and North America.
Increase in government initiatives towards reducing environmental pollution and benefits of hybrid trains over conventional trains are the key factors boosting the hybrid train market.
Passenger & freight applications are expected to drive the adoption of hybrid trains.
To get latest version of hybrid trains market report can be obtained on demand from the website.
On the basis of propulsion type, electro-diesel segment will drive the hybrid train market growth during the forecast period. On the basis of application, passenger segment will drive the growth of the hybrid train market. On the basis of operating speed, 100-200 km/hr hybrid trains will propel the growth of the market.
Rise in demand for environmentally friendly and energy efficient trains for the passenger and freight transport is the main driver of hybrid trains market.
The top ten market players are selected based on two key attributes - competitive strength and market positioning
Top players in the hybrid train market are Alstom SA, Ballard Power Systems, Inc., Bombardier, Inc., China Railway Rolling Stock Corporation (CRRC), Hyundai Rotem Company, Kawasaki Heavy Industries, Ltd., Siemens AG, Stadler Rail AG, Toshiba Corporation, and Wabtec Corporation.
In terms of revenue, the global hybrid train market was valued at $16.2 billion in 2019 and is expected to reach $23.9 billion by 2027.
On the basis of propulsion type, electro-diesel propulsion is expected to fuel the growth of the hybrid train market during the forecast period.
Lockdown imposed due to the outbreak of the COVID-19 pandemic has resulted in temporary ban on the import & export, and transportation activities, thereby disrupting the supply chain and hampering the hybrid train market growth in the second, third, and fourth quarter of 2020. However, the market is expected to recover in the late year or by the first quarter of 2021 as the demand for hybrid train from the transport and railway industry increases.
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