Rolling Stock Market Research, 2031
The global rolling stock market was valued at $51.31 billion in 2021 and is projected to reach $73. 27 billion by 2031, registering a CAGR of 3.7% from 2022 to 2031.
Rolling stock term is used in railway transportation industry, which refers to any vehicle that can move on rail-road. It includes powered vehicles such as locomotives and unpowered vehicles such as freight wagons, passenger coaches, and more. Presently, there is rise in trend of the autonomous rolling stocks. For example, automated trains or the driverless trains, which do not involve a driver to carry out its operations or working. They operate automatically and are monitored or controlled from the control station.
Further, in case of any obstacle incurred in the route, a message is sent to operational control center and to the attendant on the train, to stop the train. For instance, in May 2021, Kawasaki Heavy Industries, Ltd. announced the launch of remote track monitoring services across North America. This new remote track monitoring service features information & communication technology to be used in the railway industry. It has been awarded a contract by one of the North American Class 1 railroads to equip locomotives with monitoring devices & provide remote track monitoring service to support the maintenance of the track.
It is considered to be one of the most cost-effective modes of conveyance for commuters as well as for transporting heavy or bulky goods over long distances. It can also be easily customized as per the exact requirements of the end user and provides a larger carrying capacity in comparison to other forms of transportation. As a result, it offers extensive applicability in various industries such as oil & gas, automotive, and mining where tank wagons are used to transport multiple deliverables, industrial chemicals, petrol, and diesel.
Factors such as increase in allocation of the budget for development of railways, rise in demand for secure, safer, & efficient transport, and increase in use of public transport services as a solution to minimize traffic congestions drive the growth of the rolling stock market. However, high capital requirement and refurbishment of existing rolling stock are anticipated to hamper the growth of the rolling stock market. Further, increase in development & testing of autonomous train, improvement in railway infrastructure, particularly in developing countries, and rise in industrial & mining activity are expected to create numerous opportunities for rolling stock market expansion.
The rolling stock market is segmented on the basis of type, end use, and region. By type, it is divided into locomotive, metro, monorail, tram, freight wagons, passenger coaches, and others. By end use, it is classified into passenger transit and cargo train. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The major companies profiled in the rolling stock market share include Alstom, Construcciones Y Auxiliar De Ferrocarriles, S.A (CAF), CRRC Corporation Limited, Hitachi, Ltd., Hyundai Corporation, IHI Corporation, Kawasaki Heavy Industries, Ltd., MAPNA Group, Nippon Sharyo, Ltd., PESA Group, PPF Group N.V., Progress Rail (subsidiary of Caterpillar), Siemens, Stadler Rail AG, Talgo, Tatravagonka A.S. Poprad, The Greenbrier Companies, Inc., The Kinki Sharyo Co., Ltd., Trinity Industries, Inc., and Wabtec Corporation.
Increase in allocation of budget for development of railways
The developing countries such as India, China, and others are focused toward the development of their railway infrastructure by allocating higher budget. For instance, India allocated a budget of around $15.06 billion (₹1.10 lakh crore) for the railways, with total capital expenditure outlay of $30.80 billion (₹2.15 lakh crore) for the financial year 2021-2022, which highlights an increase of 33% in total capital expenditure for 2021-22 over $22.4 billion (₹1.61 lakh crore) for 2020-21. Similarly, various countries across the globe are continuously increasing their rail budget to deploy latest technologies and improve their infrastructure. For instance, the UK government invested over $6.28 billion (£5.3 billion) in new & enhanced rail infrastructure and rolling stock in 2019-2020. Investment in the railway consists of enhancements to existing rail infrastructure, and private investment, largely in new rolling stock. Thus, upsurge in budget allocation acts as a key factor that drives the growth of the global rolling stock market.
By Type
Metros is projected as the most lucrative segments
Rise in demand for secure, safer, and efficient transport system
According to the fact sheet of the World Health Organization (WHO), road traffic injuries are the leading cause of fatality among people aged between 15 and 29 years, thus accounting for 1.25 million deaths every year due to road accidents. In addition, 90% of the world's fatalities on roads occur in low and middle economical countries, though such countries have approximately 54% of the world's vehicles. Therefore, rise in need for safe, secure, and efficient transportation system significantly contributes toward the growth of the global market. Railway transportation is considered as the safest and economical mode of transportation, which has boosted the demand for railways.
Latest trains are equipped with onboard cameras, sensors, and communication devices. Moreover, such trains in most locations run underground or at the ground level and are highly secured by fences or walls to prevent trespassing, which propels the growth of the market. In addition, modern advanced trains consume less energy due to better acceleration, traction, and braking system, resulting in reduction of energy consumption by around 30% based on the degree of automation. For instance, in February 2022, Alstom launched its first French hybrid train in partnership with SNCF Voyageurs. This electric-diesel-battery regional train is equipped with two energy storage systems, which offer reduced energy consumption and greenhouse gas emissions, with a solution that makes it possible to adapt to existing diesel fleet without the need to modify the current infrastructure. Furthermore, such trains can provide a flexible way to coordinate in terms of frequency, which results in the improvement of the system performance in all aspects, which is boosting the growth of the market.
High capital requirement
The increase in preference toward railway transport is leading to a high demand for these rolling stocks and related infrastructure in recent years. In addition, the rise in urban traffic congestion and problems related to it are the major reasons for the shift in the rapid urban transit networks such as metro, monorails, and trams. In addition, the development in rail infrastructure, inexpensive fares, environment friendly, and faster mode of transport are the factors that increase penetration in the global market. However, rolling stock and supporting infrastructure is highly capital-intensive and necessitates significant financial support from local and governments, as the cost of trains is significantly high. For instance, the average cost of a diesel locomotive is around $500,000-$2 million. While an electric locomotive could cost more than $6 million. In addition, Delhi Metro revealed that the underground section of phase III of Delhi metro will cost a whopping around $75 million (₹552 crore) per km to build, whereas the average cost is around $27 million (₹200 crore). Moreover, rolling stock needs to be periodically overhauled to ensure its reliability. This includes maintenance of electrical, mechanical, and hydraulic components of the vehicle. However, regular maintenance and overhaul of rolling stock are highly expensive. This indicates the requirement of high capital to build as well as to maintain the train network, which is expected to hamper the market growth.
By End-use
Passenger Transit is projected as the most lucrative segments
Increase in development & testing of autonomous train
Autonomous trains are automated transit systems, operated automatically without any human involvement and are monitored from the control station. These trains operate with higher frequencies having the capability of transporting a large number of passengers and freights at a faster pace compared to road transport. Therefore, various countries are focusing on development, testing, and adoption of autonomous train technology to reduce human intervention and participation. For instance, in May 2021, France's national state-owned railway company SNCF and its partners Alstom, Bosch, Spirops, Thales and the Railenium Technology Research Institute have begun testing a modified Regio 2N regional train as a prototype autonomous regional train for France’s rail network Moreover, autonomous trains are safer, secure, flexible, and efficient as compared to traditional manually operated trains, which increases the popularity of autonomous train technology. Thus, rise in development and testing of autonomous train is opportunistic for the market expansion.
COVID-19 Impact Analysis:
The rapid spread of coronavirus pandemic has brought unprecedented challenges and threatens the normal life of human beings and global public health. The government authorities across the world have taken strong measures to stop the spread of this new disease, such as national-wide lockdown and isolation of people at high-risk areas due to high infectivity and destructiveness of COVID-19, and the suddenness of its outbreak. Owing to this pandemic, many businesses are halted and are waiting for the market conditions to improve. Following the directions of the World Health Organization (WHO) for minimizing the spread of the virus, governments of various countries have set up lockdown and trade restrictions, which has disrupted the exports, especially from China, causing large scale manufacturing interruptions across Europe, and the closure of assembly plants in the U.S. The situation has put intense pressure on the rolling stock industry. The railway department has shut down all the passenger train services and has limited its freight transport services with a reduction in demand for commodities and disturbed supply chain. Along with disruptions in initial supply and manufacturing processes, the industry is also experiencing a setback with an uncertain recovery timeline due to decreased demand. Therefore, the reduced production of rolling stock due to temporary shutdown of manufacturing plants is expected to negatively impact the growth of the rolling stock market.
By Region
Asia-Pacific would exhibit the highest CAGR of 5.3% during 2022-2031.
KEY BENEFITS FOR STAKEHOLDERS
This study presents analytical depiction of the global rolling stock market analysis along with current trends and future estimations to depict imminent investment pockets.
- The overall rolling stock market opportunity is determined by understanding profitable trends to gain a stronger foothold.
- The report presents information related to the key drivers, restraints, and opportunities of the global rolling stock market with a detailed impact analysis.
- The current fourth party logistics market is quantitatively analyzed from 2021 to 2031 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.
Rolling Stock Market Report Highlights
| Aspects | Details |
 By Type |
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 By End Use |
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 By Region |
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 Key Market Players | PPF Group N.V., Nippon Sharyo, Ltd., Kawasaki Heavy Industries, Ltd., Hyundai Corporation, Siemens AG, Stadler Rail AG, Talgo, PESA Bydgoszcz SA, Wabtec Corporation, Progress Rail, CAF, The Greenbrier Companies, Inc., Alstom, Tatravagonka A.S. Poprad, The Kinki Sharyo Co., Ltd., MAPNA Group, Trinity Industries, Inc., CRRC Corporation Limited, Hitachi, Ltd., IHI Corporation |
Analyst Review
In accordance with the insights by the CXOs of leading companies, the rolling stock market is projected to witness low-to-moderate growth rate, owing to growth in population along with increase in globalization and rise in purchasing power. Companies in this industry are adopting various innovative techniques to provide customers with advanced and innovative feature offerings. For instance, in December 2020, Alstom launched its new automatic MP14 metros by entering into commercial service on the extension of line 14 to the station Mairie de Saint-Ouen. Further, the MP14 is designed to offer high level of comfort and safety. Its interior layout and seats designed to provide both conviviality and privacy.
Furthermore, the rolling stock market is driven by increase in allocation of the budget for the development of railways, rise in demand for secure, safer, & efficient transport, and surge in use of public transport services as a solution to minimize traffic congestions. For instance, Indian Railways (IR) announced the target to manufacture 8000 locomotives, coaches and wagons in 2022, up from 5,000 in 2021 at a cost of around $5.47 billion (INR 40,000 crore). In addition, rising concerns regarding a greener environment have increased the demand for non-polluting and energy-efficient transport systems globally. Therefore, the demand for electric locomotives and electric multiple unit (EMUs) train 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 to completely phase out all their diesel-hauled passenger trains in the country and replace them with new electric bullet trains by 2029. This will provide the necessary boost to the rolling stock industry.
However, high capital requirement, and refurbishment of existing rolling stock restrict the market growth. Moreover, improvement in railway infrastructure, particularly in developing countries, and increase in industrial & mining activity are expected to create lucrative opportunities in near future for the rolling stock market.
Among the analyzed regions, Europe is the highest revenue contributor, followed by Asia-Pacific, North America and LAMEA. On the basis of forecast analysis, Asia-Pacific is expected to lead during the forecast period, due to increase in concerns related to emission of hazardous pollutants fuels the adoption of rolling stocks in developing countries across the LAMEA.
The global rolling stock market was valued at $51,310.0 million in 2021, and is projected to reach $73,269.9 million by 2031, registering a CAGR of 3.7% from 2022 to 2031.
There are certain upcoming trands in rolling stock market such as increase in development & testing of autonomous train, improvement in railway infrastructure in developing countries, and increase in industrial & mining activities
The sample for global rolling stock market report can be obtained on demand from the AMR website. Also, the 24*7 chat support and direct call services are provided to procure the sample report.
Rolling stock includes any car or railway equipment designed for movement on its wheels on the rails of a railway including powered & unpowered coaches, locomotive, carriages, passenger cars and freight wagons
The global rolling stock market was valued at $51,310.0 million in 2021, and is projected to reach $73,269.9 million by 2031, registering a CAGR of 3.7% from 2022 to 2031.
The company profiles of the top market players of rolling stock service industry can be obtained from the company profile section mentioned in the report. This section includes analysis of top ten player’s operating in the rolling stock market.
Yes, the industry is growing owing to the driving factors such as increase in allocation of budget for development of railways, rise in demand for secure, safer, & efficient transport system and rise in use of public transport services as a solution to minimize traffic congestion
Rolling stock refers to any vehicle that can move on rail-road. It includes powered vehicles such as locomotives and unpowered vehicles such as freight wagons, passenger coaches, and more.
Mexico, Japan, India and Middle East has wirnessed as a key matured markets growing in the global rolling stock market
The adjacencies such as high capital requirement and refurbishment of existing rolling stock has impacting the rolling stock market.
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