Rolling Stock Power Conversion System Market Statistics - 2026
The global rolling stock power conversion system market was valued at $3.92 billion in 2018, and is projected to reach $5.15 billion by 2026, registering a CAGR of 3.6%. Europe was the highest revenue contributor, accounting for $1.30 billion in 2018, and is estimated to reach $1.67 billion by 2026, with a CAGR of 3.3%. Asia-Pacific is estimated to reach $1.46 billion by 2026, at a significant CAGR of 4.0%. Europe and Asia-Pacific collectively accounted for around 60.7% share in 2018, with the former constituting around 33.3% share. Asia-Pacific and North America are expected to witness considerable CAGRs of 4.0% and 3.8%, respectively, during the forecast period. The cumulative share of these two segments was 51.2% in 2018, and is anticipated to reach 52.6% by 2026.
Power conversion system used in rolling stock converts the alternating current to direct current as well as derives the power from diesel-based engine to propel the rolling stock. The power conversion unit includes various equipment that are responsible to derive the power from diesel- or electric-based engine, which is required to power different components of rolling stock as well as to propel the train. The power conversion system consists of power conversion unit, which plays an important role to convert the alternating current of the locomotive to direct current to increase the efficiency of the DC motors installed in the system. Numerous developments have been carried out by different players related to power conversion system for rolling stock, which supplements the market growth.
The factors such as increased budget allocation for the development of railways and rise in trend toward using railways as a public transport means drive the growth of the market. However, factors such as high capital requirement to replace the existing system and refurbishment of existing rolling stock hamper the growth of the market. Further, factors such as improvement in railway infrastructure in developing countries is expected to create numerous opportunities for the growth and expansion of the rolling stock power conversion system market.
The global rolling stock power conversion system market is segmented on the basis of technology, components, rolling stock type, and region. Based on technology, the market is categorized into insulated gate bipolar transistor (IGBT), gate turn-off thyristor (GTO), and silicon carbide (SiC). On the basis of components, it is categorized into rectifier, inverter, alternator, auxiliary power unit (APU), and traction motor. By rolling stock type, the market is categorized into locomotives, metros, monorails, trams, freight wagons, passenger coaches, and others. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Technology
SiC is projected as the most lucrative segments
The key players include AEG Power Solutions, Alstom SA, Bombardier Inc., CRRC Corporation Ltd., Hitachi Ltd., Siemens AG, Strukton, Toshiba Corporation, Turbo Power Systems, Wabtec Corporation, and others that account for a major rolling stock power conversion system market share.
Increased budget allocation for the development of railways
The developing countries such as India, China, and others are focused toward the development of their railway infrastructure and better & efficient system by allocating higher budget. For instance, India allocated a budget of $21.2 billion in 2018, which was 13% higher as compared to previous year’s budget. Similarly, various countries across the globe are continuously increasing their rail budget to deploy latest technologies and improve their infrastructure. For instance, the Canadian National Railway (CN) planned an investment of $2.92 billion in the province of Saskatchewan to enhance the railway infrastructure as well as implement better and efficient power conversion system replacing the existing system. Thus, upsurge in budget allocation acts as a key factor that drives the growth of the global rolling stock power conversion system market.
By Component
Inverter is projected as the most lucrative segments
Increased trend toward using railways as a public transport means
With rise in sales of private vehicles such as bikes, passenger cars, and more, traffic congestion has increased significantly, resulting in road blockage. Direct costs associated with such congestions reach up to a bigger portion of GDP of the country, as such congestions directly convert into extra time and money. Public transportation such as metros, trams, monorails, passenger trains, and others not only carry passengers on board but also provide free space to be used by other vehicles. This results in the presence of minimal vehicles on roads, which help reduce the possibility of road congestion; thereby, fueling the growth of the rolling stock power conversion system market to provide better and efficient power conversion system.
High capital requirement to replace the existing system
Rail transportation can be considered as the enabler of economic progress owing to rise in use of public transport services as a solution to minimize traffic congestions coupled with the cheapest and safest mode of transportation, which is used to transport goods/products as well as cargo/freight. However, one of the key restraints of the rolling stock power conversion system market is the capital-intensive nature of the market to replace the existing system, which is significantly high. For instance, in April 2018, Indian railways revealed that it is ready to launch country's first 12,000 horsepower (HP) electric locomotive, which costs around $200 billion to roll out 800 high horsepower locos over a time period of 11 years in which the average cost of each of the locomotive market is estimated to be $250 million. This indicates the requirement of high capital to build as well as to maintain the train network, which is expected to hamper the rolling stock power conversion system market growth.
By Rolling Stock Type
Metros is projected as the most lucrative segments
Improvement in railway infrastructure in developing countries
Rolling stock infrastructure within a country increases the speed and efficiency of railway systems for freight and passenger transportation. In addition, the implementation of autonomous trains requires large investment. Therefore, the governments of developing countries are investing significantly to meet the latest technology setups required for autonomous trains. For instance, India invested $1.97 billion in 2018 toward its infrastructure development to meet the latest automation demand, and is estimated to further invest $777.73 billion by 2022 to cater to the required infrastructure demand, which includes railway infrastructure development. This is anticipated to offer numerous opportunities for train automation players operating in the country. Similar, improvements in developing countries are opportunistic for the growth of rolling stock power conversion system market.
By Region
Asia-Pacific would exhibit the highest CAGR of 4.0% during 2019-2026.
Key Benefits for Stakeholders:
- This study presents the analytical depiction of the global rolling stock power conversion system market analysis along with the current trends and future estimations to depict imminent investment pockets.
- The overall rolling stock power conversion system 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 market with a detailed impact analysis.
- The current market is quantitatively analyzed from 2018 to 2026 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.
Rolling Stock Power Conversion System Market Report Highlights
| Aspects | Details |
 By Technology |
|
 By Component |
|
 By Rolling Stock Type |
|
 By Region |
|
 Key Market Players | AEG Power Solutions, Siemens, Toshiba Corporation, Hitachi, Ltd., WABTEC CORPORATION, Turbo Power Systems, CRRC Corporation Limited, Alstom, Bombardier Transportation, STRUKTON |
Analyst Review
In a rolling stock, power conversion system converts the alternating current to direct current as well as derives the power from diesel-based engine to propel the rolling stock. Numerous developments carried out by different players operating across the globe boost the growth of the market. Companies such as Alstom SA, Bombardier Inc., Crrc Corporation Ltd., Hitachi Ltd., Siemens AG, and others have introduced numerous updates as well as new and advanced components having application in power conversion system for rolling stock, which supplements the market growth across the globe. For instance, Siemens has introduced the 9000HP electric locomotive in India with the first indigenously designed and produced integrated propulsion system and steel tank transformer. Such developments carried out by different companies across the globe supplement the growth of the market.
The factors such as increased budget allocation for the development of railways and increase in trend toward using railways as a public transport means drive the growth of the market. However, high capital requirement to replace the existing system and refurbishment of existing rolling stock is anticipated to hamper the growth of the market. Furthermore, improvement in railway infrastructure in developing countries is expected to create numerous opportunities for the growth and expansion of the rolling stock power conversion system market.
Among the analyzed regions, Europe is the highest revenue contributor followed by Asia-Pacific, North America, and LAMEA. Based on the forecast, Asia-Pacific is expected to maintain the lead during the forecast period, owing to an increased CAGR as compared to other regions.
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