Rolling Stock Market by Locomotive Technology, Application, Product Type & Region

Expansion of Metro Projects, increase in length of the electrified rail network, Conversion of diesel locomotive to electric and electro-diesel locomotive and increase in freight transportation are the key market trends or technologies which will have a major impact on the rolling stock market in the future.

Northbrook, IL — (SBWIRE) — 01/28/2022 — The global Rolling Stock Market is estimated to be USD 51.6 billion in 2020 and is projected to reach USD 64.3 billion by 2025, growing at a CAGR of 4.5% from 2020 to 2025.

Asia Oceania is estimated to lead the market in 2020; China, Japan, and India are the key contributors to the rolling stock market in the region. Increasing urbanization, adoption of public transport as a means of reducing traffic congestion, growing demand for energy-efficient transport and increasing adoption of rolling stocks for freight transportation are major drivers of the rolling stock market. Along with this, the leading rail infrastructure developers are also adopting collaboration strategies with local rail authorities to develop rail infrastructure.

Growing concerns over increased pollution by the rolling stock industry is the prime reason for the government to switch to electric locomotives and electric multiple units. They have recognized the need for promoting energy-efficient vehicles to reduce the increasing pollution. Government bodies to invest in rail infrastructure, expansion of electrified rail route, refurbishment of diesel locomotive to electric locomotive and increase in budget to increase freight transportation are driving factors for rolling stock market to grow in near future.

The key players considered in the analysis of the rolling stock market are CRRC (China), Alstom (France), Siemens (Germany), Bombardier (Canada), General Electric (US), Hyundai Rotem (South Korea), Kawasaki Heavy Industries (Japan), and Stadler (Switzerland).

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The locomotive segment is expected to be the fastest growing segment during the forecast period

The locomotive segment is the fastest growing market. Due to the rising concerns about transmission losses, component weight, and environmental concerns, rolling stock manufacturers are increasingly focusing on developing technologically advanced solutions. Due to increasingly stringent fuel efficiency norms in North America and Europe, the diesel engine features the turbocharged technology which provides a 50% increase in engine power without additional increase in fuel cost as power is generated by the exhaust gas from the engine. The rolling stock industry is gradually shifting towards diesel-electric and electric locomotives.

Freight Transportation: A promising market due to the resurgence of mining activities and increasing industrial transportation

The demand for freight wagons is high in the US, China, and Russia. This is because of increasing replacement of old fleets and growth of the manufacturing sector in these countries. Custom-made and technologically advanced wagons, such as chemical and pressure tank wagons and car-carrier and low-loader container-carrying wagons, are manufactured in Western Europe and other developed regions. The increased mining activities in emerging economies are expected to impact the market for freight transportation positively. For instance,2019โ€“2020, more than 1,210.46 million tons of freight was transported in India through the railways. Further, according to the International Organizing Committee for the World Mining Congress (WMC) 2020, global mining production was 17.7 billion metric tons in 2018 and Asia accounted for 58.3% of the total production. Therefore, mineral-rich countries are expected to expand their rail networks to enhance connectivity. The growth of freight transportation is expected to propel the growth of freight wagons and locomotives consequently.

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COVID-19 Impact On Rolling Stock Market:

Major rolling stock manufacturers such as Bombardier (US) and Alstom (France) announced the suspension of production due to the decline in demand, supply chain bottlenecks, and to protect the safety of their employees in France, Germany, Italy, the US, and Spain during the COVID-19 pandemic. Demand for passenger rail vehicles declined in 2020, further impacting the rolling stock market. Additionally, budget allocations for R&D are expected to be significantly affected, which is expected to hamper the development of innovative rail development. The demand for rolling stock is largely proportional to government budgets along with the demand from rail operators. The ongoing COVID-19 pandemic witnessed a major decline of 20-30%% in production as well as sales of rail vehicles in 2020 (MarketsandMarkets Analysis). This decline is expected to adversely impact the market.

Manufacturers are expected to adjust production to prevent bottlenecks and plan production according to the demand from OEMs and their franchised service centres. Resumption of railway production plants, associated R&D centres, and railway maintenance centres is not expected in the immediate future due to the severity of the pandemic, especially in the US and major European countries. The decline in demand is majorly due to the reductions in budget allocations for the railway sector by governments due to the spread of COVID-19 and the decline in demand from the Americas and Europe for the public transport segment.

Companies are taking various measures to deal with the negative effects of the outbreak of COVID-19. For instance, CRRC (China) is using the current market scenario to further strengthen its position by making strategic future-oriented investments and following a strict cost management program. The company is expected to offer new products which are expected to help receive supply contracts, which is expected to strengthen its position in the market. For instance, the first DMU developed by CRRC Dalian Co., Ltd. was exported to Abuja, Nigeria, and has successfully rolled off and entered the commissioning stage. In 2019, CRRC Zhuzhou Electric Locomotive Co., Ltd. was awarded a supply contract for 26 light rail vehicles by Monterrey Metro Bureau.

The COVID-19 crisis is leading to uncertainties in the stock market, significantly slowing the supply chain, leading to a fall in business confidence, and increasing panic among customer segments. Trade barriers are further restraining the demand-supply outlook. As governments of different regions have announced total lockdowns and temporary shutdowns of industries, overall production processes have been adversely affected; thus, hindering the overall market globally. The new strain of the virus has grown out of control in the UK, due to which the second lockdown in the UK is expected to impact the rolling stock market in 2021. Demand is expected to decline and government budget allocations for rolling stock are expected to be delayed in the UK.

For more information on this press release visit: http://www.sbwire.com/press-releases/rolling-stock-market-by-locomotive-technology-application-product-type-region-1352559.htm

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