Rolling Stock Market: Global Trends and Forecast to 2025

Rolling Stock Market
Rolling Stock Market by Product Type (Locomotive, Rapid Transit, Wagon, and Coach), Locomotive Technology (Conventional, Turbocharged, and Maglev), Application (Passenger and Freight) & Region

The Global Rolling Stock Market size is projected to grow from USD 51.6 billion in 2020 to USD 64.3 billion by 2025, at a CAGR of 4.5%. Increasing urbanization leads to an increase in demand for passenger transportation which is likely to drive this market. Factors such as increased investment in rail infrastructure and expansion of rail network would enable the growth of the rolling stock market.

An increase in developments of Metro projects and expansion of electrified network rail routes will further create opportunities for OEMs to expand their revenue stream and increase geographical presence. The rolling stock market in Asia Oceania is projected to experience the second-fastest growth after the MEA region owing to the high demand for rail transportation from countries like China, Japan, South Korea and India. Meanwhile in European and North American markets are growing due to an increase in demand for passenger and freight transportation.

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 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

Technological advancements are a key driver for the EMU market

There has been a rapid increase in the number of technological advancements in the rolling stock market. The EMU segment is estimated to hold the largest market share, in terms of value, in 2020. This can be credited to the latest generation of EMUs, which are characterized by modular designs. An advanced electric multiple unit is more efficient and favourable than a diesel multiple unit. The demand for EMUs is expected to increase significantly owing to the construction of new high-speed train lines in China and the demand for new vehicles in Russia, Japan, Brazil, and the US. Such innovations would spur the growth of this market.

The Asia Oceania market is projected to hold the largest share by 2025

Asia Oceania is expected to be the largest market due to increased production, domestic demand, and capacity expansions by rolling stock manufacturers. This increase in production helps cope with the rising demand for rail transportation and concerns related to fuel-efficiency norms and regulations. In addition to domestic markets, there is an increase in demand from international markets. In January 2020, CRRC received an overseas supply contract worth USD 55.5 from Portugal to supply 18 new light rails with a maintenance period of five years. Thus, demand in the Asia Oceania region is on the rise. Further, The Indian Railways received an FDI investment of USD 1,071 million from April 2000 to December 2020, which is expected to further lead to the development of rail infrastructure, which is expected to the market. Japan is the technology leader in the rolling stock market which is majorly used for passenger transportation. The country is continuously investing in the development of innovative technologies in rolling stock. Previously, South Korea’s rolling stock industry was dependent on technologies developed by France and Japan. However, companies such as Hyundai Rotem are bringing technological developments in the country’s rolling stock market.

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Opportunity: Increase in industrial and mining activities

Globally, there has been a rapid increase in industrial activity. Industries need transportation networks to move raw materials and finished goods efficiently. Freight transportation by rail has proved to be more cost-effective and reliable compared to road transport. During 2019–2020, more than 1,210.46 million tons of freight was transported in India through the railways. Increased mining activity in emerging economies is also expected to positively impact the market for freight transportation, which, in turn, is expected to propel the growth of freight wagons and locomotives.

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