Rolling Stock Market Size, Share & Trends Analysis Report By Product (Locomotive, Rapid Transit Vehicle, Wagon), By Type (Diesel, Electric), By Train Type (Rail Freight, Rail Passenger), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global rolling stock market size was estimated at USD 61.50 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 6.0% from 2023 to 2030. Increasing investments in railway infrastructure and growing adoption of advanced digital solutions are key factors driving the market growth. Rolling stock vehicles, including locomotives, freights, wagons, and rapid transit vehicles play a major role in facilitating reliable, comfortable, and cost-effective transportation for passengers and transporting goods across long distances. Thus, several government agencies and private entities are focusing on enhancing their transportation infrastructure while deploying a large number of rolling stock vehicles that can carry considerable loads of freight, ultimately contributing to the growth of the market for rolling stock.

For instance, as of January 2023, Indian railways contribute approximately 27% of India’s freight transport. Thus, the government of India is aiming to enhance current share of railway freight transport to almost 40% - 45% in the coming years. As a result, government is focusing on various strategic initiatives, including collaborations and partnerships with major players in the rolling stock industry, to be undertaken to achieve its target. These initiatives involve high investments in deployment of advanced rolling stock vehicles and advancements in associated railway infrastructure.

Since establishing railway transport system, rolling stock has advanced substantially. Technological iterations are making railway travel more comfortable, convenient, equipped with facilities, and fast while being environmentally friendly. Major players are innovating solutions based on rolling stock’s existing technical advantages. The global railway industry faces challenges such as high maintenance costs, service delays, and unreliable stock and services, which lowers profitability, ultimately affecting market growth.

Thus, major players in global market have launched several digital platforms that allow railway authorities to overcome these challenges to a considerable extent. Siemens Mobility’s Railigent X is one such digital platform that allows efficient asset management and helps in reducing maintenance costs. Thus, with rise in digitalization, numerous companies in this industry are moving towards developing such advanced solutions, thereby contributing to rolling stock industry growth.

Numerous organizations across rolling stock industry are developing lightweight components to increase trains’ fuel efficiency and reliability. The development of regenerative braking technology facilitates energy conservation and decreases the need for mechanical breaks, thus increasing efficiency of rolling stock. These developments are expected to impact global rolling stock market growth positively.

For instance, in November 2022, Siemens established a new rail bogies manufacturing factory in Aurangabad, Maharashtra, India. A new factory, created to suit a rising demand in India and elsewhere, can deliver more than 200 bogies to fulfill one export order. Siemens' SF30 Combino Plus global design concept was used to create these rail bogies. The factory has a "flexible" production line to accommodate domestic and international rolling stock demands. It can make bogies for trams, metros, locomotives, coaches, and multiple electric units.

In a world of technological advancement, railways’ system is no exception to innovations such as Artificial Intelligence, data analytics, and automation. Data analytics is becoming a key part of service maintenance, compelling the rolling stock OEMs to adopt these services as solutions. Increasing use of data analytics for service support and prediction of maintenance schedules is making a widespread impact on rolling stock market. Furthermore, increasing investments in technology associated with railway infrastructure fuel the growth of rolling stock vehicle deployments across the global rail networks. In June 2022, government of the U.K. announced to invest around USD 1.25 billion in replacing outdated infrastructure with advanced digital signaling technology across the country’s railway network.

Increased preference for railway transportation has resulted in considerable demand for this rolling stock and supporting infrastructure in recent years. However, high cost of trains, rolling equipment, and accompanying infrastructure are capital-intensive and require considerable financial support from local and central administrations. Therefore, several rolling stock OEMs, rail operators, and third-party suppliers are shifting their focus to condition-based maintenance procedures conducted in real-time while trains are in operation. The near-time analytics programs assist authorities in conducting rail maintenance. By following these procedures, the rolling stock OEMs are observed to reduce their maintenance costs by up to USD 2 billion annually.

Besides, several major reforms are underway in the railway sector. New features will be added to trains and infrastructure on all routes. For instance, in March 2023, the KONCAR - ElektriCna vozila d.d. introduced an electric-diesel train at Pula Railway Station. Train can travel at a speed of 120 km/h and has a capacity of 167 passengers. It is a low-floor, three-part train with four double doors on each side. It contains two ramps for wheelchairs, space for bicycles, and video surveillance across entire passenger area. Passengers receive free Wi-Fi and visual and auditory announcements at stations and stops. This factor is expected to enhance quality of the transport service, as this type of low-floor train will cover 50% of the lines in this area.

Market Dynamics

Increasing investments in railway infrastructure are significantly impacting rolling stock market growth. With increased investments in railway infrastructure, focus on modernizing rolling stock is increasing. This involves upgrading locomotives with more powerful engines, installing better braking systems, and improving passenger comfort in coaches. Furthermore, it includes use of environmentally friendly rolling stock, such as electric trains or trains powered by alternative fuels. Increased investments in railway infrastructure also lead to the expansion of railway networks, which can subsequently drive the demand for more rolling stock. This involves the purchase of new locomotives, coaches, and wagons to meet the needs of an expanded network. Infrastructure upgrades such as improvements to the tracks, which include reducing number of curves or installing modern signaling systems, are also contributing to market growth. For instance, in March 2023, Siemens announced an investment of USD 220 million to build advanced manufacturing and rail services facilities in North Carolina, U.S. These new facilities are expected to improve rail technology to aid passenger’s smooth journey within the country.

The market is driven by the demand for improved passenger comfort. New technologies such as high-speed trains, modern interiors, and advanced sound-insulation systems are making rail travel more comfortable. Moreover, integrating Wi-Fi, infotainment systems, and charging ports in trains enhances the passenger experience. Growing demand for sustainable transportation is a major factor driving the rolling stock market growth. New technologies such as hydrogen fuel cells, battery electric trains, and hybrid locomotives are making rail transportation more sustainable. These technologies reduce emissions, minimize noise pollution, and help improve air quality.

Product Insights

Wagons segment accounted for the largest share of over 34% in 2022. Factors such as high speed, affordability, and comfortable travel make it the preferred choice of public transport by increasing urban population. Increasing investments by key players in automating and digitalizing components associated with wagons are further attributed to drive the market growth. Governments and private players prefer to use wagons for a movement of goods domestically or internationally due to their ability to carry high-volume loads. Wagons are economical and reliable for short and long transit. Governments and private players worldwide are either investing in buying new fleets of wagons or refurbishing their existing fleets.

Rapid transit vehicle segment is expected to dominate the rolling stock market over the forecast period. Increasing urbanization leading to expanding cities and towns is further anticipated to create growth opportunities for manufacturers. Moreover, rising urbanization is also compelling government authorities to launch public transport projects for rapid transit vehicles, such as metros and passenger rails, leading to increased investment in rapid transit rolling stock and its infrastructure.

Type Insights

Diesel type segment accounted for the largest market share of over 61% in 2022. Factors such as low cost, easy availability, and lesser volatility of diesel engines contribute to the segment growth. The growing need for enhancing freight transport and low replacement rate of diesel to electric have allowed this segment to drive the rolling stock market growth. Also, several major manufacturers are developing turbocharged diesel vehicles to cater to an increasing demand for efficient diesel-powered vehicles. Due to their ability to haul freight trains carrying heavy goods. They are widely used for industrial purposes due to higher torque engines. However, as the world becomes more environment-conscious, diesel train technology is advancing to develop low-emission engines for diesel locomotives.

Electric-based rolling stock segment is expected to grow considerably over the forecast period. Rapidly increasing global warming has triggered calls for de-carbonization. Electric train segment is environmentally friendly and has lower carbon monoxide emissions than diesel trains. Moreover, increasing awareness regarding environmental pollution is further encouraging the use of electric vehicles for transportation. Thus, investment in developing technologies and infrastructure for electric railways boosts market growth.

Train Type Insights

Rail freight segment led the global rolling stock market with a largest revenue share of over 57% in 2022. Considered to be an integral part of the worldwide supply chain, its ability to transport high-volume goods internationally and domestically positions it as a preferred alternative to road transport. Rail frights are functional in transporting fossil fuels such as coal, petroleum, and gas to raw materials and heavy industrial machinery. Emergence of technologies for tracking and security is improving the service quality of freight trains.

Rail passenger segment is anticipated to grow significantly over the forecast period. As the population steadily increased, the demand for passenger trains also increased. For instance, in April 2022, Wabtec Corporation announced a maintenance contract with Central Organization for Modernization of Workshops, Indian Railways.  This contract is for the Online Monitoring of Rolling Stock (OMRS) project, a fully electronic OMRS system under Indian Railways' "SMART Yard" strategy. By locating and resolving problems and preventing in-service failures, the OMRS system will assist in enhancing the availability of railroad's fleet of coaches, wagons, and locomotives.

Regional Insights

Asia Pacific region dominated the rolling stock market with a 43% revenue share in 2022. The increasing population in the region is invoking the adoption of passenger rails for commuting. The increasing trade in the region is also attributed to increased investment by the government in rail frights for the movement of goods. For instance, in May 2022, Siemens Mobility partnered with Mitsubishi Electric Corporation, an electronic and electrical components manufacturer, to promote the use of SiC in rail drive systems. Siemens offers rail platforms, including its most recent, the battery powered Mireo Plus B. The companies will work together to develop Mitsubishi's SiC power modules for use in those platforms.  European Union railroads are under more pressure to increase efficiency as organization actively pursues carbon neutrality across the continent.

Middle East & Africa (MEA) is expected to grow at the highest CAGR over the forecast period. Increasing need for developing a robust railway system across MEA for transporting goods and commuters is a driving factor for regional market growth. For instance, Gulf Railway involving Bahrain, Kuwait, Oman, Saudi Arabia, Qatar, and the United Arab Emirates (UAE) aims to create a railway infrastructure to facilitate cross-border trade and travel. Thus, creating avenues for the development of railway infrastructure and rolling stock. Urban population in the region is driving investment in passenger rails and rapid transit vehicles. Rolling stock such as freight rail are experiencing rising demand due to the transportation of goods such as fossil fuel and mining industries.

Key Company and Market Share Insights

Major players dominating the rolling stock market include Alstom Transport, CRRC Corporation Limited, Trinity Rail, GE Transportation, Siemens Mobility, The Greenbrier Co., Hyundai Rotem, Stadler Rail AG, and Hitachi Rail System. These major players have a global presence facilitating partnerships among private and government entities to develop effective and efficient railway systems. Technologies developed by these companies are helping railway networks worldwide to leverage the best innovations for enabling reliable and safe travel.

The market is in the saturated stage as a result of collaborations, mergers, and acquisitions. For Instance, in April 2023, Hitachi, Ltd., collaborated with Global Centre of Rail Excellence (GCRE), a rail testing and innovation facility in Wales, to test digital solutions, new rolling stock, and associated battery technology at GCRE. This partnership is anticipated to boost innovation in the U.K. railway industry. Thus, Welsh and the UK governments are supporting this collaboration for the betterment of U.K. rolling stock industry. Some prominent players operating in the global rolling stock market include:

• Alstom Transport

• CRRC Corporation Limited

• GE Transportation 

• Hitachi Rail System

• Hyundai Rotem

• Kawasaki Heavy Industries, Ltd.

• Siemens Mobility

• Stadler Rail AG

• The Greenbrier Co.

• Trinity Rail

Rolling Stock Market Report Scope

Global Rolling Stock Market Report Segmentation

This report forecasts revenue growth at global and regional levels and analyzes the industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global rolling stock report based on product, type, train type, and region:

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Locomotive

  • Rapid Transit Vehicle

  • Wagon

• Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Diesel

  • Electric

• Train Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Rail Freight

  • Rail Passenger

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Russia

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East and Africa

    • Egypt

    • South Africa