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

Report Overview

The global rolling stock market size was valued at USD 61.5 billion in 2022 and is projected to expand at a compound annual growth rate of 6.0% from 2023 to 2030. Rolling stock such as wagons, locomotives, freights, and rapid transit vehicles plays an integral role in facilitating comfortable, reliable, and cost-effective transportation for passengers and transporting goods across long distances. The rolling stock demand has witnessed an increase in the forecast period owing to an increase in the adoption of public transport such as local trains, passenger trains, and metros. Increasing budget allocation and launching various initiatives by the Governments for the development of railway infrastructure is also proving to be an effective parameter for the overall rolling stock market growth.

In April 2022, Bharat Heavy Electricals Limited (BHEL) announced an order confirmation from NTPC Ltd., an Indian energy conglomerate, to purchase six electric locomotives, which will be brought into service for the first time in industrial applications in India. The company's factory in Jhansi, Uttar Pradesh, will manufacture the locomotives. While its Bhopal plant will provide the traction motors for the locomotives, its Bengaluru unit will develop and deliver the IGBT (Insulated Gate Bipolar Transistors)-based propulsion equipment.

The shockwaves of COVID-19 were felt throughout the globe. Following the guidelines issued by the World Health Organization (WHO), many countries placed lockdowns which resulted in halting trade worldwide. Exports and imports were disrupted majorly by countries like China, resulting in manufacturing suspension and closures of factories worldwide. These circumstances impacted the rolling stock market negatively. With the disruptions caused by the manufacturing process and the supply chain, the global rolling stock market was looking at an uncertain recovery timeline due to decreased demand for the locomotive fleet.

The demand for rolling stock was affected in countries impacted by COVID-19; owning partial or fully enacted lockdown, and travel restrictions further decreased the demand. However, as the lockdown was lifted throughout the world, easing trade and travel restrictions; the demand for rolling stock experienced recovery as manufacturing and factory operations resumed initiating the continuation of railway projects around the world.

Since the establishment of the railway transport system, the rolling stock has gone through substantial technological advancement. The 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 stocks existing technical advantages. Many companies are developing lightweight components to increase the fuel efficiency and reliability of trains.

The development of regenerative braking technology facilitates energy conservation and decreases the need for mechanical breaks, thus increasing the efficiency of rolling stock. These developments are expected to impact the global rolling stock market growth in a positive manner. For instance, in November 2022, Siemens established a new rail bogies manufacturing factory in Aurangabad, Maharashtra, India. The new factory, created to suit the 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, the 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.

The use of data analytics for service support and prediction of maintenance schedules is making a widespread impact on the rolling stock market. For instance, in October 2022, Wabtec Corporation partnered with Akiem, a leasing rolling stock specialist, to offer essential equipment maintenance for locomotive fleets in Europe. According to the agreement, customers of Akiem will benefit from improved rolling stock availability, dependability, and safety. The five-year arrangement covers HVAC, pantographs, and brake parts for the company's PRIMA and TRAXX services in Germany and France.  Wabtec and Akiem's goal is to maximize asset availability for the operator's clients.

In recent years, the increased preference for railway transportation has resulted in considerable demand for this rolling stock and supporting infrastructure. However, the high cost of trains, rolling equipment, and accompanying infrastructure are very capital-intensive and require considerable financial support from local and central administrations. For instance, the subterranean segment of phase III of the Delhi metro would cost $75 million (552 crores) per kilometer to construct, compared to an average cost of roughly $27 million (200 crores). For instance, in September 2022, Siemens Mobility announced a contract for the supply of new locomotives from Akiem, a leasing rolling stock specialist.

The new agreement was a component of a framework contract for the purchase of locomotives that was inked in December 2021. According to the agreement, Siemens Mobility will give Akiem 65 Vectron AC and MS locomotives. It is projected that the first locomotive under the new order will be shipped in the mid of 2024. The new locomotives can travel at a top speed of 200 km/h or 230 km/h with a maximum power of 6.4 MW.

Product Type Insights

Based on product type, the market has been segmented into locomotive, rapid transit, and wagon. Rapid transit vehicle is estimated to grow at the highest CAGR of 6.9% in the forecast period. Factors such as high speed, affordability, and comfortable travel make it a preferred choice of public transport by the increasing urban population. Moreover, as rapid transit vehicles run on electricity, its Train Type source positions them as environment friendly. Thus, the above-mentioned particulars contribute to the growth of rapid transit vehicles.

Rapid Transit Vehicle segment dominates the rolling stock market share in product type by over 32% in 2022. Increasing urbanization is leading to the expansion of cities and towns which leads to long distance commuting. Thus, 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.

For the movement of goods domestically or internationally, governments and private players prefer to use wagons owing to their ability to carry a high volume load. 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.

Type Insight

Rolling stock is generally bifurcated into types electric and diesel based. The electric based rolling stock segment is expected to expand at a CAGR of 7.7% during the forecast period. Rapidly increasing global warming has triggered calls for de-carbonization. Electric train segment is environment friendly and has lower carbon monoxide emissions than diesel trains. Thus, investment in the development of technologies and infrastructure for electric railways is boosting market growth.

Even though electric trains are gaining more ground, diesel trains dominate the market share by over 62% in 2022 as countries move towards the electrification of railways, diesel trains still make up a part of many rolling stock fleets. 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 environmentally conscious, diesel train technology is advancing to develop low-emission engines for diesel locomotives.

Train Type Insight

Based on train type, the rolling stock market is divided into passenger rails and freight trains. Among the segment, passenger rails are anticipated to grow at a CAGR of 8.4%. Thus becoming the preferred daily commuting choice worldwide. As the population steadily increases the demand for passenger trains also saw a rise. For instance, in April 2022, Wabtec Corporation announced a maintenance contract with the 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 the railroad's fleet of coaches, wagons, and locomotives.

Freight trains consist of the largest market share in the train type segment at 58%. Considered to be an integral part of the worldwide supply chain, its ability to transport high volume goods internationally and domestically positions them 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. The emergence of technologies for tracking and security is improving the service quality of freight trains.

Regional Insights

Asia Pacific dominated the rolling stock market with a 43% market share in 2022. The increasing population in the region is invoking the adoption of passenger rails for commuting. Moreover, 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 ElectricCorporation, 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 the organization actively pursues carbon neutrality across the continent.

MEA regional markets are expected to exhibit the highest CAGR of 7.1% over the forecast period. The increasing need for developing a robust railway system across the Middle Eastern and African regions for transporting goods and commuters is a driving factor for the region's rolling stock market growth. For instance, the Gulf Railway involving Bahrain, Kuwait, Oman, Saudi Arabia, Qatar, and the United Arab Emirates 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. The urban population in the region is driving investment in passenger rails and rapid transit vehicles. Rolling stocks such as freight rail are experiencing rising demand owing to the transportation of goods such as the fossil fuel industry and mining industry.

Key Company & Market Share Insights

The major players have a global presence which facilitates partnerships among private and government entities to develop effective and efficient railway system. The 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 a saturated stage as a result of mergers and acquisitions. For Instance, in September 2022, Rail First, a locomotive and wagon leasing company was acquired from Anchorage Capital Partners by a consortium of DIF Capital Partners and Amber Infrastructure Group at a 50:50 share. With a "blue-chip customer base," a well-diversified product offering, and typical lease terms of three to five years, the acquisition offers unique access to Australia's rail leasing industry. Some of the prominent players in the global rolling stock market include:

• CRRC Corporation Limited

• Trinity Rail

• Alstom Transport

• GE Transportation 

• Siemens Mobility

• The Greenbrier Co.

• Hyundai Rotem

• Stadler Rail AG

• Hitachi Rail System

Rolling Stock Market Report Scope

Global Rolling Stock Market Segmentation

This report forecasts revenue growth at global and regional levels and analyzes the industry trends in each of the sub-segments from 2022 - 2030. For this study, Grand View Research has segmented the global rolling stock  market report based on product, type, train type, and region:

• Product Outlook (Revenue, USD Million, 2022 - 2030)

  • Locomotive

  • Rapid Transit Vehicle

  • Wagon

• Type Outlook (Revenue, USD Million, 2022 - 2030)

  • Diesel

  • Electric

• Train Type Outlook (Revenue, USD Million, 2022 - 2030)

  • Rail Freight

  • Rail Passenger

•  Region Outlook (Revenue, USD Million, 2022 - 2030)

  • North America

    • U.S

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • Russia

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa