The global rolling stock market size is anticipated to reach USD 75,118.9 million by 2025 registering a CAGR of 4.2% from 2019 to 2025, according to a new report by Grand View Research, Inc. Factors such as reduced traffic, cost efficiency, and reliability have propelled the adoption of rolling stock by end users for transportation of passengers, goods, and animals.
Rolling stock is commonly used for transportation of goods, such as agricultural products, conventional fuels, construction materials, heavy machinery, and so on, and passengers. The rail infrastructure of countries such as India is operated by governments, whereas, in developed countries such as the U.S. and Germany, the infrastructure is operated by either private entities or government. Benefits such as minimal accidents and breakdowns, as compared to other modes of transport, are further driving the market growth.
The introduction of high-speed trains and maglev trains has led to a change in passenger preference from conventional trains to these advanced trains, owing to their enhanced speed and comfortability. Numerous companies such as CRRC Corporation Limited, Bombardier Transportation, and Trinity Rail, among others, are implementing the turbocharger technology in locomotives used for public transport applications. This has further boosted the market growth.
The rapid transit vehicle segment is anticipated to witness substantial growth as these vehicles are faster, efficient, reliable, and affordable. Rapid transit vehicles use electricity for operation and consume one-fifth of the energy per passenger kilometer as compared to the road-based transport systems. Moreover, the growing demand for rail vehicles has prompted governments to implement trams and adopt electric locomotives on a large-scale. Such initiatives are expected to further help various regions to achieve economies of scale with their existing railway infrastructure.
The market is consolidating due to increasing mergers and acquisitions, owing to high competition and presence of established players in the market. In September 2017, Siemens and Alstom signed a memorandum that involved the collaboration of Siemens’ Mobility Business and Alstom for manufacturing rail vehicles.
Further key findings from the report suggest:
- The demand for rolling stock has increased over the years owing to benefits such as reliability and cost-effectiveness as compared to the other modes of transportation.
- The rail wagon segment generated the highest revenue in 2018, owing to the increased import and export of various products in industries such as automotive, oil & gas, and mining, among others.
- Governments across the globe are investing in rapid transit vehicles to improve connectivity among cities and introduce smart transport facilities to provide a reliable and comfortable transportation system.
- The MEA and South American regions are predicted to witness remarkable growth over the forecast period owing to the increasing applications of rolling stock in the oil & gas and mining industries.
- The key players in the market include CRRC Corporation Limited, Bombardier Transportation, Alstom Transport, and GE Transportation, among others.