Rolling Stock Market, By Component (Train Control Systems, Passenger Information Systems, Pantographs, Brakes, Air Conditioning Systems, Axles, Auxiliary Power Systems, Wheel Sets, Gearboxes, Traction Motors), By Locomotive Technology (Conventional Locomo

Rolling Stock Market, By Component (Train Control Systems, Passenger Information Systems, Pantographs, Brakes, Air Conditioning Systems, Axles, Auxiliary Power Systems, Wheel Sets, Gearboxes, Traction Motors), By Locomotive Technology (Conventional Locomotives, Turbocharged Locomotives, Maglev), By Product Type (Locomotives, Rapid Transit, Wagons, Others), By Application (Passenger Transportation, Freight), By Region (North America, Europe, Asia-Pacific (APAC), Latin America (LATAM), Middle-East & Africa (MEA)Trend Analysis, Competitive Market Share & Forecast, 2018-2028

Rolling Stock Market Estimated at USD 54 Billion in 2021

The rolling stock market is growing due to the rising demand for convenient public transportation infrastructure owing to increasing population along with expanding goods production and flourishing import and export activities across the globe…

A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the global rolling stock market was worth USD 54 billion in 2021 and is forecast to reach USD 73 billion by 2022. The rolling stock market is gaining significant traction owing to the rising demand for convenient public transportation infrastructure owing to increasing population and rapid urbanization. Furthermore, expanding goods production and flourishing import and export activities are also emerging as major driving factors for the rolling stock market. However, the high initial investment involved in the procurement of rolling stock and railway infrastructure development may act as a huge restraining factor for the market.

Rising Government Investment in Railways Infrastructure Development in Emerging Economies

Railways are a crucial part of an economy as well as an efficient way for people and freight transportation. Leading emerging economies such as China and India are significantly investing in railways infrastructure. For instance, China has built more than 25,000 km of high-speed rail service over the last ten years, as the World Bank reported in September 2019. Railways are continuously witnessing a swell in their budget allocation by the governments to support the increasing number of passengers in their respective countries. This is anticipated to fuel the demand for rolling stock during the forecast period.

Increasing Demand for Rapid Transit is Driving the Rolling Stock Market

Based on product type, the rolling stock market is segmented into locomotives, rapid transit, wagons, and others. The rapid transit segment holds the largest share in the rolling stock market. The increasing investment towards the development of high-capacity public transportation systems including railways, metro, etc. However, the wagons segment is projected to witness the highest CAGR during the forecast period owing to the rising demand for transportation of goods due to flourishing industrialization and the need for transportation of energy goods such as coal.

Rolling Stock Market - By Application

Based on application, the rolling stock market is segmented into passenger transportation, and freight. The passenger transportation segment accounts for the largest share in the market. The increasing demand for mass transit systems owing to rising population and rapid urbanization is fueling the demand for low-cost and fast transportation systems, due to which the passenger transportation segment is gaining significant traction. The freight segment is also growing at a substantial rate owing to globalization and flourishing imports and export activities both domestically and internationally.

Rolling Stock Market - Regional Insights

Geographically, the rolling stock market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle-East & Africa. Europe holds the largest share in the rolling stock market. However, the Asia-Pacific region is projected to witness the highest growth rate during the forecast period owing to the increasing government spending towards infrastructure development including railways. The expanding use of railways for passenger and goods transportation in the domestic region owing to its lower cost acts as a major factor driving the growth of the market.

Impact of COVID-19 on Rolling Stock Market

The unprecedented COVID-19 pandemic outbreak negatively halted the growth of the rolling stock market. The restrictions on the manufacturing operations of the rolling stock products and components due to lockdown directly impacted the market growth, incurring huge losses to the OEMs. Furthermore, the restrictions on the imports and export activities also created a huge shortage of components even after the lockdown was uplifted in most parts of the world. The market is projected to witness slow growth in the forecast period as well since the countries have shifted their focus and investment towards the development of healthcare infrastructure.

Competitive Landscape

The leading market players of the rolling stock market are CRRC Corporation Limited, Alstom SA, Siemens Mobility, Bombardier Transportation, Stadler Rail, Hyundai Rotem, Trinity Industries Inc., CJSC Transmashholding, Wabtec Corporation, Kawasaki Heavy Industries Ltd, DescriptionConstrucciones y Auxiliar de Ferrocarriles SA, Mitsubishi Heavy Industries Ltd., Hitachi Railway Systems, GE Transportation, and other prominent players.

The market is highly dominated by a handful of players, among which CRRC Corporation covers the most share. Market players are focusing on offering a wide range of products such as coaches, wagons, metro cars, diesel, and electric locomotives, etc., to diversify their product portfolio and boost their revenue. They often engage in partnerships and agreements with private and public infrastructure development companies to boost their sales. Furthermore, the adoption of other strategies such as mergers, acquisitions, collaborations, joint ventures, etc., is also prominent in this market.