Global Locomotive Market 2024-2031

Global Locomotive Market 2024-2031

Locomotive Market Size, Share & Trends Analysis Report by Propulsion Type (Diesel, and Electric), and by End-User (Passenger, and Freight) Forecast Period (2024-2031)

The locomotive market is anticipated to grow at a CAGR of 8.2% during the forecast period (2024-2031). The market growth is driven by the rising demand for locomotives in developing regions due to growing investments in strengthening rail networks and infrastructure. Advancement in locomotive technology and the growing urbanization globally are other contributors to the global market growth. Additionally, the approach of shifting road traffic to the local rail network can be beneficial for market development. Further, the market is experiencing a significant boom by the rising trend of intramodal transport, the growing rail-freight industry, and the upgradation of passenger locomotives to optimize cost and time.

Market Dynamics

Expansion of the rail network and infrastructure to increase locomotive demand

The growth in the locomotive market is instigated by the rapidly growing rail networks globally aimed at increasing rail freight, reducing road congestion, developing remote railway reach, and fulfilling increasing demand for public transport. This expansion of the rail network is projected to create new opportunities and scope for the purchase of locomotives globally. For instance, in January 2023, Siemens Mobility received an order for 1,200 locomotives of 9,000 horsepower (HP) from Indian Railways, marking the single largest locomotive order in the history of Siemens Mobility and single largest order in the history of Siemens India. Deliveries are planned over eleven years, and the contract includes 35 years of full-service maintenance.

Autonomous and Smart Locomotives are the Future of Locomotives

In recent years, the traction around developing and deploying autonomous transport has risen exponentially which has also impacted the rail transport industry. Major players in the field are willing to invest and develop autonomous locomotive technology aimed at increasing the number of trains in both passenger and freight divisions, decreasing congestion, optimizing human resources, and evading the possibility of human error. For instance, in November 2022, Alstom accomplished the highest level of automation on a shunting locomotive near Breda, Netherlands, in collaboration with Dutch infrastructure manager ProRail and Belgian rail freight operator Lineas. This level of automation, known as GoA4, refers to fully automated starting, driving, stopping, and management of unexpected obstructions or occurrences without the direct involvement of any on-train workers during shunting tasks. This demonstration marks the end of a series of experiments conducted as part of an ongoing collaboration between Alstom, ProRail, and Lineas.

Segmental Outlook

Based on propulsion type, the market is segmented into diesel and electric.

Based on end-user, the market is segmented into passenger and freight.

Electric locomotives hold a major share based on propulsion type

Electric locomotives have been the most prominent propulsion type, attributed to their low cost of maintenance, operations, and purchase, lower energy consumption, less carbon footprint, and better performance. Further, the evolution of locomotives has been related to electric propulsion types such as hybrid and battery electric locomotives, suggesting an increasing dominance of electric-based locomotive types. In response to growing demand, in November 2023, Alstom delivered 300 electric locomotives to India Railways. This is a crucial step towards strengthening the Indian Railways' ability to move big freight trains at fast speeds to meet its ambitious freight ambitions.

Passenger trains are projected to dominate the end-user segment

The passenger segment is projected to dominate the market due to increasing urbanization, organizational efforts to reduce road congestion, the development of local and hyperlocal rail networks, and the upgrading of passenger rails. Further, the increasing population in developing regions has stimulated investment in expanding the passenger rail network to accommodate the future volume of public transport while reducing transport-related emissions. For instance, in December 2023, the Biden-Harris Administration announced $8.2 billion in new funding for ten significant passenger rail projects around the country, including the first world-class high-speed rail projects in our country's history. Key selected projects include building a new high-speed rail system between California and Nevada, which will serve more than 11 million passengers annually.

Regional Outlook

The global locomotive market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America).

Asia-pacific holds the major share in the global market

Asia-Pacific holds the major share of the global market and is predicted to demonstrate the highest CAGR during the forecast period. The ongoing increase in the regional government’s expenditure to improve rail capacity and infrastructure, rising investment in local and national passenger trains, and increasing population are key drivers of the regional market growth. The high regional dependence on rail networks and the growth of intramodal transport in the region are the other promoters of regional market growth. Also, this region is expected to invest in upgrading its existing locomotive and rail infrastructure based on current standards and future requirements. For instance, in the first half of 2022, China National Railway Group Co., Ltd. (hereinafter referred to as “National Railway Group”) invested more than $1.9 billion in new equipment, an increase of nearly 70.0% over the same period last year. Recently, China National Railway Group launched the third locomotive bid this year, with a total of 220 locomotives and some electrical equipment, for a total of about $666.0 million.

Market Players Outlook

The major companies serving the global locomotive market include Alstom SA, Siemens AG, Hyundai Rotem, CRRC Corporation Ltd., and Thales Group, among others. The market players are focusing on capitalizing on growth by adopting strategies such as collaboration, partnerships, and market expansion, among others. For instance, in November 2022, Alstom, a global manufacturer in smart and sustainable mobility, and Kazakhstan Railways (KTZ) signed a partnership agreement on the renewal of KTZ's locomotive fleet and maintenance support, which includes the next-generation locomotive KZ8A(NG). KTZ now operates 90 freight locomotives and 39 passenger locomotives, with a further 160 freight locomotives and 80 passenger locomotives on order.