Electric Locomotives Market Opportunities and Strategies to 2033

This report describes and explains the electric locomotives market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global electric locomotives market reached a value of nearly $8.27 billion in 2023, having grown at a compound annual growth rate (CAGR) of 6.5% since 2018. The market is expected to grow from $8.27 billion in 2023 to $14.95 billion in 2028 at a rate of 12.6%. The market is then expected to grow at a CAGR of 10.8% from 2028 and reach $ 24.97 billion in 2033.

Growth in the historic period resulted from the increase in digitalization, increased preference for non-polluting and energy-efficient transport, increased investment from different sectors in electric locomotives, increase in the number of advanced electric locomotive projects and increased industrialization across various sectors. Factors that negatively affected growth in the historic period include high maintenance costs.

Going forward, the increasing freight rail traffic, rising fuel prices, increasing urbanization, globalization and growth in international trade, expansion of high-speed rail networks and government subsidies and incentives will drive the market. Factors that could hinder the growth of the electric locomotives market in the future include competition from alternative transport modes and high initial investment costs.

The electric locomotives market is segmented by energy transfer into overhead lines, third rail and on-board energy storage. The overhead lines market was the largest segment of the electric locomotives market segmented by energy transfer, accounting for 54% or $4.46 billion of the total in 2023. Going forward, the on-board energy storage segment is expected to be the fastest growing segment in the electric locomotives market segmented by energy transfer, at a CAGR of 14.6% during 2023-2028.

The electric locomotives market is segmented by technology into IGBT module GTO thyristor and SiC module. The IGBT module market was the largest segment of the electric locomotives market segmented by technology, accounting for 48.6 % or $4.02 billion of the total in 2023. Going forward, the SiC module segment is expected to be the fastest growing segment in the electric locomotives market segmented by technology, at a CAGR of 13.7% during 2023-2028.

The electric locomotives market is segmented by traction units into AC traction units, DC traction units and multi system units. The DC traction units market was the largest segment of the electric locomotives market segmented by traction units, accounting for 47.1% or $ 3.89 billion of the total in 2023. Going forward, the multi system units segment is expected to be the fastest growing segment in the electric locomotives market segmented by traction units, at a CAGR of 14.2% during 2023-2028.

The electric locomotives market is segmented by application into passenger transport and freight transport. The passenger transport market was the largest segment of the electric locomotives market segmented by application, accounting for 65.3% or $5.4 billion of the total in 2023. Going forward, the freight transport segment is expected to be the fastest growing segment in the electric locomotives market segmented by application, at a CAGR of 13.4% during 2023-2028.

Western Europe was the largest region in the electric locomotives market, accounting for 42.1% or $3.48 billion of the total in 2023. It was followed by Asia-Pacific, North America and then the other regions. Going forward, the fastest-growing regions in the electric locomotives market will be Asia-Pacific and South America, where growth will be at CAGRs of 14% and 13.4% respectively. These will be followed by Africa and Western Europe, where the markets are expected to grow at CAGRs of 12.4% and 11.8% respectively.

The global electric locomotives market is concentrated, with large players operating in the market. The top ten competitors in the market made up to 41.29% of the total market in 2023. CRRC Corporation Limited was the largest competitor with a 9.22% share of the market, followed by Hitachi Ltd. with 8.75%, Kawasaki Heavy Industries Ltd. with 6.81%, Siemens AG with 4.16%, Stadler Rail AG with 3.24%, Westinghouse Air Brake Technologies Corporation (Wabtec Corporation) with 2.97%, Bharat Heavy Electricals Limited with 1.95%, Toshiba Corporation with 1.81%, Alstom SA with 1.20% and Hyundai Rotem Co. with 1.16%.

The top opportunities in the electric locomotives market segmented by energy transfer will arise in the overhead lines segment, which will gain $3.34 billion of global annual sales by 2028. The top opportunities in the electric locomotives market segmented by technology will arise in the IGBT module segment, which will gain $3.29 billion of global annual sales by 2028. The top opportunities in the electric locomotives market segmented by application will arise in the passenger transport segment, which will gain $4.17 billion of global annual sales by 2028. The top opportunities in the electric locomotives market segmented by traction units will arise in the AC traction units segment, which will gain $2.97 billion of global annual sales by 2028. The electric locomotives market size will gain the most in China at $1.49 billion.

Market-trend-based strategies for the electric locomotives market include significant milestones in locomotive production with enhanced manufacturing capabilities, strategic partnerships and collaborations among major players to enhance product offerings and focus on production of high-speed electric locomotives with advanced component technologies to meet international specifications.

Player-adopted strategies in the electric locomotives market include focus on expanding business through new locomotive launches and strategic partnerships, strengthening market position through offering products to government to enhance electrification and strategic partnerships to expand business expertise.

To take advantage of the opportunities, the analyst recommends the electric locomotives companies to focus on scaling production efficiency to meet growing demand, focus on high-speed electric locomotives with advanced technologies, focus on on-board energy storage, focus on SiC modules for growth, expand in emerging markets, continue to focus on developed markets, focus on expanding distribution channels, focus on strategic pricing adjustments for electric locomotives, focus on industry events and webinars, continue to use B2B promotions and focus on targeting freight transport end-users.