Electric Locomotives Market Report 2026

The electric locomotives market size has grown strongly in recent years. It will grow from $2.39 billion in 2025 to $2.58 billion in 2026 at a compound annual growth rate (CAGR) of 8.2%. The growth in the historic period can be attributed to government rail electrification initiatives, urban transit expansion, diesel-to-electric transition, growth in passenger rail demand, railway infrastructure investments.

The electric locomotives market size is expected to see strong growth in the next few years. It will grow to $3.44 billion in 2030 at a compound annual growth rate (CAGR) of 7.4%. The growth in the forecast period can be attributed to decarbonization targets, high-speed rail corridor development, adoption of SiC power modules, smart rail systems integration, freight rail electrification. Major trends in the forecast period include expansion of railway electrification projects, adoption of high-speed electric trains, integration of advanced power electronics, demand for energy-efficient rail transport, growth of multi-system locomotives.

The increased demand for railway passenger transport is expected to propel the growth of the electric locomotives market. Railway passenger transport involves conveying individuals via trains along a railway track. Passenger railways are a mode of transportation that moves people along a railroad route. For instance, in June 2024, according to the Office of Rail and Road, a UK-based government department, during the latest year, from April 1, 2023, to March 31, 2024, rail passengers in Great Britain made a total of 1.61 billion journeys (1.61 billion). This marks a 16% increase compared to the previous year's total of 1.38 billion journeys (1.38 billion) from April 1, 2022, to March 31, 2023. In the most recent quarter, from January 1 to March 31, 2024, there were 405 million journeys, representing a 13% rise from the 359 million journeys recorded in the same quarter of the previous year. Therefore, the increased demand for railway passenger transport is driving the growth of the electric locomotives market.

Major companies operating in the electric locomotives market are focusing on scaling up mass production of high-power electric locomotives, such as double-section 12,000 HP freight locomotives, to gain a competitive advantage. For instance, in March 2025, Alstom S.A., a France-based rail transport company, delivered the 500th electric locomotive - a 12,000 HP double-section Prima T8 WAG 12B - to Indian Railways from its Madhepura manufacturing site under a €3.5 billion contract. This locomotive can haul ~6,000-tonne rakes at up to 120 km/h with IGBT-based propulsion and regenerative braking. This trend supports broader rail-freight electrification and enhances freight capacity while reducing energy consumption and maintenance costs, though it demands substantial investments in infrastructure and supply-chain localization.

In September 2023, Beacon Rail Metro Finance B.V., a rolling stock leasing company based in the Netherlands, acquired Mitsui Rail Capital Europe B.V. for an undisclosed amount. This acquisition allows Beacon to further expand its presence in the European rail market while enhancing its fleet and service offerings. Mitsui anticipates that this transaction will lead to a profit, significantly improving its financial outlook for the fiscal year ending in March 2024. Mitsui Rail Capital Europe B.V. is also a locomotive leasing company located in the Netherlands.

Major companies operating in the electric locomotives market report include CRRC Corporation Limited, Hitachi Ltd, Kawasaki Heavy Industries, Siemens AG, Stadler Rail AG, Wabtec Corporation, Bharat Heavy Electricals Limited, Toshiba Corporation, Alstom S. A, Hyundai Rotem, Banaras Locomotive Works, China Railway Corp, CZ LOKO, ZOS Vrutky a.s, ZEPHIR, Schalke Locomotives GmbH, Vossloh Locomotives GmbH, SOFTRONIC Ltd, PESA Bydgoszcz SA, Faur SA, Newag SA, Bombardier Inc, General Electric Company, Transmash holding AG.

Western Europe was the largest region in the electric locomotives market in 2025. Asia-Pacific was the second largest region in the global electric locomotives market share. The regions covered in the electric locomotives market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the electric locomotives market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The electric locomotives market consists of sales of direct current (DC) and alternating current (AC) locomotives. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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