Locomotive Market Report 2026

The locomotive market size has grown strongly in recent years. It will grow from $23.52 billion in 2025 to $25.65 billion in 2026 at a compound annual growth rate (CAGR) of 9.1%. The growth in the historic period can be attributed to expansion of rail infrastructure, industrial freight demand, diesel locomotive dominance, government rail investments, long distance passenger transport needs.

The locomotive market size is expected to see strong growth in the next few years. It will grow to $35.06 billion in 2030 at a compound annual growth rate (CAGR) of 8.1%. The growth in the forecast period can be attributed to rail electrification programs, carbon reduction mandates, smart rail initiatives, growth of rail freight corridors, modernization of aging fleets. Major trends in the forecast period include rising electrification of rail networks, growing adoption of energy efficient locomotives, integration of digital monitoring systems, expansion of freight rail transportation, increasing use of hybrid locomotives.

The increasing demand for rail transport is expected to propel the growth of the locomotive market. Rail transport involves moving passengers and goods via trains running on fixed tracks, supported by infrastructure such as bridges, tunnels, and stations, offering efficient and sustainable land transportation. The demand for rail transport is driven by freight efficiency, infrastructure investments, supportive government policies, and incentives. Locomotives are essential to railway operations, enabling the transport of goods and passengers over long distances while providing operational flexibility. For instance, in February 2025, according to the Association of American Railroads, a US-based government organization, US rail transportation generated $233.4 billion in total economic output in 2023, with more than $50 billion in direct GDP contribution. Therefore, the increasing demand for rail transport is driving the locomotive market.

Leading companies in the locomotive market are concentrating on developing advanced products such as next-generation hybrid locomotives to reduce emissions, boost fuel efficiency, and enhance operational flexibility by combining electric and diesel propulsion systems. These hybrid locomotives represent a significant advancement in the rail industry's pursuit of more sustainable and efficient transportation solutions. For example, in May 2024, CRRC Corporation Limited, a China-based rolling stock manufacturer, introduced ten six-axle FXN3B locomotives, marking a new generation of hybrid locomotives. These locomotives have begun shunting in Beijing, demonstrating significant technological advancements in China's railway sector. They are modular and standardized with other machines in the Fuxing platform, making maintenance and repairs easier.

In June 2023, The CBH Group, an Australia-based agricultural company, acquired Narrow-Gauge Locomotives from Wabtec for an undisclosed amount. This acquisition is aimed at expanding CBH’s fleet of narrow-gauge locomotives and strengthening its rail infrastructure. The investment is vital for supporting CBH’s ‘Path to 2033’ strategy, which targets increasing monthly export capacity to 3 million tonnes by 2033. Westinghouse Air Brake Technologies Corporation, a US-based industrial company, specializes in providing locomotives.

Major companies operating in the locomotive market report include Siemens AG, Tata Motors Limited, CRRC Corporation Limited, Mitsubishi Heavy Industries Ltd., Toshiba Corporation, Alstom SA, Kawasaki Heavy Industries Ltd., Knorr-Bremse AG, Wabtec Corporation, Transnet SOC Ltd., Stadler Rail, Progress Rail, Hyundai Rotem Co., Strukton Rail B.V., Hitachi Rail, KONČAR - Elektroindustrija d.d., Pesa SA, Brookville Equipment Corporation, Akiem SA, Škoda Transportation a.s., PT Industri Kereta Api (Persero), Bombardier Transportation, Taiwan Rolling Stock Company.

Asia-Pacific was the largest region in the locomotive Market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the locomotive market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the locomotive market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The locomotive market consists of sales of shunting locomotives, battery electric locomotives, and hybrid 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.

This product will be delivered within 1-3 business days.