Railway Equipment Market - Forecasts from 2022 to 2027

The global railway equipment market was valued at US$76.607 billion in 2020.

The primary growth factors that drive the global railway equipment market growth throughout the forecast period include the growing travel and tourism sector across the various developing economies of the world due to impressive economic growth and rising middle-class population.

The booming travel and tourism are significantly driving the demand for more connected railway infrastructure, further positively impacting the demand for locomotives, coaches, and other necessary infrastructure, among others.

Furthermore, the burgeoning railroad freight transport, coupled with the increasing investments in the development and uplift of the current rail infrastructure in the major developing economies of the world, is also projected to bolster market growth throughout the forecast period.

Furthermore, the growing acceptance of rail transport due to economic benefits, safety benefits, and ease of access to a higher proportion of the population is also driving its adoption across both the developed and developing economies of the world. Moreover, the government initiatives to invest in the railway sector to tap the potential opportunities for higher revenue earnings from this sector are also anticipated to propel the growth opportunities for the market to grow soon.

Expanding railway networks to more remote areas to connect rural areas with urban areas will further anticipate the requirements for more trains and necessary railway equipment, thereby significantly adding up to the market growth throughout the forecast period.

Growing investments in the railway sector are significantly driving the market growth

One of the prime factors boosting the global railway equipment market growth is the burgeoning expenditure in the railway sector by various countries to boost the revenues from this sector. Furthermore, the high adoption of railways as a means of transport is further leading to investments in the development and uplift of the current infrastructure and equipment, which is also supplementing the demand for various types of railway equipment and adding up to the market growth during the next five years.

According to the data from the Organisation for Economic Co-operation and Development, the infrastructure spending on rail transport for the improvement of existing infrastructure and on new transport construction in China increased to 105,084,000,000 Euros by 2017 from 85,005,375,986 Euros in 2010. Similarly in India, it increased from 5,149,561,183 Euros in 2010 to 10,368,632,929 Euros by 2017.

Furthermore, in 2018, the United Kingdom Office of Rail and Road (ORR), a non-ministerial department of the government responsible for the railways of Britain, approved the fund of £245 million RD&I proposed by Network Rail, which was related to the rail infrastructure of the country to be spent between 2019 and 2024. Moreover, the investment by the Government of India to uplift the railway sector of the country and bullet trains is also anticipated to boost the requirements of necessary equipment and infrastructure, which in turn, is also projected to provide an impetus for the market to surge in the near future. All these factors significantly contribute to the increased demand for railway equipment and thereby push the market growth throughout the forecast period.

Asia Pacific region is projected to hold a notable share

Geographically, the global railway equipment market has been classified into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. The Asia Pacific region is anticipated to hold a notable share in the global market owing to the presence of two of the largest globally known leading countries for their railway network, India and China. Also, the burgeoning investments in the railway sector of these countries are one of the prime factors for the growth of the railway equipment market in the APAC region during the next five years. The European region is projected to hold a noteworthy market share owing to the presence of well-established and one of the world's oldest railway systems.

Key Developments

• In October 2021, In order to facilitate the design and performance of rail components, Wabtec Corporation, a major technology provider for the freight and transit rail sectors, opened a top-tier global engineering lab in Bengaluru, India. The new facility increases Wabtec's engineering footprint and is the company's largest lab in India.
• In May 2021, Paragon Instrumentation Engineers Pvt. Ltd. Announced that they now offer digital track and turnout gauges. These provide the user with greater accuracy, reading comfort, and night-time usability.
• In April 2020, Seimens Mobility announced its contract with the Sacramento Regional Transit (SacRT) for supplying20 new light rail vehicles along with necessary tools and parts worth US$100 million.
• In December 2019, CRRC Corporation Limited announced its contract with the Monterrey Metro Bureau to supply 26 light rail vehicles.
• In December 2019, CRRC Corporation Limited announced its bid winning for the Porto Metro Procurement Project of Portugal, a long-term contract for supplying 18 new light rail trains. Their maintenance and services were included as part of this bid.

Competitive Insights

Prominent key market players in the global railway equipment market include Siemens, Bombardier, HYUNDAI ROTEM COMPANY, Wabtec Corporation, Mitsubishi Electric Corporation, Kawasaki Heavy Industries, Ltd., and Hitachi, Ltd, among others. These companies hold a noteworthy share in the market because of their good brand image and Type offerings.

Major players in the global railway equipment market have been covered along with their relative competitive position and strategies. The report also mentions recent deals and investments of different market players over the last two years.

Impact of the COVID-19 pandemic

The recent advent of the COVID-19 pandemic throughout the world is a significant factor that inhibited market growth. Strict social distancing and lockdown regulation in various countries around the globe led to a halt in manufacturing activities and resulted in the closure of inter-state and regional borders, which have further frozen railway equipment manufacturing and the operations of railways in many countries. This significantly affected the demand for railway equipment negatively and further hampered the market growth. However, with the resumption of railway services for travel and transportation, and the withdrawal of COVID-19 regulations, the market is anticipated to increase in demand. Moreover, the lack of maintenance of railway machinery and equipment during the pandemic is also expected to drive the market demand.

Segmentation

By Type

• Rolling Stock
• Infrastructure
• Components

By Application

• EMU
• DMU
• Locomotives
• Coaches

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Europe
• Germany
• France
• United Kingdom
• Italy
• Spain
• Middle East and Africa
• Saudi Arabia
• Israel
• Asia Pacific
• China
• Japan
• India
• South Korea
• Taiwan
• Thailand
• Indonesia