Rolling Stock Market

The global rolling stock market reached a valuation of USD 54.6 billion in 2023 and is projected to reach USD 65.6 billion by 2030, growing at a CAGR of 3.8% during the period from 2023 to 2030. The increasing population in urban areas has led to significant strain on existing transportation infrastructure, prompting the need for expanding the rail network. Consequently, there has been a growing demand for rolling stock in recent years.

Major metropolitan cities face challenges such as inadequate infrastructure and deteriorating air quality. City dwellers also have to contend with high gasoline prices, traffic congestion, and greenhouse gas emissions. In this context, public transportation offers numerous advantages over private vehicles. Urban transit systems help alleviate traffic congestion and are more energy-efficient compared to other modes of transport. They provide commuters with a cost-effective alternative and contribute to reducing their carbon footprint.

Rolling stock primarily serves passenger transportation needs in the Asia Oceania and European regions. According to the International Union of Railways' 2022 synopsis, Asia Oceania accounted for 85% of total passenger kilometers traveled, while Europe accounted for 11%. These regions have prominent market players like CRRC Corporation Limited, Alstom SA, Siemens AG, Stadler Rail AG, among others, offering advanced rolling stock solutions for various applications. The adoption of new technologies and increased government investments in the railway industry are driving the growth of the rolling stock market in these regions. For example, in the Union budget for 2022-23, the Indian government allocated Rs. 140,367.13 crore (USD 18.40 billion) to the Ministry of Railways, emphasizing its commitment to the sector.

Market Dynamics:
Driver: Growing Electrification of Railway Networks
The global demand for environmentally friendly and energy-efficient transportation systems has been increasing due to concerns about a greener environment. This has led many countries to adopt electricity as the primary source of energy for their rolling stock, resulting in a significant rise in the electrification of railway networks worldwide. Electric locomotives and EMUs (Electric Multiple Units) are experiencing a rapid surge in demand as countries replace old diesel-hauled trains with electric alternatives. For example, South Korea has announced plans to phase out all diesel-hauled passenger trains by 2029, while Germany aims to further electrify its rail network. The Asia Oceania and European regions, including Russia, Japan, and South Korea, are leading in terms of railway network electrification. India has also achieved 100% electrification in three of its railway zones.

Restraint: Refurbishment of Existing Rolling Stock
The need to accommodate increasing passenger demand and reduce travel costs has driven the market for rolling stock refurbishment. Current rail franchises often struggle to meet the capacity requirements, making refurbishment a practical solution to enhance vehicle capacity, address reliability issues, improve energy efficiency, and modernize existing trains. Financial constraints and the desire to avoid purchasing new trains also contribute to the growing trend of rolling stock refurbishment programs. Examples include Eversholt's upgrading project in the UK and the Renatus program for modernizing class 321 EMUs. The refurbishment market is further bolstered by contracts awarded for rolling stock refurbishment and maintenance, such as those by the Passenger Rail Agency of South Africa. The increase in refurbishment programs and the opening of refurbishment factories may impact the market for new rolling stock.

Opportunity: Big Data Applications in the Rail Industry
Passengers increasingly seek an enhanced travel experience that includes amenities like onboard internet, smart tickets, automated fare collection, and door-to-door services. Big data collected from passengers' smart devices offers opportunities to improve economic models and service quality in urban rail networks. The application of big data analytics can help address organizational, technological, and operational challenges in the railway transportation sector, providing insights into traffic management, maintenance, energy resources, and more. By leveraging big data, rail operators can make data-driven decisions, forecast ridership numbers, and enhance their product offerings. Big data also enables better analysis and prediction of rolling stock behavior, leading to reduced maintenance costs, improved safety, and minimized disruptions. Projects like the online monitoring of rolling stock (OMRS) by the Central Organization for Modernization of Workshops (COFMOW) in Indian Railways demonstrate the benefits of using big data for monitoring and maintaining rolling stock.

Challenge: High Overhaul and Maintenance Costs
Regular maintenance and overhaul of rolling stock are essential for ensuring reliability, but they come with high costs. Annual maintenance costs for high-speed trainsets can reach USD 1 million, considering both component replacements and infrastructure maintenance. Rolling stock requires extensive maintenance when it reaches half of its operational life, including electrical, mechanical, and hydraulic components. Such maintenance activities require significant investments. Long-term maintenance contracts, like the one signed by Alstom SA with Alpha Trains Group, and refurbishment contracts won by companies like VR FleetCare, illustrate the ongoing challenge of managing the high costs associated with maintenance and overhaul in the rolling stock industry.

The forecast period is expected to witness significant growth in the rapid transit segment.
The growth of intercity and intracity transportation, driven by increasing urbanization, is a major factor contributing to the expansion of the rapid transit segment. Governments worldwide are making substantial investments in infrastructure development, leading to a higher adoption of rolling stock. For instance, in January 2023, LE TRAIN and Talgo signed an agreement in Bordeaux to develop a fleet of high-speed trains tailored for the French market. Similarly, Hyundai Rotem secured a USD 656 million contract in August 2022 to locally produce rolling stock for the Cairo Metro. These initiatives, along with other projects aimed at enhancing rail connectivity, will drive the demand for rolling stock in the rapid transit segment during the forecast period.

Leading companies such as CRRC Corporation Limited, Alstom SA, Siemens AG, and Stadler Rail AG offer various rolling stock solutions like DMUs, EMUs, Light rail, and Metro, catering to the requirements of end-use applications. Consequently, the rapid transit segment is projected to experience substantial growth in the coming years.

The Asia Oceania market is projected to hold the largest share by 2030
The Asia Oceania region holds the largest market share for rolling stock due to the region's booming economies, including China and India, which provide significant opportunities for rolling stock manufacturers. Governments in these countries have recognized the potential of the rolling stock market and are making substantial investments to support its growth. For example, Indian Railways has already generated USD 23.5 billion in revenue during the current fiscal year, while China plans to invest USD 155 billion in expanding its railway network in the Yangtze River Delta region. Japan is also a technology leader in the rolling stock market, continually investing in innovative technologies. South Korea, once dependent on technologies from France and Japan, is now witnessing technological advancements brought by companies like Hyundai Rotem.

Key Market Players
The global rolling stock market is dominated by major players, including CRRC Corporation Limited, Alstom SA, Siemens AG, Stadler Rail AG, and Wabtec Corporation. These companies offer a wide range of products and solutions for the railway industry, boasting strong global distribution networks. They also prioritize research and development, investing heavily to introduce new and innovative products to the market.

This research report categorizes the rolling stock market based on Product Type, Locomotive Technology, Component, Application, and Region.
Based on the Product type:
• Locomotives
o Diesel Locomotives
o Electric Locomotives
o Electro-Diesel Locomotives
• Rapid Transit
o Diesel Multiple Unit (DMU)
o Electric Multiple Unit (EMU)
o Light Rails/Trams
o Subways/Metros
o Monorails
• Coaches
• Wagons
• Others

Based on the Locomotive Technology:
• Conventional Locomotives
• Turbocharged Locomotives
• Maglev

Based on the Component:
• Train Control Systems
• Pantographs
• Axles
• Wheelsets
• Traction Motors
• Passenger Information Systems
• Brakes
• Air Conditioning Systems
• Auxiliary Power Systems
• Gearboxes
• Baffle Gear
• Coupler

Based on the Application:
• Passenger Transportation
• Freight Transportation

Based on the Region:
• Asia Oceania
o China
o Japan
o India
o South Korea
o Australia
o Malaysia
• North America
o US
o Mexico
o Canada
• Europe
o Germany
o France
o Spain
o Italy
o Uk
o Switzerland
o Austria
o Sweden
• Middle East and Africa
o South Africa
o UAE
o Egypt
o Iran
• Rest of the World
o Brazil
o Russia
o Argentina

Recent Developments:
• Siemens Mobility expanded its manufacturing and services facility in Munich-Allach in April 2023 to meet the increasing demand for locomotives and services. The factory will be expanded from 50,000 m2 to 80,000 m2, providing additional capacities, optimizing production and logistics flows, and adding more office space.
• Alstom SA inaugurated a new production site in Valmadrera, Italy, in March 2023. The facility is dedicated to railway electrification and will develop and manufacture power transmission components for railway, metro, and tram lines.
• CRRC Corporation Ltd. (China) developed the first Qingyuan Maglev train in January 2023. The train features a 3-car formation with cabs at both ends and a carriage equipped with a combination of vertically arranged double-row seats and horizontally arranged seats. It has a seating capacity of 315 people and can accommodate 500 passengers in a "3+3" formation at different speeds.
• Deutsche Bahn AG (DB) entered into a development partnership with Siemens AG in November 2022 for long-distance rail transport. The two companies will collaborate on developing a new-generation high-speed train, with plans for a subsequent tender in the second half of 2023 for the development, construction, and certification of the new fleet.
• Siemens Mobility unveiled the Mireo Plus B battery train at InnoTrans 2022 in September 2022. The Landesanstalt Schienenfahrzeuge Baden-Württemberg (SFBW) has ordered 27 Mireo Plus B trains, which can operate on rail routes with or without overhead power lines. Delivery of the multiple units is scheduled between June and December 2023.
• Wabtec Corporation completed the acquisition of Collins Aerospace’s ARINC rail solutions business segment in June 2022. The acquisition included a rail dispatch and back-office system provider.
• Medha Servo Drives, based in India, signed a joint venture agreement with Swiss railway rolling stock manufacturer Stadler Rail AG in May 2022. The joint venture aims to establish a new rail coach manufacturing factory in the Indian state of Telangana.