Acumen research and consulting estimates that the global locomotive market is anticipated to reach market size of around US$ 8,000 Mn by 2027 and is anticipated to grow at a CAGR of around 3% in terms of revenue during the forecast period 2020 – 2027.
A locomotive is a diesel, electric and steam rail travel system used to drive a train or to hold railway cars on rails. Locomotives are divided into locomotives for cargo, passengers and refuel. The increasing urbanization trend has helped increase locomotive interest in the general public. The expansion of rail networks in most developed and developing countries are to be expected to drive the global locomotive market, as is the increasing concern among people regarding environmental sustainability. The growth of the world locomotive market has also resulted in substantial investments by authorities around the world in rail infrastructure development for freight and high-speed trains.
The increase in demand for rolling stock, which is energy intensive, growing urbanization, and widening the network of railways are key factors driving global locomotives industry growth. The market growth in the near future will be boosted by a variety of rail projects and environmental sustainability. The locomotives industry is funded by larger rail networks to meet the increasing need for public transport. Modern equipment such as auxiliary control modules, the silicon carbide (SiC) module and the insulated-gate bipolar transistor (IGBT) module contribute to the world's highest market share. Such technologies help to improve fuel efficiency, reduce emissions and minimize total weight while adjusting current state, which can lead to minimized power losses. Nonetheless, the big restraining factors of the global locomotive industry are high maintenance & repair costs and large capital investments in rolling stocks.
Government Support is Contributing the Locomotive Market Growth
Growing environmental concerns with respect to road and air travel pollution, including rising city congestion, are making rail transport the cheap and environmentally sustainable alternative. Management is controlled by private performers in most of the largest rail network countries. But at the same time, the government controls its activities. India has a state-owned rail network and in 2019 Indian Railway earned USD 9.62 billion for the fiscal year 2019-20, a budget 19.5% higher than the previous year. This numbers makes India the fourth largest rail network in the world. Therefore, there was a planned US$ 23.4 Bn in capital spending for railways. Similarly the government of the UK announced in 2017 that about US$ 50 Bn would be spent in modernizing the rail network from 2019 to 2024.
Asia-Pacific is projected to lead the power transmission network market. The enhanced socio-economic conditions in emerging economies like China, India and Japan are attributable to this growth. The growing population in these countries contributed to an increase in policy programs such as railway extensions, expanded rolling stock production, advanced rail networks, and replacement of power conversion systems to improve performance. The IGBT platform is the target for power transfer devices. The strong demand for this module pays tribute to its benefits, such as decreased weight and minimized loss of power by moving the current from AC to DC and vice versa. Throughout the extension and improvement of the rail network the State of North America and Europe are mainly investing. The projected development of the locomotive industry will be driven by rapid economic growth and rise in demand for power and transmission systems in Middle East and Africa.
Major players included in this report are AEG Power Solutions B.V., Strukton, Alstom, TOSHIBA CORPORATION, Siemens, Hitachi, Ltd., Bombardier, CRRC, Bharat Heavy Electricals Limited, Metso Corporation, Wabtec Corporation, Materfer, Brookville Equipment Corporation, and others. In this context, various industry experts and leading opinion leaders are analyzing in depth the qualitative and quantitative aspects for deepening their insight into the performance of the market and industry. This report provides a clear picture of the current scenario in terms of value and volume, technological growth, macroeconomic and demand factors which cover the historical and projected market size. In addition to an extensive survey of the market segments and regions, the report provides a comprehensive list of the strategies of leading companies in the industry.
The global locomotive market is segmented as below:
Locomotive Market By Technology
Locomotive Market By Power Conversion Components
Auxiliary power conversion Unit
Locomotive Market By Locomotive Type
Diesel Multiple Unit (DMU)
Electric Multiple Unit (EMU)
Locomotive Market By Geography
Middle East & Africa
The market value of locomotive is anticipated to be around US$ 8,000 Mn in 2027.
It is anticipated to grow around 3% CAGR amid the forecast period from 2020-2027
Asia Pacific held maximum share in 2019.
Asia Pacific is projected to grow at a fast pace during forecast period from 2020-2027.
The rise in demand for rolling stock that is energy efficient, augmenting urbanization, and expanding rail networks infrastructure is expected to drive the growth of the locomotive market.
High maintenance & repair cost and huge capital investment in rolling stocks is a major factor expected to restraint the growth of the market.
The report provides insights on global locomotive market segment by technology, power conversion components, locomotive type, and major geographic regions.