The global railway equipment market is expected to grow at a CAGR of 4.10%, reaching a market size of US$120.457 billion in 2030 from US$98.532 billion in 2025.
The railway equipment market includes a wide range of products and services required for building, operating, and repairing rail networks. They encompass locomotives, passenger coaches, freight vehicles, signals, track components, and maintenance equipment. Passenger and goods train operators apply these techniques for safe, efficient, and reliable operations. The "strong growth" of the market can be explained against the backdrop of increased urbanization, demand for cleaner and more efficient transportation, and government investments in infrastructure development. Technological improvements like the advent of automation and electrification are poised to advance market development by improving operational efficiencies and addressing safety needs.
The major factors boosting the global railway equipment market expansion are rapid growth, development, and travel and tourism industries in different developing economies worldwide, which have their roots in economic growth and a growing middle-class population. A growing demand for increased linked railway infrastructure is needed to support the emerging transport and tourism industries, leading to a greater need for locomotives, affiliated coaches, and other relevant infrastructure.
Moreover, a booming rail freight transport linked with increased investments in constructing or improving existing rail infrastructure among the top developing countries in the world is anticipated to uplift market growth within the forecast period.
Rail transport is gaining acceptability due to economic benefits, safety benefits, and ease of access to a larger part of the population, driving its adoption in developed and emerging economies worldwide. Furthermore, government investments in the railway industry to capitalize on possible chances for better revenue gains are expected to fuel the market's growth. Moreover, expanding railway networks to more remote places to connect rural and urban areas will raise the demand for additional trains and related railway equipment, greatly contributing to market growth during the foreseeable period.
One of the primary factors driving global railway equipment market expansion is rising expenditure in the railway industry by various countries to increase income from this sector. Furthermore, the widespread use of railways as a mode of transportation is driving investments in developing and improving existing infrastructure and equipment, supplementing demand for various types of railway equipment and contributing to market growth in the coming years. According to the Interim Budget 2023-24, a capital outlay of Rs. 2.55 lakh crore (US$ 30.72 billion) was allocated for railways, representing a 5.8% increase over the previous year. Additionally, the total revenue of Indian Railways for fiscal year 2023-24 was US$ 28.89 billion (Rs 2.40 lakh crore). On March 15th of the previous year, total revenue was $26.84 billion (Rs 2.23 lakh crore).
Conventional rail systems are often standard railways for passengers or freight, serving as foundations for most countries' and regions' rail networks. Diesel and electric locomotives commonly allow passengers to carry freight for many networks. They are high-speed rails built specifically for fast movement, where trains would move at speeds greater than 250 kilometers per hour (155 miles per hour). These systems are built around rapid, efficient, and comfortable long-distance travel between major cities, in which traveling time is vastly reduced. Specially constructed for such expeditious services, high-speed passenger coaches provide improved safety and comfort.
Urban transit systems, including metros and light rail, are designed to regularly transport urban and suburban passengers. These are built to run very well in densely populated areas, offering frequent and reliable service. Electric multiple units (EMUs) are everywhere drawn up in a metro system, mostly because of their high efficiency and capability to work under many stoppages within a very short range.
The locomotive is an essential component of the train system; it is a special vehicle that powers the entire train set. It refers to a self-contained rail car fueled by either gasoline or electricity. The function of this equipment is to push or pull trains to facilitate the translocation of goods and passengers. Autonomous trains are progressing as a new method of improving train usage in cities and urban areas, which is still reliable. Real-time data transmission systems and superior sensor technology are driving the development of autonomous trains in the locomotive business.
North America is expected to continue leading the forecast period; as per the Association of American Railroads, freight rail contributes significantly to the American economy. The State provides an unmatched freight rail network worldwide. Increased investment in equipment, infrastructure, and technology continues to develop freight rail in the nation. The continuous rise in consumer demands, better passenger safety measures, and technology and operational breakthroughs have also contributed to passenger train services in the region.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Railway Equipment Market Size in 2025 | US$98.532 billion |
| Railway Equipment Market Size in 2030 | US$120.457 billion |
| Growth Rate | CAGR of 4.10% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
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| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in the Railway Equipment Market |
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| Customization Scope | Free report customization with purchase |