The global railway equipment market was valued at US$84.184 billion in 2019. The primary growth factors for that drives the global railway equipment market growth throughout the forecast period on incude 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 is significantly driving the demand for more connected railway infrastructure which is 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 the market growth throughout the forecast period.
Furthermore, the growing acceptance of rail transport to due 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 with an aim to tap the potential opportunities for higher revenue earnings from this sector is also anticipated to propel the growth opportunities for the market to grow in the near future. The expansion of railway networks to more remote areas for the connection of rural areas with the 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. However, the recent advent of the intense COVID-19 throughout the world is a major factor that is projected to inhibit market growth to some extent during the short run. Lockdowns in various countries around the globe, halt in the manufacturing activities, closure of inter-state and regional borders has further frozen the railway equipment manufacturing and the operations of railways in many countries, which in turn, is projected to negatively impact the demand for railway equipment and further hamper the market growth moderately.
Growing investments in the railway sector is significantly driving the market growth
One of the prime factors that is boosting the global railway equipment market growth is the burgeoning expenditure in the railway sector by various countries with an aim to boost the revenues from this sector. Furthermore, the high adoption of railways as a means of transport is further leading to the 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, in 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 the Network Rail which was related to the rail infrastructure of the country to be spent over the period of 2019-2024. 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 are significantly contributing to the increased demand for railway equipment and thereby pushing 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, Middle East and Africa, and 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 global 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 growth 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 of the world.
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 on account 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.