The rolling stock market is estimated at US$43.429 billion for the year 2019. Rolling stock refers to all the types of vehicles operating under the rail transport industry which further includes locomotives, coaches, and wagons among others. The factors that drive the rolling stock market growth in the next five years is the burgeoning investments by the governments of various countries around the globe in the expansion of railway fleet and the expansion of railway networks with an aim to connect remote areas with the urban areas. This, in turn, is anticipated to propel the demand for rolling stock and thereby drive the market growth significantly throughout the forecast period.
The demand for public transport is increasing significantly especially, the rail transport due to lower costs, and wide a wide presence of rail networks in almost every country in the world. According to the International Energy Agency, freight activity and the number of passengers are expected to be double by the year 2050. This will further drive the demand for energy and lead to increased carbon emissions and further put and impact on the environment. This, in turn, has led to increased focus of the governments of numerous countries towards the protection of the environment which is leading to the growth in the investments of electric rail systems with an aim to curb the carbon emissions is further projected to positively impact the market growth in the near future. For instance, the government of India is planning to electrify the entire railway network of the country by the year 2025 with an aim to save energy worth US$1.5 billion.
However, the major factor that inhibits the market growth is the long life span of these rolling stocks as high initial costs further lead to overhaul and refurbishment of current stock, which is anticipated to be a prime factor to moderately impact the market growth in the coming year. Also, the recent pandemic of the deadly COVID-19 is anticipated to hamper the demand owing to the halt in the railway operations in many countries along with the temporary closure of industries which has led to a standstill in the manufacturing activities thereby negatively impacting the growth in the short run.
Rising investments in the railway sector
The key factor that is driving the rolling stock market growth during the forecast period is the growing investments in the railway sector of the various developing and developed economies of the world in the form of infrastructural expansions, fleet expansions, and on the expansion of rail networks. All these factors are collectively contributing to the increased demand for various types of rolling stock and further bolster the market growth. Also, the railway sector in many countries is considered one of the most important revenue generation sectors which is also a prime factor for the growing investments for tapping the potential revenue growth opportunities by the government. The infrastructure investments in rail transport in the various developing economies in the expansion of new railway networks and enhancement of current in developing economies play a significant role in boosting the market growth. In India, the investment of rail infrastructure reached 10,368,632,929 Euros by 2017 from 5,149,561,183 Euros in 2010. Also, the government schemes for the penetration of the bullet train in the country is also anticipated to provide an impetus for the market to surge in the next five years. For instance, in June 2015, India and Japan entered into an agreement for the development of a new high-speed railway network connecting Ahmedabad and Mumbai, the project is expected to come into operation by 2023. Similarly, in China investment increased to 105,084,000,000 Euros by 2017 from 85,005,375,986 Euros in 2010. Furthermore, in December 2018, Renfe, Spain’s state-owned company that operates freight and passenger trains in the country announced its plant for the expansion of its railway fleet by acquiring new trains with a budget allocation of 3 billion Euros. All these factors are anticipated to propel the rolling stock market growth during the next five years.
Asia Pacific region is projected to hold a notable share
Geographically, the rolling stock market has been classified into North America, South America, Europe, Middle East and Africa, and Asia Pacific. The Asia Pacific region is projected to hold a significant share in the global market due to the presence of one of the largest rail networks in countries like India and China. Additionally, the growing investments in India in electric trains, metros, and bullet trains are further supplementing the market growth in the APAC region during the next five years. The North American region is anticipated to show a notable growth throughout the forecast period owing to the presence of well-established state-of-the-art railway infrastructure and the presence of key market players in the region.
Prominent key market players in the rolling stock 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 rolling stock 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.