This report addresses global railway rolling stock market for
the FY2017 and forecasts for the period 2018 through 2022. The railway rolling
stock manufacturing industry is the supplier of trainsets, locomotives, and
wagons to global railroads. These manufacturers further produce electric /
diesel locomotives, freight and passenger rail cars, light rails, commuter and
metro cars, spare parts for these vehicles, and wagons like hoppers,
containers, gondolas etc.
Locomotives and wagons primarily transport freight and raw
materials, and provide passenger rail service. Passenger rails —rail cars, and
multiple units (DMUs/EMUs)—are built to withstand urban usage and loads, but
typically travel at higher speeds.
The report analyzes railway rolling stock manufacturing
during 2017– 2022, including industry trends and demand factors, growth and
inhibiting factors in the rolling stock sector as well as trade patterns in
both legacy and emerging foreign markets. The rail industry has high financial
barriers to entry and consolidation has left with very few rolling stock
suppliers on a global scale.
Industry trends are essentially driven both by market
demand for greater efficiency and by the local government’s new emission
standards for new locomotive engines. The primary intention of rail operators is
to increase capacities by carrying more passengers and freight over long
distance. This can be achieved only with reduced their operating costs, improved
engineering designs and offering cost-efficient services.
Despite strong growth over the early portion of the period,
rolling stock industry revenue is only expected to climb at an annualized rate of 2% to $71.7 billion over the five years to 2022. Demand
for high speed rail has increased due to early adoption of public transport
across long distance travels, while freight transportation will decelerate as
both supply and demand for industrial products such as coal, oil and machinery have
been stagnated substantially, but recent sharp commodity price declines have
generated negative revenue trends for the industry.
Over the next five years, the industry is expected to
continue growing. In addition to gains in industrial production and a renewed
focus on passenger rail infrastructure, government regulations regarding
rolling stock safety and emissions standards are expected to encourage demand. An
old rolling stock that no longer meets minimum requirements will need to be
replaced or retrofitted, improving revenue for the industry. Additionally,
demand from countries with large resource sectors is expected to increase
exports over the five years to 2022.
Energy and mass-efficient, high capacity and optimized
LCC rolling stock will meet the evolving needs of its customers. The future
generation of trains needs to be more efficient in order to reduce travelling
times and to be less aggressive towards the track and