Locomotive Market Outlook 2031
The global locomotive market size was valued at nearly USD 15.4 Billion in 2022 and is anticipated to reach USD 32.9 Billion by 2031, expanding at a CAGR of 8.8% during the forecast period, 2023 – 2031. The growth of the market is attributed to a growing demand for rolling stock, rapid development of rail networks, and infrastructure globally.
Locomotives are vehicles for rail transport that work mainly of diesel or electric. Locomotives perform push-pull operations and are placed at the rear end, the front end or at both ends of the carriage. Locomotive service providers operate between several cities and they conduct urban operations.
Intercity locomotive service providers are usually state-owned and travel between different cities. However, urban service providers operate with a region or a single city through light rail infrastructure networks and suburban locomotives.
The market report finds that the COVID-19 pandemic restrained the locomotive industry growth due to reduced tourism activity during the lockdown period. This hampered the manufacturing and operations of private rail operators and government institutions. Locomotive manufacturers were adversely impacted with production coming to a standstill due to shortage of laborers and disruptions in supply chain.
Recent developments have increased the widespread usage of autonomous locomotives. Autonomous locomotives are driven without human inputs. They are controlled from distant control stations for conveying cargo and passengers. Sensors and algorithms for self-driving capabilities are applied for autonomous locomotives.
Locomotive Market Dynamics
Major Drivers
Growing need to reduce traffic congestions and environmental concerns due to pollution are expected to further drive the market growth of the locomotive market. Expansion of the rail networks to meet public transport necessities and the investment in high-speed trains is expected to propel the market.
Existing Restraints
Initial investments for setting up a locomotive network are extremely high. Need for continuous replacement of components and parts increases the maintenance costs, which are likely to impede the market.
Emerging Opportunities
Increasing technological research and developments in manufacturing of autonomous locomotives for freight transport management and carrying passengers is creating significant opportunities in the market. Innovations in communication-based train control (CBTC) for enabling stability, train alignments, and live locations are expected to create lucrative opportunities in the coming years.
Scope of Locomotive Market Report
The report on the global locomotive market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Locomotive Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016 – 2021
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Forecast Period
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2023–2031
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Segmentation
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Type (Electric and Diesel), Technology (Sic Module, GTO Thyristor, and IGBT Module), Component (Rectifier, Inverter, Alternator, and Traction Motor), and End-user (Passengers, Freight, Shunting/Switcher, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Locomotive Market Size and Analysis, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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HYUNDAI MOTOR GROUP; Taiwan Rolling Stock Co., Ltd; TOSHIBA CORPORATION; Stadler Rail AG; Materfer; KONCAR - Electronics and Informatics Inc.; Alstom; AEG Power Solutions B.V.; Siemens; CRRC; Hitachi, Ltd.; Bombardier; Bharat Heavy Electricals Limited; Wabtec Corporation; Metso Corporation; Brookville Equipment Corporation; Strukton; UGL Rail; Tata Motors; and Kawasaki Rail Car, Inc.
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Locomotive Market Segment Insights
Type Segment Analysis
Based on type, the market is bifurcated into electric and diesel. The diesel segment is expected to expand at a significant pace during the projection period, owing to the ease of availability, less volatility in prices, and being an economical fuel. Diesel engines supply adequate uninterrupted traction through the conversion of mechanical energy into electrical energy necessary which is expected to boost the segment.
The electric segment is anticipated to hold a key locomotive market share, owing to the increasing use of dual mode diesel-electric engine locomotives. Regenerative braking application in high-speed train braking systems, combined with quieter operations, is expected to boost the electric segment during the forecast period.
Technology Segment Analysis
On the basis of technology, the locomotive industry is categorized as SiC module, GTO thyristor, and IGBT module. The IGBT module is expected to dominate the locomotive market share during the forecast period owing to the growing use of dual mode locomotives that run by switching between electricity and diesel.
Frequency switching of IGBT modules is superior than GTO thyristor modules that requires less operational current. Traction noise and the generation of heat reduce significantly with the use of IGBT module, which is likely to boost the segment during the forecast period.
The SiC module segment is expected to expand exponentially in the coming years due to the reduction in traction offered and the flexibility in designing compact and light traction motors. Growing application of SiC modules for lightweighting of rolling stock is anticipated to propel the segment.
Component Segment Analysis
On the basis of component, the market is divided into rectifier, inverter, alternator, and traction motor. The traction motor segment is projected to hold large revenue shares in the market, owing to the reduction in mechanical losses, harmonic losses, and copper losses through the implementation of traction motors in locomotives.
The turning force produced by traction motors is capable of transmitting high propulsion power onto the locomotive wheels, which is likely to support the high-volume production of locomotive in the coming years. Traction motors are capable of withstanding vibrations which is expected to drive the segment during the forecast period.
The locomotive inverter segment is anticipated to gain significant revenue shares, owing to the potential of inverters to convert DC to AC power supply and in controlling the supply voltage and frequency as per the locomotive speed. The ability of locomotive inverters in regenerating power during the deceleration of the locomotive is likely to boost the segment in coming years.
End-User Segment Analysis
Based on end-user, the loco motive industries are divided into passengers, freight, shunting/switcher, and others. The freight segment is expected to expand at a significant pace during the projection period, owing to the need for less maintenance and high fuel efficiency on rail roads. Strong tractional forces and sustained spells of power are major advantages of freight locomotives, which is expected to drive the segment.
The passenger segment is anticipated to hold a key locomotive market share, due to the convenience provided for passengers in the form of travelling experience, ease, comfort, and the ability to multi-task than flying or driving by self. The extra room for carrying heavy luggage and increased safety through the journey as compared to other means of transport are expected to boost segment in the projection period.
Regional Analysis
In terms of region, the global locomotive industry is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to dominate the market during the projection period owing to the growing transport industry and the ever-swelling number of passengers using railway as the topmost preferred transportation medium. The top locomotive manufacturers of locomotives are based in countries in Asia with Japan, India, and China topping the list, which is expected to enhance the market in Asia Pacific.
The market of North America is projected to expand at a rapid pace in the coming years, owing to the growing adoption of electrical and autonomous locomotives in the US and Canada. Increasing government policies for adoption of green initiatives has led to the substitution of diesel engines with battery operated and electric automotives, which is likely to propel the market in North America.
Segments
The global locomotive market has been segmented on the basis of
Type
Technology
- Sic Module
- GTO Thyristor
- IGBT Module
Component
- Rectifier
- Inverter
- Alternator
- Traction Motor
End-user
- Passengers
- Freight
- Shunting/Switcher
- Others
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- HYUNDAI MOTOR GROUP
- Taiwan Rolling Stock Co, Ltd.
- TOSHIBA CORPORATION
- Stadler Rail AG
- Materfer
- KONCAR - Electronics and Informatics Inc.
- Alstom
- AEG Power Solutions B.V.
- Siemens
- CRRC
- Hitachi, Ltd.
- Bombardier
- Bharat Heavy Electricals Limited
- Wabtec Corporation
- Metso Corporation
- Brookville Equipment Corporation
- Strukton
- UGL Rail
- Tata Motors
- Kawasaki Rail Car, Inc.
Competitive Landscape
Players in the locomotive market include HYUNDAI MOTOR GROUP; Taiwan Rolling Stock Co., Ltd; TOSHIBA CORPORATION; Stadler Rail AG; Materfer; KONCAR - Electronics and Informatics Inc.; Alstom; AEG Power Solutions B.V.; Siemens; CRRC; Hitachi, Ltd.; Bombardier; Bharat Heavy Electricals Limited; Wabtec Corporation; Metso Corporation; Brookville Equipment Corporation; Strukton; UGL Rail; Tata Motors; and Kawasaki Rail Car, Inc.
They engage in strategies including mergers, partnerships, product launches, collaboration, and acquisitions, production expansion to boost their market share. The competitive landscape covers key insights into growth strategies adopted by major market players.
- In November 2022, Wabtec Corporation (NYSE: WAB), a global leader in freight and transit rail supplies, entered into a definitive agreement for acquiring Super Metal, a leading supplier of rail operation equipment.
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