Global Light Rail Market 2016-2020

Overview of the global light rail market

Technavio’s market research analyst predicts that the global light rail market will grow at a moderate CAGR of close to 5% during the forecast period. Due to increasing urbanization and the need for mobility, the global demand for rail and related infrastructure projects will increase rapidly. This increase in the demand for rail and infrastructure related projects will bolster the need for light rail vehicles (LRV), which are used for transportation purposes within cities. Furthermore, with an increase in population in and around major metros, the demand for convenient transportation has increased significantly. Consequently, governments from across the globe have been compelled to invest in transport methods like trams, light rail, monorail,  and commuter rail services, which in turn is expected to enhance market growth during the predicted period.

According to this market research report, a major trend influencing the prospects for growth in this market is the growing preference for public-private partnership (PPP) model in developing countries. Since the PPP model offers cost savings and better risk sharing benefits, it is extensively used for railway infrastructure projects for their funding and implementation. In this model, the private players enter into long-term contracts with public or government authorities for the delivery and maintenance of urban transit systems. Such contracts provide greater certainty about the timely delivery of projects as these contracts are set on target fulfillment basis to ensure payment.

Geographical segmentation of the light rail market

• Americas
• APAC
• Europe
• MEA

The European region currently dominates the global light rail market and is envisaged to grow at a steady CAGR of over 4% during the estimated period. In this region, Western Europe is the major revenue contributor, followed by Eastern Europe and CIS. The recent increase in the number of rail infrastructure projects across countries like France, Sweden, the UK, and Germany will result in the strong growth of this market in Europe. In addition, factors like the presence of major rail supplier vendors in this region, such as Alstom, Siemens, and Standler, will also aid in the growth of this market over the next few years.

Competitive landscape and key vendors

The global light rail landscape is moderately competitive due to the presence of a few vendors. The vendors that have a vast geographical presence with respect to the rail supply and its infrastructure business will gain maximum market traction during the forecast period. The market is also characterized by its capital-intensive nature, which requires high initial investment cost. The key differentiating element in this industry is the contract fulfillment and project cost offered by companies.

Key vendors in the market are -

• Bombardier
• Alstom
• Siemens
• Mitsubishi
• CRRC
• Construcciones Y Auxiliar De Ferrocarriles SA (CAF)

Other vendors in the market include AmstedMaxion, Astra Rail, Azovobeshemash, Bradken, Cyient, DCD Rail, Downer Rail, éolane, FreightCar America, Hitachi Rail Europe, Japan Transport Engineering Company, JSC Dneprovagonmash, JSC Kryukovsky Railway Car Building Works, JSC Zavod Metallokonstruktsy, Kinki Sharyo, National Steel Car, Newag, Nippon Sharyo, OJSC Altaivagon, PESA Bydgoszcz SA, PKC Group, Progress Rail Services, Promtractor-Vaton CJSC, SGC Solutions, Sinara Transport Machines, Skoda Transportation, Stadler Rail Group, Talgo, Tratavagonka Poprad, The Greenbrier Companies, Trinity Industries, Vossloh Group, and Wabtec Corporation.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the global light rail market?
• What are the key market trends affecting the growth of the global light rail market?
• What are the challenges to market growth?
• Who are the key vendors in the global light rail market?
• What are the market opportunities and threats faced by the vendors in the global light rail market?
• Trending factors influencing the market shares of the Americas, APAC, Europe, and MEA.
• What are the key outcomes of the five forces analysis of the global light rail market?

Technavio also offers customization on reports based on specific client requirement.

Related reports

• Global Smart Railways System Market 2015-2019
• Railway Infrastructure Spending Market in China 2015-2019
• Global Energy Management Market in Railways 2016-2020

A light rail transit (LRT) is a medium capacity mode of mass rapid transport that uses equipment and infrastructure that is less massive than that used for heavy rail modes i.e. commuter and metro rail or subway. These systems can be integrated into any city due to their operating flexibility, and has been driving the market growth.

The global light rail market report is part of Technavio’s transportation and logistics research portfolio. This portfolio provides a comprehensive market analysis along with the market share, market sizing, and market segmentations covering areas such as logistics, packaging, transportation and distribution, and warehouse and storage. These market research reports provide a perspective on the various market opportunities and market threats along with the key trends that would influence the market growth during the forecast period. It presents insights into the changing competitive landscape and a detailed profiling and market analysis of the vendors. Also covered in the research are the key regions or countries that would have an impact on the market during the assessment years.