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The global railway AC units market size is estimated to grow by USD 3,116.8 million between 2022 and 2027 at a CAGR of 5.93%.
The growing need for environmental and sustainable transport modes driving green railwaysGHG emissions, global warming, and depleting fossil fuel reserves are major concerns in global energy. To address this, the Kyoto Protocol was implemented in 2005, setting emission standards worldwide. The International Union of Railways funded a project to analyze and categorize railway energy-saving technologies, which successfully monitors energy consumption worldwide.
Railways are crucial for transporting goods and require sustainable energy management to reduce emissions. Researchers and industries are exploring opportunities to improve efficiency and reduce costs, such as developing next-gen rails with onboard energy storage systems and optimizing operations. Advanced energy-efficient technologies are driving growth in the railway industry, with demand for railway AC units set to surge in the coming years.
This report extensively covers market segmentation by type (AC power railway air conditioner units and DC power railway air conditioner units), application (rapid transit vehicles, locomotives, and railroad cars), and geography (Europe, North America, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Additionally, the growth of the market depends on factors including growth in urban mobility solutions, and efficient and clean AC solutions for railways.
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Railway AC Units Market Driver
The growth in urban mobility solutions is notably driving market growth. With economic growth, countries are increasing their investments in railway infrastructure projects to provide better public transport services. These include increasing connectivity between cities, a line of operations for intercity transits, and high-speed trains. Countries such as India are making huge investments in developing metro and monorail projects to enhance public transport connectivity. Thus, the growing popularity of these modes of transportation in India will lead to an increase in demand for passenger railway vehicles, which will drive the growth of the market in focus during the forecast period.
Furthermore, growing urbanization and increased movement have instigated a surge in demand for passenger coaches in the urban rail market. Urban rail transit encompasses various kinds of local railway systems that offer passenger services within or around urban areas. As the growing population is moving toward urban areas, the demand for road transportation services has increased. Thus, the above-mentioned factors will boost the growth of the global railway AC units market during the forecast period.
Significant Railway AC Units Market Trend
The use of smart grids to power trains is an emerging trend in the market. Electric railways across the globe are considered to be fast and quiet means of transport. However, when the brake is applied, the energy of the moving train is lost. Capturing the energy that is lost during braking is an easy task, but redistributing it efficiently through the power grid is an arduous task. Research is being conducted to efficiently capture and redistribute the energy lost during braking by the use of smart grids.
It was observed that while large banks of ultra-capacitors cannot provide the required additional capacity, banks of lithium-ion batteries can. Apart from providing additional capacity, the banks of batteries can efficiently feed it back to the regional power grid. Pilot projects are under process in various parts of the world, wherein the braking energy is captured using a battery storage system. This energy is later fed to the regional transmission organization, which provides the extra electricity to grids falling short of power. Thus, the increasing use of power grids to power trains will boost the growth of the global market during the forecast period.
Major Railway AC Units Market Challenge
Lack of private sector participation hampering the growth of railways in developing countries is a major challenge impeding market growth. Capital investment in the railway system is exhaustive and demanding. It requires the regulators and governments to scrutinize every detail regarding the management of infrastructure, services, and energy regulation, among others. As a result, the railway industry's freedom to make decisions independently and commercially is much more constrained compared to other industries of the economy.
The private sector's contribution to the railway in developing countries such as India is still deficient. Due to this, the implementation of new technologies is slower. Fuel efficiency and power supply management can still be enhanced by encouraging private partnerships in this market to foster better investments and technologies. Thus, the lack of private sector participation in the development of railways, particularly in emerging economies will impede the growth of the global market during the forecast period.
Key Railway AC Units Market Customer Landscape
The report includes the market's adoption lifecycle, covering the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Railway AC Units Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Autoclima Spa a socio unico - The company operates under one segment. The company under this segment focuses on the manufacturing of refrigeration and heating equipment. The key offerings of the company include railway ac units.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the AC power railway air conditioner units segment will be significant during the forecast period. AC stands for alternating current, which occasionally reverses. It might begin at zero, increase to a maximum, decline to zero, turnabout, reach a maximum in the opposite direction, return to the starting value once more, and repeat this cycle indefinitely
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The AC power railway air conditioner units segment was valued at USD 4,998.32 million in 2017 and continued to grow until 2021. Alternating current has many advantages over DC because it can carry electricity across long distances with little energy losses, and therefore it is primarily utilized in railway AC units. Stepping up and down the voltage of an AC signal is significantly simpler and less expensive than stepping up and down the voltage of a DC signal in railway AC units. Worldwide, AC at 25 kilovolts (kV) railway electrification systems is employed, particularly for high-speed trains. Furthermore, the transmission of electrical power over long distances is significantly more cost-effective when using AC. Due to the above-mentioned factors, railways worldwide generally prefer AC power railway air conditioner units. Thus, such factors will boost the growth of the AC power railway air conditioner units segment of the global market during the forecast period.
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Europe is estimated to contribute 52% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The railway AC units market in Europe is expected to witness the highest growth rate during the forecast period. This can be attributed to factors such as technologically and infrastructurally advanced European countries, which prefer rail transport over road transport due to the former high reliability and punctuality. Germany, Poland, France, and the UK are some of the leading countries in Europe that use railways as the preferred mode of transportation for goods. Moreover, government organizations are investing heavily in developing railway infrastructure. With the rise in the number of railway infrastructure development projects, the demand for AC units is also expected to grow in the country during the forecast period.
Additionally, Europe is one of the largest markets for railway equipment, although it is facing stiff competition from APAC. With the presence of extensive passenger and freight railway networks in the region and the European Commission's proposals and plans to increase the high-speed rail network, Technavio expects ample demand for railway AC units from this region during the forecast period.
The outbreak of the COVID-19 pandemic in 2020 had a major negative impact on the market in the region. However, the COVID-19 vaccination drives carried out by the governments contained the spread of COVID-19 and led to the recovery of economic activities in the region in 2021. Moreover, the resumption of supply chain operations for railway AC units and the resumption of railway projects augmented the demand for railway AC units. Furthermore, the announcement of government stimulus packages to revive the growth of the major sectors, such as railways, will augment the growth of the regional market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Type (AC Power Railway Air Conditioner Units and DC Power Railway Air Conditioner Units), Application (Rapid transit vehicles, Locomotives, and Railroad cars), and Geography (Europe, North America, APAC, Middle East and Africa, and South America).
Railway AC Units Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.93% |
Market growth 2023-2027 |
USD 3,116.8 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.45 |
Regional analysis |
Europe, North America, APAC, Middle East and Africa, and South America |
Performing market contribution |
Europe at 52% |
Key countries |
US, China, Germany, France, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Autoclima Spa a socio unico, Blue Star Ltd., Coolair Logan, Daulat Ram Engineering Services Pvt. Ltd., DENSO Corp., Gardner Denver Inc., Hanon Systems, Hitachi Ltd., Honeywell International Inc., Knorr Bremse AG, LeeL Electricals Ltd, Liebherr International AG, Northwest Rail Electric Inc., SONGZ AUTOMOBILE AIR CONDITIONING Co. Ltd., Subros Ltd., The DC AIRCO COMPANY BV, Toshiba Corp., Trane Technologies Co. LLC, Westinghouse Air Brake, and Mitsubishi Electric Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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