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The Rail Wheel Market size is estimated to grow at a CAGR of 5.27% between 2022 and 2027 and the size of the market is forecast to increase by USD 1,203.58 million. The growth of the market depends on several factors, such as the growing rail passenger traffic, the railway infrastructure development in Asian countries, and the increased demand for rail logistics due to rising trade activities.
This report extensively covers market segmentation by type (freight trains, long-distance trains, suburban trains, and metro and monorails), application (OEM and aftermarket), and geography( APAC, North America, Europe, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
Rail Wheel Market Forecast 2023-2027
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Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
Driver
Growing rail passenger traffic is a major driving factor for the growth of the rail wheel market during the forecast period. The global rail wheel market is experiencing growth driven by the increasing rail passenger traffic, particularly in urban areas. The market is projected to grow at an average annual rate of around 4% until 2025. The development of railway infrastructure and the implementation of high-speed networks have positioned rail transportation as a sophisticated and preferred mode of travel compared to other options. Developing countries like India, with their growing population and urbanization, are witnessing significant growth in rail passenger traffic.
For example, in India, the volume of rail passenger traffic has increased by 59.21% from October 2021 to September 2022, according to CEIC data. This rise in passenger traffic has resulted in the expansion of passenger rail line networks in these countries. As a result, there is an increased demand for components such as rail wheels for passenger rail vehicles, leading to the growth of the global rail wheel market during the forecast period.
Increased government funding and public-private partnerships are the primary trends in the global rail wheel market growth. Increased government funding and the implementation of public-private partnership (PPP) projects worldwide are fueling the demand for rail wheels in the management of railway transportation. In North America, substantial investments exceeding USD 550 billion have been made to expand rail networks and improve maintenance activities for locomotives, freight cars, rail wheels, and other equipment. The PPP model has facilitated the development of dedicated freight corridors, enabling efficient and frequent transportation of goods.
This, in turn, drives the demand for new rail wheels and maintenance services. In the Asia-Pacific region, China is actively expanding its rail network, necessitating the purchase and maintenance of railway traction motors. In India, the railway industry plays a vital role in the economy, and the government is focused on enhancing rail infrastructure through PPP projects. Notably, several railway station redevelopments are planned by the private sector, supported by the PPP model. These ongoing expansions in railway infrastructure contribute to the growth of the global rail wheels market during the forecast period.
Volatility in the prices of raw materials is a major challenge to the growing rail wheel market. The global rail wheel market is facing challenges due to the unpredictable prices of raw materials used in its production, which can hinder the market growth. Raw materials like steel, aluminum, and cast iron are essential for rail wheel manufacturing, and their prices fluctuate due to factors such as market demand, supply dynamics, currency fluctuations, and geopolitical tensions. These price fluctuations impact the overall production costs, potentially leading to increased prices for rail wheels. The prices of commodities and metals are closely tied to global economic performance and price elasticity, introducing uncertainty into the market and affecting the profit margins of stakeholders in the value chain.
The pricing structure of iron ore, for instance, varies across regions due to import and export tariffs, posing a challenge for the global rail wheel market. The global price of iron ore has experienced volatility in recent years, with fluctuations influenced by high demand, supply shortages, and global economic conditions. Similarly, the ongoing conflict between Russia and Ukraine has caused the price of aluminum to reach unprecedented levels. These price fluctuations and uncertainties in the costs of raw materials present significant challenges for the global rail wheel market, potentially impeding its growth during the forecast period.
The demand for freight trains has witnessed significant growth in recent years, driven by the need for efficient and cost-effective transportation of goods. Rail freight remains a crucial component of the global economy, with governments investing in railway infrastructure expansion and new line development to enhance connectivity and promote environmentally responsible transportation.
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The Freight trains segment was valued at USD 1,633.94 million in 2017 and continued to grow until 2021. Rail freight offers lower direct costs compared to other modes, making it an attractive option for domestic transport. The demand for freight trains is expected to increase as the movement of cargo via rail expands, especially in cross-border trade activities such as those between China and Europe. In India, lower-priced rail freight and government initiatives to boost rail infrastructure will contribute to market growth. Additionally, long-distance trains are experiencing growth due to factors like increasing demand for efficient travel, improving railway infrastructure, and environmental concerns.
Moreover, investment in railway projects globally, including in countries like China, India, and various European and Middle Eastern nations, drives the demand for traction motors and supports the growth of long-distance trains. The focus on sustainability and the unique experience offered by long-distance rail journeys are further driving their popularity. Initiatives such as railway electrification trials in the UK and the development of dedicated freight corridors in India contribute to the growth of long-distance trains and subsequently increase the demand for rail wheels. These factors collectively drive the growth of the global rail wheel market in both the freight and long-distance train segments during the forecast period.
Based on application, the market has been segmented into OEM and aftermarket. The OEM segment will account for the largest share of this segment. One of the main drivers for the growth in the OEM segment is the increasing demand for rail transport globally. Governments and transportation companies are investing heavily in rail infrastructure to address traffic congestion and pollution, promote sustainable transportation, and improve connectivity between cities. For instance, in January 2023, China Railway Co. announced its plan to build more than 3,000 km of railways in China by the end of 2023, including 2,500 km of high-speed lines, to upgrade the system into an advanced transport network. China Railway Co. invested USD 104.8 billion in fixed assets in 2022 and built 4,100 km of new railways, including 2,082 km of high-speed lines, meeting its target. The increasing investment is creating substantial demand for rail wheels, and OEMs are responding to this demand by developing advanced technology systems that offer superior performance, durability, and safety. Such factors will increase segment growth during the forecast period.
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APAC is estimated to contribute 34% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.APAC, comprising countries like India and China, was the largest segment of the global rail wheel market in 2022 and is expected to retain this position throughout the forecast period. The region is experiencing significant growth in rail infrastructure, driven by factors such as the economic shift from West to East, the growth of Asian economies, and urbanization.
Moreover, substantial investments are being made in the railway sector, with trillions of dollars expected to be invested by 2025, particularly in countries like China and India. These countries have extensive railway networks that provide an efficient mode of transportation, especially in areas lacking adequate road infrastructure. The rising costs of fossil fuels and concerns about air pollution have led to a preference for electric trains over diesel locomotives, further fueling the demand for rail wheels in the region. With urban congestion and globalization driving the need for efficient transportation, electric trains are emerging as a viable alternative, driving the growth of the rail wheel market in APAC.
The COVID-19 pandemic had a severe impact on countries in the APAC region, including India, China, Australia, Malaysia, and Japan, particularly in 2020. However, with the adoption of large-scale vaccination efforts and the resumption of industrial operations and rail transportation, the regional economy began to recover. The opening of manufacturing units and restoration of the supply chain contributed to the market's momentum in early 2021. Additionally, economic growth and the resumption of travel activities supported market growth in 2021 and 2022. Furthermore, the development of railway infrastructure, increasing transportation needs, and the adoption of advanced technologies like smart monitoring systems are expected to drive the growth of the global rail wheel market in the forecast period.
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.
Amsted Industries Inc: The company offers rail wheels such as freight car wheel sets.
Bharat Forge Ltd: The company offers rail wheels such as wheelsets and Turbine wheel impellers.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The rail wheel market 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.
Rail Wheel Market Scope |
|
Report Coverage |
Details |
Page number |
169 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.27% |
Market growth 2023-2027 |
USD 1,203.58 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.64 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 34% |
Key countries |
US, Canada, China, India, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amsted Industries Inc., ArcelorMittal, Bharat Forge Ltd., Bochumer Verein Verkehrstechnik GmbH, Bombardier Inc., BONATRANS GROUP a. s, Commonwealth Steel Ltd., Construcciones y Auxiliar de Ferrocarriles SA, CRRC Corp. Ltd., EVRAZ Plc, Georgsmarienhutte Holding GmbH, JIANGSU RAILTECO EQUIPMENT CO. LTD., Kolowag, Lucchini RS Group, Nippon Steel Corp., Qingdao TSKY Railway Equipment Co. Ltd., Ramkrishna Forgings Ltd., Steel Authority of India Ltd., Taiyuan Heavy Industry Co. Ltd., and United Metallurgical Co. |
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, 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. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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