Enjoy complimentary customisation on priority with our Enterprise License!
The Rail Wheel Market size is forecast to increase by USD 1.31 billion, at a CAGR of 5.46% between 2023 and 2028. Market expansion hinges on various factors, notably the burgeoning rail passenger traffic worldwide, substantial railway infrastructure advancements across Asian nations, and heightened rail logistics demand propelled by escalating trade activities. The exponential increase in rail passengers underscores the need for enhanced rail systems and services, contributing to market growth. Asian countries' significant investments in railway infrastructure bolster industry prospects, fostering efficient and sustainable transportation networks. Moreover, the surge in trade activities amplifies the demand for robust rail logistics solutions, driving innovation and development within the sector. These factors collectively shape the trajectory of the market, emphasizing the pivotal role of rail transportation in modern economies and global trade networks.
Market Forecast 2024-2028
To learn more about this report, Download Report Sample
The market is a significant component of the rail vehicle industry, playing a crucial role in the smooth operation of trains and railway infrastructure. Rail wheels are designed to fit on the axles of rail vehicles, including freight wagons, passenger wagons, passenger cars, locomotives, and railway carriages. These wheels are essential for the traction and braking of trains, enabling them to move at varying train speeds. Rail wheels come in different types, such as HT Corrugated wheels and wagon wheels. The former is commonly used for high-speed trains, while the latter is used for freight and passenger wagons. Passenger car wheels are designed to provide comfort and durability, while bogies and suspension systems ensure a smooth ride. The market is driven by the increasing demand for railway infrastructure and rolling stock.
Further, steel is the primary material used in manufacturing rail wheels due to its strength and durability. Braking systems, such as disc brakes, are also essential components of rail wheels, ensuring safe and efficient train operation. Rail wheel factories produce wheels using advanced manufacturing techniques, ensuring high-quality and long-lasting products. The market is expected to grow due to the increasing demand for high-speed trains and freight transportation. The market is also driven by the need to replace worn-out wheels and maintain railway infrastructure. In summary, the market is a critical component of the rail vehicle industry, enabling trains to move safely and efficiently on rail tracks. The market is driven by the increasing demand for railway infrastructure and rolling stock, and is expected to grow in the coming years.
Growing rail passenger traffic is a major driving factor for the growth of the market during the forecast period. The global 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 market during the forecast period.
Increased government funding and public-private partnerships are the primary trends in the global market growth. Increased government funding and the implementation of public-private partnership (PPP) projects worldwide are fueling the demand 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, 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 market during the forecast period.
Volatility in the prices of raw materials is a major challenge to the growing market. The global 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 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 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.
Get a Customised Report as per your requirements for FREE!
The freight trains segment was valued at USD 1.68 billion in 2018. 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 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, 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.
For more insights on the market share of various regions View PDF Sample now!
APAC is estimated to contribute 41% to the growth by 2028. 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 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 market in APAC.
Companies 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 companies, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
You may also interested in below market reports:
The market is a vital component of the global rail transport industry, playing a crucial role in the smooth operation of rail vehicles. The market encompasses various types of wheels, including wagon wheels, passenger car wheels, and locomotive wheels, each with unique specifications based on train speed, braking requirements, and rail conditions. Factors such as wear and creep significantly impact the performance and lifespan of rail wheels. Advanced wheel designs, like HT Corrugated wheels, are increasingly adopted to enhance durability and reduce maintenance costs. The diameter and tilt of rails also influence wheel design and performance. Passenger rail operators face challenges from short-haul flights and long-distance trains, necessitating the need for high-speed trains and trans-Eurasian rail lines. Federal financial support and the coronavirus pandemic have affected the rail transport industry, leading to innovations such as network electrification, solar-powered railways, and digital transformation. Emissions reduction is a critical concern, with carbon substitutes, hydrogen trains, and emissions-free solar-powered railways gaining traction.
Further, smart mobile systems, automation, robotics, and digital train control are some of the technological advancements revolutionizing rail transport infrastructure. Solar power technology is integrated into railways through solar panels on rooftops and solar-powered tracks, providing sustainable energy solutions. The market continues to evolve, driven by the transportation industry's digital transformation, cloud computing, and mobile applications. The market continues to evolve with innovations like the HT (High Toughness) wheel and HT Corrugated wheel, designed for high-speed performance and durability. Flanges and axles remain critical components, ensuring safe operation alongside advanced braking systems. Manufacturers like Rail Wheel Factory are pivotal in producing wheels tailored for both freight wagons and passenger carriages. Each train wheel is engineered with precision, emphasizing reliability and efficiency. The market's growth is propelled by continuous advancements in railway carriage technology, focusing on enhancing flange and bogie configurations. As demands for high-speed rail transport rise, the industry's emphasis on safety and performance underscores the importance of these components in the market.
Market Scope |
|
Report Coverage |
Details |
Page number |
175 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.46% |
Market growth 2024-2028 |
USD 1.31 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.88 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 41% |
Key countries |
US, China, India, Canada, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, 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 S.A., 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 growth analysis, Market Forecasting, 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 market forecast period. |
Customization purview |
If our market 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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.