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North America Rolling Stock Market is poised to grow by USD 1.69 billion at a CAGR of 3.71% between 2023 and 2028. Market growth hinges on several factors, including the heightened demand for freight wagons, escalating urbanization rates, and the emergence of public-private partnership (PPP) models. Additionally, substantial investments in rail transportation infrastructure are propelling the growth of the rolling stock market. The increased need for freight wagons reflects a growing reliance on rail transport for cargo movement. Urbanization drives this demand, as cities require efficient transportation systems to manage goods. The PPP model's emergence indicates a shift towards collaborative efforts to enhance rail infrastructure, further boosting market prospects. Overall, these factors underscore the pivotal role of rail transportation in modern logistics, necessitating continuous adaptation to meet evolving demands.
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This report extensively covers market segmentation by Product (rapid transit vehicles, railroad cars, and locomotives), Type (rail freight and rail passenger)
The rapid transit vehicles segment is estimated to witness significant growth during the forecast period. The rapid transit vehicles segment refers to any rolling stock that is used for transporting rail passengers. This segment of rolling stock comprises vehicles including metro trains, light rail transit vehicles, trams, sleeper coaches, double-decker trains, and chair cars. In addition, there is a significant investment by several countries in the development and construction of urban transit systems to increase local and regional connectivity and improve economic activity.
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The rapid transit vehicles segment was the largest segment and was valued at USD 2.74 billion in 2018. Moreover, with the rising concerns of environmental pollution from fossil fuel-driven private vehicles, government agencies in North America have been focusing on improving the public transport networks. In addition, rail transport presents an economically feasible and energy-efficient solution. Furthermore, factors such as the development of long-distance passenger routes and the upgrades of vehicles on the existing routes are expected to fuel the growth of this segment which in turn will drive the North America rolling stock market growth during the forecast period.
Based on type, the segment is classified into rail freight and rail passenger. The demand for rail freight rolling stock is fuelled by the overall economic activity. There is an increase in demand for transporting goods as the economy is growing, leading to an increased demand for freight cars and locomotives. In addition, the types and quantities of commodities being transported by rail have a significant impact on rolling stock demand. Moreover, industries such as agriculture, mining, energy, and manufacturing heavily rely on rail freight for transporting raw materials and finished products. Furthermore, the rapid growth of e-commerce has boosted the need for efficient transportation and distribution networks. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
The market encompasses a wide array of railway infrastructure and rolling stock vehicles, including freights and advanced rolling stock vehicles. Both public and private entities play a significant role in the market, with a focus on energy-efficient and low-floor trains. The industry is embracing technologies like computer vision, artificial intelligence, and Positive Train Control (PTC) to enhance safety and efficiency. Rolling stock OEMs collaborate with rail operators to improve services and expand railway networks. The market also caters to urban areas, addressing challenges like inadequate infrastructure and air quality, particularly in major metropolitan cities. Wi-Fi-enabled trains and specialized vehicles like tank wagons cater to diverse needs across the continent. Our researchers analyzed the data with 2023 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.
One of the key factors driving the market growth is the increased demand for freight wagons. A significant part of the intercity commodity transportation was initiated through railroads in the US. In addition, most manufacturers in the country prefer railroad shipment as it is one of the safest modes of delivery. There is an increasing demand for freight shipments in countries such as the US and Canada.
The rail transportation sector in the US witnessed significant growth in 2022, with approximately 40%-43% of the overall rail traffic being attributed to trade. This trend is leading several companies to expand their freight wagon utilization in their transportation modes. The positive impact of these factors on the market is anticipated to continue driving growth during the forecast period.
The Europe rolling stock market is witnessing similar trends. The European rail freight market has been growing steadily, with an increasing focus on intermodal transport and the adoption of advanced technologies. The European Union's Green Deal initiative, which aims to make Europe carbon neutral by 2050, is expected to further boost the demand for rail transportation and the rolling stock market. Additionally, the increasing competition among European rail freight operators and the modernization of existing rail infrastructure are other factors contributing to the market growth.
A key factor shaping the market growth is the innovation in locomotive manufacturing. One of the major research being carried out in the R&D division of all established rolling stock manufacturers is the kinetic energy recovery system. In addition, the locomotive produces a large amount of energy while applying brakes during stopping and starting. Furthermore, it also helps the locomotive to transport heavyweight through hilly areas without the use of high horsepower engines.
Moreover, the new locomotive engines are manufactured with reduced pollution levels. In addition, the new air-to-air heat exchanger helps to reduce engine oil operating temperatures, which, on the other hand, helps reduce emissions. Furthermore, the advanced fuel injection technology helps to lessen fuel consumption, which obviously reduces pollution. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.
Increasing maintenance and repair costs of rolling stock are one of the key challenges hindering the market growth. The increase in maintenance cost of rail infrastructure coupled with the non-competitive pricing of rail freight can pose a significant threat to the market growth. In addition, rolling stock, including locomotives, freight cars, and wagons, is one of the most maintenance-intensive parts of the rail freight system.
Moreover, the maintenance cost of railways comprises the cost of maintaining and upkeeping trains, stations, loading docks, and signaling systems. Furthermore, routine maintenance necessitates replacing rail sections that are old or outdated, and the replacement cost is often expensive. Hence, such factors are negatively impacting the market. Therefore, it is expected to hinder the market growth during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from 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.
Market Customer Landscape
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.
ALSTOM SA: The company offers rolling stock such as avelia high speed trains, coradia regional trains, and traxx locomotives.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
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 2023 for the following segments
The market is driven by a focus on energy-efficient rolling stock, including low-floor trains equipped with Wi-Fi and modern amenities. These trains often feature visual and auditory announcements for passenger convenience. The market is adopting IoT, big data analytics, and sensor networks to enhance safety and efficiency while complying with safety and environmental impact regulations. This market's growth is fueled by the need to alleviate road transportation congestion, reduce greenhouse gas emissions, and create a greener environment. The shift towards electric-based rolling stock, including electric locomotives, EMUs, and DMUs, reflects efforts to reduce reliance on diesel and embrace alternative energy sources like electricity. This drive towards energy-efficient transport systems aligns with the region's goal of modernizing vehicles and expanding fleets to meet growing passenger demand.
Furthermore, the market is witnessing a surge in demand for energy-efficient rolling stock and low-floor trains equipped with modern amenities like Wi-Fi. This trend aligns with stringent safety regulations and the region's focus on reducing carbon footprint and traffic congestion. The market comprises railroad companies and repair and leasing companies catering to diverse needs, including rapid transit vehicles and electric-based rolling stock. As the population grows, there is an increasing emphasis on expanding public transportation and investing in network infrastructure to support it.
In the context of the global push towards reducing reliance on oil imports and transitioning to alternative energy sources, the transportation sector, specifically rolling stock, is undergoing significant changes. Embracing non-polluting transport systems and enhancing train energy efficiency are top priorities. One key area of focus is the implementation of Auxiliary Power Systems for Rolling Stock. These systems enable trains to operate more efficiently by supplying power for onboard systems, such as heating, ventilation, and air conditioning, even when the train is not in motion or connected to the main power supply. By reducing the need for idling engines, APS for Rolling Stock contribute to improved energy efficiency and reduced emissions. Modernizing vehicles with advanced APS technology not only enhances reliability but also significantly enhances the passenger experience by providing a more comfortable and consistent temperature inside the train.
Market Scope |
|
Report Coverage |
Details |
Page number |
152 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.71% |
Market growth 2024-2028 |
USD 1.69 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
2.85 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ALSTOM SA, American Industrial Transport Inc., Bombardier Inc., Brookville Equipment Corp., Caterpillar Inc., COLMAR Technik S.p.a., CRRC Corp. Ltd., FreightCar America Inc., General Electric Co., Hitachi Ltd., Hyundai Motor Co., National Steel Car Ltd., Railserve Inc. , Siemens AG, Stadler Rail Ag, The Greenbrier Companies Inc., Trinity Industries Inc., United Rentals Inc., Western Train Co., and WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORP. |
Market dynamics |
Parent market 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 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.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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