Rolling stock: Key market research findings
- Rise in investment initiatives by governments
- Adoption of asset finance as chief model for procurement
- Leading market players include Alstom, Bombardier, CRRC, GE, Mitsubishi, and Siemens
Technavio’s market research analysts predict that the global rolling stock market will grow at a steady CAGR of over 3% between 2016 and 2020. Electric train networks are excellent alternatives to road transportation networks and airways that are prone to congestion. The rise in fuel prices is also prompting an increasing number of people to choose trains over road or air transports. Governments in many developing countries are making huge investments in rail infrastructure related projects like electrifying of tracks, signaling, and urban transit systems. This has propelled the growth of the rolling stock of the market. By 2020, Europe will be the largest revenue-generating region and is likely to occupy around 46% of the total market share. The increase in the number of rail infrastructure projects will boost the demand for rolling stock and their components in Europe during the forecast period.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“The passenger rail operators face a financial challenge for buying rolling stock fleets, as it is not possible to finance the purchase of such an expensive asset at one go. This has propelled several rail operators to opt for asset finance for the procurement and ownership of trains. The asset finance model involves rolling stock leasing companies (ROSCOs) for buying trains and renting them to the train’s operators. This helps to finance the asset easily and allows the operator to keep interest until the time it is required. For instance, in the UK, three main ROSCOs own the majority of the rolling stock fleet,” says Sharan Raj, Lead Analyst, Transportation & Logistics, Technavio Research.
Rapid transit vehicles occupy the largest share in the market and is anticipated to hold almost 38% of the overall market share by 2020. The rapid transit vehicles comprise high-speed trains (HST), light rail vehicles (LRV), electric multiple unit (EMU), diesel multiple units (DMU), and metro vehicles. The high demand for high-speed trains in Asia and the Middle East has surged the need for rapid transit vehicles. The growing demand for urban rail transit systems and rising investments in LRV and electrifying rail tracks will fuel the growth of this segment in the coming years.
The market is characterized by the presence of several regional and global vendors. The market is primarily dominated by the European and Chinese companies. These players have a vast geographical presence with respect to rail supply and its infrastructure business. The market is capital-intensive in nature and requires high initial investments costs which are restricting the entry of new players. The major differentiating element in this industry is the contract fulfillment and project cost offered by companies.
A more detailed analysis is available in the Technavio report, Global Rolling Stock Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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