Rolling Stocks Market

Rolling Stocks Market Outlook (2023 to 2033)

Worldwide demand for rolling stocks is predicted to rise at a CAGR of 4.1% from 2023 to 2033. Currently, the global rolling stocks market is valued at US$ 59.88 billion and is thus expected to hit a market size of US$ 89.50 billion by 2033-end.

All vehicles utilized on a railway system are referred to as rolling stock. It includes locomotives, freight wagons, passenger coaches, and any other vehicle built to operate on railway lines. Rolling stock is an integral component of a railway network that transports both people and goods.

Several countries are investing in the expansion and modernization of their railway infrastructure. This covers the construction of new railway lines, the upgrade of existing tracks, and the development of high-speed rail networks. Such infrastructural investments are raising the demand for new rolling stocks to satisfy the increased transportation needs.

• For example, the Indian Railways obtained a budget allocation of US$ 18.6 billion for the fiscal year 2022 to 23, which was 27.5% higher than the previous year. Furthermore, the government intends to propose modern trains and has already privatized a few trains on specific routes.
• Similarly, in 2021, the United Kingdom government invested approximately US$ 63.23 billion in the rail network.

Rapid urbanization and population growth are boosting the demand for efficient and sustainable transportation systems in various regions. Railways are viewed as a feasible option for reducing congestion and carbon emissions. As a result, there is an increasing demand for rolling stocks to serve burgeoning urban areas and accommodate an increasing number of passengers.

Expansion of international trade is raising the demand for freight transportation services. Railways serve an important role in efficiently and cost-effectively carrying goods over great distances. As a result, freight wagons and specialized rolling stock are required to support the movement of goods across borders.

Rolling stock manufacturers are continually innovating to improve train performance, efficiency, and passenger experience. Lighter materials, more energy-efficient propulsion systems, increased safety measures, and enhanced comfort amenities are all part of this effort. Due to technological developments, outdated rolling stocks are being replaced with newer, more modern types.

As per Fact.MR, a market research and competitive intelligence provider, such aspects will propel the growth of the global market over the next ten years.

Report Attributes	Details
Rolling Stocks Market Size (2023)	US$ 59.88 billion
Projected Market Value (2033)	US$ 89.50 billion
Global Market Growth Rate (2023 to 2033)	4.1% CAGR
China Market Value (2033)	US$ 19.51 billion
Locomotives Segment Growth Rate (2023 to 2033)	4.9% CAGR
Key Companies Profiled	CRRC Corporation Limited; Trinity Rail; Alstom Transport; GE Transportation; Siemens Mobility; Transmashholding; Stadler Rail AG; Hitachi; Kawasaki Heavy Industries

Why is the Worldwide Market for Rolling Stocks Experiencing Steady Growth?

“Strong Focus on Electrification of Railway Networks across Regions”

Growing environmental concerns have created global demand for non-polluting, energy-efficient transportation systems. As a result, most countries favor electricity as a source of energy for different types of rolling stock. Consequently, the global demand for electric locomotives and EMUs (electric multiple units) is increasing rapidly. Countries are also replacing aging diesel locomotives and DMUs (diesel multiple units) with electric locomotives and EMUs.

• For example, South Korea stated in 2021 that it intends to phase out all diesel-powered passenger trains in the country and switch them with new electric bullet trains by 2029.

“Increasing Demand for High-Speed Passenger Transportation”

High-speed trains are in high demand around the world because they provide faster and more efficient transportation. The demand for rolling stocks is expected to grow as corporations invest in constructing high-speed trains. Moreover, as cities become more densely populated, there is an increasing demand for efficient and sustainable urban rail transit systems. This increases the need for rolling stock, such as metro trains and light rail vehicles.

“Integration of Cutting-Edge Technologies in the Industry”

To increase performance, cut maintenance costs, and improve the overall passenger experience, rolling stock manufacturers are rapidly incorporating advanced technologies into their products, such as the Internet of Things (IoT), artificial intelligence, and Big Data analytics. Such efforts are projected to contribute to market growth.

Country-wise Insights

Why are China, Japan, and South Korea Key Markets for Rolling Stock Manufacturers in Asia Pacific?

“Infrastructure Development, Government Support, and Presence of High-speed Rail Technology”

The market for rolling stocks in China, Japan, and South Korea is predicted to reach US$ 19.51 billion, US$ 5.45 billion, and US$ 2.86 billion, respectively, by 2033.

Rapid urbanization and population growth in China have boosted the demand for efficient and sustainable transportation solutions. Railways, including metro systems, are critical for reducing congestion and enhancing mobility in densely populated cities. The expansion of urban rail networks is driving the demand for rolling stocks in China.

China has made significant investments in expanding and upgrading its railway infrastructure. It possesses one of the world's largest high-speed rail networks and is constantly expanding additional lines and intercity links. China's tremendous infrastructure development is producing a significant need for rolling stocks to serve its developing railway network.

Japan's Shinkansen network, also known as the bullet train, is an iconic symbol of high-speed rail. It provides quick, dependable, and efficient transit between major Japanese cities. The continual development and upgrade of the Shinkansen network are pushing the demand for new rolling stocks, including the latest generation of Japanese high-speed trains.

Japanese rolling stock producers have successfully exported their trains to countries all over the world. Japanese companies have been able to gain contracts for rolling stock projects in various nations due to their reputation for quality, dependability, and modern technology. This is helping the Japanese rolling stocks market to flourish.

South Korea has been investing in the expansion of its railway infrastructure, particularly in urban areas. The construction of metro systems, such as the Seoul Metropolitan Subway, has created a demand for rolling stocks to accommodate the city's growing population. South Korea has also constructed high-speed rail connections between key cities, increasing the demand for rolling stocks.

The South Korean government has created rules and provided financial assistance to promote the domestic rolling stock business. Initiatives such as funding programs, tax breaks, and advantageous laws encourage investment in rolling stock manufacture and R&D. This assistance is fostering market expansion in South Korea.

Which Factors are Accelerating United States Market Growth?

“High-Speed Rail Development, Freight Transportation Demand, and Regulatory Support & Funding”

The United States market is expected to garner US$ 19.06 billion by 2033. The United States has been actively exploring the development of high-speed rail projects in several regions. These initiatives attempt to create more efficient and comfortable transportation solutions for both passengers and goods. High-speed rail necessitates the use of specialist rolling stock capable of reaching higher speeds, resulting in an increased need for modern trains and associated technologies.

The country has a significant demand for freight transportation, driven by domestic and international trade. Railways play an important role in transporting commodities across large distances throughout the country. Modern freight wagons and specialized rolling stock designed to carry diverse types of cargo efficiently are needed to fulfill the expanding freight transportation needs.

The United States government has developed policies and provided financing to encourage the growth of the country's market. Initiatives like the Federal Railroad Administration's grant programs, public-private partnerships, and tax breaks encourage investment in new rolling stock and infrastructure development. These activities foster a favorable environment for manufacturers and operators, hence driving market growth.

How is Germany Contributing to Worldwide Market Expansion?

“Strong Rail Infrastructure and Focus on Sustainability”

The German market is estimated to touch US$ 9.21 billion by 2033. Germany has a large and well-established railway network that serves both passenger and freight transportation. The country has been investing in rail infrastructure maintenance and modernization, including tracks, stations, and signaling systems. The need to upgrade and expand the existing infrastructure is creating demand for new rolling stocks.

With its famed InterCityExpress (ICE) network, Germany is a pioneer in high-speed rail technology. The ICE trains provide rapid and efficient transit between major cities and regions. Demand for high-speed rolling stocks is being driven by the expansion of high-speed rail routes and the introduction of additional connections.

Germany places a high value on sustainability and lowering carbon emissions in the transportation industry. Railways are regarded as a more environmentally friendly means of transportation than road or air travel. As a result, to encourage sustainable mobility, the government and industry are investing in the extension of rail services, including commuter and regional trains. The growing emphasis on sustainable transportation is propelling the country’s market forward.

Category-wise Insights

Why are Locomotives the Dominant Type of Rolling Stocks?

“Increase in Freight Transportation and Passenger Rail Services”

Global demand for locomotives is anticipated to develop at a CAGR of 4.9% during the forecast period. Many countries are investing in railway network expansion and renovation. This includes building new railway lines, upgrading existing tracks, and developing high-speed rail corridors. As railway infrastructure grows, more locomotives are required to supply the necessary power for trains to operate on these expanded networks.

Worldwide increase in freight transportation is driving the demand for locomotives. Railways are an efficient and cost-effective means of long-distance freight transportation. As businesses and global trade expand, there is a greater demand for locomotives that can move larger volumes of freight efficiently.

Development of passenger rail services is also supporting the demand growth of locomotives. Many countries are investing in enhancing their commuter, regional, and high-speed rail systems to provide efficient and sustainable transportation options. These passenger trains require engines to power the coaches and offer passengers dependable transportation.

When compared to other types of transportation, such as trucks or airplanes, locomotives are regarded as more environmentally friendly. As public concern about climate change and carbon emissions grows, there is a greater emphasis on sustainable transportation alternatives. Railways, which are powered by locomotives, play an important part in reaching these sustainability goals, resulting in an increase in demand for locomotives.

Competitive Landscape

The global market is highly competitive, with several players operating in the market. Key players in the rolling stocks market are focusing on R&D, new developments, and strategic alliances and collaborations to gain market share.

• Siemens Mobility expanded its manufacturing and service facility in Munich-Allach in April 2023 to fulfill the increased demand for locomotives and services. The factory was expanded from 50,000 m2 to 80,000 m2 to offer greater capacity for processing new orders, streamlining production and logistics operations, and providing more office space.
• Alstom SA opened a new railway electrification production site in Valmadrera (Lecco, Italy) in March 2023. The new facility will design and build power transmission components for railway, metro, and tram lines.

Key Segments of Rolling Stocks Industry Research

• By Type :

  • Locomotives
  • Metros
  • Passenger Coaches

• By Application :

  • Passenger Transportation
  • Freight Transportation

• By Region :

  • North America
  • Latin America
  • Europe
  • Asia Pacific & China
  • Middle East & Africa