Rolling Stock Market Growth and Trends
The global rolling stock market size is expected to reach USD 96.58 billion by 2030 with a CAGR growth of 6.0% from 2023 to 2030 according to a new report by Grand View Research, Inc. From transporting goods such as raw materials to industrial equipment and passenger’s rolling stock plays a multi-functional role worldwide. Considered to be a cost effective mode of transport coupled with factors such as comfortable travel, and reliability have proliferated the uptake of rolling stock by end-users. For instance, in November 2022, Alstom announced a new maintenance agreement with the Panama Metro (MPSA), a rapid transit system in Panama City that covers both corrective and preventive maintenance of Line 2 of the Panama Metro’s rolling stock, signaling, and power supply system. According to the conditions of the agreement, Alstom will hire, prepare for, and train all Panamanian experts and specialists to handle the services.
Rolling stock generally uses electricity or diesel as its power source. However, owing to rising crude oil prices and environmental concerns over carbon emissions, electricity powered rolling stock is seen as an alternative to diesel-operated rolling stock. Government agencies of the countries such as India, South Korea, Norway and Canada pivot towards complete electrification of railways. Thus, prompting heavy investments from private entities and government bodies for the development and expansion of rolling stock and its infrastructure are driving the global rolling stock market growth. For instance, in November 2022, Alstom announced a contract with Chennai Metro Rail Limited. Chennai Metro Rail Limited had placed an order with Alstom for 26 three-car autonomous trains worth 9,460 USD million. This is a clause of the Phase-2 Rolling Stock Contract agreement that the two parties have agreed upon. This contract’s scope of work includes the design, manufacture, supply, testing, commissioning, training of staff, provision of spare parts, and fault liability for 26 standard gauge autonomous metro rolling stock.
Moreover, several private and government players are integrating Artificial Intelligence (AI) and data analytics methods such as predictive analytics to anticipate maintenance schedules, accumulate data on speed to create a real-time schedule, and track location. The emergence of automated trains, hydrogen fuel-based and battery-operated rolling stock is further impacting the market growth-hydrogen-powered train shares the benefits of being cost-effective, eco-friendly, and high-performance with electricity-operated rolling stocks. These technological advancements are anticipated to boost the demand for the overall rolling stock market.
Rising population density is contributing to the accelerating growth of the rapid transit vehicle. Rapid transit vehicles are affordable, efficient, reliable, and faster, making their fleet suitable for the urban and rural population’s commute. Therefore, the increasing inclination of daily commuters toward public transport such as rapid transit vehicles and passenger trains is prompting government and private players to invest heavily in the development of railway infrastructure, proliferating the rolling stock market growth. For instance, in October 2022, TrinityRail received a USD 1.8 billion railcar supply deal from GATX, a railcar leasing company. The protracted contract states Trinity Rail will provide 15,000 freshly constructed tank and cargo railcars over six years. Additionally, GATX has the choice to order an extra 500 railcars each order year. According to the terms of the agreement, TrinityRail will provide 6,000 tank cars between 2024 and 2028 at a rate of 1,200 vehicles per year. A mixture of 9,000 passenger and tank trains will be ordered from 2023 to 2028 at a pace of 1,500 cars yearly; the delivery timetable for this order has yet to be determined.
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Rolling Stock Market Report
Rolling Stock Market Report Highlight
- The demand for electric based rolling stock and rapid transit vehicles are witnessing a demand increase due to features such as cost effectiveness, speed, and reliability.
- Government and private players worldwide are investing in strengthening and improving railway infrastructure owing to an increasing inclination towards railways.
- Alternative fuel sources such as hydrogen and battery operated rolling stock is further driving the demand for rolling stock. Automated trains with the implementation of AI and data analytics are also contributing to the demand for rolling stock.
