According to a new report published by Allied Market Research, titled, “Railway Maintenance Machinery Market by Product Type, Application, and Sales Type: Opportunity Analysis and Industry Forecast, 2020–2027,” the global railway maintenance machinery market size was valued at $3.74 billion in 2019, and is projected to reach $5.52 billion by 2027, registering a CAGR of 7.2% from 2020 to 2027. Railway maintenance machineries are used to maintain railway track to operate transportation and logistics smoothly, and effectively. Railway maintenance machineries are used for effective operations, and maximize the productivity of logistics, and transportation system.
An increase in construction of new rail projects fuels the railway maintenance machinery market growth. For instance, Iraq government spent around $2.5 billion on new railway project named as Baghdad Metro. The railway project will be completed by 2025. In addition, rise in number of railway electrification projects owing to reduced carbon emission is anticipated to drive the market growth. In addition, several governments are focusing on developing carbon emission free railway lines, which in turn is estimated to cater to the industry growth. Population focuses on using railway traveling mode for efficient freight transportation. Moreover, according to International Energy Agency (IEA), approximately 7% of the global freight transportation and logistics happens through railway network. In addition, metro system provides cheap and convenient urban transportation in around 200 cities globally thereby propelling the growth of the railway maintenance machinery market.
A growing adoption of cloud-based, internet, and Internet of Things (IoT) services in railway maintenance machinery industry, to help in increasing operational efficiency of the entire maintenance process, is expected to lead to the development of the market. In addition, one of the most important aspects of adopting IoT in railway maintenance machinery is preventive maintenance.
However, high cost associated with tamping machine is anticipated to hamper the growth of railway maintenance machinery market. On the other hand, technological innovation in the railway maintenance machinery is anticipated to offer remunerative opportunities for the railway maintenance machinery manufacturers.
COVID-19 is a disease caused by a newly discovered virus named Coronavirus. Many people are suffering from Coronavirus disease throughout the globe. During lockdown, due to COVID-19 pandemics, various major players in the global railway maintenance machinery market to stop their business production due to lock down implemented in countries such as the U.S., China, Brazil, and others. This stop in business activities has directly impacted the sales of railway maintenance machinery industry manufacturers. For instance, Alstom SA registered a decline of 17.7% in revenue from September 2019 to September 2020. Also, lack of man power and raw material has halted the supply chain of railway maintenance machineries. However, the introduction of vaccines for coronavirus disease and the re-initiation of production facilities is anticipated to provide lucrative opportunities for the railway maintenance machinery players.
The global railway maintenance machinery market is segmented based on product type, application, sales type, and region. Based on product type, the market is divided into tamping machine, stabilizing machinery, rail handling machinery, ballast cleaning machine, and others. Tamping machine segment accounted for the highest revenue in 2019. Based on application, it is classified into ballast track, and non-ballast track. Ballast track segment generated the highest revenue in 2019. Based on sales type, the market is divided into new sales, and aftermarket sales. Aftermarket sales segment garnered the highest revenue in 2019.
Region wise, the global railway maintenance machinery market analysis is conducted across North America (the U.S., Canada, and Mexico), Europe (the UK, France, Germany, Russia, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and Rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa). Europe region is expected to dominate the railway maintenance machinery market throughout the study period.
Key companies profiled in the report include China Railway Construction Corporation Limited (CRCC High- Tech Equipment Co. Ltd), China State Railway Group Co Ltd. (Gemac Engineering Machinery Co Ltd), System 7- Railsupport GmbH, Harsco Corporation, MER MEC s.p.A., Geatech Group s.r.l., Plasser & Theurer, Export von Bahnbaumaschinen, Gesellschaft m.b.H., Sinara-Transport Machines Holding, Fluor Corporation (American Equipment Company, Inc.), and Coril Holdings Ltd (Loram Maintenance of Way, Inc.).
Key Findings Of The Study
- The report provides an extensive analysis of the current and emerging railway maintenance machinery market trends and dynamics.
- By product type, the tamping machine segment registered the highest revenue in the market in 2019.
- Depending on the application, the ballas track segment dominated the railway maintenance machinery market share, in terms of revenue in 2019 and is projected to grow at a CAGR 6.7% during the forecast period
- By sales type, the aftermarket sales segment registered the highest revenue in the market in 2019.
- The key players within the market are profiled in this report, and their strategies are analyzed thoroughly, which helps understand the competitive outlook of the railway maintenance machinery industry.
- The report provides an extensive analysis of the railway maintenance machinery market scope and emerging opportunities of the market.
- The global railway maintenance machinery market forecast analysis from 2020 to 2027 is included in the report.