According to a recent report published by Allied Market Research, titled, “Railway System Market by System Type, Rolling Stock Type, and End Use: Global Opportunity Analysis and Industry Forecast, 2019-2026,” the global railway system market size was valued at $24.72 billion in 2018, and is projected to reach $37.36 billion by 2026, registering a CAGR of 5.4% from 2019 to 2026.
By region, Europe dominates the market presently, followed by Asia-Pacific, North America, and LAMEA. Russia dominated the Europe railway system market share in 2018 and the UK is anticipated to exhibit a remarkable growth during the forecast period.
The metals such as platinum, palladium, rhodium, and others used as automotive catalyst in catalyst converters are very rare and expensive. Because these metals are expensive, automakers want to use them as effectively as possible. Use of catalyst Nano particle increases the efficiency of catalyst and reduce the cost of catalyst converter, which make it the preferred choice for automotive catalyst converter. Hence, adoption of nanotechnology in catalytic converters drives the growth of the railway system market.
Auxiliary power system can be defined as the system that is typically designed to reduce emission of diesel-electric locomotives and provide significant fuel saving by automatically shutting down the main locomotive engine on idling in sync with continuous monitoring of critical parameters. Also, HVAC stands for heating, ventilation, and air conditioning and is used to control the temperature and environment inside the trains. This system uses the fresh air from outside to provide high quality air inside the closed space by removing the moisture, odors, smoke, heat, airborne bacteria, dust, carbon dioxide and oxygen replacement. Leading HVAC system providers for railways are supplying HVAC system for the railways, which in turn is anticipated to propel the growth of the railway system market. For instance, on September 12, 2019, Knorr-Bremse, a German manufacturer of braking and HVAC systems has signed a contract with Alstom to supply heating, ventilation and air-conditioning (HVAC) and braking system for the SNCF’s next generation high-speed trains.
Locomotive is the primary part of the train, which is called as the rail engine. Based on various modes of propulsion type, locomotives are available in the form of diesel propulsion engine, electric propulsion engine, electro-diesel propulsion engine, or it can be of fuel cell engine or others. Such locomotives are self-propelled. However, metros, monorails, and trams are not equipped with locomotives. Metro is a high-capacity public transportation, which is most common in urban areas. Metros are electronically operated and have exclusive tracks to which pedestrians or other vehicles have no access. Metros are mostly grade separated in tunnels or on elevated railways. Metro track consists of two rails or beams. In addition, A monorail is a type of railway in which the rail track consists of a single rail or a beam. To differentiate the monorail from other modes of transportation, monorail society has defined monorails as single rail serving as a track for passenger or freight vehicles.
Leading providers of products and services related to rails are signing contract for the development and installation of new advanced technologies in metro network in this region. For instance, on January 9, 2020, Hitachi Rail STS USA won the contract of $798 million to roll out the communication-based train control in the San Francisco Bay Area’s BART metro network. In addition, rise in population and increased budget for the development of the railway sector is anticipated to propel the growth of the railway system market.
Factors such as increased budget for railways development and rise in demand for safe, secure, and efficient transport system drive the growth of the railway system market. In addition, increasing use of public transport service as a solution to minimize traffic congestion is anticipated to propel the growth of the market. However, high capital requirement is hindering the market growth. Further, infrastructural improvement of railways in developing countries and rise in mining & industrial activities offers remarkable growth opportunities for the players operating in the railway system market.
Key Findings of the Study
- On the basis of system type, the train safety segment is anticipated to exhibit a remarkable growth during the forecast period.
- On the basis of rolling stock type, the freight wagons segment is the highest contributor to the global railway system market in terms of revenue.
- Region wise, Asia-Pacific is the fastest growing region, followed by North America, LAMEA, and Europe.
The key players analyzed in this report are ALSTOM, Bombardier, CRRC, General Electric, Siemens, Hitachi, Stadler Rail AG, The Greenbrier Companies, Transmashholding, Trinity Industries, Inc., and others.