Hybrid Train Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The hybrid train market is anticipated to register a CAGR of about 6.23% during the forecast period (2020 - 2025).

• Railway transportation is one of the major transportation modes in any country, for both passengers and cargoes. However, trains have an impact on the environment, as they produce nitrogen dioxide, carbon dioxide, and particulate matter that can contribute to air pollution and cause negative health effects. To reduce the effects of trains on the environment, companies are coming up with innovations, such as hybrid trains.
• Globally, there is a trend toward greener forms of transport. Supported by new government regulations, the green transportation trend is penetrating into all transportation modes, including railways. Such factors are likely to drive the demand for hybrid trains over the forecast period.
• However, the high overhaul and maintenance costs can create an obstacle for the growth of the market. Despite the presence of restraining factors, hybrid trains are more environment friendly, based on which the demand for hybrid trains is likely to amplify over the forecast period.

Scope of the Report

The hybrid train market is segmented by propulsion (battery operated, electro diesel, hydrogen powered, and other propulsion types (solar powered, gas powered, etc.)), application (passenger and freight), and geography (North America, Europe, Asia-Pacific, and Rest of the World).

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Key Market Trends

Electro Diesel Segment Held the Largest Market Share in 2019

In 2019, the electro diesel segment held the largest share in the market. Electro diesel railway vehicles, also known as dual-mode or bi-mode, are powered either by an electricity supply (like an electric locomotive) or an onboard diesel engine (like a diesel-electric locomotive).

These railway vehicles are used across all regions. However, Asia-Pacific and Europe are identified as the major markets, with several development plans and high deployment units of electro-diesel railway vehicles. Moreover, railway vehicle manufacturers across the world are consistently working on various technologies to further enhance the performance of electro-diesel railway vehicles. For instance:

• In Poland, during 2018, PKP Cargo, Pesa, and TABOR Institute of Rail Vehicles signed an agreement at InnoTrans to develop an automated electro-diesel locomotive.
• PKP Cargo and Pesa are expected to create a design based on Pesa’s Gama locomotive platform, which will be verified by TABOR. Following the testing by PKP Cargo, the locomotive is anticipated to be commissioned in 2022.
• The vehicle is expected to operate with GoA 3. Sensors, cameras, and gyroscopes will be fitted, and the input data will be analyzed using artificial intelligence.
• In Spain, the European Investment Bank (EIB) approved a loan worth EUR 100 million in 2019 to partly finance the planned procurement, which was valued at EUR 201 million, of 26 electric and 5 electro diesel trainsets for RENFE. The depots at El Berrón and Santander are expected to be modernized as part of the project.
• In December 2019, CRRC Corporation Limited and the Philippine Secretary of the Department of Transportation signed a contract. According to this contract, the Philippine National Railways (PNR) agreed to purchase three trains from CRRC. The diesel electric multiple unit trains are expected to have a design speed of 120 km/h.

Owing to such aforementioned developments, the electro diesel railway vehicles may replace their diesel counterparts. These electro diesel vehicles have been successfully generating savings in operation and maintenance costs, which may further drive the market growth during the forecast period.

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