Rail Components Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

The Rail Components Market is Segmented by Component Type (Bogie, Engine, and Other Component Types) and Geography ( North America, Europe, Asia-Pacific, and Rest of the World). The Report Offers Market Size and Forecast for Rail Components Market in Value (USD billion) for the Above-mentioned Segments.

Market Snapshot

rail components market
Study Period: 2018-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: >3 %

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Market Overview

The rail components market was valued at USD 78 billion in 2020, and it is expected to reach USD 95 billion by 2026, registering a CAGR of more than 3% during the forecast period (2021 - 2026).

The outbreak of COVID-19 acted as a massive restraint on the rail components market in 2020, as supply chains were disrupted due to trade restrictions and consumption declined due to lockdowns imposed by governments globally.

However, the market is expected to regain its growth post lockdown, as governments are going to introduce many new projects to maintain social distancing, as people will be more concerned about the safety and security and clean air in the bogies in the wake of the pandemic. These measures are likely to boost the production of new bogies and necessary rail components during the forecast period.

An increase in developments of metro projects and expansion of electrified network rail routes will further create opportunities for OEMs to expand their revenue stream and increase their geographical presence. Factors, such as the increase in investments in rail infrastructure and expansion of rail networks in densely populated regions, will enable the growth of the rail components market.

Asia-Pacific is expected to witness significant growth during the forecast period owing to the high demand for rail transportation from countries like China, Japan, South Korea, and India. Meanwhile, in Europe and North America, the market is anticipated to grow due to the rising demand for passenger and freight transportation.

Scope of the Report

Rail components majorly include railway tracks, railway sleepers, turnout, rail fastening systems, and railway fish plates. The Rail Components Market report covers the latest trends, covid-19 impact followed by technological developments in the market. The scope of the report covers segmentation based on Component type  and Geography.

By Component type, the market is segmented into Bogie, Engine, and Others and by Geography type, the market is segmented into North America, Europe, Asia-Pacific and Rest of the world. For each segment, the market sizing and forecast have been done on basis of value (USD billion).

By Component
Bogie
Brake System
Suspension System
Wheel and Axle
Other Bogies ( Gear Box, Motor, and Supporting Frames)
Engine
Others ( Couplers, Body Frames, etc)
Geography
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
France
Rest of Europe
Asia-Pacific
India
China
Japan
South Korea
Rest of Asia-Pacific
Rest of the World
Brazil
South Africa
Other Countries

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Key Market Trends

Bogie Segment to Witness the Fastest Growth During Forecast Period

The bogie segment in the rail components market is expected to hold the largest market share during the forecast period, owing to the growing adoption of powered bogie design across the world. Thus, many locomotives, multiple units, such as high-speed trains, and mass transit vehicles (suburban trains, metro cars, light rail vehicles, and tramways) are equipped with powered bogies.

Rail bogies have had seen investment in research and development in recent years. Companies have been focusing on creating safe and efficient bogie designs for locomotives by embedding digital devices that work on the principle of the Internet of Things (IoT).

The Global Railway Engineering Pty Limited showcased its Scheffel Self Steering innovation in the Rail Tech Innovation Awards. It is a three-part self-steering bogie suitable for all rail systems that work with a three-part bogie. According to the manufacturer, their innovation offers fuel-saving, and there are fewer chances of derailment in the component.

OEMs like Siemens introduced innovations in their products like elastic wheel fitting on their lxege LRV bogies developed to improve the squealing noise performance by up to 90 percent. The company has been developing variable height bogies operating on 1000mm and 1435 mm tracks.

Companies like Alstom and Magma Structures have formed consortiums with institutes like the University of Birmingham to work on various projects concerning Train Bogies. One of the projects is CaFiBo – Carbon Fibre Bogie Project. The project aims to reduce the mass of the bogie and reduce track damage and vehicle maintenance costs by employing a lightweight composite bogie frame. Such innovations through collaborations are creating opportunities for more improvements in the global bogie rail component segment.

Rail Components Market_Trend1

Asia-Pacific Region Likely to Dominate the Market

Asia-Pacific is expected to witness the fastest growth rate during the forecast period. In Asia-Pacific, India is one of the largest and fastest-growing markets for railway components after China. India is making investments in rolling stock to upgrade its rail transportation system. Owing to the growth in population, intercity trade and commuting, upcoming metro projects (13 operational, six under construction, seven in planning stage, and eight in proposed stage), and extension of existing lines, the Indian rolling stock market is witnessing a steady growth.

The government’s Make in India initiative laid particular emphasis on promoting manufacturing activities within the country. This is expected to drive the market for rail components in India. China is one of the key contributors to developing regional growth in the rail component market due to large-scale rapid urban transit development. Chinese major market player CRRC is the leading manufacturer of rolling stocks and related rail components, occupying 39% of the market share.

For instance, in January 2020, CRRC received an overseas supply contract worth USD 55.5 from Portugal to supply 18 new light rails with a maintenance period of five years. Japan is the technology leader in the rolling stock market, which is majorly used for passenger transportation. The country is continuously investing in the development of innovative technologies in rolling stock.

rail components market_geography

Competitive Landscape

The rail components market is consolidated due to the presence of major players in the market, such as Siemens AG, Bombardier Inc., CRRC Corporation Limited, Alstom, and Hitachi. The market witnessed various growth strategies, such as acquisitions, mergers, and collaborations, adopted by market players over the past few years. Major players in the market are focusing on expanding their product portfolio to augment their revenue share. For instance:

  • In February 2019, GE announced the completion of its merger with Wabtec for USD 2.9 million in cash and Wabtec nonvoting convertible preferred stock.
  • In December 2019, Bombardier won a EUR 26.8 million contract for refurbishment, maintenance, and upgradation of 59 bombardier Swedish Regina Electric Multiple Units Fleet.
  • Hyundai Rotem signed a maintenance contract extension with the Ukraine Railway Speed Company (URSC). The contract covers 90 trains and is valued at KRW 64.8 billion (around EUR 50 million). It is a five-year extension of a deal beginning in 2022 and running through to 2027.

Recent Developments

  • In May 2020, CRRC acquired the locomotive manufacturer, Vossloh Group, in Europe. The primary aim of the acquisition was to retain engineering expertise for the development of new products with innovative traction concepts through a partnership structure in the region.
  • In March 2020, Alstom acquired Bombardier’s rail business worth USD 5.5 billion, which allows Alstom to have a more visible global presence and complements its activities in North America.
  • In March 2020, Stadler won a contract to supply 1,500 Metro cars to Berlin Verkehrsbetriebe. The agreement is worth USD 3.2 billion, which also includes the provision of spare parts.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Component

      1. 5.1.1 Bogie

        1. 5.1.1.1 Brake System

        2. 5.1.1.2 Suspension System

        3. 5.1.1.3 Wheel and Axle

        4. 5.1.1.4 Other Bogies ( Gear Box, Motor, and Supporting Frames)

      2. 5.1.2 Engine

      3. 5.1.3 Others ( Couplers, Body Frames, etc)

    2. 5.2 Geography

      1. 5.2.1 North America

        1. 5.2.1.1 United States

        2. 5.2.1.2 Canada

        3. 5.2.1.3 Mexico

      2. 5.2.2 Europe

        1. 5.2.2.1 Germany

        2. 5.2.2.2 United Kingdom

        3. 5.2.2.3 France

        4. 5.2.2.4 Rest of Europe

      3. 5.2.3 Asia-Pacific

        1. 5.2.3.1 India

        2. 5.2.3.2 China

        3. 5.2.3.3 Japan

        4. 5.2.3.4 South Korea

        5. 5.2.3.5 Rest of Asia-Pacific

      4. 5.2.4 Rest of the World

        1. 5.2.4.1 Brazil

        2. 5.2.4.2 South Africa

        3. 5.2.4.3 Other Countries

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 CRRC Corp. Ltd

      2. 6.2.2 Siemens AG

      3. 6.2.3 Bombardier Inc.

      4. 6.2.4 Alstom SA

      5. 6.2.5 Wabtec Corp. (previously GE Transportation)

      6. 6.2.6 Hyundai Rotem

      7. 6.2.7 Stadler Rail AG

      8. 6.2.8 The Greenbrier Companies

      9. 6.2.9 Trinity Industries Inc.

      10. 6.2.10 Construcciones Y Auxiliar De Ferrocarriles SA

      11. 6.2.11 Escorts Group

      12. 6.2.12 Hitachi Ltd

      13. 6.2.13 Progress Rail (Caterpillar Company)

      14. 6.2.14 Nippon Sharyo Ltd

      15. 6.2.15 Kawasaki Heavy Industries Ltd

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Frequently Asked Questions

The Rail Components Market market is studied from 2018 - 2026.

The Rail Components Market is growing at a CAGR of >3% over the next 5 years.

The Rail Components Market is valued at 78 Billion USD in 2018.

The Rail Components Market is valued at 95 Billion USD in 2026.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

CRRC Corporation Limited, Siemens AG, Alstom SA, Bombardier Inc., Hitachi Ltd are the major companies operating in Rail Components Market.

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