Locomotive Market

Rising demand from electric locomotive projects industry to propel the market growth

Trains are pulled by locomotives, which are powered engines. The difference between a locomotive and low-power engines is their capacity to transport a payload. Large-scale investments are therefore essential rather than advantageous because pulling trains requires far more force than pulling other types of vehicles. Recent technical developments have enabled applications with greater pulling capacity and less fuel consumption for locomotive design and structure.

The number of passengers it can carry is directly related to the enormous investment made in the railway industry. Numerous chances for business expansion will be presented by the massive rail networks seen in densely populated nations like India. Multiple large-scale businesses will start to appear, which will help the market expand.

Governmental and commercial initiatives to create and use locomotives powered by electricity will result in market expansion. One of the top three producers of iron ore in the world, Rio Tinto, has contributed USD 518 million to the cause and has already started testing automated trains in order to fully establish the first heavy-haul rail network in the world. GE and Ansaldo STS are aiding in the development of these rail systems.

For the business, Ansaldo has been creating an automated railway management system. With the system, Rio can operate autonomous trains on its rail network, saving more than $100 million yearly and doing away with the need for up to 500 drivers. Thus, this factor is driving the market CAGR.

Furthermore, automated transit systems called autonomous locomotives are controlled from a control station and run entirely without human intervention. These items convey people and cargo across short and vast distances. The main elements that support the intelligent movement of the autonomous engines within the designated cities and metros include a centralized control system that supervises all of the trains and a preset railway network and infrastructures. Long-distance autonomous transit systems use distinct technology to operate because they have a variety of sensors and self-driving algorithms built in.

The autonomous products work with higher frequency to convey a big number of passengers and freight faster than road transport. As a result, it is anticipated that autonomous technology will set the standard in the world market. For instance, the Shcherbinka railway test ring near Moscow is where the Russian Railway Authorities put up the first trial to test the operation of the autonomous train. Automated Train Operation (ATO), which enables emergency stopping in the event of any track impediments, is installed on the train.

However, the demand for automobiles has risen exponentially over the past few years due to an increase in population, which has clogged highways with traffic. Numerous health issues, including back injuries, whiplash injuries, and stress-related issues, have been linked to the high prevalence of traffic congestion. Many rail projects are being developed in cities to facilitate convenient commuting, and the rail networks in many regions are growing more quickly.

Additionally, people now prefer rail transportation more than ever because of rising automobile emissions, growing safety concerns, and rising need for shorter trips. Additionally, in order to meet the rising demand for public transportation, the legal authorities are investing in the development of high-speed trains and striving to expand the rail networks. These elements will fuel the growth of the locomotive market. Thus, it is anticipated that this aspect will accelerate locomotive market revenue globally.

The Global Locomotive Market Industry is poised for substantial growth, with projections indicating a market value of 19.4 USD Billion in 2024 and an anticipated increase to 58.0 USD Billion by 2035. This growth trajectory reflects a compound annual growth rate (CAGR) of 10.45% from 2025 to 2035. The increasing demand for efficient and sustainable transportation solutions, coupled with technological advancements and government support, positions the locomotive market for robust expansion. As the industry evolves, stakeholders are likely to explore new opportunities, ensuring that the market remains dynamic and responsive to changing transportation needs.

The expansion of rail infrastructure is a significant driver for the Global Locomotive Market Industry. Many countries are investing heavily in upgrading and expanding their rail networks to accommodate increasing freight and passenger traffic. For instance, the United States has initiated several infrastructure projects aimed at enhancing rail connectivity and capacity. This expansion not only supports economic growth but also promotes the use of rail as a sustainable transportation option. As infrastructure develops, the demand for new locomotives is expected to rise, further propelling the market's growth trajectory, with a projected CAGR of 10.45% from 2025 to 2035.

Government initiatives and funding are instrumental in shaping the Global Locomotive Market Industry. Many governments are implementing policies to promote rail transport as a sustainable alternative to road transport. For example, funding programs aimed at enhancing rail infrastructure and supporting the development of new technologies are becoming increasingly common. These initiatives not only stimulate market growth but also encourage private sector investment in locomotive manufacturing. As governments prioritize rail transport in their transportation strategies, the market is expected to benefit from increased funding and support, fostering innovation and expansion in the locomotive sector.

The Global Locomotive Market Industry experiences a notable shift towards sustainable transportation solutions. Governments worldwide are increasingly investing in electrification and alternative fuel technologies to reduce carbon emissions. For instance, the European Union has set ambitious targets for reducing greenhouse gas emissions, which has led to a surge in demand for electric locomotives. This trend is expected to contribute significantly to the market, with projections indicating a market value of 19.4 USD Billion in 2024. The focus on sustainability not only aligns with global environmental goals but also enhances the operational efficiency of rail systems, making them more appealing to both operators and passengers.

Urbanization and population growth are pivotal factors influencing the Global Locomotive Market Industry. As urban areas expand, the demand for efficient public transportation systems intensifies. Rail transport, particularly in densely populated regions, offers a viable solution to alleviate congestion and reduce travel times. Countries such as India and China are witnessing rapid urbanization, leading to increased investments in rail infrastructure and services. This trend is likely to drive the demand for new locomotives, as cities seek to modernize their transit systems to accommodate growing populations. The market's expansion is indicative of the broader shift towards sustainable urban mobility solutions.

Technological innovations play a crucial role in shaping the Global Locomotive Market Industry. The integration of advanced technologies such as predictive maintenance, automation, and digital signaling systems enhances the performance and reliability of locomotives. For example, the adoption of Internet of Things (IoT) technologies allows for real-time monitoring of locomotive health, thereby reducing downtime and maintenance costs. These advancements are likely to attract investments, as operators seek to modernize their fleets. The anticipated growth in the market, projected to reach 58.0 USD Billion by 2035, underscores the importance of technology in driving efficiency and safety in rail transport.

By region, the study provides the market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia Pacific locomotive market accounted for USD 6.1 billion in 2021 and is expected to exhibit a 43.90% CAGR during the study period due to increased rolling stock manufacturing and global rail infrastructure development, particularly in China, Japan, and India. Additionally, the region's market is experiencing revenue growth due to growing road traffic congestion and rising government spending in advancing the rail network.

Further, the major countries studied in the market report are: The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: LOCOMOTIVE MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

North America locomotive market accounts for the fastest growing market share due to the increasing use of autonomous and electric locomotives across the region, particularly in the United States and Canada. Utilizing battery electric power improves local air quality while lowering greenhouse gas emissions. Moreover, US locomotive market held the largest market share, and the Canada locomotive market was the fastest-growing market in this region

Europe locomotive market is expected to grow at a substantial CAGR from 2022 to 2030 due to the growing demand for electric vehicles for the decarbonization plan, particularly in Germany, France, Sweden, and the United Kingdom, and the development of the train infrastructure. Further, the UK locomotive market held the largest market share, and the Germany locomotive market was the fastest-growing market in the region.

Major market players are spending a lot on R&D to increase their product lines, which will help the locomotive industry grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, market developments and collaboration with other organizations. Competitors in the industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market industry.

One of the primary business strategies manufacturers adopt in the global locomotive industry to benefit clients and expand the sector is manufacturing locally to reduce operating costs. In recent years, locomotive industry has provided medicine with some of the most significant benefits. The locomotive market major player such as CRRC Corporation Limited, AEG Power Solutions, Siemens AG, Alstom S.A, GE Transportation, Transmashholding, EMD Caterpillar, Kawasaki Heavy Industries, Stadler Rail and Bombardier Transportation.

Kawasaki Heavy Industries Ltd. is a Japanese public multinational corporation with headquarters in Chüo, Kobe and Minato, Tokyo, and produces motorcycles, engines, heavy equipment, aerospace and defense equipment, rolling stock, and ships. In May 2021, in North America, Kawasaki Heavy Industries introduced new information and communication technology-based remote track monitoring services. With this system, trackside efficiency is anticipated to increase and any abnormalities will be handled for the safety of trains and passengers.

Alstom is a French multinational company that manufactures rail transportation equipment and does business all over the world. It manufactures high-speed, suburban, regional, and urban trains along with trams, and it is active in the passenger transportation, signalling, and locomotive industries. In March 2020, as part of a USD 3.5 billion deal for 800 electric double-section locomotives agreed in 2015 with the Indian Ministry of Railways public-private partnership, Alstom SA has unveiled its first all-electric locomotive.

In 2020, Alstom declares that it has signed an MoU for the acquisition of Bombardier Transportation with Bombardier Inc. and Caisse de dépôt et placement du Québec ("CDPQ").