Rolling Stock Market

Data analytics and advanced maintenance usage are fueling market growth

Data analytics and sophisticated maintenance usage are driving the rolling stock market CAGR. The service sector is expected to be the most profitable for manufacturers. Remote monitoring, digital solutions, and big data analytics advancements have enabled traditional rolling stock OEMs to successfully adapt to their current business offers and provide targeted and scalable solutions. The growing use of big data analytics has enabled OEMs to take on more jobs in the service industry from owners and train operating corporations.

As a result, OEMs can create profit from servicing and maintenance throughout the vehicle's lifecycle in addition to the sale of new vehicles.

Furthermore, end-user preferences for asset availability contribute to this advancement. The use of remote assistance and predictive maintenance solutions enables OEMs to provide expanded service models such as increased reliability in the committed provision of the available rolling stock fleet, which aids this advancement.

In addition, Alstom's HealthHub platform allows improved maintenance through decision-making assistance and effectively monitors fleet availability. As a result, OEMs are anticipated to profit from the service sector expansion, as rail operators lack the scale to build such solutions in-house.

For instance, the Canadian National Railway's USD 3.9 billion capital investment in Saskatchewan is enabling advances in locomotives and rail infrastructure, as well as promoting growth across all commodity divisions. As a result, these variables are anticipated to stimulate the rolling stock market revenue.

The Global Rolling Stock Market Industry is experiencing a surge in demand due to rapid urbanization. As cities expand, the need for efficient public transportation systems becomes paramount. Urban areas are projected to grow significantly, with an estimated 68 percent of the global population living in urban settings by 2050. This trend necessitates the expansion and modernization of rail networks, leading to increased investments in rolling stock. The industry is expected to reach a valuation of 46.4 USD Billion in 2024, reflecting the growing emphasis on sustainable urban mobility solutions.

Technological innovations are driving the Global Rolling Stock Market Industry towards enhanced efficiency and safety. The integration of advanced technologies such as IoT, AI, and predictive maintenance is transforming traditional rail operations. These advancements not only improve operational efficiency but also enhance passenger experience. For instance, smart trains equipped with real-time monitoring systems can reduce downtime and maintenance costs. As a result, the market is projected to grow at a CAGR of 4.29% from 2025 to 2035, potentially reaching 73.6 USD Billion by 2035, underscoring the importance of technology in shaping the future of rail transport.

The Global Rolling Stock Market Industry is closely linked to global trade and economic growth. As economies expand, the demand for efficient freight transport increases, necessitating the modernization of rolling stock. The rise in international trade has led to greater investments in rail infrastructure, particularly in regions where rail networks are vital for logistics. This trend is expected to contribute to a market valuation of 46.4 USD Billion in 2024, as businesses seek reliable and cost-effective transportation solutions to support their operations. The interplay between economic growth and rail transport underscores the industry's significance in global commerce.

Government initiatives play a crucial role in the Global Rolling Stock Market Industry, as many countries are prioritizing investments in rail infrastructure. National and regional governments are increasingly recognizing the importance of rail transport in reducing traffic congestion and lowering carbon emissions. For example, several nations have announced substantial funding for rail projects, which directly impacts the demand for rolling stock. This trend is likely to sustain market growth, with the industry expected to achieve a valuation of 46.4 USD Billion in 2024, driven by these strategic investments and policies aimed at enhancing public transportation.

The Global Rolling Stock Market Industry is increasingly influenced by environmental concerns and the push for sustainable transportation solutions. As nations strive to meet climate goals, rail transport is often viewed as a greener alternative to road transport. The shift towards electric and hybrid trains is gaining momentum, as these technologies reduce greenhouse gas emissions and improve energy efficiency. This growing emphasis on sustainability is likely to propel market growth, with projections indicating a market size of 73.6 USD Billion by 2035. The industry is thus adapting to meet the rising demand for eco-friendly transportation options.

By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. During the forecast period, the North America region is expected to have the largest CAGR. This is partly because increased metro project development and expansion of electrified network train routes will give OEMs with additional opportunities to diversify their revenue streams and expand their presence.

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

Figure 2: Rolling Stock Market Share By Region 2022 (%) 

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

Europe’s rolling stock market accounts for the second-largest market share due to its high torque power and enhanced safety. Further, the German rolling stock market held the largest market share, and the UK rolling stock market was the fastest-growing market in the European region

The Asia-Pacific Rolling Stock Market Is expected to grow at the fastest CAGR from 2023 to 2032. This is due to increasing population in the region is invoking the adoption of passenger rails for commuting. Moreover, China’s rolling stock market held the largest market share, and the Indian rolling stock market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in R&D to expand their product lines, which will help the rolling stock market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, rolling stock industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the rolling stock industry to benefit clients and increase the market sector. In recent years, the rolling stock industry has offered some of the most significant advantages to medicine. Major players in the rolling stock market, including Caterpillar (US), CRRC Corporation Limited (China), Hitachi, Ltd. (Japan), HYUNDAI ROTEM COMPANY (South Korea), and others, are attempting to increase market demand by investing in R&D operations.

CRRC Zhuzhou Locomotive Co., Ltd. is a Chinese electric locomotive manufacturer. It is one of CRRC's subsidiaries. CSR Group Zhuzhou Electric Locomotive Co., Ltd. was spun out from the locomotive works; the locomotive works' original legal structure became an intermediary holding company for CSR Group solely. Following the founding of the listed business CSR Corporation Limited, the limited company "CSR Group Zhuzhou Electric Locomotive" joined the group's listed portion, but the intermediate holding company remained unlisted.

CSR Zhuzhou Electric Locomotive Co., Ltd. was also given a new name. In May 2020, CRRC Zhuzhou Locomotive, a subsidiary of China Railway Rolling Stock Corporation (CRRC), acquired Vossloh Group- a locomotive manufacturer in Europe. This will help CRRC to expand its business in the European rail market.

Alstom is a French multinational rolling stock manufacturer that works in rail transport industries around the world. It is involved in passenger transportation, signaling, and locomotives, and it manufactures high-speed, suburban, regional, and urban trains, as well as trams. In 1928, the electric engineering section of Société Alsacienne de Constructions Mécaniques (Als) and Compagnie Française Thomson-Houston (thom) merged to form the firm and its name (originally spelled Alsthom). Constructions Électriques de France (1932), shipbuilder Chantiers de l'Atlantique (1976), and portions of ACEC (late 1980s) were later significant acquisitions.

In February 2020, Alstom announced the signing of a Memorandum of Understanding (MOU) with Bombardier Inc. and the Caisse de depot et placement du Quebec (CDPQ) for the acquisition of Bombardier Transportation. The cost of acquiring all of Bombardier Transportation's shares is estimated to be roughly EUR 6 billion.