Hybrid Train Market

[285 Pages Report] The global hybrid train market is projected to grow from 412 units in 2023 to 446 units by 2030, registering a CAGR of 1.1%. Due to the rising demand for sustainable transportation solutions, the industry of railway systems is experiencing a transformative shift towards hybrid trains. These innovative locomotives seamlessly blend the power of battery-electric, hydroelectric, and diesel-electric propulsion systems, offering a multifaceted approach to addressing the growing need for efficient, eco-friendly, and versatile rail transport. As environmental concerns gain prominence and energy efficiency becomes paramount, the convergence of these propulsion technologies is paving the way for a sustainable mode of transportation, one that is characterized by reduced emissions, enhanced performance, and the promise of a greener future for rail travel.

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Market Dynamics:

Driver: Demand for energy-efficient and less polluting train operations

Increasing stringency of emission norms by governments in several countries has compelled train manufacturers to adopt less pollution-causing trains. Thus, companies like Alstom, Bombardier, Siemens, and Wabtec Corporation are investing in alternative fuel-powered trains. For instance, Alstom was one of the first companies to unveil a hydrogen-powered train. In April 2022, Alstom and ENGIE signed a partnership agreement to offer the rail freight sector a solution for decarbonizing mainline operations by replacing diesel-powered locomotives with hydrogen versions. Various freight companies have started investing in hybrid trains to cut operating costs by eliminating fuel and maintenance costs. The total cost of ownership (TCO) plays a key role in the freight industry and affects profit margins. Fuel expenses are high while covering long distances using conventional diesel trains. However, the use of electrified, fuel cell, CNG, and LNG hybrid trains reduces these expenses by almost 50%. Increasing the modal share of railways is considered a cost-effective method of increasing the use of renewable energy in transport, thereby reducing greenhouse gas (GHG) emissions. These factors are expected to drive the growth of the hybrid train market.

Restraint: Refurbishment of existing trains

The need to provide increased vehicle capacity and upgrade old coaches, coupled with the growing demand for reduced travel costs, has boosted the market for train refurbishment. The existing fleet must be refurbished due to the rising passenger numbers and increase in demand for modern amenities. Refurbishments offer an opportunity to address reliability issues, improve train energy efficiency, and update the vehicles as per current requirements. There have been various refurbishment programs— In FY 2022, Swiss Federal Railways (SBB) is investing USD 2.1 Bn in the refurbishment of its railway infrastructure to make it more compatible with hybrid trains. The work includes upgrading the electrification system, installing charging stations, and improving the signaling system. The financial constraints in acquiring new trains also contribute to increasing train refurbishment programs. Refurbishing existing trains eliminates the need to purchase new vehicles and could restrict the hybrid train market.

Opportunity: Retrofitting of diesel-electric trains

According to Worldwiderail (website), diesel locomotives cost around USD 0.5-USD 2 million, and an electric locomotive costs more than USD 6 million. Hence, it is more viable to retrofit a diesel locomotive with battery systems than to buy a new one. For example, in the US, a large number of General Electric locomotives, currently owned by several North American railroads, are being rebuilt with cab upgrades, along with electrical and safety systems. Re-manufacturing locomotives cost about 40% less than purchasing a new locomotive. Indian Railways, for instance, has been able to reduce the cost incurred in diesel to electric conversion to as low as USD 0.3 million. The growing market for diesel retrofitting is driving the demand for energy storage systems, such as backups and power supply units. In addition to the above, replacing the diesel motor with an electric drive will also reduce the onboard weight and further improve the efficiency of railways. For instance, In 2022, the German railway company Deutsche Bahn (DB) announced that it would be retrofitting 100 diesel-electric trains with hybrid technology. The retrofitting is expected to be completed by 2025. The retrofitting will involve installing a battery pack and a hybrid control system on the trains. The battery pack will allow the trains to operate on electric power for short distances, while the hybrid control system will automatically switch between electric and diesel power depending on the operating conditions.

Challenge: Technical challenges related to lead-acid and lithium-ion batteries

Rail batteries must be long-lasting and fast-charging. Currently, the rail sector makes substantial use of lead-acid and nickel-cadmium (Ni-Cd) batteries. These batteries are hazardous to the environment and contain dangerous substances. In addition to these disadvantages, they have a high self-discharge rate and a short charge cycle. Despite the fact that Ni-Cd batteries may give 60% more energy than other varieties, they have a recharging issue known as the "memory effect." The memory effect is a condition in which the battery remembers its last discharge performance and only recharges to that level, diminishing its performance. While increasing cell capacity can improve battery performance, it can also jeopardize system safety. Furthermore, rail batteries are electrochemical batteries that use chemical reactions to generate an electric current. Temperature changes affect the performance of rail batteries since they affect all chemical reactions. Low-temperature conditions limit cell performance, lowering the battery's specific energy gradient. Lithium-ion batteries operate with better efficiency against temperature changes, but the heating can reduce the capacity of the batteries over time. Further, lithium-ion (Li-ion) batteries require lithium mining, which has brought forward many environmental challenges. The manufacturing cost of Li-ion batteries is also 40% higher than Ni-Cd batteries.

Market Ecosystem

Passenger hybrid trains are the largest segment during the forecast period

The benefit of cost-effective and efficient transportation of passenger accounts during the forecast period. A number of cities are placing new rail infrastructure projects into place to ease traffic and offer inexpensive intercity and intracity transportation options. The market for hybrid trains will rise in response to growing urbanization and rising consumer demands for greater connectivity, comfort, dependability, and safety. As of 2022, the majority of hybrid train projects or operations will be focused on the passenger market because freight transportation demands powerful trains. The development of hybrid train technologies is still in its early stages to meet the demand for freight transportation. In February 2022, SNCF Voyageurs and Alstom presented the first hybrid Régiolis trainset for France following one year of hybridization project and eight months of tests. In June 2023, Alstom successfully completed the first tests of a hybrid electric-diesel-battery train on the Toulouse-Mazamet and Toulouse-Rodez lines in the South of France. Considering these developments hybrid train market will provide growth opportunities in the near future. For passenger transportation, Europe is a significant market for hybrid trains. The main mode of transportation for passengers in Germany is rolling stock. The main element influencing the adoption of railroads for passenger transportation in Germany is the availability of reliable infrastructure for urban and intercity mass transit. The number of passengers using passenger trains, particularly those in Germany, has increased globally. Increasing awareness of the environmental impact of transportation has led to a growing demand for more eco-friendly modes of travel. Hybrid trains, which combine both electric and diesel power, offer reduced emissions compared to traditional diesel trains, making them a more sustainable option. In order to provide efficient and environmentally friendly passenger trains, railroad operators are collaborating with OEMs.

Hybrid Trains with speeds above 200 KM/H to be one of the largest markets during the forecast period

Hybrid Trains with speeds above 200 KM/H to be one of the largest markets during the forecast period. The improvement of hybrid technologies and the evolution of train traction systems have accelerated improvements in the operating speed range of trains. This aspect has caused hybrid trains' operational speeds to rise rapidly and surpass 200 km/h. Due to hybrid trains' early development, improvements in their running speeds are not occurring as quickly as with conventional trains. Due to the need to cut down on commuting times and traffic on rail lines, this speed range of high-speed trains is anticipated to experience exponential expansion. Diesel electric propulsion is the most common type of propulsion for hybrid trains operating in this range of speeds. CRRC Qingdao Sifang Locomotive & Rolling Stock Co., Ltd (Sifang) is developing a hybrid train with an operating speed of 250 km/h. The train is currently undergoing testing and is expected to enter commercial service in 2024. The launch of a hybrid train with an operating speed of 200 km/h is a significant development in the railway industry. It is a sign that the industry is moving towards more sustainable and efficient modes of transportation. The success of this train could lead to the development of hybrid trains with even higher speeds and better performance in the future.

Europe is the largest market for Hybrid trains during the forecast period

Europe is home to many leading railway manufacturers such as Alstom (France), Siemens (Germany), Hitachi Rail (Italy), and CAF (Spain). The railway industry is one of the key contributors to the European economy. The region for this study is segmented into Germany, France, Spain, Austria, and the UK. Europe has stringent environmental regulations and ambitious sustainability targets. Hybrid trains, which combine electric and alternative power sources, help rail operators reduce greenhouse gas emissions, meet emissions standards, and contribute to a cleaner environment. Many European governments offer incentives, subsidies, and grants to promote the adoption of hybrid and electric trains. These financial incentives encourage rail operators to invest in greener transportation options. For instance, the UK government has announced that it will be phasing out all the trains running solely on diesel by 2040. Many of the top train manufacturers from the region, such as Alstom, Siemens, Hitachi Rail STS, and CAF, have incorporated hybrid technologies in their trains. In August 2023, Alstom and the Central Saxony transport authority, Verkehrsverbund Mittelsachsen (VMS), presented in Chemnitz, Germany, a new battery-powered train developed by Alstom. A total of eleven Coradia Continental battery-electric trains have been ordered by VMS. These trains will enter service in 2024 on the Chemnitz-Leipzig line. In January 2022, Alstom and Deutsche Bahn tested the first battery train in passenger operation in Germany. UK and Germany are planning to complete the electrification of railway lines to control or reduce emissions through diesel trains, which will present a big opportunity for all hybrid train manufacturers, resulting in the overall European hybrid train market growth.

Key Market Players

The hybrid train market is dominated by CRRC (China), Alstom (France), Siemens (Germany), Wabtec Corporation (US), and Stadler Rail AG (Switzerland), among others. These companies manufacture trains and develop new technologies. These companies have set up R&D facilities and offer best-in-class products to their customers.

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Scope of the Report

This research report categorizes the Hybrid Train market based on Battery Type, Application, Operating Speed, Service Power, Propulsion Type, and Region.

Based on Battery Type:

• Lead acid
• Lithium-ion
• Sodium-Ion
• Nickel Cadmium
• Others

Based on Application:

• Passenger
• Freight

Based on Operating Speed:

• Below 100 KM/H
• 100–200 KM/H
• Above 200 KM/H

Based on Service Power:

• Less than 2000 kW
• Between 2000 to 4000 kW
• Above 4000 kW

Based on Propulsion Type:

• Electro Diesel
• Battery Electric
• Hydrogen Battery

Based on the region:

• Asia Oceania
  • Australia
  • China
  • India
  • Japan
  • New Zealand
  • South Korea
• North America
  • Canada
  • Mexico
  • US
• Europe
  • Austria
  • France
  • Germany
  • Italy
  • Spain
  • UK

Recent Developments

• In August 2023, Alstom and the Verkehrsverbund Mittelsachsen (VMS) of Central Saxony unveiled a new battery-powered train in Chemnitz, Germany. VMS has ordered a total of eleven Coradia Continental battery-electric trains. These trains will begin service on the Chemnitz-Leipzig route in 2024.
• In June 2023, The CRRC unveiled the "world's most powerful" hydrogen train. The new Ningdong engine apparently has a 270kg liquefied hydrogen capacity and can run for up to 190 hours.
• In May 2023, Alstom and Export Development Canada (EDC), Canada’s export credit agency, signed a Sustainable Global Corporate Partnership agreement to promote investments in clean mobility worldwide.
• In May 2023, Siemens Mobility and Niederbarnimer Eisenbahn (NEB) unveiled the final design of the Mireo Plus, which will enter operation on the Heidekrautbahn and East Brandenburg train networks in December 2024.
• In June 2022, the 3000 HP permanent magnet hybrid shunting locomotive developed by CRRC reached about 2000 km of safe operation. Compared with the traditional shunting diesel locomotive, the locomotive was highly praised by customers for its outstanding energy efficiency and environmental protection effect.

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