Rolling Stock Market

[363 Pages Report] The global rolling stock market size was valued at USD 28.6 billion in 2024 and is expected to reach USD 40.1 billion by 2030, at a CAGR of 5.8% from 2024 to 2030. The rise in urban congestion primarily drives the demand for urban transit trains such as DMU/EMU, metro, and light rail. Authorities worldwide are consistently striving to make urban transport hassle-free. Additionally, as trains become faster and more efficient, long-distance passenger and freight trains are gaining steady prominence. This is supported by new projects aimed at improving the railway network. With the electrification of rail transport for both passenger and freight services, railway operators worldwide are also shifting toward environmentally friendly transport solutions such as electric trains. These trains are free from greenhouse gas emissions and have lower operating costs, higher speeds, and more reliability than diesel trains. Shifting from diesel to electric-powered trains will help meet global environmental goals of reducing greenhouse gas emissions.

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Market Dynamics

Driver: Rising demand for Freight Transportation

A rise in global trade and economic activities necessitates effective and reliable transportation of goods. Rail transport is preferred for bulk goods and long-distance hauls due to its cost-efficiency and reliability, driving the demand for freight wagons and locomotives. Investments in rail infrastructure, such as the expansion of freight corridors, electrification, and the adoption of advanced technologies, have further improved the efficiency and capacity of rail transport. In 2023, the China-Europe freight train made 17,000 trips, transporting 1.9 million TEUs (twenty-foot equivalent). This marked a significant increase of 6% and 18% year-on-year, according to statistics released by the China State Railway Group.

Restraint: Refurbishment of existing rolling stock to prevent new procurement

The market for rolling stock refurbishment is seeing a surge in demand due to the need to increase vehicle capacity and reduce travel costs. Many rail franchises’ current rolling stock capacity is insufficient to meet the growing number of passengers, making refurbishment a viable option to increase capacity and address reliability issues, improve energy efficiency, and update vehicles to meet current requirements. In 2023, Deutsche Bahn AG (Germany) initiated a comprehensive refurbishment program for its ICE 3 high-speed trains. This involved modernizing interiors, upgrading seating, improving Wi-Fi connectivity, and enhancing energy efficiency to extend the trains’ service life and improve the passenger experience. Similarly, Indian Railways launched a large-scale refurbishment program for its ICF coaches, modernizing interiors, installing bio-toilets, improving lighting, and incorporating safety features to enhance passenger services and operational efficiency. However, refurbishing existing rolling stock reduces the need to purchase new vehicles, impeding market growth.

Opportunity: Retrofitting of diesel-electric trains

According to Worldwiderail, diesel locomotives cost between USD 0.5 and 2 million, while electric locomotives cost more than USD 6 million, making retrofitting diesel locomotives with battery systems more viable. Re-manufacturing locomotives can cost nearly 40% less than purchasing new ones. In the US, many General Electric (US) locomotives owned by North American railroads are being rebuilt with cab upgrades and electrical & safety systems. Similarly, Indian Railways has reduced 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. Replacing the diesel motor with an electric drive will also reduce the onboard weight and improve the efficiency of railways. In September 2023, Ireland’s railway network operator, larnród Éireann (Irish Rail), enlisted retrofit company DIGAS to convert one of its freight diesel locomotives to operate with hydrogen as part of a EUR 1.5 million (USD 1.6 million) proof of concept project.

Challenge: High overhaul and maintenance costs

Rolling stock must be periodically overhauled to ensure reliability. However, regular maintenance and overhaul can be costly. The annual maintenance cost of a high-speed trainset is about USD 1 million. In addition to the cost of component replacement, infrastructures such as depots and berthing sites need to be maintained. Rolling stock requires long-term maintenance when the train has reached half its operational life. This includes maintenance of the vehicle’s electrical, mechanical, and hydraulic components. Substantial investments are required for such maintenance, thereby hindering the market growth. In February 2024, Alpha Trains (Luxembourg) signed a minimum 10-year full-service maintenance agreement with Stadler Rail AG (Switzerland) for its recently ordered EURO9000 locomotives. The contract covers preventive, corrective, and heavy maintenance of the vehicles for 10 years from the delivery of the 12 locomotives ordered by the company from Stadler in October 2023.

Market Ecosystem

Electric locomotives to be dominant during forecast period

Electric locomotives hold a prominent share of the locomotive market, subject to low maintenance cost, high efficiency and speed, and zero emission. These locomotives are more efficient and cost-effective than their diesel counterparts. Heavy investments in the electrification of railway networks have further fueled the growth of the electrified railway network, thereby driving the global demand for electric locomotives. In February 2024, Bavaria and Baden-Württemberg announced their plans to electrify MUCH of the Regio S-Bahn Donau-lller network centered on Ulm in southern Germany. The project will support the electrification of main routes on diesel-operated networks, while new stations and passenger service enhancements are also expected. Similarly, in March 2024, Türasas and TCDD Tasimacilik, rolling stock manufacturers in Türkiye, signed a contract to supply 95 E5000 electric locomotives. The switch from diesel to electric or new orders for hybrid locomotives will significantly drive the market.

Asia Oceania to be largest market for rolling stock between 2024 and 2030

Asia Oceania is the largest market for rolling stocks, driven by increased production volume, high domestic demand, and capacity expansions by rolling stock manufacturers. The region comprises some of the fastest-growing economies in the world, including China and India, offering lucrative opportunities for rolling stock manufacturers. Governments in these countries have also recognized the growth potential of the rolling stock market. For instance, in May 2024, the Korean rolling stock manufacturer Woojin Industrial Systems was awarded a USD 210 million contract by the Los Angeles County Metropolitan Transportation Authority (LACMTA) to upgrade 74 metro cars built in 1999 by Ansaldo Breda of Italy. The rapid expansion of stations and route length is also expected to boost the demand for metro systems in the future. Similarly, in January 2023, Siemens AG (Germany) signed a USD 3.25 billion contract to supply and service freight trains in India. The contract includes delivering 1,200 electric locomotives and servicing for 35 years under the agreement.

Key Market Players

The rolling stock market is dominated by major players such as CRRC Corporation Limited (China), Siemens AG (Germany), Alstom SA (France), Stadler Rail AG (Switzerland), and Wabtec Corporation (US). These companies offer extensive products and solutions for the railway industry. They also have strong distribution networks globally and invest heavily in R&D to develop new products.

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Scope of the Report

This research report categorizes the rolling stock market based on Product Type, Locomotive Technology, Component, Application, and Region.

Based on the Product type:

• Locomotives
  • Diesel Locomotives
  • Electric Locomotives
  • Electro-Diesel Locomotives
• Rapid Transit
  • Diesel Multiple Unit (DMU)
  • Electric Multiple Unit (EMU)
  • Light Rails/Trams
  • Subways/Metros
  • Monorails
• Coaches
• Wagons
• Others

Based on the Locomotive Technology:

• Conventional Locomotives
• Turbocharged Locomotives
• Maglev 

Based on the Component:

• Train Control Systems
• Pantographs
• Axles
• Wheelsets
• Traction Motors
• Passenger Information Systems
• Brakes
• Air Conditioning Systems
• Auxiliary Power Systems
• Gearboxes
• Baffle Gear
• Coupler

Based on the Application:

• Passenger Transportation
• Freight Transportation

Based on the region:

• Asia Oceania
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Malaysia
• North America
  • US
  • Mexico
  • Canada
• Europe
  • Germany
  • France
  • Spain
  • Italy
  • UK
  • Switzerland
  • Austria
  • Sweden
• Middle East and Africa
  • South Africa
  • UAE
  • Egypt
  • Iran
• Rest of the World
  • Brazil
  • Russia
  • Argentina

Recent Developments

• In July 2024, Alstom SA (France) launched new Innovia APM 300R trains, which entered into service at the Denver International Airport. The new trains will carry travelers between the Terminal and Concourses A, B, and C.
• In June 2024, Vale (Brazil) and Wabtec Corporation (US) announced a master service agreement (MSA) to increase the efficiency and operations of the Evolution Series (EVO) locomotive fleet on the Estrada de Ferro Carajás (EFC).
• In June 2024, CRRC Sifang Co., Ltd., a subsidiary of CRRC Corporation Limited (China), developed a new urban smart fast rail train for the International Metro Transit Exhibition & Forum, Beijing-Nanjing (MetroTrans) in Nanjing. The 30-meter-long train consists of three structurally independent modules and features a maximum capacity of 280 passengers, a maximum running speed of 70 km/h, and an energy consumption of 3–4 kWh/km.
• In May 2024, CRRC Zhuzhou Electric Locomotive (CRRC Zelc) and CRRC Shandong, subsidiaries of CRRC Corporation Limited (China), signed agreements with Acemil of Hungary to cooperate in the field of rolling stock production, which will see new production facilities established in Hungary.
• In May 2024, Siemens Mobility, a Siemens AG (Germany) business unit, announced investing approximately USD 161.54 million to expand its service depot in Dortmund-Eving to 87,550 square meters to meet the growing demand for rail services in Dortmund.

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