The railway engine market is anticipated to expand its boundaries at an average CAGR of 4.8% during the forecast period. The market holds a share of USD 25.6 billion in 2023 while expecting revenue of USD 41.06 billion by 2033.
The railway engine market outlook explains the rapidly growing trade through the railways as it is a cheap and highly convenient logistics option. Furthermore, the restoration of the travel and tourism industry has fueled the demand for advanced locomotive solutions. Alongside, advanced technology such as high-speed locomotives with higher horse powers and torque to pull tons of loads or chair cars are fueling the sales of railway engines.
Financial and environmental consequences have pushed the railway engine industry to opt for an alternative path of technology. The focus is on creating cost-effective and quieter engines with futuristic designs. Advanced hydrogen engines are anticipated to be the new thing in the market space for railway engines. Apart from this, electric engines have entered the space as emerging economies like India are electrifying their railway operations. This is likely to expand the railway operation in the parts where diesel cannot be transported. The electric engine is likely to save the environment while cutting the cost of fuel, making rail transport even cheaper.
Therefore, the 200 years of railway engine technology, including diesel-electric locomotive technology, have set the base for the market. The latest and upcoming LNG and hydrail technology are anticipated to lead the market during the forecast period. The expansion of railways has led to higher connectivity among states which further leads to increased application. High-speed trains have become a good package of lesser traveling time and cheaper fare for people that cannot afford the airways. Thus, the market is likely to be fueled during the forecast period.
| Attributes | Details |
|---|---|
| Railway Engine Market CAGR (2023 to 2033) | 4.8% |
| Railway Engine Market Size (2023) | USD 25.6 billion |
| Railway Engine Market Size (2033) | USD 41.06 billion |
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Short-term Growth: According to Future Market Insights (FMI), the global railway engine market flourished at a slower CAGR of 2.9% between 2018 and 2022. The market struggled in the short-term growth as the pandemic expanded its feet. The transformation of railway engines by replacing old engines happened in the mid-term growth.
Mid-term Growth: The experimentation and the advanced technology enabling train engines with faster transmission have helped the demand for railway engines. Restoring trade operations has helped expand the market size with a CAGR of 4.8% between 2023 and 2033.
Long-term Growth: The future for railway engines looks promising as the latest experiments occur along with the automotive shift from fossil fuels to alternative fuels such as electric and hydrogen power. Furthermore, emerging economies such as India and China have expanded their railway tracks while introducing high-speed trains.
With the constantly growing market space for goods and products, the railways have been the first choice for their logistics. The higher mobility options, faster transportation, and cheaper logistics costs make it the first choice for businesses. Furthermore, businesses and the common masses opt for railways as their first choice of traveling due to the cheaper rates and comfortable journey. Let’s look at some of the major factors that flourish the demand for railway engines:
Digitization as a Process
The rapid digitization of railways from wagons to train engines is transforming the transportation scenario along with the enhanced national railway strategy. The use of new solutions intensifies the passenger’s experience. The government support for the railways to make them future-ready helps the demand for digitization.
The advent of Autonomous Engines
The advanced autonomous locomotives that need no loco pilot are revolutionary and hold the capability of changing the railway transmission while also opening the scope for higher research. These engines are totally controlled by the engine control rooms. The complete transmission is digital, flourishing the demand for railway engines globally.
Hydrogen and Electric Locomotives
As discussed, hydrogen is likely to dominate the market automobile market. From cars to trains, hydrogen as an alternative fuel is likely to flourish in its use in railway engines. Countries such as the USA, China, and India are focusing on building advanced hydrogen engines with higher power and pulling capacity. Furthermore, electric engines are also expanding their space in the market system along with hybrid options, fueling the overall sales of railway engines.
Principal Consultant
| Region | Market Share |
|---|---|
| The USA | 19.7% |
| Germany | 5.3% |
| Japan | 5.5% |
| Australia | 0.5% |
Increased Government Investment followed by Higher R&D activities fuel the Demand in the Region.
The USA market for railway engines is expanding, with 21st-century engines coming in with digitized transmission and efficient technology. The hydrogen engine is likely to impact engine manufacturing. Some common locomotives in the USA railway engines are SW-series switchers, GP9, GP38-2, SD40-2, and SD70 Series. These engines are based on durability and enhanced traction motors that pull many weights. The increased trade and mobility among different states of the USA are also speeding up the expansion of the railway engine market. These factors make the USA the biggest region, with a market share of 19.7%, while expanding the overall railway engine market size.
New Railway Tracks and Increased Trade demands for Powerful and Faster Engines.
India is an emerging economy with constantly building infrastructure. Therefore, goods, products, and materials are required in different parts of the country, which are majorly transported by train. This creates the demand for advanced engines capable of pulling tons of construction material.
Furthermore, Indian railways are rapidly changing their platforms, digitizing their trains, and shifting to online ticket booking. Thus, the expected higher revenue is likely to transform the Indian railways in the future. The Indian railway engine market fuels at a CAGR of 6% between 2023 and 2033, while it holds numerous opportunities such as parallel tracks, high-speed bullet tracks, and others.
Hydrogen is the way forward for Pulling Power in Europe’s Railway System
The United Kingdom railway engine market thrives at a CAGR of 3.7% during the forecast period. The expanding railway research and development with the application of hydrogen propels transformation. At the same time, coradia iLint hydrogen trains in Germany are in trials that further inspire the United Kingdom market. Germany itself holds a market share of 5.3%. Alstom United Kingdom has recently introduced its partnership with rolling stock operating company Eversholt to deliver a fleet of class 321 train units. Rolls-Royce has also signed a deal with ROSCO Porterbrook to trial hybrid technology in the regional railways.
| Segment | Top Propulsion Type |
|---|---|
| Top Sub-segment | Electric |
| Market Share | 56.8% |
Faster, Efficient, and Environment-Friendly Electric Option Tops the Propulsion Race.
In terms of propulsion type, the electric segment is likely to thrive and hold a market share of 56.8%. This is due to the latest innovation and government efforts to transform railway engines. The rising prices of fossil fuels like diesel and their impacts on the environment have pushed authorities to switch to electric propulsion.
Electric propulsion requires a small number of reciprocating parts, further decreasing the cost. This electric propulsion is being adopted in major advanced rail networks to increase the sustainability of railways. The option of high-speed trains and loader locomotives is also pushing forward the adoption of electric propulsion in the train, fueling the overall growth of the railway engine market.
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The start-up scene differs from religion as countries focus on building their engine manufacturing sites with the utmost opportunities and ideas. The start-ups can be explained as government start-ups that work in addition to the railways. For instance, the Indian government, under its Railways Green Initiative, has announced the running of hydrogen-powered trains on heritage routes. Additionally, the Indian government has introduced train trials between Ankai and Aurangabad in Maharashtra. These experiments push companies to extend their research and development facilities.
Key market participants are working in the direction of creating an impact through advanced engineering and smooth transmission. Digitization of engines to add ease for the pilot, along with hydrogen and electrified engine’s promising results, pushes vendors to adopt the technology. Furthermore, players focus on grabbing the government tenders, and so the focus is majorly on satisfying the KPIs that government looks for in an engine vendor.
Latest Developments:
From 2018 to 2022, the global market exhibited a 6.7% CAGR.
The railway engine market is valued USD 25.6 billion in 2023.
The railway engine market is forecast to register a CAGR of 4.8% through 2033.
The United States, United Kingdom, and India dominate the global market.
From 2018 to 2022, the global market exhibited 2.9% CAGR.
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