Railway Aftermarket Size By Subsystem (Traction & Propulsion, Bogies/Wheelsets & Suspension, Body Structures, Braking Systems, Auxiliary Systems, Rail Tracks & Equipment), By Product (Rail Infrastructure, Rolling Stock [Metro, High Speed Rail, Light Rail & Trams, Locomotives, Passenger Wagons, Freight Wagons]), By Service Provider (OEM, Railway Operators, Third Party/Component Suppliers), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2019 – 2026

Published Date: Jan 2020  |  Report ID: GMI4511  |  Authors: Kiran Pulidindi, Hemant Pandey

Report Format: PDF   |   Pages: 142   |   Base Year: 2018

Summary Table of Contents Industry Coverage Methodology

Industry Trends

Railway Aftermarket Industry size surpassed USD 101.5 billion in 2018 and will witness a CAGR of 3.3% between 2019 and 2026. Rising average age of rolling stock coupled with growing technologically advanced solutions will drive the market growth.

Railway aftermarket includes repair, replacement, and service including the maintenance, assessment and upgradation of existing in-service equipment. Railway maintenance includes both preventive and corrective maintenance of all assets including the trainset components, components of the infrastructure, electric equipment and freight transport specific components. Regulatory bodies are effectively prescribing and mandating regular inspections, directly impacting the market.

Railway Aftermarket

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Increasing efforts towards reducing the total cost of ownership is complementing the efficiency enhancement and railway fleet reliability. Rising investments in data driven and preventive maintenance technologies are providing substantial cost savings, enhanced safety and effective usability or rolling stock. Moreover, sensor technologies along with advanced analytics solutions will provide substantial leverage towards service providers in planning and optimizing maintenance.

Surging utilization of condition monitoring, analysis and optimization methods will provide a positive outlook for the railway aftermarket industry. For instance, the Remote Monitoring and Management of Locomotives and Trains (REMMLOT) is installed in 3,643 locomotives in India enabling remote monitoring of diesel locomotives, further aiding in preventive maintenance. However, higher initial cost associated with establishment of predictive maintenance platforms will hinder the industry expansion over the study timeframe.

Strategic contracts and supply agreements are the major strategies undertaken by major players for strengthening their foothold in the industry. For instance, in December 2019, Alstom signed a contract with Bulgarian company BDZ Passenger services for providing rolling stock maintenance services for 46 trains. Further, innovative manufacturing technologies utilized for producing aftermarket parts will spur the profit margins. For instance, in November 2019, 3D printer OEM Stratasys introduced ‘Rail Industry Solution’ package for 3D printing certified spare parts for the railway industry.

Railway Aftermarket Report Coverage
Report Coverage Details
Base Year:2018
Market Size in 2018:USD 101.5 billion
Forecast Period:2019 to 2026
Forecast Period 2019 to 2026 CAGR:3.3%
2026 Value Projection:131.1 billion
Historical Data for:2016 to 2018
No. of Pages:142
Tables, Charts & Figures:169
Segments covered:Subsystem, Product, Service Provider, Region
Growth Drivers:
  • Stringent regulations for railway emission reduction
  • Ageing railway fleet
  • Increasing rail freight transportation
  • Technological advancements in railway maintenance
Pitfalls & Challenges:
  • High initial cost of predictive rail asset maintenance

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Stringent carbon emission norms to foster demand for traction systems

U.S. Railway Aftermarket by Subsystems

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Traction systems will showcase significant growth owing to their upgradation and modernization to curb carbon emission levels. Electrification of railway industry is offering multiple benefits including improved acceleration, lower fuel costs and reduced carbon emissions. Moreover, railway operators are upgrading their electric locomotives for boosting the haulage capacities and improving the rolling stock assets. For instance, in June 2019, Siemens announced the supply of integrated propulsion system and steel tank transformer for its 9,000 HP electric locomotives.

Braking systems segment generated around USD 16 billion in 2018 and is expected to grow with around 3.9% CAGR till 2026. The segment revenue generated from replacement, repair and maintenance of brake control systems, friction brake, wheel slip protection (WSP), magnetic track brake, emergency brake and eddy current brake equipment. Increasing demand for overhauling and repair of freight rail braking systems will provide potential market growth opportunities for the railway aftermarket players. For instance, in November 2018, Network Rail offered contract to Sabre Rail Services Ltd for the overhauling of 555 JNA ‘Falcon’ open box wagons.

Smart rail maintenance likely to propel the aftermarket penetration

Rail infrastructure held around 16% revenue share in 2018 and will showcase substantial gains of over 3% in the market through 2026. Improved mechanized track maintenance across high density routes is targeted towards enhancing the track quality and safety. Growing prominence of IoT in smart maintenance and asset management of rail infrastructure will further provide a positive outlook for the segment size. Automatic recognition of incipient malfunctions on rail tracks will result into early preventive maintenance to avoid further expenses.

OEM’s will impart significant growth potential in the railway aftermarket industry

OEMs accounted for around a third of the industry share and is expected to grow with around 3.4% CAGR till 2026 owing to introduction of new offerings from digital space and data analytics. Digital solutions including condition-based maintenance and remote diagnostics are providing potential opportunities to penetrate the service sector with scalable and targeted solutions. Shifting inclination of OEM’s towards repair and replacement sector will provide positive outlook for the industry size over the forecast timeframe.

Replacement of ageing rolling stock in Asia Pacific will drive the industry

Global Railway Aftermarket Industry Revenue Share By Region

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Asia Pacific railway aftermarket held around 38% revenue share in 2018 and will witness substantial growth of 3.2% from 2019 to 2026 owing to surging replacement of ageing equipment across the region. Railway operators are ensuring the efficient maintenance and upgradation of subsystems for reducing the overall downtime. For instance, in September 2019, Taiwan High Speed Rail Corp awarded a contract to Toshiba Infrastructure Systems & Solutions Corp for replacing electrical equipment in 30 Series 700T trainsets.

Europe generated around USD 37 billion in 2018 and is expected to expand at 3.9% till 2026 driven by supportive investments targeted towards rail infrastructure maintenance. For instance, in July 2019, German Government and Deutsche Bahn announced an investment of USD 94 billion in rail network maintenance over the next ten years. Moreover, easy availability of technologically advanced monitoring systems is prominently aiding the railway operators to increase their market penetration.

Industry participants involved in technological developments to strengthen their foothold in the industry

Major railway aftermarket participants are introducing new solutions for capturing and analyzing the data for efficient monitoring of railway subsystems. In September 2016, Bombardier introduced the OPTIFLO solution offering full range of services including repairs, infrastructure management, asset and configuration management, spare parts, repairs and obsolescence management. This will enable the company to expand their aftermarket product portfolio range, further escalating the industry size. Market industry players include CRRC Corporation Limited, Siemens Mobility, ZF Friedrichshafen, ABB, Bombardier Transportation, Alstom, Harsco Rail and Caterpillar.

The railway aftermarket industry research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD billion from 2016 to 2026, for the following segments:

Market by Subsystems

  • Traction & Propulsion
  • Bogies/Wheelsets & Suspension
  • Bogies/Wheelsets & Suspension
  • Braking Systems
  • Auxiliary Systems
  • Rail Tracks & Equipment

Market by Product

  • Rail Infrastructure
  • Rail Infrastructure
    • Metro
    • High Speed Rail
    • Light Rail & Trams
    • Locomotives
    • Passenger coaches
    • Freight wagons

Market by Service Provider

  • OEM
  • Rail operators
  • Third party/component suppliers

The above information is provided on a regional and country basis for the following:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • Italy
    • Spain
    • France
    • Russia
    • Poland
    • Netherlands
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
    • Indonesia
    • South Korea
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Israel

Frequently Asked Questions (FAQ) :

The market size of 3PL was exceeded USD 1 trillion in 2019.
The industry share of 3PL is estimated to grow at a CAGR of 9% between 2020 and 2026.
Asia Pacific accounted for majority industry share of around 38% in 2018 and will witness substantial growth at 3.2% till 2026 owing to surging replacement of ageing equipment across the region.
Europe railway aftermarket industry is expected to expand at 3.9% till 2026 due to supportive investments targeted towards rail infrastructure maintenance.
OEM’s are expected to grow with around 3.4% CAGR through 2026 led by introduction of new offerings from digital space and data analytics.
During 2019-2026, how will the rail infrastructure product segment fare in the railway aftermarket market?

Premium Report Details

  • Published Date: Jan 2020
  • Pages: 142
  • Tables: 146
  • Charts / Figures: 23
  • Companies covered: 17
  • Countries covered: 24

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