Market Analysis

Railway AfterMarket Analysis

The traction & propulsion system is likely to account for more than 20% of the revenue share by 2027. The modernization and upgrade of such systems to curb the emission levels is increasing the segment demand. Railway electrification plays a critical role in this development. Lower fuel costs, higher acceleration, and diminished carbon emissions are major factors augmenting the penetration of electric systems in the railways. Operators are focusing on the improvement of rolling stock assets and boosting haulage abilities for their electric locomotives.

Rail infrastructure is set to generate around USD 19.5 billion revenue by 2027. The growing preference to improve track quality and ensure safety through mechanized practices, especially in high-density routes, are some of the factors spurring the market demand. Moreover, the surging adoption of automatic malfunction detection systems and the integration of IoT for smart maintenance of infrastructure indicate a positive outlook of the market segment.

In 2020, OEMs captured over USD 25 billion revenue and is projected to witness significant growth during 2021 to 2027. The segment growth is underpinned by new offerings from OEMs in the data analytics and digital space. Digital solutions consist of remote diagnostics and condition-based repairs that have substantial potential to penetrate the railway aftermarket and offer scalable solutions. Furthermore, service agreements for replacement and repair will provide ample opportunities for OEMs to maintain a sustainable market position.
 

The Asia Pacific railway aftermarket size is predicted to hold nearly 40% of the revenue share by 2027. Increasing efforts of railway operators to alleviate the overall downtime by upgrades and effective maintenance of aging rolling stock are supporting the regional demand.