Railway Traction Converter Market

Railway Traction Converter Market Size

The global railway traction converter market was valued at USD 2.7 billion in 2025. The market is expected to grow from USD 2.8 billion in 2026 to USD 4.8 billion in 2035 at a CAGR of 6.2%, according to latest report published by Global Market Insights Inc.

Governments are putting more money into rail systems to make trade, logistics, and passenger travel better. Railways are seen as a cheaper, more energy-efficient, and reliable option compared to sea and air transport. As rail networks grow, the need for modern trains increases, which drives demand for traction systems.

Traction converters are used in electric and diesel-electric locomotives, metros, high-speed trains, and more. India has electrified above 85% of its heavy rail, and China is above 70% and building more electrified, high-speed freight and passenger rail rapidly. As regions where electrification has now become a goal, the need for traction converters will see major growth.

Urbanization is another big reason for this market’s growth. As cities grow, more money is being spent on passenger rail systems like metros, monorails, and light rail. These systems rely on modern traction converters to work efficiently, make less noise, and require less maintenance.

High-speed rail projects are creating new opportunities for the traction converter market. Countries like China, Japan, and France are growing their high-speed rail systems, while India and Vietnam are starting to build theirs. These trains need traction converters that can handle high power and voltage while staying reliable. As more high-speed rail projects begin, the need for traction converters will keep increasing.

Geographically, Asia-Pacific region is leading the railway traction converter market because of China’s large rail networks and major investments in high-speed trains. Europe is close behind, with governments working to improve rail systems and connect countries.

Railway Traction Converter Market Trends

The high-speed rail industry is developing rapidly and transforming the market for railway traction converters. Currently, high-speed trains operate on more than 40,000 miles of track around the world and transport more than 3 billion passengers annually.

High-speed trains require traction converters that have high efficiency, reliability, and the ability to support high speeds and voltages. In China, the fast development of rail lines, especially high-speed rail lines, has created a huge demand for high-performance traction converters.

As, many nations are shifting away from diesel-powered trains and adopting electric and hybrid trains. This trend is also increasing the demand for traction converters that are capable of handling power effectively, enabling regenerative braking, and minimizing energy wastage. As train operators are now emphasizing energy conservation and reducing emissions, traction converters are becoming an integral part of train technology.

In the United States, large rail networks play a big role in moving freight and are growing every year. As electrification gains speed, this will create demand for new locomotives, train units, and wagons that need reliable and efficient traction converters to handle heavier loads, longer distances, and better performance.

Urban transport networks are also propelling the demand for traction converters. As urban populations swell, they are developing metro networks, monorails, and double-decker commuter trains. These networks require compact and efficient traction converters that can withstand frequent start-stop cycles. New-generation trains also require converters that can support higher power, better heat management, and seamless interfaces with onboard control systems.

Railway Traction Converter Market Analysis

Based on product, the railway traction converter market is divided into AC traction converter, DC traction converter and hybrid traction converter. The AC traction converter segment dominated the market with market share of around 67.5% and generating revenue of around USD 1.79 billion in 2025.

• The main reason for the dominance of the AC traction converter market is the global preference for the electrification of main lines and high-speed lines using AC. The majority of the newly electrified railway lines and train orders in the European and Asia-Pacific regions are based on AC supply systems (15 kV AC and 25 kV AC), as they support efficient long-distance power transmission with lower losses.
  
• As rail operators continue to expand and modernize their electrified networks, demand naturally follows for AC traction converters that can directly interface with these networks.
  
• The AC traction converters, usually combined with IGBT or SiC inverters, provide accurate control of the motor, increased power density, and successful regenerative braking. This makes it possible for trains to return energy to the grid during braking operations.
  
• The modern converters are being designed more and more to support multiple voltage levels and power sources. In October 2025, Ingeteam was awarded an order by Stadler to deliver traction converters for 16 BEMUS trains in Austria, which will be able to operate under 15 kV AC and 25 kV AC overhead lines as well as onboard battery systems.
  

Based on technology, the railway traction converter market is divided into IGBT, SiC, GTO and others. The IGBT segment accounts for 78.4% in 2025 and is expected to reach USD 3.8 billion by 2035.

• The widespread use of IGBT-based traction converters is mainly because of their optimal trade-off between performance and cost. IGBTs are the industry standard for railway propulsion systems because they are capable of handling high voltage and high current levels with good switching performance.
  
• IGBTs are preferred over older technologies such as GTOs because they have lower switching losses, simpler gate control, and less maintenance requirements, making them the technology of choice for large-scale applications in metro, mainline, and high-speed rail systems.
  
• Railways always have a preference for technologies that have predictable lifecycle characteristics and established supply chains, particularly for safety-critical applications like traction. The IGBT module technology has been thoroughly tested and proven over many years of operational experience, allowing suppliers to develop standardized converter platforms with worldwide spare parts and service support.
  
• The dominance of the IGBT type is further strengthened by its adaptability in the latest traction converter configurations. In January 2026, BHEL started the delivery of semi-high-speed underslung traction converters for the Vande Bharat Sleeper Train project, which came equipped with the latest IGBT-based traction converters.
  

Based on end use, the railway traction converter market is divided into passenger rail and freight rail. The passenger rail segment is expected to grow at the fastest CAGR of 6.5% between 2026 and 2035.

• The passenger rail segment has been leading the railway traction converter market because of the investments being made in rail modernization projects that focus on passengers. Governments and public rail companies are giving importance to high-speed, semi-high-speed, metro, and intercity passenger rail trains.
  
• Such projects usually entail bulk procurement of new electric multiple units (EMUs) and train sets, each of which requires several high-performance traction converters. Compared to freight rail projects, passenger rail projects are more common, standardized, and policy-driven, leading to a predictable demand for advanced traction conversion solutions.
  
• The growth of high-speed and long-distance passenger rail networks remains a factor in supporting the market leadership position of the segment. For instance, in January 2026, BHEL began the delivery of semi-high-speed underslung traction converters for the Vande Bharat Sleeper Train project.
  
• Similarly, in January 2026, Alstom announced that it had received an order from SNCF Voyageurs for 15 more Avelia Horizon high-speed trains, which will be delivered in 2029, further supporting the dominance of the passenger rail segment.
  

The US railway traction converter market reached USD 315.4 million in 2025, growing from USD 304.6 million in 2024.

• One of the key trends that define the US market is the presence of substantial electrification white space, which means that less than 10% of the rail network in the US is currently electrified. This is a substantial opportunity for electric traction systems.
  
• With the growing trend of electrification in intercity passenger routes, commuter rail, and specific freight and yard operations, the demand for traction converters is anticipated to increase. Every new route that is electrified will necessitate the use of advanced power conversion technology to facilitate efficient use of energy.
  
• In July 2025, the US re-introduced the ‘All Aboard Act’, which proposed spending USD 200 billion over five years to construct high-speed rail, enhance existing passenger rail service, and electrify railyards and corridors that are heavily polluting.
  
• Such policy measures are a direct support for the adoption of traction converters, as electric and high-speed trains require advanced converters to handle high power loads, enable faster acceleration, and function properly over long distances.
  

The North America region is estimated to reach USD 570.2 million by 2035 and expected to grow at a CAGR of 4.4% between 2026 and 2035.

• The total rail length in North America is 269,466 km, covering the US and Canada. The US has the world’s largest rail network, with its own extensive rail infrastructure. The size of the rail infrastructure in North America drives the demand for traction converters, which are used to facilitate the operation of electrified rail networks.
  
• In January 2026, Alstom signed a contract worth 2.3 billion CAD (about 1.4 billion euros) with the Toronto Transit Commission to supply 70 New Subway Trains (NSTs), with an option to deliver a total of up to 150 train sets.
  
• This contract is important because modern subway trains use advanced traction converters to increase efficiency and ensure smooth performance. A large-scale replacement program, like this one, is a major driver for the demand for high-performance traction conversion systems.
  
• Overall, the region is to move towards gradual electrification and technology upgrades, but not necessarily towards full network electrification. Although the network is extensive, most routes are still powered by diesel locomotives, and hence the key drivers of traction converter sales are projects for the electrification of specific routes and urban transportation modernization.
  
• As the public transportation systems continue to replace their old fleets with new electric multiple units or hybrid units, the sales of traction converters will continue to rise.
  

The Europe region holds 27.5% of the railway traction converter market in 2025 and is expected to grow at the fastest CAGR of 5.9% between 2026 and 2035.

• Europe is already experiencing a high level of usage of electrified lines, which is a factor of continuous modernization as opposed to initial electrification. According to European Commission, approximately 60% of the rail network in Europe is electrified, and 80% of the rail traffic is on these lines. This is a high percentage that ensures continuous investment in the improvement of the performance and energy efficiency of the existing electric fleet.
  
• Moreover, there are no technological barriers to further electrification, but the costs of upgrading and electrifying the existing infrastructure are high, and the carbon savings have to be assessed on a case-by-case basis.
  
• Consequently, the expansion of electrification is planned and prioritized, which is beneficial to the traction converter market as it is implemented selectively rather than being evenly expanded in all areas.
  

Germany's railway traction converter market is growing quickly in Europe, with a CAGR of 7.6% between 2026 and 2035.

• Germany is to a large extent investing in modern passenger trains, and as a result, the demand for traction converters is coming from new train orders and long-term service contracts. One recent example of this is the January 2026 Alstom contract for supplying an extra 26 double-decker Coradia Max trains to the state-owned railway company of Baden-Württemberg (SFBW). Big fleet orders like this usually contain advanced traction systems, with modern converters designed to improve efficiency, reliability, and performance of the whole system.
  
• At the same time, rail operators all over the country are gradually getting rid of their old and inefficient rolling stocks by purchasing newer ones to satisfy their operational requirements, and at the same time, the Coradia Max order is an example of this greater effort to modernize the passenger fleet by applying updated technologies.
  
• Still, the German traction converter market is fighting against rising competition from the growing acceptance of hydrogen-powered trains. Hydrogen propulsion is one of the alternative technologies that are not dependent on conventional electric traction converters in the same way that fully electrified rail systems are.
  
• As hydrogen traction expands to certain segments, it could lead to lower demand for electric traction converters and change the competitive landscape of Germany's rail propulsion market.
  

The Asia Pacific region holds the largest share, around 47.8%, in the railway traction converter market in 2025.

• In the region, electrification is already reached to near 90%, including India has electrified over 85%, Japan has electrified around 80% and China has electrified over 72%, keeping traction converters demand steady. Rather than start new electrification projects, the main market tendency is to replace obsolete units, improve technology platforms and powertrain efficiency. Traction converters are needed by operators to modernize their electric trains and to increase capacity on heavily used electrified routes.
  
• China's rapid expansion of its high-speed rail networks is further driving market growth. China has been actively developing and expanding its high-speed railways, resulting in increased demand for advanced traction converters. High-speed trains require robust and dependable traction systems, making them a key driver of innovation and procurement activities in the region.
  
• The Asia pacific region is undergoing rapid modernization. Led by countries who are expanding new trains and electrified HS railways. With stable base for electrification and ongoing HS trains projects, there is a growing demand for higher efficiency and performance traction converters across the region driving stable growth of advanced traction converter technologies.
  

China is estimated to grow with a CAGR of 7.5% in the projected period between 2026 and 2035, in the Asia Pacific railway traction converter market.

• China is growing its high-speed rail network, which is increasing the need for traction converters. By 2030, the high-speed rail network is expected to expand by 19%, reaching 180,000 km in total, with 60,000 km for high-speed routes.
  
• High-speed trains need traction converters to provide strong power, fast acceleration, and reliable performance. This makes the network expansion a key reason for higher demand.
  
• China’s large rail expansion is also helping improve traction converter technology and production. The growing network allows for standardized designs, bulk purchases, and ongoing improvements in efficiency. This strengthens China’s position as a major market for traction converters, supported by continuous rail expansion and system upgrades.
  

Latin America railway traction converter market is estimated to reach USD 270.4 million by 2035 and is anticipated to show lucrative growth over the forecast period.

• Latin America is upgrading and expanding its urban rail systems, especially metro and light rail networks. Cities are investing in electrified transit to reduce traffic and improve public transportation. This is increasing the need for traction converters because electric trains and metro systems require advanced power systems for acceleration, energy recovery, and reliable operations.
  
• Many rail lines in Latin America still use diesel, but there is growing interest in electrification for busy routes and urban projects. As these projects continue, traction converters are needed for both new trains and upgrades to older ones, leading to steady growth in demand.
  
• For instance, Medha, through its subsidiary Sepsa, started working with Companhia Paulista de Trens Metropolitanos (CPTM) in Brazil. CPTM wanted to improve its network by making it more reliable, energy-efficient, and comfortable for passengers. This partnership has greatly improved CPTM's infrastructure. It reflects a wider trend where modernization projects focus on upgrading propulsion and electrical systems, like traction converters, to make rail services more efficient and passenger-friendly.
  
• As more countries and cities in Latin America invest in modern rail systems, the demand for traction converters is expected to grow with fleet upgrades and electrification efforts.
  

Brazil is estimated to grow with a CAGR of 6.1% between 2026 and 2035, in the Latin America railway traction converter market.

• The Brazilian Ministry of Transport has announced eight rail projects to be auctioned by 2026. These projects aim to bring in about BRL 140 billion in investments and could have a total economic impact of BRL 600 billion. The projects include important freight routes like Ferrogrão, the Southeast Railway Ring (EF-118), and the Leste-Oeste Corridor. These efforts are helping to modernize rail systems and add advanced electrical and control technologies to new trains and operations.
  
• Upgrading urban commuter and metro rail systems is another key focus, especially in São Paulo. The São Paulo government is using international signaling technologies, such as the European Train Control System (ETCS), to improve the safety and capacity of metro and commuter rail lines. These upgrades also prepare the network for future expansions. While signaling is the main focus, this is part of a larger plan to improve urban rail systems.
  

The Middle East and Africa accounted for USD 117.8 million in 2025 and is anticipated to show lucrative growth over the forecast period.

• Countries in the Middle East and Africa region are expanding their rail networks, some of them replacing older ones and modernizing and some of them are procuring new train sets.
  
• Recently, the railway market in the region is seeing major growth in high-speed and conventional rail networks, which need modern electrical propulsion systems. For example, in August 2025, Rolls-Royce secured a major contract to supply 50 mtu Series 4000 diesel engines for a new fleet of high-speed trains.
  
• No doubt, such expansions with diesel engines will challenge the market in the region for traction converters, mainly in countries where rail electrification is still lower than others.
  
• However, the Gulf Cooperation Council (GCC) is working on strategic rail plans. These include high-speed links between Riyadh and Doha and expanding existing systems like Saudi Arabia's Haramain high-speed electric railway. These projects show that electrified rail corridors are becoming a key part of the region's transport plans.
  

UAE to experience substantial growth in the Middle East and Africa railway traction converter market in 2025.

• The UAE's Etihad Rail network is growing, moving from freight to passenger services and preparing for future traction technology. The network now connects the Emirates and will link major cities from Ghuwaifat to Fujairah when finished, connecting trade hubs and population centers.
  
• This expansion means more trains will run regularly. As the network moves to electric or hybrid systems in the future, traction converters will be important for managing electrical power in trains.
  
• Electrified urban rail projects in UAE cities are also increasing, leading to more use of traction converters in metro and light rail systems. For example, the new Dubai Metro Blue Line is being built with third-rail electrification, and proposed lines like the Purple Line are also planned to be electrified. These metro systems need traction converters to manage the electricity that powers the trains. As the urban rail network grows, the demand for traction converters will rise.
  

Railway Traction Converter Market Share

The top 7 companies in the railway traction converter industry are ABB, Alstom, CRRC, Hitachi, Mitsubishi, Siemens, Toshiba contributing 54.9% of the market in 2025.

ABB’s railway traction converters are designed to convert and regulate electrical power for traction motors in electric and hybrid rail vehicles, supporting controlled acceleration, braking, and efficient power management across different railway electrification systems.

Alstom’s railway traction converters are used in electric rolling stock to manage power conversion between supply sources and traction motors, enabling stable propulsion, regenerative braking, and compatibility with various onboard traction architectures.

CRRC manufactures railway traction converters that convert electrical energy for use in traction motors, supporting propulsion and braking functions in electric rail vehicles.

Hitachi’s railway traction converters provide controlled power conversion for traction motors in electric trains, enabling smooth speed regulation and integration with onboard traction and auxiliary power systems.

Mitsubishi’s railway traction converters are designed to convert electrical input power into controlled output for traction motors, supporting reliable operation within electric railway vehicle systems.

Siemens produces railway traction converters that manage the conversion of electrical supply power to traction motor requirements, supporting propulsion, braking, and energy control functions in electric and hybrid rail vehicles.

Toshiba’s railway traction converters are used to regulate and convert electrical power for traction motors, enabling controlled train movement, braking performance, and compatibility with various electric rail system configurations.

Railway Traction Converter Market Companies

Major players operating in the railway traction converter industry are:

• ABB
• Alstom
• CAF
• CRRC
• Hitachi
• Ingeteam
• Medha Servo Drives
• Mitsubishi
• Siemens
• Toshiba
  
• Strong experience in power electronics and grid technologies allows ABB to design traction converters compatible with multiple rail electrification systems and integrate them with broader electrical and control infrastructure.
  
• Alstom benefits from in-house rolling stock design, allowing its traction converters to be closely aligned with train systems, operational requirements, and lifecycle considerations across different rail platforms.
  
• CRRC’s competitive edge lies in large-scale manufacturing capability and experience across diverse railway projects, enabling traction converters adapted to various operating environments and technical standards.
  
• Hitachi combines traction converter design with expertise in rail control and electrical systems, supporting consistent integration with train propulsion, braking, and onboard monitoring systems.
  
• Mitsubishi leverages long-standing experience in electrical equipment manufacturing to develop traction converters focused on stable operation, system compatibility, and alignment with railway vehicle requirements.
  
• Siemens benefits from system-level rail engineering knowledge, enabling traction converters to be designed for interoperability with propulsion, automation, and energy management systems.
  
• Toshiba’s strength lies in power electronics and industrial electrical systems, supporting the development of traction converters suited for reliable operation within different electric rail architectures.
  

Railway Traction Converter Industry News

• In January 2026, Bharat Heavy Electricals Limited (BHEL) started supplying underslung traction converters for the Vande Bharat Sleeper Train project. These converters use advanced IGBT technology and are placed under the train car. This design creates more space inside the train for passengers and increases the train's carrying capacity.
  
• In December 2025, ABB opened a new traction center in Maryborough, Queensland. This 5,000-square-meter facility, built with a USD 6 million investment, will produce traction converters, motors, and Mobile e-Power solutions. It will support projects like the Queensland Train Manufacturing Program (QTMP) and boost Australia’s rail and sustainable mobility industries.
  
• In October 2025, Ingeteam received an order from Stadler to supply traction converters for 16 BEMUS (Battery & Electric Multiple Units) trains. These trains will run on Austria's Kamptalbahn line, reaching speeds of up to 160 km/h. The contract also includes options for up to 120 trains in total.
  
• In August 2025, Mitsubishi began supplying traction systems to Spanish train manufacturer Construcciones y Auxiliar de Ferrocarriles, S.A. (CAF). These systems are for 60 Double-Decker New Generation (DDNG) trains, which include 300 cars in total. The trains will be operated by the Dutch railway company Nederlandse Spoorwegen (NS).
  
• In March 2025, ABB partnered with Stadler US to promote sustainable rail transport in the United States. ABB will supply traction converters and Pro Series Traction Batteries for new trainsets used by Metra in Illinois and Caltrans in California. This partnership is a step toward greener rail transport in the country.
  

The railway traction converter market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and volume (units) from 2022 to 2035, for the following segments:

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Market, By Product

• AC traction converter
• Single-phase AC converter
• Three-phase AC converter
• DC traction converter
• Hybrid traction converter

Market, By Technology

• IGBT
• SiC
• GTO
• Others

Market, By Voltage Level

• Low voltage (Up to 1.5 kV DC / 600-750V DC)
• Medium voltage (1.5-3 kV DC)
• High voltage (15-25 kV AC)

Market, By Application

• High-speed trains
• Metros
• Light rail vehicles
• Locomotives
• Others

Market, By End Use

• Passenger rail
• Freight rail

The above information is provided for the following regions and countries:

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Czech Republic
  • Belgium
  • Netherlands
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Singapore
  • Malaysia
  • Indonesia
  • Vietnam
  • Thailand
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Colombia
• MEA
  • South Africa
  • Saudi Arabia
  • UAE