Railways

The Railways market is a vital transport infrastructure industry undergoing contemporary transformation driven by digitalization, electrification, and green mobility. Between 2007 and 2021, the average rail freight penetration in inland transportation—excluding inland waterways and pipelines—dropped by 11%, to 43%, reports the International Union of Railways (UIC). For the last 15 years, rail has been handling 19% of inland freight transport within the EU-27. In North America, freight rail modal share, which had ranged between 46% in recent history, fell to 42% in 2020 and also in 2021, emphasizing the role of agile freight networks and spurring investment in updating locomotives and facilities to boost efficiency and flexibility.

Our comprehensive railways study covers three vital subcategories reshaping rail transport. The Locomotive segment exhibits remarkable growth led by electrification patterns, with electric locomotives capturing the largest market share owing to mounting emphasis on eco-friendly transport solutions. Rail transportation companies are also increasingly turning away from diesel and moving towards electric locomotives on the back of environmental regulations and operational efficiency enhancements in both passenger and freight transportation.

Locomotive technology is relatively advanced with the inclusion of digitization and automation. Valued at USD 5.5 billion in 2023, the locomotive maintenance market is forecast to record a 3.5% CAGR between 2024 and 2032 due to railway companies evolving to realize the advantages of partnering with specialized maintenance service providers. Railway signaling systems valued at USD 14.2 billion in 2022 are expected to grow at an 8% CAGR between 2023 and 2032, mainly due to safety and reliability.

Rail Parts segment caters to infrastructure upgradation requirements, with the freight railcar parts industry exceeding USD 10.64 billion in 2023 and is expected to witness 5% CAGR from 2024 to 2032 on the back of increasing freight transportation needs. The railway maintenance equipment market exceeded USD 5.3 billion in 2023 and is poised to register a 5.8% CAGR from 2024 to 2032, on the back of increasing railway infrastructure outlays and preventive maintenance deployment.