Railway Aftermarket Industry Size worth over $131bn by 2026
Published Date: February 4, 2020 Authors: Kiran Pulidindi, Hemant Pandey
Railway Aftermarket size is set to exceed USD 131 billion by 2026; according to a new research report by Global Market Insights, Inc.
Regional government initiatives will drive the market demand
Increasing rail networks across the globe coupled with surging rail passenger traffic are significantly driving the railway aftermarket industry growth. Supportive government policies and investments targeted towards expansion and maintenance of trains is prominently contributing towards industry expansion.
For instance, in January 2019, China Railway Corp announced their plans for operating 6,800 new rail links including 3,200 kms high speed connections, further offering potential opportunities for the industry growth. Further, Government funds granted for reconstruction and upgradation of existing rail lines are majorly contributing towards increasing the service life capacity.
Railway upgradation projects will boost the railway aftermarket industry outlook
Strategic agreements and partnerships for upgradation of train equipment are propelling the market size. For instance, in December 2015, Ministry of Railways India and joint-stock company Russian Railways signed a Memorandum of Cooperation (MoC) for implementing speed upgradation project in Nagpur-Secunderabad section and exchanging latest technologies. Expansion of railway maintenance facilities across the globe will further escalate the market demand over the projected timeframe.
Get more details on this report - Request Free Sample PDF
Refurbishment of wheelsets will improve overall life cycle
Boggies/wheelsets & suspension will hold around 25% railway aftermarket revenue share in 2026. Wheelset is an assembly of two wheels fixed to an axle by interference fit. Deviation in wheel profiles owing to excessive wear on rails results in lowering the wheel life cycle. Growing demand for repair and refurbishment including re-turning or reprofiling of wheelsets offering extended wheel life and operational safety, will drive the industry size.
High speed trains will foster the segment growth
High speed trains will showcase substantial growth prospects owing to rising number of ongoing high speed rail network projects and maintenance projects across the globe. For instance, in April 2019, Trenitalia Italy announced the corrective and preventive maintenance project for 59 ETR 500 high speed trains.
Browse key industry insights spread across 142 pages with 146 market data tables, 23 figures & charts from the report, “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” in detail along with the table of contents:
Collaborative efforts for digitization will offer new solutions
Railway operators will generate around USD 55 billion in 2026. Collaborative efforts of rail operators towards condition-based maintenance systems will significantly drive the market size over the forecast timeframe.
For instance, in March 2017, DB Cargo signed an agreement with GE Transportation for digitizing 250 locomotives across France, U.K., Germany, and Poland over the next five years. This project delivered GE-Predix-based solution ‘RailConnect 360’ that delivered 25 percent reduction in service failures.
Rail infrastructure maintenance projects to boost the market outlook in North America
North America railway aftermarket industry will generate revenue of around USD 20.71 billion till 2026. Ageing fleet along with government funding for rail maintenance will drive the regional market for aftermarket parts over the forecast timeframe.
For instance, in February 2019, U.S. Department of Transportation agency Federal Railroad Administration (FRA) awarded USD 56 million for repair and upgradation of rail infrastructure for improved safety and service. Proliferating passenger rail transportation along with growing rail networks will complement the regional growth.
Upgradation and maintenance contracts to gain higher market share
Industry players are focusing on upgradation and maintenance contracts for increasing their revenue generation capabilities. For instance, in January 2020, Stadler gained a maintenance contract worth USD 112 million from Dallas Area Rapid Transit (DART) agency. Increasing demand of maintenance services is providing potential opportunities for expansion of repair solutions and serving a large consumer base.
Explore More on Related Topics: