Market Trends of Rail Road Wheels Industry
This section covers the major market trends shaping the Rail Road Wheels Market according to our research experts:
The Growth In Rail Transport Is Expected to Drive the Market
The railways are becoming the most important part of the traveling and transportation industry. The increasing usage of the rail network for daily travel within or out of cities in various countries is fueling the growth of trains and their components, such as railroad wheels.
The rapid urbanization and growing population are contributing to the growth of the rail network, owing to the usage of trains for daily traveling for office and business. In addition, the usage of trains for transportation and cargo services is also expected to drive the demand for trains during the forecast period as governing bodies are focusing on enlarging the railroad network across the region.
The sales of components such as wheels are increasing owing to the manufacturing and launch of advanced products and increased orders received by the companies in various countries to support the zero-emission strategy. For instance, the American machinery company Caterpillar Inc. accepted the order of ten battery-electric locomotives by Union Pacific Railroad. The purchase is part of the largest investment in battery-electric technology by a US Class I railroad.
Moreover, advanced locomotives are grabbing the market gradually. Hence, many governments in various countries are supporting the adoption of electric rail to promote zero-emission goals worldwide, which is expected will boost the market for trains and railroad wheels.
Asia-Pacific Region Is Expected to Dominate The Market
During the studied period, Asia-Pacific is predicted to grow at the quickest rate. After China, India is the second-largest and fastest-growing market for railway components in Asia-Pacific. India is upgrading its rail transportation infrastructure by investing in rolling stock.
The Indian rolling stock market is steadily growing due to population expansion, intercity commerce and commuting, impending metro projects (13 operational, six under construction, seven in the planning stage, and eight in the proposed stage), and extension of current lines.
The make in India scheme by the Indian government emphasizes encouraging manufacturing operations within the country. The market for rail components in India is likely to grow as a result of this. Due to large-scale fast urban transit development, China is one of the primary contributors to increasing regional growth in the rail component market. CRRC, a prominent Chinese market participant, is the dominant manufacturer of rolling stocks and related rail components, with a market share of 39%.
Also, to fulfill the deadline of rolling out 75 trains by August 2023, the Indian railway plans to invest Rs. 130 crores in the capacity development of manufacturing divisions to expand production of the Vande Bharat Express.
With that, in the rolling stock business, which is mostly utilized for passenger transportation, Japan is the technological leader. The government is continually investing in the development of novel rolling stock technology.
