Market Trends of Rolling Stock Industry
This section covers the major market trends shaping the Rolling Stock Market according to our research experts:
Government Contribution is Promoting to the Market Growth
Amid the rising environmental concerns owing to the air and road transport and rising city traffic congestion, railway transportation can be an eco-friendly and cheap alternative. In nearly all the major rail network countries, management of rolling stock is under the control of private players. But then, at the same time government has some control over its operations.
For instance, India, which has the fourth-largest rail network in the world, has a state-owned rail network, and in 2022, Indian Railways received a budget allocation of USD 18.6 billion for the 2022-23 fiscal year, which was 27.5% more than that of the previous year. Also, the government is planning to propose modern trains and has already privatized a few trains on selected routes. Similarly, in 2021 the UK government had plans to invest around USD 63.23 billion in the rail network in the Autumn Budget 2021.
Asia-Pacific Is Anticipated to Lead Major Market Share
The railway is the preferred means of transport among the passengers of the major Asian economies, such as Japan, India, and China. With these three countries also dominating the list of passenger-kilometer per year, as well major manufacturers of rolling stock markets are headquartered in this region. Furthermore, local governments are putting more and more capital into advancing the existing rail network. For instance,
- In 2021, China invested USD 117.86 billion in fixed rail assets, and its plan for 2022 was to invest in 3,300 km of new railway lines, in which approximately 1400 km of the railway lines are high-speed rail, and 1900 km railway lines are normal speed rail tracks.
- Indian Railways is set to combine its rolling stock manufacturing units and workshops into a new public sector unit (PSU) - Indian Railway Rolling Stock Company. This PSU will be structured along the lines of China's CRRC Group. In addition, the Indian Railways is also modernizing the existing railway network by including a new OMRS system, which consists of an Acoustic Bearing Detector (ABD) or Rail Bearing Acoustic Monitor (RailBAM) that can detect the faults in the bearings and wheels of the rolling asset.
Such investments are anticipated to remain the primary market driver during the forecast period.
