The rolling stock market is projected to grow at a CAGR of 3.49%, from US$73.093 billion in 2025 to US$86.761 billion in 2030.
Rolling stock refers to all the types of vehicles operating in the rail transport industry, including locomotives, coaches, and wagons, among others. The factors that drive the rolling stock market growth in the next five years are the burgeoning investments by the governments of various countries around the globe in the expansion of railway fleets and the expansion of railway networks to connect remote areas with urban areas. This, in turn, is anticipated to propel the demand for rolling stock and drive market growth significantly throughout the forecast period.
The demand for public transport is increasing significantly, especially rail transport, due to lower costs and the widespread presence of rail networks in almost every country worldwide. According to the International Energy Agency, freight activity and the number of passengers are expected to double by the year 2050. This will further drive the demand for energy, leading to increased carbon emissions and further impacting the environment.
Electric rail systems are witnessing growing investments that are expected to make positive impacts on the growth of the market by further projecting the reduction of environmental impact. The environment continued to attract the attention of governments in various countries and, thus, drew an increased investment trend in electric rail systems intended to reduce carbon emissions. For instance, the government of India is planning to electrify the entire railway network of the country by the year 2025 to save energy worth US$1.5 billion.
However, the primary factor that inhibits the market growth is the long life span of these rolling stocks, as high initial costs further lead to overhaul and refurbishment of current stock, which is anticipated to be a prime factor to moderately impact the market growth in the coming year.
The rolling stock will expand during the forecast period, basically due to increasing investment in railway services of many developing and developed countries around the globe, which manifests itself in infrastructure expansion, fleet expansion, and rail network extension. All these factors are collectively resulting in increased demands for various types of rolling stock and further market growth acceleration. Also, the railway sector in many countries is considered one of the most important revenue-generating sectors, which is also a prime factor for the growing investments for tapping the potential revenue growth opportunities by the government.
The infrastructure investments in rail transport in the various developing economies in the expansion of new railway networks and enhancement of current infrastructure in developing economies play a significant role in boosting market growth. According to IBEF reports, Indian Railways loaded 1434.03 MT of freight from April to February in FY24, which is an increase of 66.51 MT, and earned revenue of around US$ 778 million compared to the last financial year.
Also, the government schemes for the penetration of bullet trains in the country are anticipated to provide an impetus for the market to surge in the next five years. For instance, in June 2022, Indian Railways launched the 'Bharat Gaurav' scheme in the Southern Railway. The objective of this launch is to portray the country's rich cultural heritage and historical places. This train would be operated by the private operator, South Star Rail. All these factors are anticipated to propel the rolling stock market growth during the next five years.
The rolling stock market is observing growth from the shift towards electric and hybrid components, principally brought about by the requirement of emission abatement and energy efficiency. Development has seen an increase in the global push to reduce carbon footprints, mostly due to the value-added features of propulsion systems, regenerative braking technologies, and lightweight materials that aim to reduce energy consumption and operational costs.
Furthermore, manufacturing is contributing to a more eco-conscious direction by concentrating on sustainable and recycled materials and greener workflows to minimize litter and reduce noise pollution. Concerning this, investments have been made in research and development on revolutionary green solutions, as modern rolling stock designs are now capable of benefiting communities along railway lines to a greater extent.
In geographical terms, the rolling stock market can be segmented as follows: North America, South America, Europe, the Middle East and Africa, and Asia Pacific. Geographically, North America is expected to boost market share with optimal infrastructure and technology. Most emerging key players in the rolling stock market attribute this performance to the region. Increasing construction of metro project development, electrification expansion within train routes, freight growth, and sustainable transport emphasis are driving the region to continue being the frontrunner in the rolling stock market. In addition, a strong economy and extensive rail networks ensure that a wide number of freight cars and locomotives are required. Investment by government and businesses in electric and hybrid rolling stock will fuel the emerging demand in this region.
The Asia Pacific region is anticipated to occupy a significant share of the global market. The growth could be attributed to the presence of one of the largest and most well-established rail networks in countries like China, India, and Japan. Additionally, the growing investments in India in electric trains, metros, and bullet trains are further supplementing the market growth in the APAC region during the next five years. The North American region is anticipated to show notable growth throughout the forecast period, owing to the well-established state-of-the-art railway infrastructure and key market players in the region.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Rolling Stock Market Size in 2025 | US$73.093 billion |
| Rolling Stock Market Size in 2030 | US$86.761 billion |
| Growth Rate | CAGR of 3.49% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
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| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in the Rolling Stock Market |
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| Customization Scope | Free report customization with purchase |