The global locomotives market size is projected to reach USD 23.83 billion by the end of 2027. The high investment in the development of sustainable products will emerge in favor of market growth. According to a report published by Fortune Business Insights, titled “Locomotive Market Size, Share & Industry Analysis, By Technology Type (IGBT Module, GTO Thyristor, and SiC Module), By Propulsion Type (Diesel and Electric) and Regional Forecasts, 2020-2027,” the market was worth USD 18.16 billion in 2019 and will exhibit a CAGR of 10.3% during the forecast period.
Covid-19 Pandemic Will Bring Locomotive Businesses to a Standstill
The recent coronavirus outbreak has brought major businesses to a standstill. The rapid spread of the disease has urged governments to take strict measures. Due to travel bans, locomotive businesses are likely to take a huge hit in the coming years. The report includes the impact on Covid-19 pandemic on the global locomotive market and discusses how major companies are coping with this.
Locomotives are powered engines that are used to pull trains. The ability of a locomotive to carry a payload is what separates it from low-power engines. The force required to pull trains is much higher than normal vehicles and thus, large scale investments are a necessity and not a benefit. The recent technological advances in design as well as structures of locomotives have allowed applications with higher pulling capacities and lower fuel consumption. The massive investment in the railway sector is consequential to the large amount of passengers it can carry. The extensive of railways in densely populated countries such as India will create several growth opportunities for the companies operating in the market. The presence of several large scale companies will emerge in favor of market growth.
Increasing Number of Electric Locomotive Projects Will Bode Well for Market Growth
The report encompasses several factors that have contributed to the growth of the overall market in recent years. Among all factors, the increasing number of sustainable locomotive projects in major countries across the world will open up a huge potential for rapid growth. The efforts taken to develop and deploy electricity-powered locomotives by governments as well as private companies will emerge in favor of market growth. In March 2018, Alstom announced completion of its all-electric locomotive in Madhepura, Bihar. The company was working on this contract, supposedly worth USD 75 million, since the past few years. This step was initiated by the Indian government, with the rising demand for sustainable energy. This step was consequential to the massive fuel consumption and carbon emission in the densely populated country of India.
Asia Pacific to Emerge Dominant; Rising Urbanization and Expansion of Rail Network Will Aid Growth
The report analyses the latest market trends across five major regions, including North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. Among all regions, the market in Asia Pacific holds the largest market share. The rising urbanization has created the need for sustainable engines. The massive transport industry and the constantly rising railway passengers and train travels will create several opportunities for the companies operating in the regional market.
The market in Europe is expected to exhibit a steady CAGR in the coming years. The growth of the market in this region is attributable to the presence of several large scale manufacturers in several countries across this region.
List of companies profiled in the report:
Industry Developments:
March 2018 – Alstom announced the completion of all-electric locomotive at Madhepura, Bihar, India. The contract with the Ministry of Indian Railways is said to be worth USD 75 million.
Source:
https://www.fortunebusinessinsights.com/enquiry/customization/locomotive-market-103285
