Rolling Stock Market Trends

Growth Drivers

• Surging Automation in Rolling Stock – Different technologies, such as ATO (automatic train operation), are used in order to automate the operations of the train. Furthermore, efforts are being made to use robots to maintain the rail industry, and it is expected to boost the growth of the global rolling stock in the market. By the year 2030, it is expected that more than 30 percent of all the jobs across the globe will be automated.

• Surging Adoption of Public Transportation –Driving more vehicles will just degrade the environment, which will affect the health of the people. Thus, the use of public transportation in the future will be more encouraged among the people, and it is projected to increase the market’s growth.  As per the International Energy Agency, the passenger rail activity rises in the High Rail Scenario to 15 trillion passenger-kilometers by the year 2050.

• Increasing Initiatives by the Government for Development of Railway Infrastructure– The governments of countries with large population are working on metro projects for easy transportation. As these projects lead to less sound pollution, no air pollution, and a reduction in traffic congestion, the government is therefore making more investments. Thus, it is anticipated to rise the growth of the market over the forecast period. The Government of India, and the Asian Development Bank signed around USD 500 million loan in order to expand the metro rail network in Bengaluru through constructing the two new metro lines totaling 50 kilometers in length.

• Surge in Mining & Industrial Activity– The increase in mining activities, through the production of coal and others, is expected to expand the growth of the global rolling stock market. In addition, the intra- and inter-state trade of coal and other mine products is mainly done through the use of railroads for transportation. According to the data in 2020, at least 50 new coal mines will be opened in India by Coal India Limited in the next five years.

• Rising Demand for Safer Transport Means- There has been a surge in the number of road accident cases across the globe. On the contrary, the rolling stock moves at a fixed speed, and it is anticipated to drive the market’s growth. In the year 2022, there were more than 150,000 deaths owing to road accidents in India. Moreover, more than 55 percent of the road accidents were owing to the over speeding.

Challenges

• Requirement of High Capital and Expenditure - The existing capacity of several rail franchises in relation to the rolling stock is not able to fill the rising demand. Moreover, the loading and unloading of goods require a huge cost, in addition to the wear and tear, that is further contributing to the expenditure. In addition, there is a requirement for the modernization of tracks, and signal technology for smooth operations.
• Inability to Adjust the Route and Timings According to the Individual requirements
• Lack of Advanced Infrastructure