Locomotive Market Forecasts to 2028 - Global Analysis By Propulsion Type (Diesel, Electric, Electro-Diesel and Other Propulsion Types), Component (Rectifiers, Alternators, Traction, Motor Blowers, Inverter, Battery, Motor, Auxiliary Power Conversion Unit and Other Components), Operational Engine, Technology, End User and By Geography

According to Stratistics MRC, the Global Locomotive Market is accounted for $4.39 billion in 2022 and is expected to reach $5.21 billion by 2028 growing at a CAGR of 2.8% during the forecast period. A locomotive is a self-propelled rail transport vehicle used solely to move trains along tracks. They have no cargo capacity. The locomotives on the trains might be found in the back, front, or both ends. Diesel fuel ignites, pushing pistons linked to an electric generator. Motors attached to the locomotive's wheels are propelled by the resultant electricity. Steam, diesel, or electricity are used to power many types of locomotives, including freight, passenger, and repowered locomotives.

According to the reports by the researchers from the Lawrence Berkeley National Laboratory and UCLA's Institute of Environment and Sustainability, upgrading existing diesel locomotives with battery power could save railroads USD 94 billion in fuel costs over the next 20 years.



Market Dynamics:

Driver:

Expansion of rail network

Several developed and emerging countries, including China, Japan, and India, are making investments in the development of their infrastructure. They are creating and purchasing high-speed trains while also increasing their comfort and safety features. The need for locomotives, such as freight, passenger, and repowered locomotives, has risen as the railway networks have been expanded. The market demand is being fuelled by the diversification of energy sources and the provision of more efficient transportation.

Restraint:

Requires huge infrastructure

Six enormous electric traction motors are used in a contemporary hybrid diesel electric locomotive engine, which is powered by a diesel-powered alternator. Additionally, the capital expense is increased by the cost of the infrastructure needed to operate the locomotives on the tracks. The locomotive engine is costly since this complete system has pricey components. The cost of locomotive engines alone takes up a significant portion of capital, which is hindering the market demand.

Opportunity:

Technological advancements

The need for locomotives has increased as a result of increased urbanization and rail developments. The need for power conversion components has increased as a result of technological developments including the introduction of IGBT modules, SiC modules, and auxiliary power units. These developments have reduced power loss while changing the condition of the electricity, decreased emissions, boosted fuel efficiency, and decreased total weight. The market demand is being boosted by these developments.

Threat:

High service costs

The establishment and operation of the railway network involve large capital and maintenance expenditures. A significant portion of the capital is taken up by the cost of locomotive engines alone, which also includes maintenance and repair expenses. Priced at about USD 6 million, an electric locomotive is five times more expensive than a standard diesel locomotive engine. This factor is limiting market expansion.

Covid-19 Impact

People have been impacted by the corona virus pandemic in a variety of ways, including by having less mobility and fewer possibilities for exercise. Such conditions led to the deterioration and impairment of locomotor function. Demand for the locomotives has been less than expected. The transportation and logistics sector was seriously damaged. Due to constraints, manufacture and testing of locomotives were temporarily halted as a result of the COVID-19 epidemic and the subsequent economic collapse.

The diesel segment is expected to be the largest during the forecast period

The diesel segment is estimated to have a lucrative growth. A diesel locomotive is made consisting of a diesel engine that provides propulsion. Diesel products come in a variety of forms, and they often differ in terms of how efficiently they can transmit mechanical energy to the wheels that are being driven. Diesel fuel is stored in the fuel tank and delivered by an electric fuel pump in order to power the engine.

The insulated-gate bipolar transistor (IGBT) module segment is expected to have the highest CAGR during the forecast period

The insulated-gate bipolar transistor (IGBT) module segment is anticipated to witness the fastest CAGR growth during the forecast period. IGBT modules in electrical and diesel railway systems are particularly lightweight. Long-distance freight and passenger transit commonly makes use of IGBTs. They have three terminals: a gate, an emitter, and a collector. Its protection does not require a snubber circuit. The segment is expanding because of its switching frequency and flat temperature.

Region with largest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to growing freight transportation. Around 40,000 kilometers of high-speed rail have been built in China. In important nations like China, Japan, and India, buyers choose locomotives over other products. In Singapore, Malaysia, Indonesia, and Bangladesh, new rail projects for urban passenger transit as well as the replacement and upkeep of the current fleet are anticipated to boost the market in this area.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period. To cut expenses and pollutants, people in this area are employing electric trains. It has the presence of key manufacturers. The Germany locomotive market was the fastest-growing market in the region. The market expansion in this area is being driven by the rising demand for electric cars as part of the decarbonization strategy, notably in Germany, France, Sweden, and the United Kingdom, as well as the growth of the railway infrastructure.



Key players in the market

Some of the key players profiled in the Locomotive Market include Siemens AG, Alstom SA, Wabtec Corporation, Union Pacific, Stadler, Hyundai Rotem, Hitachi, Mitsubishi Heavy Industries, Ltd, Sinara, Bombardier Transportation, AEG Power Solutions, Toshiba International Corporation, CZ LOKO, CRRC Corporation Limited, Bharat Heavy Electricals Limited, Strukton and Brookville Equipment Corporation.

Key Developments:

In October 2022, Union Pacific signed a partnership with ZTR to develop new hybrid-electric locomotives. Five more hybrid-electric locomotives are expected to be delivered in 2024. Union Pacific will replace one diesel locomotive with two locomotives, known as ‘mother-slug’ sets.

In September 2022, Siemens Mobility extended its partnership agreement with leasing rolling stock specialist Akiem. Under this agreement, Siemens Mobility will provide a supply of 65 Vectron AC and Vectron MS locomotives to Akiem. The trains contain a maximum power of 6.4MWs and attain a maximum speed of 200km/h or 230km/h providing fast freight and passenger services across several countries in Europe.

In July 2022, Wabtec Corp signed a contract with Union Pacific to modernize 600 locomotives. The contract was valued at USD 1 billion. The modernization of locomotives will improve fuel efficiency by up to 18%, increase reliability by more than 80%, boost haulage ability by more than 55%, and extend the life of the engines.

In April 2022, Stadler signed a contract with Becon Rail for 30 bi-mode locomotives in the U.K. Under this contract, Stadler will deliver 30 Class 99 bi-mode Co'Co' locomotives along with its spare parts to be used for its operation in the U.K. The new locomotives are designed to be compatible with British gauge, and the specification combines 25kV A.C. electric and diesel operating modes. GB Railfreight will operate these locomotives.

Propulsion Types Covered:
• Diesel
• Electric
• Electro-Diesel
• Other Propulsion Types

Components Covered:
• Rectifiers
• Alternators
• Traction
• Motor Blowers
• Inverter
• Battery
• Motor
• Auxiliary Power Conversion Unit
• Other Components

Operational Engines Covered:
• Station Pilot
• Banking Engine
• Pilot Engine
• Other Operational Engines

Technologies Covered:
• Gate Turn-Off (GTO) Thyristor
• Insulated-Gate Bipolar Transistor (IGBT) Module
• Silicon Carbide (SiC) Module

End Users Covered:
• Passengers
• Freight
• Switcher Locomotives
• Other End Users

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances