Europe Locomotive Market Size is anticipated to increase during the Study Period of 2024-2032

 Europe Locomotive Market Overview

Europe Locomotive Market Information By Type, Technology, Component, and Region - Forecast till 2030”, The Europe Locomotive Market will be increasing from USD 15.5 billion in 2022 to USD 33.5 billion by 2030, with a CAGR of 11.61% from 2022 to 2030.

Europe Locomotive Market Scope

Long-term trends in urbanization, environmental sustainability, a wide range of upcoming rail projects, growth in demand for energy-efficient rolling equipment, and the expansion of rail networks are anticipated to be key market drivers for locomotives. Electric locomotive production is increasing to fulfil demand as a form of public transport thanks in part to the world's large rail networks.

In addition, the development of technologies like the Sic module, IGBT module, and auxiliary power units has led to a rise in the need for locomotive engines. In addition to increasing fuel efficiency and reducing total weight, this development has decreased pollutants. When moving to the current condition, it has also decreased power loss.

However, some restraints, including the capital-intensiveness of rolling equipment, high maintenance expenses, and overhaul prices, are preventing the expansion of the locomotives market. The global market is anticipated to expand rapidly in the upcoming years despite these market difficulties.

The amount of cargo that has to be handled is increasing due to the burgeoning transportation industry, and during the projected period, Asia-Pacific and North America may experience significant increase.

Market Competitive Landscape:

The major vendors in the locomotive industry are

·        CRRC Corporation Limited

·        AEG Power Solutions

·        Siemens AG

·        Alstom S.A

·        GE Transportation

·        Transmashholding

·        EMD Caterpillar

·        Kawasaki Heavy Industries

Market USP Covered:

Market Drivers:

Traffic congestion and pollution from moving vehicles occur from the difficulties of transportation growing as the population grows. This has led to railway transit becoming a popular means of transportation for daily travel within or between cities. Additionally, rail mass transit offers passengers a time- and money-saving mode of transportation. As an illustration, 2.61 billion commuters were estimated to be using trains in China in 2021. When compared to the commuters who travelled in 2020, which was 2.53 billion, this amount was higher by 18.5%. As a result, rising train ridership will fuel market expansion for locomotives during the upcoming years.

The proliferation of urban and metropolitan areas also generates a sizable demand for the extension of the rail network. In order to meet diverse transportation demands, more locomotives are needed as there are more routes available. Governments from different states and nations are likewise focused on creating railways that will drive the industry and investing a significant amount of money in expanding the train networks.

The e-commerce sector experienced an upsurge in demand during the COVID-19 epidemic as the products an end-user needed were delivered to them without going to the stores, reducing contact and reducing the risk. Goods trains are a more effective way to handle the logistical aspects of e-commerce. As a result, the market share will grow during the projection period as e-commerce logistics demand rises.

To illustrate, the Indian Railways said in June 2022 that freight loading, including e-commerce and other logistics, during May 2022 was 131.7 million tons (MT), which was 14.7% more than the previous year in May 2021. In order to transport a load of logistics from one location to another, an increase in freight loading necessitates the use of high-power and efficient locomotive trains, which in turn stimulates the market.

Market Restraints:

The railway network is not only a significant means of transportation, but it also comes with high startup and ongoing maintenance expenditures. A sizable portion of the capital is taken up by the cost of locomotive engines alone, which also includes the cost of maintenance and repairs.

As an illustration, the average price of a standard diesel locomotive engine is in the vicinity of USD 0.5 million to USD 2 million. At the same time, an electric locomotive cost more than USD 6 million. This results in market restraint caused by the locomotive's price.

Six enormous electric traction motors are powered by an alternator that is powered by diesel in a modern hybrid diesel electric locomotive engine. Additionally, the infrastructure needed to operate the locomotives on the rails adds to the capital cost. The locomotive engine is pricey since this system as a whole has expensive components.

 

COVID 19 Analysis

People were affected by the government-enforced lockdowns and economic catastrophe brought on by the COVID-19 epidemic in a number of ways, including limited mobility. The transportation and logistics sector was significantly influenced by these circumstances. Nearly every manufacturing company was either preparing to offer or already had increased their production capacity to satisfy the demand. An economic slowdown brought on by the COVID-19 outbreak resulted in temporary restrictions on locomotive testing and manufacturing. For instance, the pandemic forced the Integral Coach manufacturer to reduce its output goal from 4,402 to 1,954 coaches.

As a result of COVID-19's initial effects, less goods were shipped through freight rail, production was slowed, and fewer locomotives were produced each year. The e-commerce sector, however, experienced a surge in demand that led to more shipments as a response to the pandemic since the majority of the service sector switched towards digitalization after the outbreak.

Market Segmentation

By Type

Diesel, Electric, and Other are the three types of locomotive in the market. During the forecast period, 2022–2030, the diesel segment, which accounted for the majority of the Europe Locomotive Market's revenue in 2021, is anticipated to increase at a quicker rate. 

By Technology

The IGBT module, GTO thyristor, and SiC module are the technology segments of the Europe Locomotive Market segmentation. During the projection period, 2022–2030, the IGBT module sector is expected to increase at a faster rate than any other segment. This category dominated market growth in 2021.

By Component

In terms of component, Rectifier, Inverter, Traction Motor, Alternator, and others make up the Europe Locomotive Market. Due to the traction motor segment's rising efficiency as a result of locomotive loss reduction, it is anticipated that the traction motor segment will increase at the fastest rate over the projection period, 2022–2030. It is advantageous to have lower copper, harmonic, mechanical, and iron losses.

Regional Insights

Thanks to the surge in the rolling stock production and the rise of the rail infrastructure, especially in China, Japan, and India, the Asia Pacific Europe Locomotive Market, which touched USD 6.1 billion in 2021, will capture a fantastic CAGR of 43.90% during the study period. In addition, the regional market is seeing increased revenue as a result of soaring government investment on train network expansion in conjunction with the surging road congestion.

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