April 20, 2024
Rail Components Market

Rail Components Market Is Expected To Be Flourished By Expanding Railway Infrastructure Development

The global rail components market plays a vital role in rail transportation networks around the world. Various components such as bogies, rail gauges, rail fasteners, railway switches, wheels and axles allow for smooth functioning of rail systems. Rail components experience heavy usage and require regular maintenance and replacement for ensuring passenger safety and comfort. Key end-use industries of rail components include passenger transit systems, freight transportation and high-speed rail networks. Mass transit systems are observed to be largest segment due to huge urban population opting for rail transportation on daily basis.

The global rail components market is estimated to be valued at US$ 100.69 billion in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Expanding Railway Infrastructure Development (refered from heading)- Governments across major economies are heavily investing in expansion and upgradation of existing railway infrastructure which acts as a key driver for rail components market. For instance, Indian government announced a plan to invest over US$ 120 billion towards rail infrastructure by 2030. Similarly, China’s 13th five year plan aims to double high speed rail network by adding over 25,000 kilometers of new lines by 2025.

Increasing Number of Metros and High Speed Rail Projects- Metro rail projects are increasingly being undertaken in various cities globally to decongest road traffic and provide fast means of transportation. Meanwhile, countries like China, Japan, France, Germany have well developed high speed rail networks connecting major cities. Rising investment towards development of metros and bullet trains is fueling demand for various rail components including bogies, wheels, couplers and coaches.

Segment Analysis

The global Rail Components market is dominated by two key segments – Rolling Stock and Track Components. The Rolling Stock segment accounts for around 55% of the total market share currently due to growing demand for high-speed and metro trains globally. Modern rolling stock such as metros and bullet trains require advanced components like brake pads, bearings, couplers, etc. which is driving growth of this segment.

PEST Analysis

Political: Stable policies by various governments focusing on investments in rail infrastructure is positively impacting the market. Economic: Growing economies coupled with rising disposable incomes have increased passenger traffic on rails thereby augmenting demand for rail components. Social: Increasing urbanization and preference for public transportation over personal vehicles is favoring non-road transport like railways. Technological: Advancements in train technologies utilizing techs like regenerative braking and collision prevention are propelling innovations in rail components.

Key Takeaways

The global Rail Components Market Growth is expected to witness high growth at a CAGR of 5.9% during the forecast period of 2024 to 2031.

The Asia Pacific region is projected to continue its dominance in the global market owing to ongoing infrastructural expansion plans and technical upgradations across countries like China, India, and Japan. China alone contributes to over 25% of the total Asia Pacific Rail Components demand led by its massive high-speed rail network and ongoing metro projects in major cities.

Key players operating in the rail components market are Avesco, Gates Corporation, Faiveley Transport, Kawasaki Heavy Industries, Siemens, and Bombardier. Avesco leads among traction motors manufacturers while Gates supplies rivets & fasteners globally. Kawasaki is a leader in propulsion systems & bogies.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it