Strategic Analysis of the European Light Rail and Underground Market - Part 1: Market Overview

Published by: Frost & Sullivan

Published: Dec. 19, 2007 - 46 Pages

Table of Contents

1. Market Description

1. Introduction

1. Executive Summary

2. Background

3. Structure and Scope

2. Top-level Analysis of the Market

1. Market Overview

2. Definitions

3. Industry Segmentation

3. Value Chain Structure Analysis

1. Value Chain Relationships

2. Development of Value Chain

4. Industry Challenges; Market Drivers and Restraints

1. Industry Challenges

2. Market Drivers

3. Market Restraints

5. Industry Trends

1. Market and Pricing Trends

2. Socio Cultural Trends

3. Trends in Technology

4. Regulations and Impact of Government

6. Conclusion

1. Key Market Findings

Abstract

This Frost & Sullivan research service titled Strategic Analysis of the European Light Rail and Underground Market - Part 1: Market Overview provides current trends, drivers, restraints and challenges prevailing in the market. In this research, Frost & Sullivan's expert analysts thoroughly examine the industrial markets for light rail and underground rolling stock, infrastructure and systems. Part 2 of this research: "Strategic Analysis and Market Engineering Research Measurements" and part 3: "Competitive Environment Analysis" will offer further insights into this exciting market.

This analysis is available through our Automotive and Transportation Growth Partnership Services programme. With this programme, clients receive industry-leading market research such as this, along with technical and econometric data and many interactive features including Analyst Inquiry Time and Client Councils.

Market Overview

Light Rail and Underground Playing an Increasingly Important Role in Determining Urban Quality of Life

Modern light rail and underground networks are critical to promoting environment-friendly public transport across Europe’s cities. Urban areas continue to grow and people need reliable, convenient and fast transport to switch between their various life-focus zones. The use of cars as a mode of individual transport in highly populated areas has resulted in congestion and severe environmental pollution. Several cities are attempting to resolve these issues with the implementation of congestion charging zones and other transport-related restrictions. This is being paralleled by the emergence of new technologies that are increasing the attractiveness of light rail. For instance, innovative power supply systems are alleviating the visual impact of light rail infrastructure. Developments in propulsion and materials are having a positive influence on reducing energy consumption and operating costs.

After years of consolidation, the market is currently dominated by the three big companies: Alstom Transport, Bombardier Transportation and Siemens Transportation Systems. This situation is likely to affect the entry and competitive success of other OEMs and strong suppliers. In many aspects, the prevailing intense pricing pressure is having a negative influence on the relationships within the industry. For Western European companies, access to Central and Eastern Europe is often difficult due to the historic bias towards local manufacturers and vice versa. However, there exist further opportunities for growth, provided market participants can leverage rising environmental awareness and additional demand in the new EU member states.

Environmental Concerns and Replacement Orders Offer Growth Potential

Reports on climate change and rising energy costs have raised awareness about the shortage of fossil fuels as well as the importance of a more environment-friendly lifestyle. Congestion and the lack of adequate parking spaces have encouraged people to overcome their reluctance to use urban public transport. "The revival of light rail in Europe will continue, as public attitudes towards the image of rail-bound public transport have started undergoing a transformation", notes the analyst. "Amidst the public debate about global climate change, light rail and underground transport is emerging as a modern and stylish alternative, making it incumbent on the industry and transport authorities to capitalise on this trend and persist with innovation and lobbying efforts."

Stable market growth will be predicated on continued innovation and the availability of government funding. Ultimately, gaining access to available funding sources will be crucial to market development. Intensive lobbying will be required, particularly in central and eastern Europe, to boost awareness about the importance of modern light rail and underground networks.

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