Global Urban Rail Transit Market 2017-2021
About Urban Rail Transit
The growing urbanization in the cities and suburban areas has spurred the demand for more public transportation modes. The advances of the public transport systems aid in the overall economic development of the country and help in increased mobility through connected networks. The acceptance of the urban rail transit market has been increasing over the years. The main reason for the growth of the market is the growing congestion in the urban and suburban areas. To overcome the rising concern of traffic and congestion, urban rail transit systems have been adopted globally. This is growing faster in the developing countries, especially in APAC, due to the increasing urbanization.
Technavio’s analysts forecast the global urban rail transit market to grow at a CAGR of 5.25% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global urban rail transit market for 2017-2021. The report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Urban Rail Transit Market 2017-2021
Technavio recognizes the following companies as the key players in the global urban rail transit market: Alstom, Bombardier, CRRC, Mitsubishi Heavy Industries, and Siemens.
Other Prominent Vendors in the market are: AmstedMaxion, Astra Rail, Bradken, CAF, DCD Rail, Downer Group, Èolane, INTAMIN Deutschland, Japan Transport Engineering Company, Newag, PKC Group, Promtractor-Vagon CJSC, Scomi Engineering Bhd, Sinara Transport Machines, Skoda Transportation, The Greenbrier Companies, and The Urbanaut Company.
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is Rise of public-private partnership in developing countries. In developing countries, there exists a lack of infrastructure required for the operations of urban transportation. For the overall economic growth and development of the nation, efficient infrastructure facilities must be developed. The implementation of urban transport facilities requires huge investments. The expenses for such projects cannot be entirely borne by the government because of the huge risk associated with them. In such conditions, the PPP model becomes beneficial because of shared risk and better operational efficiency.”
According to the report, one of the major drivers for this market is Growing urbanization and need for sustainability. The urban population was more than 50% of the total global population in 2016. The growth is more visible in developing countries like India, China, and various countries in Africa and Latin America. For example, in China, the urban population increased by more than 40% in 2016 compared with 1960. The rise in the urban population can result in the increasing mobility in urban areas. With the growing urbanization, the primary issue is traffic and congestion associated with the increasing mobility. Therefore, with the growth of the urban population, there emerges a need for more public transportation solutions that offer high capacity transit. Railways is an option, which can overcome the problem of traffic congestion on roads by using a different route for transit, the rails.
Further, the report states that one of the major factors hindering the growth of this market is High initial investment. Rail projects are associated with high investments in the initial phase of the projects. Therefore, they are capital intensive in nature. The initial investments are mainly for the raw materials like iron, equipment and machinery, and labor. The railways are built under the build operate transfer (BOT) of public private partnership (PPP), wherein the rolling stock is done for certain projects or as per client requirement. The initial budget required for the construction of rolling stocks or stations must be borne by the vendors who are assigned the contract. The projects are done on a long-term basis because of which the company must borrow money for the initial financing.
Alstom, Bombardier, CRRC, Mitsubishi Heavy Industries, Siemens, AmstedMaxion, Astra Rail, Bradken, CAF, DCD Rail, Downer Group, Èolane, INTAMIN Deutschland, Japan Transport Engineering Company, Newag, PKC Group, Promtractor-Vagon CJSC, Scomi Engineering Bhd, Sinara Transport Machines, Skoda Transportation, The Greenbrier Companies, and The Urbanaut Company.