Rolling Stock Market in Europe 2019-2023
About this market
Battery electric locomotive do not need to burn fossil fuels to generate power as it is run by inbuilt rechargeable batteries. This eliminates direct emissions, noise, exhaust gases and the need for fuel storage for these types of locomotives. Moreover, it does not require expensive ground rail or overhead catenary infrastructure like wireline traction systems. Advancements in battery technologies have allowed the development of battery electric locomotives for practical applications. Railcars fitted with high capacity lithium ion batteries are being developed for bimodal traction systems. These locomotives help in reducing infrastructure maintenance costs and saving energy and are particularly useful in non-electrified tracks. Thus, the development of battery electric locomotives is identified as a key trend that will drive growth of the railway stock market in Europe during the forecast period. Technavio’s analysts have predicted that the rolling stock market in Europe will register a CAGR of over 2% by 2023.
Introduction of new railway projects
Significant investments are being made to improve the domestic and international connectivity of several countries in Europe including Germany, France, and the UK. Railways are attracting the major part of these investments due to its cost effectiveness. Several new railway projects are under planning, construction and development stages in this region. China is also investing heavily to develop freight networks between several Asian and European countries as part of its Belt and Road initiative. Thus, the introduction of new railway projects will drive the demand for new locomotives and railroad vehicles which, in turn will boost market growth in Europe.
Delay in railway project development and execution
Railway projects require huge investments which puts pressure on the local or national economy. This leads to frequent delays in project implementation. Inflating funding requirements and uncertain economic environment are also the cause of delay in railway project implementation in some countries of Europe. This have resulted in high volatility in investments in the railway industry. Thus, the delays in railway project development and execution is hurting the growth prospects of railway stock market in Europe.
For the detailed list of factors that will drive and challenge the growth of the rolling stock market in Europe during 2019-2023, view our report.
The market appears to be fairly concentrated and with the presence of companies such as Alstom, and Bombardier the competitive environment is intense. Factors such as the introduction of new railway projects, will provide considerable growth opportunities to rolling stock companies in Europe. Alstom, Bombardier, CAF, Siemens, and Stadler Rail are some of the major companies covered in this report.
Technavio Announces the Publication of its Research Report – Rolling Stock Market in Europe 2019-2023
Technavio recognizes the following companies as the key players in the rolling stock market in Europe: Alstom, Bombardier, CAF, Siemens, and Stadler Rail.
Commenting on the report, an analyst from Technavio’s team said: “Battery electric locomotives derive power from inbuilt rechargeable batteries and help in saving energy and reducing infrastructure maintenance cost. The development of these locomotives will drive the growth of railway stock market in Europe during the forecast period,”
According to the report, one of the major drivers for this market is the introduction of new railway projects to improve domestic and international connectivity of several countries in Europe. This will create a demand for new railway stock during the forecast period which, in turn will drive market growth.
Further, the report states that one of the major factors hindering the growth of this market is the delay in railway project implementation and execution. The volatile nature of investments in the railway industry is hampering the growth of the railway stock market in Europe.
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