Hybrid Train Market - Growth, Trends, and Forecasts (2020 - 2025)

Hybrid Train Market - Growth, Trends, and Forecasts (2020 - 2025)

The hybrid train market (henceforth referred to as the market studied) is anticipated to register a CAGR of about 6.23% during the forecast period (2020 - 2025).

Train transportation is one of the major transportation modes for any country for both passengers and cargo. However, trains have their own impacts on the environment as trains produce nitrogen dioxide, carbon dioxide, and particulate matter that can contribute to air pollution and negative health effects. To reduce the effects of train on environment companies are coming up with new innovations through which this effect can be reduced such as hybrid trains.
Globally, there's a trend toward greener forms of transport supported by new government regulations, the green transportation trend is penetrating through all the transportation modes such as air transportation, ships, trains, cars and trucks. These factors are likely driving the hybrid train demand over the forecast period.
However, high overhaul & maintenance costs can create a obstacle for the growth of the market. Despite the presence of restraining factors, hybrid trains are more environment friendly based on which the demand for more number of hybrid trains is likely to amplify over the study period.

Key Market Trends

Electro Diesel Segment Held the Largest Market Share in 2019

In 2019, the Electro Diesel segment held the largest share in the market. Electro diesel railway vehicles, also known as dual-mode or bi-mode, are powered either by an electricity supply (like an electric locomotive) or an onboard diesel engine (like a diesel-electric locomotive).

These railway vehicles are used across all the regions. However, Asia-Pacific and Europe have been identified as the major markets, with several development plans and high deployment units of electro-diesel railway vehicles. Moreover, railway vehicle manufacturers across the world are consistently working on various technologies to further enhance the performance of electro-diesel railway vehicles. For instance:

In Poland, during 2018, PKP Cargo, Pesa, and the TABOR Institute of Rail Vehicles signed an agreement at InnoTrans to develop an automated electro-diesel locomotive.
PKP Cargo and Pesa are expected to create a design based on Pesa’s Gama locomotive platform, which will be verified by TABOR. Following the testing by PKP Cargo, the locomotive is anticipated to be commissioned in 2022.
The vehicle is expected to operate with GoA 3. Sensors, cameras, and gyroscopes will be fitted, and the input data will be analyzed using artificial intelligence.
In Spain, the European Investment Bank (EIB) approved a EUR 100 million loan in 2019 to part-finance the planned EUR 201 million procurement of 26 electric and 5 electro diesel trainsets for RENFE. The depots at El Berrón and Santander are expected to be modernized as part of the project.
In December 2019, CRRC Corporation Limited and the Philippine Secretary of the Department of Transportation signed a contract. According to this contract, the Philippine National Railways (PNR) will purchase three trains from CRRC. The diesel electric multiple unit trains are expected to have a design speed of 120 km/h.

Owing to such aforementioned developments, the electro diesel railway vehicles may replace their diesel counterparts. These electro diesel trainsets have been successfully generating savings in operation and maintenance costs, which may further drive the market growth during the forecast period.

Asia-Pacific is Likely to Lead the Hybrid Train Market during the Forecast Period

The Hybrid Train market is anticipated to dominated by Asia-Pacific due to several ongoing projects to launch the hybrid trains in the region. Asia-Pacific is also one of the biggest markets for the rail industry and the demand for greener trains is growing in the region. The Asia Pacific comprises emerging economies such as China and India along with developed economies such as Japan. The implementation of new technologies and the establishment of new government regulations are driving this market in this region.

Over the past decade, China experienced large-scale and rapid urban rail transit development. Urban rail transit in China is developing toward a networked structure, intellectualized equipment, diversified systems, and innovative technology in recent years. The trend is shifting toward the adoption of large-capacity subways in the central areas of super cities and megacities, with the adoption of the medium-capacity monorail, inner-city rapid rail transit, and magnetic suspension trains, between central urban areas and remote towns.

In India, the focus to adopt hybrid trains is growing at a rapid pace, owing to the following instances:

Indian Railways has already fitted solar panels on roof top of Diesel Electric Multiple Unit (DEMU) trains of capacity 4.5 Kilowatt for catering to hotel load.
Additionally, blending of high-speed diesel with 5% biodiesel has also been started for railway locomotives. These railway vehicles have also started pilot projects involving running DEMU trains with Compressed Natural Gas (CNG) over 18 trains.

Such developments are expected to bolster the market prospects for the hybrid train market in the region during the forecast period.

Competitive Landscape

The hybrid train market is a highly consolidated market with dominant players, like CRRC Corporation Limited, Bombardier Inc., Alstom SA, Siemens, and Hitachi. The major players in the market are making strategies to expand their market share through acquisitions of the leading players in the market. For instance, Alstom’s acquisition of Bombardier initiated in 2020 is likely to add to earnings per share within two years and generate as much as EUR 400 million in annual savings for Alstom within five years. CRRC Corporation Limited captured a large chunk of the market share in 2019, owing to its wider market presence not only in China but across other international regions. Europe has been its major market abroad, followed by Asia, Africa, and the Americas. As of 2019, CRRC has so far acquired about 50 orders from more than 20 countries and regions, such as Singapore, Malaysia, Turkey, and South Africa, covering locomotives, metro, and light rail trains, electric multiple units, and engineering maintenance vehicles for subways.

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1 INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Challenges
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Impact of COVID-19 on the Market
5 MARKET SEGMENTATION
5.1 By Propulsion
5.1.1 Battery Operated
5.1.2 Electro Diesel
5.1.3 Hydrogen Powered
5.1.4 Other Propulsion Types (Solar Powered, Gas Powered, etc.)
5.2 By Application
5.2.1 Passenger
5.2.2 Freight
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Rest of North America
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 France
5.3.2.3 United Kingdom
5.3.2.4 Spain
5.3.2.5 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 India
5.3.3.3 Japan
5.3.3.4 Australia
5.3.3.5 Rest of Asia-Pacific
5.3.4 Rest of the World
5.3.4.1 South America
5.3.4.2 Middle- East & Africa
6 COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 CRRC Corporation Limited
6.2.2 Bombardier Inc.
6.2.3 Alstom SA
6.2.4 Kawasaki Heavy Industries Ltd.
6.2.5 Siemens AG
6.2.6 Wabtec Corporation
6.2.7 Hyundai Rotem
6.2.8 Hitachi Ltd.
6.2.9 Construcciones Y Auxiliar De Ferrocarriles (CAF)
7 MARKET OPPORTUNITIES AND FUTURE TRENDS

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