In spite of the presence of a large pool of participants, only ABB Ltd. stands out as a clear leader in the global traction equipment market, finds a research study by Transparency Market Research (TMR). The market demonstrates a highly competitive and fragmented landscape.
The leading players, such as Crompton Greaves Ltd., Siemens AG, Alstom SA, and Mitsubishi Electric Corp., primarily concentrate on the advancement of technology for the development of their businesses. However, a shift in their focus towards mergers, acquisitions, and strategic collaborations can be seen in the near future, states the report.
According to TMR, the global market for traction equipment is likely to expand at a CAGR of 2.34% during the period from 2016 to 2024 and reach a value of US$322.3 bn by the end of the forecast period. The global shipment volume of traction equipment is also expected to rise from 1.1 mn units in 2015 to 1.3 mn units by 2024. Traction motors, which led the overall market in 2015 with nearly 80% of the total demand, is expected to retain its dominance over the period of forecast.
Asia Pacific to Continue its Leading Streak
In this research report, the global market for traction equipment has also been studied on the basis of its geographical presence. The study identifies Europe, Asia Pacific, North America, and the Rest of the World as the prime geographical segments of this market across the world. Among these, Asia Pacific led the overall market with a share of nearly 40% in 2015. Thanks to the increased focus on the advancement of railway networks and systems due to the remarkable rise in trade activities and the swift improvement in the economic condition, the Asia Pacific market for traction equipment is expected to continue its leading streaks throughout the forecast period.
Apart from this, the market for traction equipment in Europe is also anticipated to gain prominence in the near future, owing to growing preference for railways as the primary mode of transportation among consumers in this region, notes the study.
Rising Investments in Railway Networks to Fuel Demand for Traction Equipment
“The movements in the railway sector have the most prominent impact on the worldwide traction equipment market,” says the author of this study. The rising investments in the railway networks are influencing the demand for traction equipment greatly across the world.
The expanding railway networks in various economies, such as South Africa, China, India, the U.S., and Spain, and the rising implementation of several policies and regulations to control carbon emissions from transportation are projected to boost the adoption of traction equipment substantially over the next few years.
Lengthy Manufacturing and Delivery Processes to Hamper Market’s Growth
While the global market for traction equipment is forecast to witness a steady rise in the coming years, it may experience several obstructions in its growth trajectory due the excess time consumed in the manufacturing and delivery processes.
Besides, the low unit-wise shipment in the railway sector is also expected to limit the demand for traction equipment across the world, states the report.
The study presented here is based on a report by Transparency Market Research (TMR) titled “Traction Equipment Market - Global Industry Analysis, Size, Share, Growth Trends, and Forecast 2016–2024.”
The global traction equipment market is segmented into:
By Equipment Type
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