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Railway Traction System Market: Introduction

  • Railway traction system can be simply defined as a driving force that causes propulsion of the railway. It consists of all the components that collect the power from its source, condition and convert this power, and use it to propel the locomotive and coaches.
  • Railway traction systems used across the globe are majorly of two types: non electric traction system, i.e. diesel traction system, and electric traction system

Key Drivers of Railway Traction System Market

  • More number of people are migrating toward urban areas in search of better income opportunities, better education, and better living standards. According to statistics published by the United Nations in 2018, approximately 55% of the world’s population resided in urban areas, which is projected to increase to more than 68% by 2050. Rise in urbanization and size of cities has boosted the number of on-road vehicles, which in turn has led to increase in traffic congestion, environmental pollution, and also the number of accidents. Therefore, preference for public transit is high among commuters. Moreover, governments are promoting usage of public transit by improving the public transit infrastructure. Railways are an important part of public transportation systems, as it carries 8% of the world's passengers. Hence, the railway network across the globe is expanding consistently. For instance, according to a report of European Rail Supply Industry (UNIFE), global rail network has been extended by 23,300 kms, and the number of railways has increased by 20,000 since 2018. Thus, a rise in railway vehicles and network is driving the global railway traction system market.
  • Air pollution caused by transportation has been a major environmental issue, and governments across the globe have been making vigorous efforts to lower the emissions from transportation. According to data collected from the European Commission, railways emit around 1% of all transport NO2. Consequently, existing HC fuel powered railways are being converted into electric railways to reduce these emissions. Electrification of railway routes is rapidly increasing across the globe. India electrified more than 6000 kms of its rail network during 2020. Electrification of rail networks and conversion of conventional diesel locomotives into electric locomotive are boosting the demand for electric traction systems. This traction system converts electrical energy, collected from the catenary via the pantograph, into mechanical energy, thus enabling the wheels to turn and therefore, the train to accelerate and brake. Thus, the on-going electrification of railway network to reduce air pollution is propelling the global railway traction systems market.

Challenges in Railway Traction System Market

  • The cost required to construct and maintain multiple substations, overhead powerlines, and other such necessary infrastructure facilities for electric traction systems is considerably high. Moreover, limitations by geographic conditions, such as difficult terrains and harsh climates, increase the challenges in constructing railway network and electrifying it. These hindrances restrain the global railway traction system market.

Impact of COVID-19 pandemic on Railway Traction System Market

  • The COVID-19 pandemic negatively impacted most industries across the globe. However, governments increased the pace of railway infrastructure construction and several new railroads were constructed during this period. This had a positive effect on the demand for railway traction systems.

Opportunities in Railway Traction System Market

  • Progress is being made on the practical application of technologies for installing high-capacity lithium-ion batteries in rolling stock and using them for traction power. In particular, installing batteries in rolling stock that runs on non-electrified sections of track can save energy, minimize noise, and reduce maintenance requirements as compared to that by conventional diesel railcars. Hitachi has commercialized a battery-powered train that can run on non-electrified sections of track by using energy stored in batteries that are charged from the alternating current (AC) overhead lines. Likewise, Alstom has developed low carbon alternative traction systems including hydrogen fuel cell-based traction systems and energy storage-based traction systems. These new technologies offer significant opportunities for players in the global railway traction market.

Asia Pacific to hold significant share of global railway traction system market

  • Based on geography, Asia Pacific held a significant share of the global railway traction market in 2020. This high share is attributable to the expansion of rail network, increase in locomotive production, and high number of passengers carried by railways in China, India, and other countries in Asia Pacific.

Key Players Operating in Railway Traction System Market

The global railway traction system market is highly concentrated due to the presence of top manufacturers. A few of the key players operating in the railway traction system market are:

  • ABB
  • Alstom
  • CAF Power & Automation.
  • Hitachi, Ltd
  • Infineon Technologies AG
  • Ingeteam Power Technology
  • Medha Servo Drives Private Limited
  • TOSHIBA CORPORATION
  • TOYO DENKI SEIZO K.K.
  • Voith GmbH & Co. KGaA

Global Railway Traction System Market: Research Scope

Global Railway Traction System Market, by Type

  • Electric Traction Systems
  • AC Electrification System
  • DC Electrification System
  • Composite System
  • Diesel
  • Others (Steam, CNG, Battery, etc.)

Global Railway Traction System Market, by Component

  • Current Collectors
  • Propulsion System
  • Auxiliary Power Supply Unit
  • Control Units
  • Others

Global Railway Traction System Market, by Railway Type

  • Passenger
  • High-speed railways
  • Metro/ Subway
  • Trams
  • Suburban
  • Monorail
  • Freight

Global Railway Traction System Market, by Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
    • Nordic Region
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • ASEAN
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa

This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:

  • Customer Experience Maps
  • Insights and Tools based on data-driven research
  • Actionable Results to meet all the business priorities
  • Strategic Frameworks to boost the growth journey

The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.

The following regional segments are covered comprehensively:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.

Below is a snapshot of these quadrants.

1. Customer Experience Map

The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.

2. Insights and Tools

The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.

3. Actionable Results

The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.

4. Strategic Frameworks

The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.

The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:

1. What can be the best investment choices for venturing into new product and service lines?

2. What value propositions should businesses aim at while making new research and development funding?

3. Which regulations will be most helpful for stakeholders to boost their supply chain network?

4. Which regions might see the demand maturing in certain segments in near future?

5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?

6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?

7. Which government regulations might challenge the status of key regional markets?

8. How will the emerging political and economic scenario affect opportunities in key growth areas?

9. What are some of the value-grab opportunities in various segments?

10. What will be the barrier to entry for new players in the market?

Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.

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Railway Traction System Market