Locomotive Market Size - By Type (Diesel Locomotive, Electric Locomotive, Electro-diesel Locomotive), By Application (Freight Locomotive, Passenger Locomotive), By Technology, By Component, & Global Forecast, 2023 - 2032

Locomotive Market Size

Locomotive Market size was valued at USD 8.8 billion in 2022, owing to rapid urbanization and infrastructural development, which are fueling the need for robust and agile rail networks.
 

This is spurring investments in modern locomotives designed to accommodate diverse freight and passenger demands. In September 2022, Deutsche Bahn, announced plans to invest over USD 20 billion in new trains and locomotives by 2030, as part of its largest vehicle fleet modernization program. The cost-effectiveness and scalability of rail transport will also continue to appeal to industries seeking reliable and affordable shipping alternatives. Furthermore, regulatory frameworks and governmental initiatives promoting sustainable transportation will create a conducive environment for locomotive manufacturers to innovate and cater to evolving industry demands.
 

Innovations in rail technologies will significantly transform the industry outlook over 2023-2032. The introduction of advanced propulsion systems like electrification, hybridization, and digital connectivity will enhance operational efficiency and reduce emissions. Additionally, the escalating need for sustainable transportation solutions in the face of environmental concerns will fuel demand for eco-friendly locomotives. In September 2022, Amtrak announced plans to achieve net-zero emissions across its Amtrak Network by 2045, by expanding efforts to minimize environmental impact from operations during transit.
 

However, high capital costs associated with upgrading or acquiring new locomotives present a substantial challenge to locomotive industry development. Regulatory hurdles and complex approval processes for new locomotive technologies may further hinder innovation and deployment.
 

COVID-19 Impact

The locomotive market has experienced a notable impact from the COVID-19 pandemic. Supply chain disruptions, workforce limitations, and reduced economic activity led to temporary setbacks in manufacturing and delivery, which may have limited industry development. Lockdowns and travel restrictions affected demand for rail services, particularly in passenger transport. Following the imposition of a lockdown in France in 2020 due to COVID-19, rail transport was severely curtailed, and the operation of high-speed train services dropped to less than 5% of their usual levels, as reported by the International Union of Railways (UIC). However, the crisis also highlighted the importance of resilient freight networks, potentially driving investments in modernizing locomotives and infrastructure to enhance efficiency and adaptability in a post-pandemic world.
 

Locomotive Market Trends

The integration of digital technologies and automation is a key trend fueling locomotive industry progression through 2032. Automation is streamlining tasks like braking and acceleration, enhancing safety and efficiency while reducing the workload on train crews. In November 2022, Alstom showcased advanced automation on a shunting locomotive in the Netherlands. Teaming up with ProRail and Lineas, they equipped a Lineas diesel-hydraulic shunting locomotive with Alstom's ATO technology and NIART's Elta obstacle detection system. The locomotive autonomously navigated obstacles, demonstrating effective obstacle detection up to 500 meters away, enhancing safety in shunting yards. IoT sensors, predictive maintenance algorithms, and remote monitoring systems enable real-time data analysis, optimizing performance, and minimizing downtime.
 

Locomotive Market Analysis

The electric locomotive segment held over 40% of the locomotive market share in 2022, owing to their environmental advantages and operational efficiency. Electric locomotives produce lower emissions compared to diesel counterparts, aligning with global sustainability goals. In the NZE Scenario, the IEA projects that electricity will constitute 60% of the total energy demand for rail transport by the year 2030. Electric propulsion systems offer enhanced torque and acceleration, resulting in better performance and reduced energy consumption. As governments and industries prioritize cleaner transportation, electric locomotives are being increasingly favored for their contribution to reducing carbon footprints and optimizing rail networks in an environmentally conscious manner.
 

The freight locomotive segment held over 55% of the locomotive market share in 2022, due to their inherent efficiency in transporting large volumes of goods over long distances. Locomotives offer cost-effective and eco-friendly solutions, enabling industries to meet sustainability targets. Also, as per estimates from the IEA, global freight and passenger activity will grow almost two-fold by 2032. With growing global trade and the need for efficient supply chains, locomotives will provide a reliable and scalable option for moving freight.
 

Asia Pacific locomotive market generated revenue of USD 764.2 million in 2022, driven by expanding urbanization, burgeoning industrialization, and the need for efficient and sustainable transportation solutions. Government investments in rail infrastructure and technological advancements, such as electrification and digitalization, are propelling market expansion. In December 2022, the Asian Development Bank approved a USD 780 million multitranche financing facility for the construction of new lines to improve the connectivity of the metro rail network in Chennai, India.  Rising trade activities and cross-border connectivity further stimulate demand for locomotives in this dynamic region, as industries recognize the cost-effectiveness, reliability, and environmental benefits of rail transport for both freight and passengers.
 

Locomotive Market Share

• General Electric (GE) Transportation
• Siemens Mobility
• CRRC Corporation Limited
• Alstom
• Bombardier Transportation
• Wabtec Corporation
• Progress Rail (a Caterpillar Company)
• Electro-Motive Diesel (EMD)
• Kawasaki Heavy Industries
• Hyundai Rotem
• Toshiba Railway Systems Division
• Stadler Rail
• Transmashholding
• CAF (Construcciones y Auxiliar de Ferrocarriles)
• Škoda Transportation.
   

Locomotive Market News

• In January 2023, Siemens Mobility received a contract worth USD 3.2 billion from Indian Railways to deliver more than 1,200 electric locomotives of over 9,000 horsepower. As per the contract, deliveries will be planned over a period of eleven months, with 35 years of complete service maintenance included. This contract represents the single largest locomotive order in the company’s history, and the single largest order for Siemens India to date, highlighting the firm’s strong presence in the locomotive industry.
   

The locomotive market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) and shipments (Units) from 2018 to 2032, for the following segments:

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By Type, 2018 – 2032

• Diesel Locomotive
• Electric Locomotive
• Electro-diesel Locomotive
• Others

By Application, 2018 – 2032

• Freight Locomotives
• Passenger Locomotives

By Technology, 2018 – 2032

• IGBT Module
• GTO Module
• SiC Module

By Component, 2018 – 2032

• Rectifier
• Inverter
• Motor
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Singapore
• Latin America
  • Brazil
  • Mexico
  • Colombia
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Israel
  • Turkey
  • Kuwait