Railway Aftermarket Size - By Subsystem (Traction & Propulsion, Bogies/Wheelsets & Suspension, Body Structures, Braking Systems, Auxiliary Systems, Rail Tracks), By Product (Rail Infrastructure, Rolling Stock & Locomotives), Service Provider & Forecast, 2021 - 2027 Market
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Railway Aftermarket size exceeded USD 78 billion in 2020 and is anticipated to exhibit a CAGR of over 4.6% from 2021 to 2027. Stringent regulations associated with railway emissions and growing usage of rail freight transportation are driving the industry growth.
Rail maintenance ensures the prevention and remedial maintenance of railway assets including train components, electric equipment, infrastructure, and other components. To ensure passenger and freight safety, regulatory bodies highly emphasize periodic maintenance and inspection, which will positively influence the market.
Rising efforts to reduce the cost of ownership are increasing the efficiency and reliability of the railway fleet. Moreover, investments in data-driven preventive technologies are further allowing operators to enhance rail safety, improve cost savings, and effective usability. Advanced analytic solutions and sensor technologies are a significant part of such investments. In addition, the installation of GPS and remote monitoring technologies in an increasing number of trains are further providing substantial opportunities for service providers. Innovative technologies adopted by component providers will fuel the market revenue. For instance, Stratasys, a 3D printer OEM, unveiled a rail industry solution for 3D printing rail components.
The lurking COVID-19 pandemic is hampering the business expansion. The severity of the imposed lockdowns and other restrictions coupled with an acute decline in the number of passengers had a severe impact on the railway aftermarket. Attributable to such factors, the industry observed a downfall of double digits in 2020. However, slow recovery in the traveling rate by trains, especially internationally, is expected to hinder the market growth in the preceding year.
| Report Attribute | Details |
|---|---|
| Base Year: | 2020 |
| Railway Aftermarket Statistics | 2027 Global Industry Forecasts Market Size in 2020: | 77.9 Billion (USD) |
| Forecast Period: | 2021 to 2027 |
| Forecast Period 2023 - 2032 CAGR: | 4.6 |
| 2023 Value Projection: | 121.5 Billion (USD) |
| Historical Data for: | 2017 to 2020 |
| No of Pages: | 150 |
| Tables, Charts & Figures: | 169 |
| Segments Covered: | Subsystem, Product, Service Provider, & Region |
| Growth Drivers: |
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| Pitfalls Challenges: |
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The traction & propulsion system is likely to account for more than 20% of the revenue share by 2027. The modernization and upgrade of such systems to curb the emission levels is increasing the segment demand. Railway electrification plays a critical role in this development. Lower fuel costs, higher acceleration, and diminished carbon emissions are major factors augmenting the penetration of electric systems in the railways. Operators are focusing on the improvement of rolling stock assets and boosting haulage abilities for their electric locomotives.
Rail infrastructure is set to generate around USD 19.5 billion revenue by 2027. The growing preference to improve track quality and ensure safety through mechanized practices, especially in high-density routes, are some of the factors spurring the market demand. Moreover, the surging adoption of automatic malfunction detection systems and the integration of IoT for smart maintenance of infrastructure indicate a positive outlook of the market segment.
In 2020, OEMs captured over USD 25 billion revenue and is projected to witness significant growth during 2021 to 2027. The segment growth is underpinned by new offerings from OEMs in the data analytics and digital space. Digital solutions consist of remote diagnostics and condition-based repairs that have substantial potential to penetrate the railway aftermarket and offer scalable solutions. Furthermore, service agreements for replacement and repair will provide ample opportunities for OEMs to maintain a sustainable market position.
The Asia Pacific railway aftermarket size is predicted to hold nearly 40% of the revenue share by 2027. Increasing efforts of railway operators to alleviate the overall downtime by upgrades and effective maintenance of aging rolling stock are supporting the regional demand.
Some of the major railway aftermarket participants include
Prominent companies are delivering innovative solutions for better monitoring of railway subsystems. For instance, Bombardier introduced OPTIFLO, which comprises a wide portfolio of control service solutions designed to encounter the challenges confronted by railway infrastructure operators and owners. The initiative is poised to help the company to expand its existential product portfolio and further improve the business performance in terms of revenue.
Industry Analysis, By Subsystem
Industry Analysis, By Product
Industry Analysis, By Service Provider
The above information is provided on a regional and country basis for the following:
The Asia Pacific is estimated to register around 40% of the market revenue through 2027 propelled by the rising efforts of railway operators for the alleviation of overall downtime.
Traction & propulsion systems will record over 20% of the industry revenue through 2027 owing to their upgradation and modernization for curbing the levels of emission.
The share of rail infrastructure is expected to be around USD 19.5 billion by 2027 driven by surging preference for the improvement of track quality and ensuring safety via mechanized practices.
The railway aftermarket size crossed USD 78 billion in 2020 and will expand at a CAGR of 4.6% between 2021 and 2027.