Locomotives · Strategic overview of key mega trends

Locomotives and rolling stock is an assembly of complex
individual components. Tier 1 consists of large and small original equipment manufacturers
that design, manufacture, and assemble the body of passenger and freight rail
vehicles—locomotives, rail cars, and both diesel and electrical multiple units

The Tier 1 companies are also known as system integrators
and represent the large companies such as Alstom, Bombardier, GE, Kawasaki or
Siemens. These system integrators tend to keep the high-value roles, such as
design, engineering, and systems integration.

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Tier 2 is divided into three systems: propulsion,
electronics and body, and interior. Each of these systems includes several
major components, which are listed in the figure above. The Tier 2
manufacturers integrate components such as steel plates, frames, couplers, wheels,
and assembles communications gear, engines, motors, transmissions into systems.

Suppliers of major equipment collaborate with different
manufacturers for efficient and smooth assembly of final product. A limited
number of manufactures within Tier 2 are also active in Tier 1 and provide
their own subsystems (mainly propulsion systems) and in some cases supply them
to other OEMs.

Tier 3 includes firms that supply parts and materials to
companies in the top two tiers.

Topline Summary

Issues addressed in the report

overview of key mega trends influencing the global rail rolling stock industry,
including rolling stock manufacturers, wheel & axle providers, locomotives,
wagon and trainset manufacturers.

market size and forecasted growth for Rail Rolling Stock focusing on
applications such as Trainsets, Locomotives, Wagons and Cars, broken down for
key regions across North America, South America, Europe, Middle East – Africa,
and Asia – Pacific.

drivers and opportunities in the global market and discussed the regional
influence on market dynamics.

market shares, product availability, alliances, and strategies and overview of
key technology trends.

forecasts of global sales of rolling stock for 2017–2022.

for success for both suppliers, current and potential users

Negligible growth is noticed with an estimated market size of
worldwide Rail Rolling Stock industry increased from $64.90
Billion in 2016 to $64.97 Billion in 2017.

Faster, more reliable and flexible trains will be able to
increase the reliabil­ity and cost-competitiveness of this mar­ket segment. IT
systems that enable buy­ing and selling of capacity in wagons and a reliable
door to door track and trace of loading units and goods and real time in­formation
of the actual and forecasted train position will further attract the cus­tomer
to rail.

The performance of the vehicles needs to be improved.
Power trains will consume less energy, components will become light­er,
standardization of regenerative braking and recuperation of kinetic energy. New
vehicles will be built to be recyclable and innovative materials will be used.

The rate of growth in the supplier market has slowed in
last few years and estimated to grow at 2% a year up to 2022. Due to slow
market growth in this segment, very few or no investments would be made towards
new improvements. In addition, political uncertainties and change in
governments in several regions will delay or cancel of new investments
strategies. Due to uncertain commodity prices, change in emission regulations,
and fluctuating natural resource prices have led to decline of rail freight market.
While, urbanization have stimulated long-term growth of passenger rail market. It
has been noticed that China has increased its investment urban rail to address
urbanization, while reduced its investments in conventional and high-speed
rail. The large market share of Chinese manufacturers is leading to a strong
focus on international markets and creating price pressure on the global
suppliers. This has resulted in consolidation of the railway industry (as we
noticed Alstom and Siemens merged their rail operations to counter Chinese
dominance) and it will even accelerate.


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