- Demand, subsequent realization and production of global rail market is dependent on a complex mix of external and internal influences; gaps in public transportation continues to remain the most significant driver across the globe
- The railway air conditioning system market value of North America from light urban rail and medium speed rail will account for 56% and 44% respectively. The only high speed rail project in US has run into multiple troubles and may not get completed before 2030
- The railway air conditioning system used in LRVs(trams) cost the lowest and the ones in metro( in India,MENA and Australia) cost the highest
- Europe will continue to grow at a moderate pace, given stable replacement railway air conditioning system market demand from western Europe and new vehicle demand from Eastern Europe.
- Demand for railway air conditioning system market in Asia Ex China region will majorly come from India and ASEAN countries
The passenger rail transit is a matured market globally. Millions of people across the globe rely on trains to reach their destination at a reasonable cost and HVAC(Heating Ventilation and cooling) has a major role in keeping the passengers comfortable during their short/medium/long transit.
Earlier rail HVAC was limited to the higher end of the rail transit market but now that the low cost aviation and inter-city bus coaches have developed a wider reach, HVAC is one of the basic requirement for even lower class travellers.
There is no “one HVAC fits all “condition here and every rail HVAC system needs to be designed from ground up keeping all situations in mind.Here, the HVAC engineers across the globe have done a great job of raising the bar, as designing quality, reliable and robust rail HVAC system is a tough ask. There are multiple minimum requirements for them like
- Has to be compact and lightweight
- Capable of handling excessive vibrations
- Limited area for air circulation
- Dusty air intake and widely varying outside ambient temperature
- Limited available time for maintenance
- The renewed focus on passenger rail to ease congestion and improve deteriorating urban air quality is one of the biggest growth drivers for rail HVAC system market
- The slowdown in Chinese economy and saturation in rail network will result in reduced spending on rail market, and is one of the biggest challenge to this market. China drove much of the global rail infrastructure expansion during 2005-2017 but that won’t be the case anymore
- As it is the trend across the globe, due to further growth of IoT( Internet of things), the rolling stock of today is driven more by software than electronic controls. The future trends clearly point to the new railway air conditioning systems being more efficient from passenger as well as environmental perspective
MARKET SIZE AND FORECAST
As of Sep 2019, there are 436 light rail transit system, running ~145,000 rail vehicles around the world. About 26-28% of those light rail transit systems are more than 3 decades old now and in dire need of complete overhaul, including HVAC. The growth in VHS(Very High speed) rail network was majorly driven by China and replacement demand from Europe.
As of 2019,Asia accounts for the biggest share of rail HVAC systems market followed by Europe and North America and we dont expect that to change in 2024.
In Europe, a significant share of rail HVAC system market demand is driven by replacements. The relentless pursuit of western European economies to reduce carbon footprint has created demand for more efficient HVAC systems. In Eastern Europe, countries like Romania, Hungary, Bulgaria and Russia are expanding urban rail network and will be the biggest demand generators of new HVAC system market in EU region.
The future outlook of rail HVAC system market will largely depend on the growth of light urban rail in populous countries like India and China. The urbanization rate in India is still ~33% whereas in China it is 58%.Both are far less than that of developed economies like EU and Japan with urbanization rate of 75% and 91% respectively.
SOME OF THE LIGHT URBAN RAIL ORDERS IN PAST 5 YEARS
|Sl no||Supplier||Vehicle Quantity||Cost($M)||Avg cost per car($M)||Country||Delivery Year||Order year|
|4||Siemens(High floor LRV)||63||145.6||2.3||Canada||2016||2013|
|5||Skoda(Low floor LRV)||14||29.6||2.1||Turkey||2018||2016|
|7||CRRC Nanjing Puzhen Rail Transport (NPRT)-Metro||40||94.9||2.4||China||2019||2016|
|8||CRRC Nanjing Puzhen Rail Transport (NPRT)-Metro||490||772.5||1.6||US||2019||2016|
Most of the player active in railway air conditioning system market are fundamentally Tier-2 suppliers in the overall value chain. They supply their components to tier-1s who then integrate it with the rail vehicles.
The European suppliers viz Kiepe Electric, Libherr and LEEL(Llyod Electric) cumulatively hold substantial market share in the rail HVAC system market. Their presence can be found in many rail projects across the globe. Earlier, Chinese market was served by international manufacturers only but now local Chinese players have developed remarkable expertise in developing and manufacturing cutting edge rail HVAC systems.
The Japanese suppliers like Hitachi and Mitsubishi Electric have strong presence in the high speed rail network in japan, additionally they are also a preferred railway air conditioning system vendor in Asia and Rest of the world region.
|1||Kiepe Electric(Knorr – Bremse)|
|2||LEEL (Formerly Lloyd Electric & & Engineering Limited)|
|5||KLIMAT FER (Mitsubishi Electric)|
|8||Songz rail Air conditioning|
WHAT YOU WILL LEARN FROM THIS REPORT?
- Market Size and Forecast of Rail HVAC System market(Volume-Units and Value-$Million)
- Market split by Application -(Urban light rail, High speed rail and Medium speed rail)
- The market segmented by Geography-( China,Asia excluding China, Europe, North America and Rest of the World)
- An overview of global rail transit market including LRVs and sub-urban rail
- Recent orders in Light urban and medium speed rail
- Light urban rail HVAC market breakdown by all major regions
- How will growth in high-speed rail infra in China impact rail HVAC market?
- Growth in medium speed rail coach market in India
- Global market split by cooling capacity (<20kW, 20-40kW and 40kW)
- Total passenger rail HVAC demand segmented by OE and replacement
- Market volume and value of HVAC sub-components(compressor and refrigerant)
- Global rolling stock HVAC penetration, by region
- Global metro rail car breakup by region and HVAC penetration
- Among rooftop mounted, underfloor mounted and split systems with separate condenser, which type of rail HVAC system is getting more popular and why?
- Which type of compressor(scroll/reciprocal) will have highest application volume?
- Market share of rail HVAC suppliers
- Growth drivers, trends, risks in all geographies and market segments
- OEM- HVAC supplier alignment in railway air conditioning system in major regions
|1||Market Segmentation, Scope, Methodology and Definition||3-6|
|4||An overview of global rail transit market including LRVs and sub-urban rail||20|
|5||Recent orders in Light urban and medium speed rail||21|
|6||Light urban rail HVAC market breakdown by all major regions||22|
|7||How will growth in high-speed rail infra in China impact rail HVAC market?||23|
|8||Growth in medium speed rail coach market in India||24|
|9||Global rolling stock HVAC penetration, by region||25|
|10||Global metro rail car breakup by region and HVAC penetration||26|
|11||Market Size ,Dynamics and Forecast By Geography||27-42|
|12||Market Size ,Dynamics and Forecast By Application||44-54|
|13||Market Size ,Dynamics and Forecast By Sub-components||56-65|
|14||Market Size ,Dynamics and Forecast By Cooling capacity||66-75|
|16||OEM-Supplier alignment for rail HVAC system market||79|