ROLLING STOCK MARKET IN EUROPE

KEY FINDINGS

• Rolling stock manufacturing market account for ~70% turnover of the Rail Supply Industry in Europe
• Freight wagons account for ~51-52% of the rolling stock manufacturing every year, due to low individual pricing they account for only ~5% of the overall market size by Revenue
• The light urban rails (Metro+ LRV) in the region is a highly mature and saturated market and the CAGR for the period is estimated to be 2.3%. Most of the demand stems from upgradation of older rolling stock.
• Low floor LRVs are becoming a standard sight everywhere because they are cheaper and a lot more reliable. Cities like Frankfurt and Dublin have 100% low floor LRVs
• Bombardier Traxx  is among the most popular locomotive in the region.More than 2,500 Traxx locomotives have been sold in the last 20 years
• In freight wagon manufacturing the requirement of steel in base frame was reduced, as thickness was reduced to half from 2cm to 1 cm
• The next five years will see rapid development in areas such as hydrogen powered trains, autonomous trains, use of IoT in digital mapping and much better coach technology. 
• CRRC retains its place as the largest global rolling stock manufacturer worldwide in terms of revenue, the acquisition of Bombardier Transportation by Alstom will create the second-largest rolling stock manufacturer worldwide.

INTRODUCTION TO ROLLING STOCK MARKET IN EUROPE

As of April 2024, there are more than 200 passenger railway operating companies in the European Union, generating more than 9 billion trips annually. Germany and Switzerland alone have more than 100 rail operators. About 70% of all operators are public(government) owned whereas the remaining are private owned.

In terms of infrastructure, about 230,000km long rail tracks exist in all EU countries.Germany, France and Poland have more than 30% cumulative share, Germany being the biggest.

High speed rail is an important mode of transport for long distance travel in Europe. The importance of high-speed rail in Europe can be testified by the fact that since the launch of the Frecciarossa brand 10 years ago in Italy, rail’s share of the market has almost doubled on the Rome – Milan corridor had grown from 35% to 66%.

ROLLING STOCK MARKET IN EUROPEMARKET SEGMENTATION

ROLLING STOCK MARKET IN EUROPEMARKET SIZE AND FORECAST

As of April 2024, ~120,000 rail coaches(including EMU) run everyday in Europe. A large chunk of new rolling stock orders are due to expansion of existing networks or replacement of earlier rolling stock.

The outlook for Europe in 2024-2030 is strong and positive. Many orders are expected for high speed trains in U.K. Switzerland, Netherlands . LRV order ares expected in Germany, France and the U.K., especially for commuter and regional trains as well as for metros and light rail vehicles (LRV).

Theglobal rolling stockmarket is estimated at $50-$55 Billion annually.Europe accounts for ~35-38% of global market. Rolling stock market size in Europe is estimated at ~$20 Billion  in 2024.

In Western Europe, Light rail vehicles account for the highest share of new rolling stock orders.11 operators in UK are planning for new carriages with more seats, charging points, wireless internet and HVAC, $16 Billion allocated for same between 2019-2022. UK will spend ~$60 Billion between 2019-2024 on rail infra and has set a goal to  decarbonise and eliminate diesel rolling stock by 2040.

Recent(Oct 2020- Feb 2021) LRV rolling stock orders in Europe

In Europe, the key change in rolling stock engineering is the move from electronic to software-controlled trains. The software controlled trains allow for remote diagnostics and reduced downtime, improving efficiency and boosting productivity.

ROLLING STOCK MARKET IN EUROPE RECENT DEVELOPMENTS

1. Jan 2024-Stadler secured a contract from Italian railway operator Ferrovie della Calabria (FdC) for three new narrow-gauge hydrogen-powered trains
2. Oct 2023-NAH.SH placed order for 42 Coradia EMUs valued at ~$1 Billion
3. May 2023- Deutsche Bahn placed order for 73 ICE trains valued at over $2B
4. Jan 2020– Stadler won an order for its new gen tram which features  driver assistance system with traffic sign recognition, a new bogie design  to optimize the use of space and improve maintainability, and an air- conditioning system with CO₂ as the refrigerant
5. Jan 2020-  The first driver-less metro line in Hamburg has been formally handed over to operator Hamburger Hochbahn for construction to be completed by 2021
6. Jan 2020– Switzerland based Chemin de Fer Nyon-Saint-Cergue-Morez  awarded Stadler a contract to supply six two-car electric multiple-units. The EMUs will be delivered between late 2021 and early 2022
7. Dec 2019-Mittelsachsen transport authority ZVMS finalized an order for 11 battery multiple-units worth $55 Million. ZVMS plans to deploy the units from 2023 on Leipzig – Chemnitz service RE6 which is currently operated Siemens ER20 diesel-electric locomotives and coaches
8. Dec 2019– Å koda Transportation and Sinara Group  signed an agreement to establish a 50:50 joint venture for the production of metro trains, trams and trolleybuses for Russian market
9. Dec 2019- TransANT is testing modular wagons with exchangeable bodies which Rail cargo group has developed in conjunction with its customers
10. Dec 2019– World`s first prototype passenger vehicle bogie made from recycled carbon fiber was revealed at the railway industry Association’s unlocking innovation event at the University of Huddersfield, UK. Advantages of a carbon fibre body include, reduced energy consumption,lower track wear and reduced infrastructure maintenance costs.
11. Dec 2019– GERMAN Rail  announced plans to invest $13.5 Billion in new trains in 2020-2026 to increase long-distance seating capacity by 20% and replace commuter trains
12. Dec 2019– SPANISH national  rail operator Renfe has announced Avlo as the brand of its new low-cost high-speed service, will be launched on April 6, 2020 on the Madrid – Zaragoza – Barcelona route
13. Dec 2019- Switzerland based Sihltal Zürich Uetliberg Bahn awarded Stadler a $45 Million contract to supply five three-section Be570 electric multiple-units for the 1 435 mm gauge Uetlibergbahn.All five EMUs are expected to be in service from from July 2022.

ROLLING STOCK MARKET IN EUROPE MARKET DYNAMICS

Two European cities have chosen CAF once more to carry out two contracts that will enhance their urban public transportation services. In one instance, it will replace the light metro vehicles on Line 1 in Athens, and in another instance, it will provide Seville with new trams. The combined value of these two contracts is rather significant.

The scope of the work that needs to be done on the units will include CAF Power & Automation replacing the traction equipment, installing brand-new, cutting-edge motors with improved consumption efficiency, and updating a number of other systems, including those that deal with braking equipment, vehicle access door control, and passenger information systems, to name a few.

In order to enhance passenger comfort and safety, the project also involves enhancing train access, renovating the inside of the units, and creating spaces for people with limited mobility.

ROLLING STOCK MARKET IN EUROPECOMPETITIVE LANDSCAPE

Rolling stock market in Europe is consolidated, the top 4 players account for more than 70% market share. Alstom and Siemens are the market leaders in Europe with the highest market share of ~XX% and XX% respectively. European Stadler rail which has procured many projects for trams and subways holds ~XX%, market share and occupy 3^rd  position in the market.

Hitachi Rail has successfully tested its first battery-powered tram in Florence – The trial involves installing battery packs on an existing Hitachi-built Sirio tram, which covered a section of the line under battery power. The innovation allows power to be returned to the batteries when the train brakes, reducing the overall amount of energy consumed and protecting the environment.

Bombardier Transportation and Italian intermodal freight operator GTS Rail, strengthened their partnership with a new order from GTS Rail for three more BOMBARDIER TRAXX DC3 E.494 locomotives for its fleet.

DB Regio Bayern has ordered 31 regional trains from Siemens Mobility. The trains will serve on routes between Munich, Passau and Regensburg. Siemens Mobility will be delivering 25 double-decker Desiro HC trainsets and six single-decker Mireo trainsets.

ROLLING STOCK MARKET IN EUROPECOMPANY PROFILES

1. Hitachi Rail Europe
2. Stadler Rail
3. Alstom SA
4. Bombardier Transportation
5. Siemens Mobility
6. Skoda Transportation
7. Titagarh Wagons AFR
8. Talgo, S.A.
9. CAF Rail
10. Hyundai Rotem
11. Vossloh Locomotives GmbH
12. Wabtec Corporation
13. TÜLOMSAŞ
14. HeiterBlick
15. Modertrans Poznań

ROLLING STOCK MARKET IN EUROPEREPORT WILL ANSWER FOLLOWING QUESTIONS

1. Market size and forecast of Rolling stock market in Europe, by application and product type (2024-20230)
2. Global Rolling stock Demand Overview
3. Recent rolling stock orders segmented by vehicle type
4. Recent tenders for Rail freight wagon manufacturing
5. Development of Multimodal Chemical Transport Cluster- Antwerp (Belgium)
6. European Rail Refurbishment/Replacement Market
7. Opportunity for component manufacturers (traction motor, HVAC, signalling, pantograph, seats and auxiliary suppliers) in the rolling stock market in Europe
8. Details on new rolling stock development and infrastructure upgradation of Europe rolling stock market
9. Growth strategy of major players
10. Market share of major vendors, 2024