Railway Aftermarket: Current Analysis and Forecast (2022-2028)

Report Description

The Railway Aftermarket was valued at more than USD 38.9 Billion in 2021 and is expected to grow at a CAGR of 6.0% from 2022-2028.Owing to the increased demand for rail transportation, the need to improve efficiency and reduce downtime, and advancements in technology. One of the primary drivers of the railway aftermarket is the growing demand for rail transportation. As populations continue to increase, there is a greater need for efficient and reliable transportation options, and rail is seen as a key solution to this problem. This increased demand for rail transport has led to an increase in the use of rail equipment, which in turn has driven demand for aftermarket services. Another key driver of the railway aftermarket is the need to improve efficiency and reduce downtime. Railway companies are under constant pressure to operate efficiently and keep their equipment running smoothly, and this requires regular maintenance and repairs. The aftermarket industry provides critical services and products that enable rail companies to keep their equipment in top condition, reduce downtime, and minimize disruptions to service. Advancements in technology are also driving the railway aftermarket industry. New technologies such as predictive maintenance, condition monitoring, and digitalization are transforming the way that rail equipment is maintained and serviced. This is creating new opportunities for aftermarket providers to offer innovative solutions that improve efficiency, reduce costs, and enhance the reliability of rail equipment.

Some of the major players operating in the market include CRRC Zhuzhou Electric Co., Siemens Mobility, ZF Friedrichshafen AG, Stadler, Bombardier, Alstom, Knorr-Bremse, Harsco Corporation, Wabtec, and Caterpillar., Inc. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies. For instance, In January 2021, Alstom, a leading railway equipment and service provider, completed the acquisition of Bombardier Transportation, a global transportation company. The acquisition aimed to strengthen Alstom’s position as a leader in the railway industry and expand its presence in key markets.

Insights Presented in the Report

“Amongst service providers, the rail operators segment held a dominating share of the market in 2021.”

Based on service providers, the market is segmented into OEM, rail operators, and component suppliers. The rail operators segment has a dominant share in the rail aftermarket due to several key drivers. Firstly, rail operators have a deep understanding of the maintenance and repair needs of their rolling stock, which allows them to identify and prioritize aftermarket needs more efficiently. Secondly, they have significant purchasing power due to their large fleet sizes, allowing them to negotiate favourable pricing with suppliers. Thirdly, rail operators have access to skilled technicians and engineers who can perform repairs and upgrades in-house, reducing their reliance on third-party service providers.

“Amongst subsystem, the traction & propulsion held a significant share of the market.”

By technology, the market is categorized into traction & propulsion, bogies/wheelsets & suspension, body structures, braking systems, and others. Traction and propulsion systems are crucial components of railway operations, and they play a significant role in the performance and reliability of the rail network. As a result, they account for a significant share of the railway aftermarket, which includes the maintenance, repair, and upgrade of existing railway infrastructure and equipment. In summary, the demand for traction and propulsion services in the railway aftermarket is driven by the need for regular maintenance and repairs, advancements in technology, the modernization of rail infrastructure, and the growth of the rail industry in emerging markets.

“North America dominated the Railway Aftermarket market in 2021.”

North American rail aftermarket has experienced significant growth due to several key drivers. Firstly, ageing rail infrastructure and rolling stock have created a demand for replacement parts and components. As rail operators seek to extend the lifespan of their existing equipment, they require aftermarket suppliers to provide high-quality, cost-effective solutions. Secondly, advances in technology have led to the development of more efficient and durable components, driving demand for upgraded parts. Thirdly, regulatory requirements and safety standards have increased the need for maintenance and repair services, particularly in the wake of accidents or incidents. Finally, the growth of e-commerce and online ordering platforms has made it easier for rail operators to source aftermarket parts and services, further fueling the growth of the North American rail aftermarket.

Railway Aftermarket Market Report Coverage

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
• The report presents a quick review of overall industry performance at one glance.
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
• The study comprehensively covers the market across different segments.
• Deep dive regional level analysis of the industry.

Customization Options:

The global Railway Aftermarket market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.

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Research Methodology

Research Methodology for the Railway Aftermarket Market Analysis (2022-2028)

Analyzing the historical market, estimating the current market, and forecasting the future market of the global Railway Aftermarket market were the three major steps undertaken to create and analyze the adoption of railway aftermarkets in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global railway aftermarket market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detail secondary study was conducted to obtain the historical market size of the Railway Aftermarket market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the railway aftermarket market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as product, technology, and end-users. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the railway aftermarket market. Further, we conducted factor analysis using dependent and independent variables such as product, subsystem, and service provider of the Railway Aftermarket market. A thorough analysis was conducted of demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the Railway Aftermarket market sector across the globe.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global railway aftermarket market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2028 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of revenue (USD) and the adoption rate of the Railway Aftermarket market across the major markets domestically
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the global Railway Aftermarket market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global railway aftermarket market. data was split into several segments & sub-segments post studying various parameters and trends in the areas of the product, technology, and end-users in the global Railway Aftermarket market.

The main objective of the Global Railway Aftermarket Market Study

The current & future market trends of the global railway aftermarket market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of the railway aftermarket market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments
• Segments in the study include areas of the product, subsystem, and service provider.
• Define and analysis of the regulatory framework for the railway aftermarket
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
• Analyze the current and forecast market size of the railway aftermarket market for the major region.
• Major countries of regions studied in the report include Asia Pacific, Europe, North America, and the Rest of the World
• Company profiles of the railway aftermarket market and the growth strategies adopted by the market players to sustain in the fast-growing market
• Deep dive regional level analysis of the industry.

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