NEW
YORK, Sept. 13, 2024 /PRNewswire/ -- Report with
market evolution powered by AI- The global light rail market
size is estimated to grow by USD 3.74
billion from 2024-2028, according to Technavio. The market
is estimated to grow at a CAGR of 4.1% during the
forecast period. Rapid growth of urban areas is driving
market growth, with a trend towards high investment by
governments in light rail. However, volatility in prices of
raw materials poses a challenge. Key market players include
ALSTOM SA, CRRC Corp. Ltd., General Electric Co., Hitachi Ltd.,
Hyundai Heavy Industries Group, Kawasaki Heavy Industries Ltd.,
Kintetsu Group Holdings Co. Ltd., Knorr Bremse AG, Mitsubishi Heavy
Industries Ltd., Mott MacDonald, Parsons Corp., Pesa Group,
Samvardhana Motherson International Ltd., Schunk GmbH, Siemens AG,
Stadler Rail Ag, SYSTRA SA, Thales
Group, WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORP., and WSP Global
Inc..
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Forecast
period
|
2024-2028
|
Base Year
|
2023
|
Historic
Data
|
2018 - 2022
|
Segment
Covered
|
Type (High capacity
light rail and Low capacity light rail), Application (Intra-city
transport and Inter-city transport), and Geography (Europe, APAC,
North America, Middle East and Africa, and South
America)
|
Region
Covered
|
Europe, APAC, North
America, Middle East and Africa, and South America
|
Key companies
profiled
|
ALSTOM SA, CRRC Corp.
Ltd., General Electric Co., Hitachi Ltd., Hyundai Heavy Industries
Group, Kawasaki Heavy Industries Ltd., Kintetsu Group Holdings Co.
Ltd., Knorr Bremse AG, Mitsubishi Heavy Industries Ltd., Mott
MacDonald, Parsons Corp., Pesa Group, Samvardhana Motherson
International Ltd., Schunk GmbH, Siemens AG, Stadler Rail Ag,
SYSTRA SA, Thales Group, WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORP.,
and WSP Global Inc.
|
Key Market Trends Fueling Growth
The light rail market is experiencing significant growth due to
increased government investment in this sustainable and efficient
public transit solution. With urban populations growing and cities
facing congestion and environmental concerns, governments are
turning to light rail as an answer. In May
2023, the Biden-Harris administration allocated over
USD700 million in grants to modernize
six US transit systems' passenger railcars. This funding not only
expands existing networks but also initiates new light rail
projects in cities previously relying on buses or personal
vehicles. The influx of public funds stimulates demand for rail
infrastructure, rolling stock, and related technologies, creating a
positive ripple effect. Additionally, these projects are often part
of broader urban renewal initiatives, fostering economic
development along rail corridors. The commitment to light rail also
aligns with global efforts to decrease carbon emissions and enhance
urban air quality. As a result, the light rail market is thriving,
with manufacturers, construction firms, and technology providers
all benefiting from this trend. Government investment is predicted
to continue fueling market expansion throughout the forecast
period.
The Light Rail Market is experiencing significant growth due to
increasing demand for energy-efficient, sustainable transportation
in urban areas. Public transport is becoming a priority as traffic
congestion continues to be a challenge. Refurbishment of existing
rolling stock, including axles, wheelsets, traction motors,
pantographs, and passenger information systems, is driving
industrial activity. Mining and freight industries also utilize
light rail for transportation. Shared mobility solutions are
trending, with higher capacity, low-floor vehicles offering a
better passenger experience. Sustainable mobility initiatives, such
as electrification and carbon emissions reduction, are key factors.
Smart technologies like mobile ticketing, real-time information,
IoT sensors, automatic collision avoidance, and video surveillance
enhance the passenger experience. Light rail vehicles serve both
passenger and freight transportation on dedicated tracks, making
them a viable alternative to heavy rail systems and metro
systems.
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Market Challenges
- The global light rail market faces challenges due to the
volatility in raw material prices, particularly for essential
components like steel, aluminum, and cast iron. This price
instability can negatively impact market growth as it increases
production costs, which may be passed on to consumers. Raw material
prices fluctuate based on market demand and supply, currency
fluctuations, and geopolitical tensions. For instance, the price of
iron ore, a key component, has risen due to high demand and supply
shortages, reaching approximately USD120 per dry metric ton unit (dmtu) in
May 2024, up from approximately
USD104 per dmtu in May 2023. The ongoing conflict between
Russia and Ukraine has caused aluminum prices to grow,
adding to the market uncertainty. These price fluctuations directly
impact the cost of light rails and affect the profit margins of
stakeholders in the value chain. Import and export tariffs also
vary by region, complicating the pricing structure of raw materials
and posing challenges to the growth of the global light rail
market.
- The Light Rail Market is experiencing significant growth in
urban transportation, particularly for passenger services.
Challenges include supplying both lower and higher capacity
vehicles for different demand levels. Dedicated tracks are
essential for efficient operation, but infrastructure costs can be
high. Sustainable transportation is a priority, with
electrification and carbon emissions reduction key considerations.
Rapid transit via light rail vehicles offers a more sustainable
alternative to heavy rail systems and freight transportation. Urban
areas benefit from improved public transportation, with a focus on
passenger experience. Mobile ticketing, real-time information, and
smart technologies enhance the user experience. IoT sensors,
automatic collision avoidance, and video surveillance contribute to
safety and reliability. Light rail vehicles come in various
configurations, including low-floor and high-floor designs, for
easy access and interconnecting cities. The market faces
competition from other transportation services, including metro
systems and long-distance routes. The market requires continuous
innovation, including advancements in passenger capacity,
electrification, and smart technologies to meet the evolving needs
of urban transportation. Rail supply must adapt to these demands
while maintaining cost-effectiveness.
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Segment Overview
This light rail market report extensively covers market
segmentation by
- Type
- 1.1 High capacity light rail
- 1.2 Low capacity light rail
- Application
- 2.1 Intra-city transport
- 2.2 Inter-city transport
- Geography
- 3.1 Europe
- 3.2 APAC
- 3.3 North America
- 3.4 Middle East and
Africa
- 3.5 South America
1.1 High capacity light rail- The light rail
market is a significant segment of the public transportation
industry. It offers an efficient, cost-effective, and eco-friendly
alternative to traditional bus and car commuting. Light rail
systems connect urban areas, reducing traffic congestion and
promoting sustainable urban development. These systems are
reliable, frequent, and convenient, making them a popular choice
for commuters. The market is expected to grow due to increasing
urbanization and government investments in public transportation
infrastructure. Companies like Bombardier, Siemens, and Alstom
dominate the market with their innovative solutions and strong
customer base.
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and future opportunities- including forecast (2024-2028) and
historic data (2018 - 2022)
Research Analysis
The light rail market is experiencing significant growth as
public transport becomes an increasingly important solution to
traffic congestion in urban areas. Light rail systems offer
energy-efficient transport options, reducing carbon emissions and
contributing to sustainable urban transportation. Industrial
activity and mining sectors are major consumers of light rail
transportation services due to the need for heavy cargo movement.
Refurbishment of existing rolling stock is a key trend in the
market, extending the life of existing assets and reducing the need
for new purchases. Light rail vehicles come in various capacities,
including lower and higher floor models, catering to inner city and
interconnecting cities' transportation needs. Components such as
pantographs, axles, wheelsets, traction motors, passenger
information systems, and air conditioning systems are essential for
the efficient operation of light rail vehicles. Dedicated tracks
distinguish light rail from other transportation modes, providing a
smoother and faster ride. Metro systems and heavy rail systems are
different from light rail, with the latter offering more
flexibility in route design and lower infrastructure costs. Shared
mobility solutions are also integrating with light rail systems,
enhancing urban transportation options and promoting sustainable
transportation.
Market Research Overview
The Light Rail Market is experiencing significant growth due to
the increasing demand for energy-efficient and sustainable
transportation solutions in urban areas. Traffic congestion is a
major challenge in many cities, making public transport an
attractive alternative. Light rail systems, also known as trams or
streetcars, offer a viable solution with their dedicated tracks and
ability to carry both passengers and freight. Refurbishment of
existing rolling stock is a key industrial activity in the light
rail market. Components such as pantographs, axles, wheelsets,
traction motors, passenger information systems, and air
conditioning systems are regularly upgraded to improve efficiency
and passenger experience. The light rail market caters to both
passenger and freight transportation needs. Rapid transit systems,
metro systems, and heavy rail systems are all part of this market.
Sustainable transportation is a major focus, with a reduction in
carbon emissions being a key goal. Smart technologies such as
mobile ticketing, real-time information, IoT sensors, automatic
collision avoidance, and video surveillance are increasingly being
integrated into light rail vehicles to enhance the passenger
experience. The market also offers both lower and higher capacity
vehicles, as well as low-floor and high-floor options, to cater to
different transportation demands. The light rail market serves both
inner city and interconnecting cities, making it an essential part
of urban transportation infrastructure. The market is expected to
continue growing as the demand for transportation services
increases and the need for sustainable mobility solutions becomes
more pressing. Rail supply companies are investing heavily in
research and development to meet the evolving needs of the
market.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Type
-
- High Capacity Light Rail
- Low Capacity Light Rail
- Application
-
- Intra-city Transport
- Inter-city Transport
- Geography
-
- Europe
- APAC
- North America
- Middle East And Africa
- South America
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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SOURCE Technavio