Though the railway industry has marked its presence in a majority of economies, the actual production of locomotives and other rolling stock is concentrated in only a few economies with the involvement of a limited number of players. China, Mexico, Russia, and Germany are among those few economies where the railway wheel and axle manufacturers can tap into due to the presence of large scale OEMs. While the aftermarket segment holds a larger market value share than OEMs, it is likely to reduce in the forecast period owing to longer life of rail wheels and axles.
Europe is expected to retain dominance with maximum adoption of rail wheel and axle
The railway industry in Europe and North America is representing a total production value of around US$ 65 Bn, with gross value added being around 45% of the production value. Players in the region are adopting strategies to expand as well as strengthen the market in the region. Reduction in prices, adoption of more efficient processes, expansion of product portfolio, and extension of long term supply relations with key end use industries as well as localized manufacturers constitute the key strategies of major players, in order to gain an enhanced customer base and an augmented market share. Well-structured and efficient supply chain along with an improved retailing network for rail wheel and axle are also foreseen to be among the major growth strategies for reaching out to customers. In Russia, Germany, Italy, and the U.K., increasing passenger is also projected to drive the mainline segment over the forecast period.
Emergence of disruptive technologies and reliance on data analytics is highly likely to creep in the railway industry in the region offering the OEMs to harness the potential of service business which can add up the revenue of the railway industry. The sprawling railway network in Europe is also expected to be one of the major factors driving adoption of rail wheel and axle in the region. Emergence of smart railways in the region has led to significant expansion of the railway system in the region. For instance, in Spain, International Union of Railways (UIC) and Spanish rail infrastructure manager ADIF have come together to achieve a goal of ‘Smart Station in Smart Cities’. The integration of solar power is another factor having a positive impact on the market and is being seen as a trending and long term factor. The European government has planned to install solar PV array in 15% of the train network across East Sussex, Kent, and West Sussex. The aim of this plan is to reduce the consumption of electricity in these particular cities.
China and North America are expected to have a neck and neck competition in terms of adoption over upcoming years
Due to booming industrialization in emerging economies such as China, the expansion of railways has also increased and is thus expected to trigger high demand for rail wheel and axle in the region. Introduction of new projects in both North America and China is likely to encourage the market growth in near future. For instance, The U.S. Department of Transportation (USDOT) is focusing on expansion of rail lines in the Sonoma-Marin Area. For this project, FTA (Freight Transport Association) provided a US$ 22.5 Mn fund to the rail ministry. In China, one of the leading Chinese companies recently signed two ambitious rail projects with Brazil for building two ticket railway related infrastructure projects in the Bahia state.
An outlook of the global rail wheel and axle market with reference to the automotive industry
The global industry is currently witnessing a period of stabilization as steady sales continue to sustain growth for suppliers and OEMs. However, an industry that is undergoing one of the biggest transformation, the future truly looks uncertain. The auto industry has always remained fiercely competitive, with US, German, and Japanese OEMs relying on incremental upgrades to consolidate their position. However, as electric vehicles and driverless cars become a reality, traditional players are staring at a future they aren’t entirely familiar with. The next five years in this industry paint a picture of collaboration and competition with the Silicon Valley.
In 2017, the industry has witnessed growth in North America being offset by slowdown in Europe and China. The fortunes of the global automotive industry are stacked in favor of emerging markets, as limited opportunity continues to plague matured markets.
List of factors tracked in the automotive industry market report
PMR utilizes robust methodology and approach to arrive at market size and related projections. The research methodology for this report is based on 3 dimensional model. We conduct about 45-60 min duration detailed interviews with product manufacturers; apart from this we also collect market feedback from industry experts. To validate this data, we interact with senior panel members having more than 10 years of experience in relevant field. The panel members help in validating the findings and fill the gaps if any. In addition, we leverage on our existing pool of information, paid database and other valid information sources available in public domain. Usually industry interactions extend to more than 50+ interviews from market participants across the value chain.
PMR collects data from secondary sources including company annual reports_bk_01_01_2020, association publications, industry presentations, white papers, and company press releases apart from these we leverage over paid database subscriptions and industry magazines to collect market information and developments in exhaustive manner. After being done with desk research, detailed questionnaire and discussion guide is formulated to initiate primary research with key industry personnel; the discussion aims at collecting key insights, growth perspectives, prevalent market trends and quantitative insights including market size and competition developments. Both of these research approaches help us in arriving at base year numbers and market hypothesis.
In this phase, PMR validates the data using macro and micro economic factors. For instance, growth in electricity consumption, industry value added, other industry factors, economic performance, growth of top players and sector performance is closely studied to arrive at precise estimates and refine anomalies if any.
Data Analysis and Projection
Data analysis and projections were made based on proprietary research frameworks and statistical analysis, which was further validated from industry participants. These frameworks include Y-o-Y growth projections, macro-economic factor performance, market attractiveness analysis, key financial ratios, and others.
For public companies we capture the data from company website, annual reports_bk_01_01_2020, investor presentations, paid databases. While for privately held companies, we try to gather information from the paid databases (like Factiva) and based on the information we gather from databases we estimate revenue for the companies. In addition, the team tries to establish primary contact with the companies in order to validate the assumptions or to gather quality inputs.
Standard Report Structure
The global rail wheel and axle market has been segmented into:
By Wheel Type:
By Sales Channel:
By Train Type:
By Axle Type: