Rolling Stock Market Insights 2019: Trends

Rolling Stock Market Insights 2019: Trends and driver

Bedy Kharisma Data and Business Analyst Global Rail Market

Rolling stock refers to the wheeled vehicles that run on railway tracks. By that definition, rolling stock includes railway vehicles such as Locomotives, High-Speed Trains (HST), Electric Multiple Units (EMU), Diesel Multiple Units (DMU), Passenger Coaches (PC), Freight Wagon (FW), And Mass Transit Vehicles, such as Metro, Light Rail Vehicle (LRV), or Tram. And the pursue of an environmentally friendly vehicle introduce a new category of railway car: energy efficient railway cars, which may include: Bi-Mode, TriMode, Battery railway car, Hydrogen Railway Car, Solar Powered Railway Car. Understanding the growth for each vehicle in every region, in the most detailed and specific way, is interestingly beneficial to those industries related to the rolling stock.

This could be the regulatory authorities, operators, manufacturers, or a railway consultant. A Rolling Stock Market Insight, one might say, and to limit the discussion of this topic, we would like to emphasize its growth from 2015 until 2019.

Just before we dive into the topic, we want to state the methodology and geography definition to make sure we are all in the same issue within the discussion. A brief methodology of this study, it will only discuss the market of new railway cars, produced by OEM, from secondary data. This study will answer: "what" and "how much” vehicle

Image Credit: KMRL

gets ordered, to which country, at what price, and within how many months will it be delivered. The correlation amongst those topics will give an insight into how the business nature in the rolling stock industry. And so, the region in this article will be divided into eight areas, namely: CIS, Western/Eastern Europe, Asia, Africa/Middle East, Australia/Pacific, North America, and South America.

The volume of vehicles ordered globally shows an exponentially increase, though the majority of it dominated by freight wagon. The fact that railway vehicles consist of many types from low-cost freight wagon to a high-value high-speed train. The volume trends will not necessarily mean the same with value

trends. Another reason that we really can’t rely on how big the rolling stock market is the fact that most ofthe railway vehicles order different significantly amongst regions around the world.

Rolling stock market is a market, in which 56% of it developed in Europe (CIS, western and eastern europe combined).

The European rolling stock manufacturers will benefit the most from this fact. Therefore, we can see that some of the Asian rolling stock expand their market into the European market and goes head to head with European Manufacturers. The competition of rolling stock manufacturers can is shown in the form of rank and market share distribution along the years as follows:-

United Wagon Co.: 30296 CRRC: 22875 Uralvagonzavod: 17000 Alstom: 8837 Bombardier: 7664 American Railcar: 7650 National Steel Car: 5900 Stadler: 5230 CAF: 5069 Hyundai Rotem: 4828

Since the majority of the market is dominated by freight wagon, and most of the number of freight wagon is ordered in CIS, the exponentially increasing market share can be seen in 2019 is won by UWC, a Russian freight wagon manufacturer from Russia. This Russian manufacture pushed CRRC domination

to second place. Another highlight from this graph is the decreasing market share by CRRC from its peak in 2015.

The rolling stock market trends in terms ofvalue converging contrast compared to RAIL MARKET INSIGHTS 

volume trends. While the volume trends show an exponentially increase. The market trends in value seem to show a stagnant pattern, demonstrated by this graph. crown, despite decreasing trends of CRRC itself.

Reasons will always drive the growth ofa market. Thus, there are three reasons, or

Alstom takes the leads in terms of value, followed by CRRC and Bombardier. Those three manufacturers demonstrated a fierce competition in this market. The idea to merge Alstom and Bombardier will surely take the CRRC down from the driver one may buy rolling stock. Those are: to accommodate an increase in capacity, rejuvenation, or there is fro rolling stock in a new railway line project. Or a combination of those three drivers. And the drivers of rolling stock orders, still dominated by “accommodate an increase in capacity,” followed by rejuvenation and new railway lines, respectively. That being said, A market in which demand is already stable or even increase will be the perfect “ocean” for rolling stock manufacturers. Understanding the driver will undoubtedly help the manufacturers in tailoring a marketing strategy and offering a proposition to the customer. ***