The rolling stock market in North America to grow at a CAGR of 4.07% during the period 2017-2021.
The report covers the present scenario and the growth prospects of the rolling stock market in North America for 2017-2021. To calculate the market size, the report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The report also includes a discussion of the key vendors operating in this market.
One trend in the market is innovation in locomotive manufacturing. The kinetic energy recovery system is the major research that has been undergoing in the R&D division of all established rolling stock manufacturers. The locomotive produces a large amount of energy while applying brakes during stopping and starting.
According to the report, one driver in the market is increased demand for freight wagons. In the US, a significant part of the intercity commodity transportation was initiated through railroads. Most manufacturers in the country prefer railroad shipment as it is one of the safest modes of delivery. Accordingly, most companies aim to increase the share of freight wagons in their transportation modes. Hence, the demand for longer trains with increased axle loads is on the rise.
Further, the report states that one challenge in the market is high initial investment. The rolling stock market is capital-intensive in nature because of the huge cash outflows at the initial stages of production. The investment primarily involves procurement of raw materials, such as iron, electrical equipment, and machinery. Rolling stock is manufactured for projects, especially PPP, as per client requirements.