The global rolling stock market to grow at a CAGR of 3.28% during the period 2016-2020.
The report covers the present scenario and the growth prospects of the global rolling stock market for 2016-2020. To calculate the market size, the analyst considers the revenue generated from the total consumption of rolling stock globally. The report does not include revenue generated from the aftermarket service of the product. The report also includes a discussion of the key vendors operating in this market.
The growing urbanization in emerging economies has led to the development of the global rail market. Growing Asian economies are heavily investing in rail infrastructure projects. The same goes for the Middle East where Saudi Arabia, Qatar, Istanbul, Turkey, and Riyadh are making significant investments in light rail vehicle projects.
Increased mobility and urbanization has surged the need for effective rail transit systems, primarily in developing countries. With the growing population moving toward urban areas, the demand for road transportation services has increased. The increase in demand for urban transport will lead to an increase in the number of rail passenger carriers such as trams, light rail, monorail, and commuter rail services, which will be fulfilled by an increase in production of these rolling stock components.
According to the report, a key growth driver is the growing HSR (high-speed rail) networks in developing nations. The surge in urbanization and favor for public transportation services have led to rise in demand for high-speed rail transit systems in Asia and the Middle Eastern region. This has led many key vendors to set up their manufacturing base in these regions. Also, the governments in many developing countries are heavily investing in rail infrastructure related projects like electrifying of tracks, signaling, and urban transit systems. This has propelled the growth of the rolling stock of the
Further, the report states that the high initial investment acts as an entry barrier to the vendors in the market. The rolling stock market is capital-intensive in nature, as it involves a huge amount of cash inflow in the initial stage of production. Rolling stock is manufactured for particular projects (mostly PPP) for particular clients as per their requirements. These projects are made on a long-term contract, the payment for which is received after fulfillment of pre-stated targets