PUBLISHER: The Business Research Company | PRODUCT CODE: 1563225
PUBLISHER: The Business Research Company | PRODUCT CODE: 1563225
Electric locomotives are rail vehicles powered by electricity and are a critical component of modern railway systems. These locomotives are primarily used for hauling both passenger and freight trains over long distances or within urban and suburban areas. Unlike diesel locomotives, which rely on internal combustion engines, electric locomotives draw power from external electrical sources or onboard energy storage systems. The primary sources of electricity for these locomotives include overhead lines, third rails or, in some cases, energy stored in batteries or other onboard systems. The use of electricity allows for more efficient, cleaner and often more powerful operation compared to fossil fuel-powered alternatives.
The electric locomotives market consists of sales, by entities (organizations, sole traders or partnerships) engaged in manufacturing electric locomotives used in rail transportation. Electric locomotives, powered by electricity drawn from overhead lines, third rails, or onboard energy storage systems, play a crucial role in modern rail networks, offering efficient, high-performance, and environmentally friendly transport solutions
The global electric locomotives market was valued at $6,040.6 million in 2018 which grew till 2023 at a compound annual growth rate (CAGR) of more than 6.0%.
Increase In Digitalization
An increase in digitalization boosted the growth of the electric locomotives market during the historic period. The rise in digitalization significantly boosted the electric locomotives market by improving operational efficiency through advanced management systems. Digital technologies enabled sophisticated control systems, real-time monitoring and predictive maintenance, enhancing locomotive performance and reliability. This led to better energy management, optimized route planning and efficient fleet operations, making electric locomotives more appealing to rail operators. As a result, market growth accelerated due to reduced operational costs and improved service quality. For instance, in October 2022, the Canada ministry of transport launched the advancing industry-driven digitalization of supply chain initiative with an investment of $136 million to develop digital solutions and optimize Canada's supply chains. Through real-time data collection and sharing, industry-driven approaches to digital solutions are supported, particularly in the areas of data collection, coordination and enhancing the visibility of the transportation network for carriers, shippers and governments. This initiative makes it easier to plan and coordinate transportation activities to relieve bottlenecks, reduce congestion and be more resilient to disruptions. Additionally, in October 2021, according to the United Nations Conference on Trade and Development, worldwide, digitally deliverable services increased from almost 52% of service exports in 2019 to nearly 64% in 2020, while information and communications technology (ICT) services increased from 10% to almost 14%, a significant acceleration of the long-term trend. Therefore, increase in digitalization contributed to the growth of the electric locomotives market.
Significant Milestone In Locomotive Production Reflects Enhanced Manufacturing Capabilities
Major companies in the electric locomotives market are setting new production milestones to demonstrate advanced manufacturing capabilities. Recent records show the highest monthly output of electric locomotives, indicating exceptional production efficiency. Furthermore, achieving new annual production highs for electric units underscores significant advancements in manufacturing processes. These achievements reflect the industry's dedication to scaling production, enhancing operational efficiency and meeting the rising demand for electric locomotives. For example, in January 2024, Banaras Locomotive Works (BLW), an India-based multi-gauge multitraction locomotive manufacturing company, achieved a historic milestone by producing the highest number of electric locomotives in a single month, with 55 units completed in January 2024. The production rate of over two locomotives per day reflects exceptional efficiency. Additionally, BLW set a new record for the financial year 2023-24 by manufacturing 379 locomotives by January, including 375 electric and 4 diesel units, marking a significant achievement in locomotive production.
The global electric locomotives market is concentrated, with large players operating in the market. The top ten competitors in the market made up to 41.29% of the total market in 2023.
Electric Locomotives Global Market Opportunities And Strategies To 2033 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global electric locomotives market as it emerges from the COVID-19 shut down.
Where is the largest and fastest-growing market for electric locomotives? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The electric locomotives market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider electric locomotives market; and compares it with other markets.