The rolling stock industry is noticing substantial
alterations, primarily due to shifts in industry and competitive landscape,
different market trends impacting the overall rail industry as well as the
variations in demand and customer requirements, and innovation in IoT, big
data, and analytics, resulting in multiple growth opportunities.
It is imperative that rolling stock suppliers address the
changes in the market and adapt them at the earliest. New potential propositions
and strategic decisions should be made by the suppliers to articulate the
potential of new offerings. This is especially important since the major growth
area is advanced services, which require new business models, new customer
interactions, and new talent and skills in the manufacturers’ organizations.
Considering the trend of consolidation, suppliers should
begin l leveraging external partnerships and establishing cross-functional
teams will equip them with the skills and open mindset required for experimenting,
innovating, and remaining competitive in the long run.
Core segments of new vehicles would be under pressure from
slow market growth, large pool of suppliers, and price pressure due to emerging
suppliers focusing on the export market. Growth is primarily seen in the
Rail Rolling Stock Market Landscape
The Rolling stock industry, which manufactures train sets,
locomotives and wagons for the passenger and freight railway, is in the mature
stage of the lifecycle. It has resulted in an unsteady and slow growth. Over
the five years to 2022, rolling stock manufacturing industry is expected to
experience slow growth, with revenue projected to increase an annualized 2 percent to $71 billion by 2022.
The industry’s product groups are not changing rapidly and
its markets are saturated. Moreover, the industry has not experienced any major
consolidation (except Alstom-Siemens and CNR-CSR). However, the rate of growth
of new companies is relatively slow, and the major companies in the industry
are all long established players with strong market share positions. While the
size of the industry does fluctuate with changes in downstream demand markets,
its close ties to transportation and shipping tend to create a level of
The rising industrial production and trade value,
government funding and regulation of downstream markets, and strong demand from
rail transportation will contribute to the growth of industry revenue. Global
competitors have established their presence in both developed and developing nations.
As the trade-weighted index increases, industry products produced abroad will
become less expensive for downstream markets, to the disadvantage of domestic manufacturers.