23.09.2016, 16:28
Modernization of Railway Traction Motors on Cards as Companies in North America Focus
OREANDA-NEWS. The increasing investment in research and development and a significant rise in passenger traffic have compelled the railroad companies and rolling stock manufacturers in North America consider modernization of railcars. As these companies focus on enhancing overall performance, improving comfort, and minimizing design errors and quality issues, the process of modernizing rail cars is initiated in response. These trends have proven conducive to the growth of the market for various rail equipment, traction motors being one of them.
Transparency Market Research (TMR) projects the North America railway traction motors market to exhibit a CAGR of 3.1% between 2016 and 2024 to reach US$13.21 bn by the end of 2024. The market stood at a valuation of US$10.05 bn in 2015.
Q: What are the key strategies adopted by leading players to gain a stronghold in the market?
A: The vendor landscape of the North America railway traction motors market is fairly consolidated, with the top five companies holding over 55% of the market in 2015. These companies are Mitsubishi Electric Corporation, ABB Ltd., Alstom S.A., Bombardier Inc., and Siemens A.G. However, considering the prevailing trends in the railway traction motors market in North America, the shares held by some of these companies are likely to undergo significant change in the forthcoming years.
Hence in order to sustain their market share and expand their business footprint, a majority of companies operating in the North America railway traction motors market have been focusing on a myriad of strategies. For instance, these companies have been proactively investing in research and development to increase their product offerings. Furthermore, the companies are looking to expand their sales and marketing networks through mergers and acquisitions, especially in emerging markets. Besides this, the companies are also synchronizing with upcoming technologies to be able to pace up with the changing trends in the market.
Q: Which countries in North America will offer most lucrative prospects for the railway traction motors market?
A: The U.S., Mexico, and Canada are the most lucrative markets for railway traction motors in North America. Of these, the U.S. dominated the North America railway traction motors market in 2015 and is projected to generate just under US$8 bn by the end of 2024, exhibiting a CAGR of 3.5% from 2016 to 2024. By motor type, alternating current traction motors emerged as the leading segment and is projected to hold over 50% of the revenue share in the market by 2024.
Application-wise, the diesel-electric locomotives segment is expected to retain their lead in the North America railway traction motors market through the forthcoming years.
Despite witnessing favorable growth, the lengthy timeframe for manufacturing and delivery has been hindering the market’s growth to an extent. However, the impact of this restraint on the North America railway traction market is expected to remain medium in the near future.
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