Expansion of Passenger Rail Network to Create Opportunities for the Global Generator Market in Railways Through 2020, Reports Technavio
By Business Wire News
Technavio analysts forecast the global generator market in railways to grow at a CAGR of 5% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global generator market in railways for 2016-2020. This industry research report calculates the market size based on the demand for generators from the railways sector. Generator is a significant component of the entire locomotive system, providing power for both traction and auxiliary needs.
Technavio heavy industry analysts highlight the following three factors that are contributing to the growth of the global generator market in railways:
- Electro-diesel locomotives
- Growing investment in rail infrastructure in APAC
- Expansion of passenger rail network
The use of electro-diesel locomotives, better known as dual-mode locomotives, has come into prominence since early 2010s. Electro-diesel locomotives have significant advantages over the conventional diesel locomotives. This type of locomotive can run as an electric locomotive using electrified lines, which reduces the consumption of diesel and, in turn, reduces harmful emissions. However, they also have the option of running on diesel in the event of a power failure.
Bombardier, a leading locomotive manufacturer, designed and manufactured the ALP-45DP series of electro-diesel locomotives. This locomotive design has been developed based on standard AC electric locomotives, and needs only additional equipment such as one or two generator sets and a fuel tank. According to Anju Ajaykumar, a lead analyst at Technavio for engineering tools, “The demand for generators is expected to increase with the emergence of more electro-diesel locomotives in the market.”
Growing investment in rail infrastructure in APAC
The railways market in APAC is exhibiting significant growth in terms of investments for the development of the existing rail infrastructure. Over the past decade, investment in railways has risen from 10% to 30%, with APAC countries accounting for a significant share. Economic growth, urbanization, and growing population are critical factors that trigger the need for new investments in railways. This trend is gaining ground significantly in APAC, primarily in China and India, as the region accounts for around 40% of the population worldwide.
By 2030, the urban population is expected to grow to around 55%, which will create immense demand for an effective transportation system in the country. China invested USD 126 billion in 2015 on various rail projects and India allocated a budget funding of USD 17 billion for FY2017 to develop the existing railways network and infrastructure. Therefore, it is clear that the railway networks in APAC are expected to grow at a rapid rate. This is expected to create a huge demand for generators in the railways sector in APAC.
Expansion of passenger rail network
Rising road congestion and safety issues are driving people worldwide to opt for rail transport. Passenger traffic across the globe is expected to increase gradually every year. In developing economies such as India, which has the fifth largest railway network globally, passenger traffic is on the rise every day. In fact, Indian Railways had added 130 coaches in many trains during the fiscal year 2015, apart from running special trains. “With the growing number of coaches, there will be a huge demand for generators for all the new coaches that are to be manufactured thus leading to the growth of the generator market in the railways sector,” says Anju.
Browse Related Reports:
- Railway Infrastructure Spending Market in China 2015-2019
- Global Stationary Generator Market 2015-2019
- Global Information Technology Spending in Railways Market 2016-2020
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Technaviois a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
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