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Rail Wheel and Axle - Global Market Trajectory & Analytics

  • ID: 5030336
  • Report
  • April 2021
  • Region: Global
  • 395 pages
  • Global Industry Analysts, Inc
Souring Financials of Railway Operators Crushes Railway Fleet Expansion Plans. Rail Wheel & Axle Sales Plummets by -7.1%

The global market for Rail Wheel & Axle is expected to slump by -7.1% in the year 2020 and thereafter recover to reach US$4.2 billion by the year 2027, trailing a post COVID-19 CAGR of 4.4% over the analysis period 2020 through 2027. The COVID-19 outbreak and associated restrictions on travel and movement have severely impacted transport connectivity across regions. The pandemic prompted various countries to close borders for passenger transport as well as impose varying bans on freight transport. The impact of COVID-19 pandemic on train operators around the global has already been severe. To contain the spread of the virus, countries all over the world, restricted the passenger and freight transport along their borders. Economic conditions have a direct correlation to movement of goods & the rail freight sector is the barometer of economic conditions. Border shutdowns and travel restrictions imposed worldwide are expected to reduce global merchandize trade by over 28% in the year 2020. With global supply chains disrupted, rail transport of petroleum products, coal, chemicals, minerals & metals etc. stands massively impacted. With the world in a steep recession at -4.9% GDP, consumer demand & manufacturing remains muted killing all hopes of a quick rebound in trade, logistics & transport. In addition, passenger rail transport services have also been severely impacted with all non-essential travel plans put on hold.

Diminished rail traffic numbers is a common thread cutting across countries worldwide. Lockdowns and interstate restrictions have interrupted rail movement. Virus led recession coupled with the decline in manufacturing output additionally is triggering huge traffic losses. Feeling the repercussions of the disruptions is upstream locomotive manufacturing including rail wheel and axle. Across countries, railroads are downsizing and closing yards as idle locomotives push up revenue losses. Freight operators are coming under pressure due to the low margins within the transport sector. For instance, a potential re-introduction of lockdowns in the anticipation of resurgence of the coronavirus in autumn may result in 40% decline in the passenger traffic for the year 2020, while the freight transport throughout the European continent is expected to fall by 20%. COVID-19 outbreak is having significant impact on freight transportation and logistics industries, as increasing costs and shrinking capacity having a considerable impact on the industry activity. In the US, for instance, rail intermodal traffic declined by about 50% during the Q1 2020. With the global supply chains coming under the impact of the virus outbreak, there will be significant impact on shippers in terms of capacity and pricing.

In Post-COVID-19 period, railways are nevertheless expected to bounce back. The travel mode is anticipated to gain from resurgence in domestic tourism market post-COVID-19 phase. Rail is likely to be considered by a large number of customers for regional travel to neighboring destinations. Rail is expected to provide a perfect option compared the slow sea travel and expensive flights. In contrast to airlines that are anticipated to face tax hikes by various governments, railways are expected to benefit from several initiatives. Rail is likely to benefit significantly from technological advances such as the Hyper loop intended to reduce travel time along with rising popularity of rail holidays. The concept of rail holidays is also anticipated to erode the share of cruise industry. The COVID-19 pandemic is slated to accelerate the transition of passengers from other modes to rail in the coming years. In addition, the consistent focus on curbs on carbon emissions by the year 2050 is expected to drive more passengers to pay more attention to trains. The trend is likely to gain traction from the availability of more high-speed trains in China and Europe for business and leisure activities, which is estimated to reduce air traffic growth rate. Already second half of 2020 is beginning to witness increasing number of freight trains running between Europe and China. Freight trains along with container count registered a notable growth during the third quarter of 2020. The gains registered for rail freight are credited to its distinct advantages over other modes. While the use of less manpower requires fewer quarantine checks, considerably higher load capacity makes rail freight transport a more effective option than road transport. In addition, railway border crossing is relatively easier and effective, which reduces the risk of spreading COVID-19. The pandemic caused major disruptions for landlocked countries that are affected by high transportation cost. The use of international rail freight transport is expected to help these countries in minimizing disruptions and recover quickly in the post-COVID-19 scenario. In addition, rail freight transport is being extensively used for transportation of medical supplies along with other essential products to several European countries. Operators of rail transport are proactively implementing desirable measures for mitigating the impact of the outbreak. While Russian Railways has announced an Emergency Response Center for supporting shippers and pushing coordination across different components of the transportation chain, Turkish Railways is pursuing transport of specific goods with Iran without any human contact. On the other hand, Uzbekistan Railways has come up with a software solution to process and provide customers with preliminary electronic information related to goods transferred by rail.

Select Competitors (Total 36 Featured):
  • Amsted Rail Company, Inc.
  • ArcelorMittal S.A.
  • Bharat Forge Ltd. (Kalyani Group)
  • Bombardier Inc.
  • GHH-BONATRANS
  • CAF, Construcciones y Auxiliar de Ferrocarriles, S.A.
  • Comsteel
  • CRRC Sifang Co., Ltd.
  • Kolowag
  • Lucchini RS S.p.A.
  • Maanshan Iron and Steel Company Limited
  • Nippon Steel Corporation
  • Penn Machine Company LLC
  • Rail Wheel Factory - Indian Railways
  • Semco India (P) Ltd.
  • Simmons Machine Tool Corporation (NSH Group)
  • United Metallurgical Company, OMK CJSC
Note: Product cover images may vary from those shown
I. METHODOLOGY

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW
  • Influencer Market Insights
  • World Market Trajectories
  • Impact of COVID-19 Pandemic and Looming Economic Recession
  • Exhibit 1: COVID-19 Impact on Railways: YoY Change (%) for Rail Freight and Passenger Rail in Europe for 2020 and 2021
  • Rail Freight Transportation Comes Under Pressure Due to COVID-19 Pandemic
  • Exhibit 2: Hurting Drop in Rail Cargo as COVID-19 Interrupts Transport Routes: Rail Freight Traffic Growth in the US (In %)
  • Railways to Bounce Back in Post-COVID-19 Era
  • Amidst COVID-19 Pandemic, Potential Opportunities Emerge in International Rail Travel
  • Rail Wheel and Axle: An Introduction
  • Evolution of the Railroad Wheel
  • Global Market Outlook & Prospects
  • Asian Economies to Offer Lucrative Growth Opportunities
  • Competition
  • Recent Market Activity
2. FOCUS ON SELECT PLAYERS

3. MARKET TRENDS & DRIVERS
  • Increase in New Railway Projects and Consequent Rise in Locomotive and Bogie Production Drives Demand for Rail Wheel and Axle
  • A Snapshot of Select Major Ongoing & Upcoming Projects Focused on Rail Freight Transport
  • Rise in Rail Passenger and Freight Traffic Translates into Market Growth
  • Exhibit 3: Global Rail Passenger Traffic (in Billion Passenger Kilometers) by Region for 2018 and 2019
  • Development of Urban Rail Transport Infrastructure Presents Growth Prospects for Rail Wheel & Axle Market
  • Exhibit 4: Worldwide Investments into Light Rail and Metro Rail Projects (in US$ Billion) by Region for the Period 2019-2025
  • Expanding Metro Train Network Drives Demand for Metro Train Wheels
  • With Rail Freight Transport Being Indispensable for the Global Logistics Chain, Long-term Network Expansion Initiatives Bode Well for the Market
  • Exhibit 5: Global Rail Freight Transportation Market Size in US$ Million by Region/Country for 2020 and 2027
  • World Trade Flows Determine Growth Dynamics of Rail Freight Transport Market, Setting Trends in the Rail Wheel Axle Market
  • Exhibit 6: Global Merchandise Trade Exports Volume Growth (in %) by Region for 2018-2020
  • Exhibit 7: Global Merchandise Trade Imports Volume Growth (in %) by Region for 2018-2020
  • Development of Europe-Asia Railway Line and Resultant Rise in Trade Flows Augurs Well for the Market
  • Growing Electrification of Rail Lines in Developing Economies Presents Growth Opportunity
  • Imperative Need to Replace Aging Diesel Locomotives to Reduce Emissions Supports Market Growth
  • Smart Urban Spaces and Emphasis on Smart Railway Infrastructure: Potential for Growth
  • As Governments Focus on Development of High-Speed Trains and Bullet Trains, Rail Wheel and Axle Market to Benefit
  • Exhibit 8: Global Level of Deployment of High-Speed Rail Lines by Select Leading Countries
  • Aftermarket Segment Poised to Benefit from Growing Demand for Rail Wheel Machining
  • Advent of Solar Powered Trains Emerges as a Potential Driving Factor
  • R&D Efforts of Manufacturers Focused on Development of Lightweight Rail Wheels & Axles
  • Rail Operators Bet on Advanced Vibration Sensors to Detect Wheel Flats
  • Laser Triangulation Sensors Offer Compelling Option to Measure Lateral Positions of Rail Bogie Wheels
  • Bayesian DLM Presents Effective Option for Real-Time Detection of Wheel Defects in High-Speed Trains
  • With Few Countries Moving Towards Alternative Rail Technologies Such as Maglev, Challenges Ahead for Rail Wheel & Axle Market
4. GLOBAL MARKET PERSPECTIVE

III. MARKET ANALYSIS
  • UNITED STATES
  • COVID-19 Crisis Halts the Progress of Rail Transportation Industry
  • Pandemic Severely Impacts the Freight and Logistics Industry
  • Exhibit 9: YoY Change in Monthly Rail Freight Traffic in the US for the Period Jan-Jul 2020
  • CANADA
  • JAPAN
  • CHINA
  • Rail Transportation Sector Presents Opportunities for Rail Wheel and Axle Market
  • Exhibit 10: Rail Freight Traffic in China (in Trillion Ton Kilometers) for the Years 2011-2019
  • China’s Long-term Plans for Railway Network Expansion Augurs Well for Wheel and Axle Market
  • EUROPE
  • Rail Transportation Industry in Europe: An Overview
  • Emergency Funding Provides Respite to European Rail Supply Market amid COVID-19
  • Rail Freight Networks Emerge as Critical Support System During COVID-19 Crisis
  • FRANCE
  • GERMANY
  • ITALY
  • UNITED KINGDOM
  • SPAIN
  • RUSSIA
  • REST OF EUROPE
  • ASIA-PACIFIC
  • AUSTRALIA
  • INDIA
  • COVID-19 Pandemic Hits Railway Revenues
  • Pandemic Presents Indian Railways with Opportunity to Overhaul Existing Freight Transport Model
  • Rise of Indian Urban Rail Transportation Bodes Well for Wheels and Axle Market
  • Indian Railways Eyes ‘Made in India’ Initiative for Zero Import of Rail Components
  • SOUTH KOREA
  • REST OF ASIA-PACIFIC
  • LATIN AMERICA
  • ARGENTINA
  • BRAZIL
  • MEXICO
  • REST OF LATIN AMERICA
  • MIDDLE EAST
  • IRAN
  • ISRAEL
  • SAUDI ARABIA
  • UNITED ARAB EMIRATES
  • REST OF MIDDLE EAST
  • AFRICA
IV. COMPETITION
  • Total Companies Profiled: 36
Note: Product cover images may vary from those shown
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