Locomotive Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The global locomotive market is expected to reach a value of more than USD 17.90 Billion in 2024, with a strong market size growth projected. The industry is anticipated to grow at a CAGR of 9.10% during the forecast period of 2025-2034, ultimately attaining a valuation of USD 42.77 Billion by 2034. Notably, the Asia Pacific region is poised to play a significant role in driving this growth.

The locomotive market plays a crucial role in the transportation and logistics industry, where locomotive systems, including self-propelled train cars, are essential for efficient freight movement. These trains operate on both energy sources, such as fuel and electricity, contributing to the modernisation of transport systems. The manufacturing and production capacity of locomotives is evolving to meet increasing demand, especially post-COVID-19 pandemic. The logistics industry relies heavily on these systems to streamline operations, ensuring timely and cost-effective deliveries. As the market recovers from the pandemic, investment in advanced locomotive technology continues to grow, enhancing the overall transportation infrastructure. In September 2024, Hitachi Rail delivered its 300th train to the UK, marking 15 years of innovation and partnerships. The company’s investments in infrastructure and technology have transformed UK rail, with its acquisition of Thales strengthening its global presence and future growth.

The locomotive market is increasingly focused on reducing carbon emissions and improving air quality, aiming to lower the carbon footprint of transportation. With a shift towards sustainable mobility, the industry is moving away from fossil fuel dependency and adopting green energy transportation solutions. Electrification technologies, including electric locomotives, are playing a crucial role in this transformation. As rail network expansion continues, electric locomotives are expected to enhance the efficiency of cargo shipments globally, supporting a greener, more sustainable future for the transportation sector. In March 2025, India announced the launch of the world’s first 1,200-horsepower hydrogen-powered train, marking a step towards sustainable transport. The country is also developing a 9,000-horsepower locomotive, positioning itself as a leader in green rail technology and global manufacturing.

Key Trends and Developments

Electrification, hydrogen trains, sustainability regulations, and technological advancements drive the locomotive market, enhancing demand for eco-friendly, efficient solutions globally.

November 2024

Indian Railways will debut the Vande Bharat Sleeper Express on New Delhi-Srinagar route in January 2025, covering 800 km in 13 hours.

April 2024

Intramotev launched its first battery-electric railcar, ReVolt, in Pennsylvania's mining sector, marking progress in decarbonizing freight transport.

September 2024

Hitachi marks a milestone with its 300th train launch in the UK, the 807 model for Avanti West Coast, continuing the company’s significant role in transforming the UK rail network over the last 15 years with high-speed, reliable trains like the Class 385 and Class 395 models.

August 2024

The United Kingdom launched its first intercity battery-powered train for testing, aiming to reduce emissions and operational costs, especially on routes like York to Manchester and Leeds to Liverpool. This trial replaces diesel engines with battery power, offering substantial environmental and economic benefits.

Electrification of Railways

As countries aim to reduce emissions, there is a strong push toward railway electrification. This trend is reflected in projects like the UK’s electrification of its rail network and India’s plan to electrify 100% of its tracks by 2030. Companies like Siemens and Alstom are investing heavily in electric locomotives, like Siemens’ Vectron and Alstom’s Coradia iLint hydrogen trains. Electrification makes a company less dependent on fossil fuel while making it meet sustainability requirements besides gaining operational efficiency. The electrification demand for locomotives and infrastructure will improve, thus augmenting the locomotive demand growth.

Adoption of Hydrogen-Powered Trains

Hydrogen powered locomotives are the emerging alternatives for the diesel trains with cleaner energy. Alstom's Coradia iLint's entry in Germany, while UK committed to testing the hydrogen powered trains in 2023 is a reflection of the trend. Hydrogen trains provide zero emissions, long operational ranges, and efficiency. As the governments emphasize sustainability and clean transport, the market is expected to see growth and new opportunities through hydrogen locomotives in both domestic and international markets.

Sustainability Regulations and Government Incentives

As governments get stricter on environmental regulations, the demand for eco-friendly locomotives is increasing. The European Union's Green Deal pushes for cleaner and greener transportation. Investments in sustainable infrastructure, such as electrified rail systems and battery-powered trains, would be covered by the US government through its CRISI program. The investments by Siemens and Bombardier for sustainability-based solutions would also gain in the wake of these government policies. Added regulatory thrust will thus attract more investments in clean technology, and therefore boost growth in the locomotive market, thus boosting the locomotive market revenue.

Technological Advancements in Locomotive Design

The locomotive market is transforming through technological innovations like autonomous trains, AI-based operations, and digital control systems. Companies are developing smart locomotives that can offer enhanced fuel efficiency, safety features, and predictive maintenance. For instance, with the advent of digital signaling systems and automated braking, the operations will be more efficient, and the costs will be low. With the growing availability of such technologies, demand for advanced locomotives will increase as operators would look forward to cost-effective, efficient solutions for modern rail transport.

Locomotive Market Trends

Autonomous and Smart Trains are a Rising Trend in the Market

The global locomotive market is embracing innovative solutions such as autonomous trains, equipped with sensor technology for real-time data transmission and obstacle-detection capabilities. Alstom’s autonomous shunting locomotive is a key example, driving advancements in the locomotive industry’s efficiency and safety. In November 2022, Alstom demonstrated the highest grade of automation (GoA4) on a shunting locomotive in the Netherlands. The test showcased fully autonomous operations, including obstacle detection and reaction. This advancement paves the way for increased capacity in freight operations and sustainable mobility.

The locomotive market is embracing advancements in automation, with the introduction of automatic train control systems and autonomous trains. Pilot testing is underway for these technologies, aiming to digitalize rail passenger transport. Railway corporations are investing in smart products that facilitate seamless data exchange, enhancing operational efficiency and safety. As the industry focuses on developing autonomous trains, the risk of technical errors is minimised, ensuring a safer and more reliable rail passenger transport system. These innovations are driving the future of the global railway industry. In April 2024, US startup Intramotev launched its first self-propelled battery-electric railcar, ReVolt, in a freight train at a Pennsylvania mine. The railcar travelled over 1,000 miles, offering fuel savings and environmental benefits, marking progress in decarbonising mining transport.

Locomotive Market Growth Factors

Rising Freight Transport and Cargo Logistics Fuel Market Growth

The locomotive market is witnessing significant growth driven by increasing demand for freight transportation and efficient cargo logistics. As road traffic congestion rises, railway transit offers a reliable alternative for moving cargo goods over long distances. Rail transportation not only enhances delivery efficiency but also helps reduce carbon emissions and the overall carbon footprint. With growing emphasis on sustainability, shifting freight and cargo logistics to rail systems is becoming a strategic solution to meet environmental goals while supporting global trade demands. In December 2024, Amazon launched Amazon Freight and Amazon Shipping in India, offering nationwide logistics services for B2B and B2C operations. Following successful pilots, these solutions provided businesses with full truckload transport and last-mile delivery, streamlining operations and boosting efficiency.

The locomotive market is undergoing a significant transformation, driven by growing demands in the freight industry and a strong push towards sustainable mobility. Rail transportation plays a crucial role in reducing the carbon footprint associated with long-distance cargo transportation and exports. As railway networks expand, there is an increasing focus on environmental sustainability, supported by the adoption of green energy solutions. Modern rail systems are helping to flush out diesel dependency by replacing older fleets with cleaner alternatives. These efforts aim to enhance the efficiency and capacity of railway networks while promoting greener practices across the sector. With continued investment in sustainable rail transportation, the industry is well-positioned to meet future demands while addressing global environmental concerns and supporting economic growth.

Rapid Urbanisation and Rail Network Expansion to Fuel Market Growth

During the COVID-19 pandemic, the global locomotive market adapted to shifting demands driven by the surge in e-commerce. Logistics and freight loading operations became crucial, with Indian Railways playing a key role in ensuring the uninterrupted transport of goods. This period highlighted rail’s importance in supporting resilient supply chains. In March 2025, Indian Railways unveiled the EF-9K, its most powerful 9,000-horsepower locomotive, built by Siemens Mobility in Gujarat. Designed for freight corridors, it featured regenerative braking, real-time monitoring, and 89% localisation. The launch supported India’s electrification goals and marked a leap in sustainable freight transport.

The locomotive market has witnessed significant growth, driven by the rise in e-commerce logistics and increased demand for efficient freight rail services. As businesses seek faster delivery solutions, freight trains have become vital to moving goods across regions while reducing carbon emissions. The ongoing expansion of railway transportation infrastructure supports both passenger and freight transportation, ensuring seamless connectivity and reduced environmental impact. Rapid expansion and strategic investments in rail network expansion and infrastructure upgradation are further propelling locomotive market growth, making rail a preferred mode of transport. Governments and private players are focusing on modernising existing systems and deploying advanced locomotives, reinforcing the role of railways in supporting sustainable, large-scale logistics operations for the evolving needs of modern commerce and urban mobility.

Restraining Factors

High Costs of Electric Locomotives Likely to Restrain Market Growth

The railway network remains a vital mode of transport worldwide, offering efficiency and capacity for both freight and passengers. However, high capital and maintenance costs continue to challenge the sector, particularly concerning advanced components and electrical systems. Diesel-electric locomotives, though widely used, also incur substantial manufacturing costs. The demand for improved reliability and performance is pushing manufacturers to innovate while balancing cost-effectiveness. Enhancing locomotive design and technology remains crucial to sustaining long-term growth and competitiveness in the global railway market.

The growth of the electric locomotive market faces restraints despite its benefits in fuel efficiency and lower operational costs. Transitioning from diesel-electric locomotives to electric propulsion requires costly electrification systems and extensive railway infrastructure upgrades. High infrastructure costs pose a significant barrier, particularly in regions lacking existing support for bulk electrification. While electric locomotives promise sustainability, the financial burden of upgrading and maintaining electrified networks hinders adoption. These challenges impact market expansion, especially in developing economies where capital allocation is limited. Freightliner temporarily withdrew electric locomotives in 2021 due to soaring electricity prices, opting for diesel alternatives. This decision challenged the UK’s decarbonisation goals and raised concerns over the sustainability of energy policies. The shift posed significant implications for future rail freight operations and environmental commitments.

Locomotive Market Segmentation Analysis

Propulsion Type Analysis

Major Rail Economies Worldwide Focus on Integrating Electric Locomotives, Driving Segment Growth

Diesel locomotives continue to play a vital role in the global locomotive market due to their versatility and ability to operate without reliance on external power sources. They offer significant benefits, including their use on non-electrified tracks and in areas where rail infrastructure is limited. Diesel locomotives are particularly advantageous for freight transportation, as they provide high power output, fuel efficiency, and flexibility. Additionally, they are cost-effective for shorter routes and remote areas lacking full electrification.

Electric locomotives offer numerous advantages in the global locomotive market, particularly in reducing carbon emissions and operational costs. Powered by electricity, these locomotives are more energy-efficient and eco-friendly compared to their diesel counterparts. They are ideal for high-speed rail services and long-distance travel, providing reduced fuel costs and lower maintenance requirements. In March 2025, the Indian Railways' new locomotive plant in Dahod, Gujarat, began production of a powerful electric locomotive, aimed at improving freight operations. The high-horsepower engine, set for completion soon, will support the Western Dedicated Freight Corridor, increasing train speeds and energy efficiency, and boosting local manufacturing.

By Component Analysis

The Growth of the Others Segment Was Driven by the Increased Integration of Components in Locomotives

In the global locomotive market, rectifiers play a crucial role in converting alternating current (AC) to direct current (DC), which is essential for electric locomotives. By ensuring smooth power conversion, rectifiers enhance the locomotive’s operational efficiency, reliability, and performance. The integration of high-quality rectifiers allows for a stable power supply to various systems, such as traction motors, lighting, and control units. The India-Kazakhstan container train, launched in March 2025, marked a milestone in international freight transport. The collaboration between logistics and rail companies from India, Kazakhstan, Uzbekistan, and Turkmenistan aims to reduce delivery times, offering a more direct and efficient rail connection.

Alternators are essential components in the global locomotive market, generating electricity to power essential systems onboard, such as air conditioning, lighting, and traction control. As a key part of the locomotive’s electrical system, alternators contribute to the overall efficiency and sustainability of the train. By converting mechanical energy into electrical power, they help optimise fuel consumption, reduce operational costs, and ensure smooth locomotive performance. The increasing adoption of electric and hybrid locomotives, along with the push for greener rail systems, has driven the demand for high-efficiency alternators. This trend supports the growth of the global locomotive market.

By Technology Analysis

High Switching Speed and Low Cost of IGBT Modules Driven Segment Growth

Insulated Gate Bipolar Transistor (IGBT) modules provide high efficiency and fast switching, making them ideal for modern electric locomotives. They support compact, lightweight converter systems, reducing energy loss and improving traction control. In December 2023, Indian Railways implemented various energy-saving measures, including IGBT-based propulsion with regenerative braking, LED lighting, and solar geysers. It converted trains to HOG systems, trained staff in energy efficiency, and introduced monitoring tools to enhance overall energy conservation across operations and infrastructure.

Gate Turn-Off (GTO) thyristors offer robust performance in high-power locomotive traction systems. Known for handling large voltages and currents, they ensure reliable operation under demanding conditions. Although being gradually replaced by newer technologies like IGBT, GTOs remain valuable in existing fleets due to their proven stability, long service life, and suitability for regenerative braking systems, making them a key component in many electric locomotive platforms worldwide.

By End User Analysis

Rising Demand for Passenger Rail Travel Drove Segment Expansion

The passenger segment in the global locomotive market benefited significantly from increasing urbanisation, population growth, and a shift towards sustainable transport. Modern electric and hybrid locomotives offer greater energy efficiency, lower emissions, and enhanced passenger comfort. In April 2025, Iran and Turkmenistan agreed to launch their first cross-border passenger train linking Mashhad and Merv, boosting regional connectivity. They also planned to double freight volumes by 2027, with new infrastructure upgrades to support increased trade across their shared rail networks.

Freight locomotives gained traction in the global market due to the rising need for efficient, high-capacity goods transport across long distances. Their ability to haul heavy loads economically has made them crucial for industries such as mining, agriculture, and manufacturing. Innovations in locomotive technology - like dual-mode engines and digital tracking - have enhanced reliability and reduced operating costs, making rail freight a competitive alternative to road and air logistics.

Regional Insights

Rising Demand for Rail Transport Across Asia Pacific Expected to Drive Locomotive Market Growth

North America held a significant share of the global locomotive market due to established rail infrastructure and ongoing investment in modernising fleets. The United States and Canada focused on enhancing rail efficiency and reducing carbon emissions, thereby increasing demand for electric and hybrid locomotives. In January 2025, Canadian National Railway launched a pilot project to test a 3,200-horsepower hybrid locomotive in US yards, aiming to cut fuel use by 50%. The battery-diesel unit, developed with Knoxville Locomotive Works, supported CN’s decarbonisation and emission reduction strategy.

Europe continued to demonstrate strong growth in the locomotive market, driven by environmental regulations and a focus on sustainable transportation. Countries such as Germany, France, and the United Kingdom prioritised the electrification of railways and invested heavily in high-speed rail projects. The European Union's Green Deal and related funding mechanisms encouraged innovation in low-emission locomotives. Moreover, cross-border rail connectivity projects contributed to steady demand, making Europe a major contributor to global locomotive development and sales.

Asia Pacific emerged as the fastest-growing region in the global locomotive market, supported by rapid urbanisation, population growth, and extensive railway development plans. China and India led the region, investing in high-speed rail networks and expanding freight capacity. In August 2024, at the APTRA Summer Networking event in Hong Kong, a fundraising initiative for Smile Train was launched. APTRA pledged to match donations, with guests including top retail brands. KPMG’s Anson Bailey shared insights on Asia Pacific retail trends.

Latin America saw moderate growth, with Brazil, Argentina, and Mexico playing key roles in regional demand. The need to improve freight transportation efficiency, particularly in mining and agricultural sectors, drove investment in new locomotives. Although budgetary constraints affected large-scale expansion, public-private partnerships and international support helped sustain progress. Efforts to modernise outdated fleets and upgrade rail infrastructure contributed to increased locomotive procurement and regional market development.

The Middle East and Africa experienced gradual growth in the locomotive market, fuelled by ongoing investments in railway infrastructure and economic diversification strategies. Countries such as Saudi Arabia, the UAE, and South Africa led the charge, developing urban and intercity rail projects. Wabtec Locomotive Private Limited, a joint venture between Indian Railways and Wabtec, planned to export Evolution Series ES43ACmi locomotives to Africa by 2025. This initiative marked the Marhowra plant’s first global export, enhancing India's role in global locomotive manufacturing.

List of Key Companies in the Locomotive Market

Key Market Players Focus on Expanding Networks Through Rail Contract Acquisitions

The global locomotive market is home to several key players, each contributing to the industry with cutting-edge technology and innovative solutions. Leading companies include GE Transportation (now part of Wabtec Corporation), a prominent provider of diesel and electric locomotives, known for their commitment to sustainability and efficiency. Another major player is Siemens Mobility, renowned for its high-speed trains and electrification technologies, with a strong presence in Europe and beyond. Bombardier, now part of Alstom, is a key manufacturer of both passenger and freight locomotives, recognised for their advanced train systems and innovative design. Other notable companies include Alstom, a global leader in rail transportation, which manufactures a range of locomotives, including electric, hybrid, and hydrogen-powered units. Caterpillar, through its subsidiary Progress Rail, also plays a significant role in the market, providing both locomotives and rail-related services. Additionally, Hitachi Rail is a major contributor to the locomotive market, offering a variety of locomotives and signalling systems worldwide. These companies continue to drive advancements in locomotive technology, focusing on sustainability, efficiency, and automation to meet the growing demands of the global rail industry.

Alstom

Alstom, with its global headquarters in France, is a leader in the transportation industry. The AGV, Avelia, TGV, Eurostar, and New Pendolino high-speed trains, as well as regional, suburban, and metro trains, and Citadis trams, are all produced by this rolling stock manufacturer, which was founded in 1928 and is active in the passenger transportation, signalling, and locomotives industries.

Wabtec Corporation

Wabtec Corporation, headquartered in the United States, is a major global supplier of machinery, systems, digital solutions, and value-added services. The scope of Wabtec's operations spans the whole rail sector. The business produces locomotives with a maximum power of 4,000 horsepower and also provides aftermarket services, including maintenance and logistics assistance.

Siemens Mobility

Siemens Mobility, a German company, empowers operators to define passenger and freight transportation today with trains, infrastructure, and automation solutions for all rolling stock. It covers trams, commuter and regional trains, light rail, metro, high-speed and extremely high-speed trains, as well as associated services. Siemens Mobility continuously updates its offering in its primary business segments, including rolling stock, turnkey systems, rail automation and electrification, intelligent traffic systems, and related services.

LIST OF KEY COMPANIES PROFILED

• Alstom
• Siemens Mobility
• Wabtec Corporation
• Toshiba Infrastructure Systems & Solutions Corporation
• CZ LOKO, A.S.
• Hyundai Corporation
• American Locomotive Company
• TMH
• CRCC Corporation
• CAF
• Stadler
• Kawasaki Heavy Industries Ltd.
• Titagarh Wagons
• Others

Key Industry Developments

• In February 2025, Tripura launched its first electric locomotive-powered goods train. The electric train completed its journey from Badarpur to Jirania. This milestone followed the successful completion of electric loco trials in the Badarpur-Agartala section, marking a significant advancement in the state’s railway infrastructure.
• In December 2024, Germany and France launched a direct high-speed train between Berlin and Paris, aiming to strengthen their ties and promote European rail travel. The train journey takes about eight hours, offering convenience rather than significant time savings. It also reflects efforts to improve train punctuality and modernise infrastructure.
• In December 2024, China debuted the CR450 bullet train prototype, designed to reach 450 km/h in tests and 400 km/h during operation. The train features advanced technologies such as reduced resistance, a high-efficiency braking system, and improved noise reduction, showcasing China’s leadership in global rail technology.
• In December 2024, Vietnam launched its first luxury train, Sjourney, offering a seven-day cross-country journey from Ho Chi Minh City to Hanoi. Designed in Indochine style, the train features premium interiors and five-star dining. It also provides cultural excursions to iconic landmarks.
• In November 2023, Hyundai Rotem launched the KTCS-2 train management system on the Jeolla line in South Korea. The system, based on the European ETCS Level 2 standard, enhances line capacity by 20% and supports automated train operation. Hyundai Rotem is also developing the KTCS-3 system.
• In April 2023, the California Air Resources Board (CARB) passed the In-Use Locomotive Regulation, targeting emission reductions from locomotives. The regulation requires operators to pay into a fund to upgrade to cleaner technologies and introduces a 30-minute idling limit. It is expected to yield USD 32 billion in health benefits.

Locomotive Industry Segmentation

“Locomotive Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Propulsion Type

• Diesel
• Electric
• Others

Market Breakup by Technology

• IGBT Module
• GTO Thyristor
• SIC Module

Market Breakup by Component

• Rectifier
• Alternator
• Motor
• Others

Market Breakup by End User

• Passenger
• Freight

Market Breakup by Region

• North America
• United States of America
• Canada
• Europe
• United Kingdom
• Germany
• France
• Italy
• Others
• Asia Pacific
• China
• Japan
• India
• ASEAN
• Australia
• Others
• Latin America
• Brazil
• Argentina
• Mexico
• Others
• Middle East and Africa
• Saudi Arabia
• United Arab Emirates
• Nigeria
• South Africa
• Others