According to the latest report published by Credence Research, Inc. “Traction Equipment Market – Growth, Future Prospects and Competitive Analysis, 2017-2025,” the global traction equipment market was valued at US$ 246.1 Bn in 2016, and is expected to reach US$ 316.3 Bn by 2025, expanding at a CAGR of 2.8% from 2017 to 2025.
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The global market for traction equipment is largely driven by technological developments and shifts in transport technologies and preferences. As international and intercontinental trades are proliferating worldwide, demand for faster and more adaptable transit systems is growing. In addition, the increasing need to electrify rail lines and upgrade older locomotive models to more powerful and cost-effective solutions further drives the market in emerging economies. Increased demand for mass transport is further due to increasing government spending in both developed and developing economies.
Depending on the design of systems, multi-traction systems are the most commonly used traction equipment in the world. Multi-system demand is the highest in Europe and Asia-Pacific, where there is a wide range of voltage systems and there is a high need for cost-effective and efficient transition systems in these regions. Due to regional variations in railway electrification systems, trains often have to pass through one system to another during transit. The most common way to achieve this is to change locomotives at switching stations.
However, such switching stations have highly sophisticated components that are expensive for installation and maintenance. Government funding to upgrade their existing transport network is high in Asia-Pacific, Latin America and the Middle East and Africa. Transition engines are versatile and are used in both electric and diesel locomotives. The demand for specialized types of transition engines is observed to be the strongest, as the specifications of the design of the engines also differ by region.
Overall competition in the global transition equipment market is intense. There is a multitude of market players operating in the market that offer customized solutions to customers. Furthermore, regional prevalence of certain market players is also quite common in this industry. Despite the fragmented scenario, ABB Ltd. is observed to be the largest player in the transition equipment market, majorly attributed to its global reach. Other major players in this market include Siemens AG, Mitsubishi Electric Corporation, General Electric Company, Crompton Greaves Limited, Alstom SA, VEM Group, Bombardier Inc., TTM Rail, Toshiba International Corporation, American Traction Systems, Kawasaki Heavy Industries, Ltd. and others.