Albany, NY -- (SBWIRE) -- 04/07/2015 -- The global railroad equipment manufacturing market provides a broad range of equipment to the railway industry. The main product segmentation in this market includes equipment such as locomotives, freight and passenger rail cars, brakes, and other equipment used in railroad operations. The other products categories include airbrakes, railroad vehicles, and rail maintenance equipment such as rail layers and ballast spreaders.

Demand and Competition Trends in the Railroad Equipment Manufacturing Market

The global railroad equipment manufacturing market is gradually gaining pace due to increasing demand. The global demand for freight rolling stock is influenced by the fuel prices, since the high gas prices change the freight transport from trucks to rail. In addition, the demand for passenger rail rolling equipment is being propelled by public investment in the regional rail transportation market.

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The profitability of several individual companies in the railroad equipment manufacturing market depends on securing a long-term sales contract with other railroad firms and other leasing agencies. Moreover, large companies posses the advantage in manufacturing economies of scale. However, small companies are competing in the railroad equipment manufacturing market via consulting services and custom-building locomotive and passenger railcars. In the United States, the railroad equipment manufacturing market is highly concentrated, with around 50 of the largest companies contributing to over 90% of the total market revenue.Some of the prominent companies in the global railroad equipment manufacturing market include: American Railcar Industries, Greenbrier, Electro-Motive Diesel GE, Westinghouse Air Brake Technologies, Trinity Industries, Alstom, Bombardier, CSR Corporation, Nippon Sharyo, China CNR Corporation, and Siemens.

Railroad Equipment Manufacturing Industry Region-wise Trends

Europe and Asia Pacific are the largest markets in the railroad equipment manufacturing industry which is followed by the North American market and RoW (Rest of the World) market. Many countries in the European and Asian market have adopted effective policies and are currently investing a significant amount in their rail transit sector. Compared to the U.S. railroad equipment manufacturing industry, the intercity passenger rail in Asia Pacific and Europe are far ahead in terms of spending on rail transit compared to their GDP and population.

Germany, United Kingdom, and China are the largest country-wise markets in the railroad equipment manufacturing industry. On the other hand, Brazil and India are projected by market analyst as the fastest growing markets in terms of emerging markets due to their favorable economic conditions, accelerated domestic consumption, increasing passenger growth, demand for freight transport, and expansion of rail networks.

Railroad Equipment Market will Experience a Decline in Growth

The global railroad equipment manufacturing industry will demonstrate a low compounded annual growth rate during the forecast period of 2013 to 2019. This industry has managed to stay on track in spite of the entire difficult market scenario for the manufacturing industries. Since, the railroad equipment manufacturing industry is starting at a high level, its revenue will continue to decline gradually in the coming few years.

However, the demand for the railroad equipment manufacturing industry has been much stronger as compared to the last five years. This can be attributed to the increased investment in railway manufacturing equipment. However, the demand is expected to slump as the investment from mining industry in railways will decline. Furthermore, the investment in commuter trains by several state governments and the rising government spending on rail networks has also affected the growth of the railroad equipment manufacturing industry.

The global railroad equipment manufacturing market has experienced several extremely difficult decades, however, the growing demand for freight rolling stock and other equipment has helped the market gain a small advantage. But, the question remains: Will the global railroad equipment manufacturing market, after experiencing a growth slump pattern, decline permanently?

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