Strategic Analysis of the European Light Rail and Underground Market

Market Consolidation is Dominant Trend

The European light rail and underground market offers significant growth potential due to increasing regional commutes and a denser network of rail services across European metro destinations. Keeping current with the latest technology in terms of product offerings is one of the prime focus areas of rolling stock manufacturers, notes the analyst of this research. This is key to retaining existing customers, while tapping into newer customer bases. For operators, safety and security issues are paramount. This is in terms of both mechanical failures and/or terror attacks. Economies of scale and broad geographical coverage are important requirements in this market. Significant capital investment associated with production centres and the establishment of repair capability across regions are also critical for market participants. As part of their growth strategy, market leaders including Bombardier, Alstom and Siemens are constantly looking to acquire and revive traditional manufacturing units. Such strategies are causing market consolidation. Market leaders such as Bombardier, Alstom and Siemens are continually analysing new ventures through partial shareholdings or complete takeovers, explains the analyst of this research. This is triggering market consolidation in eastern Europe. Life cycle maintenance, comprehensive upkeep, maintenance service networks and customised railway solutions for varied operators across regions are some of the value-added services that can be offered by OEMs to procure new business.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

• Light rail
• Underground transport