Participants Push towards Consolidation in Highly Competitive Environment for High-value Greenfield Infrastructure Projects
This deliverable provides an outlook of growth opportunities in the global rail market. The study discusses key trends, market drivers, opportunities, regional influences, and market dynamics and provides market sizes for infrastructure and rolling stock on a global scale. Market forecasts by region (Africa, Asia-Pacific, Eastern Europe, Western Europe, Latin America, the Middle East, and North America) are provided for ridership, freight traffic, network length, rail electrification, and installed bases for locomotives, passenger coaches, multiple units, and wagons. The study period is from 2015 to 2022, and strategic conclusions have been provided.
2015 Key Highlights The global economy slowed to % in 2015, effects of which were not felt in the rail industry.
1 With growth expected to reach % in 2016, strong growth is forecast in rail freight and passenger traffic. North America (NA) invested heavily in rail Infrastructure in 2015 - Investments to reach the positive train control (PTC) mandate have crossed the halfway mark at $ billion. Over % of required locomotives are equipped with PTC equipment. - More than $ billion will be invested by federal grants over a 4-year period, starting in 2015. - Class 1 railroads are expected to spend a total of $ billion to build and grow the network.
2 Major enhancements to rail infrastructure are a key focus in Europe - Projects of € billion in cost are underway across Europe. Of these, over € billion worth of projects are still estimated to be addressable by market participants.
3 Further consolidation occurs in the rail market - Alstom acquired GE Signalling and sold its energy business to GE. - Hitachi acquired Ansaldo STS and AnsalsoBreda from Finmeccanica at a deal that is expected to total over € billion.
4 Rail freight patterns are changing worldwide - Intermodal rail traffic in the United States saw growth of carloads, as compared to 2013 levels. - Reducing coal consumption is freeing up rail freight capacities for other commodities, sparking a major shortage of wagons worldwide.
5 South Africa and India placed the biggest orders in rail in 2015 - GE Transportation won orders for over locomotives in India and over locomotives in South Africa.
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