The global traction equipment market is likely to be highly fragmented because of the emergence of various players in the market. The market seems to be exceedingly innovation driven and just the organizations with proficient and viable products can remain stable in the competitive environment of the market. The competition is foreseen to stay extraordinary over the coming years due to surging demand regarding traction equipment from developing markets. Among various key players working in this market, ABB Ltd. has steered the challenge because of advanced product portfolio. Some other leading firms operating in the traction equipment market are Kawasaki Heavy Industries, Ltd., VEM Group, Caterpillar Inc., TTM Rail – Transtech Melbourne Pty Ltd., and Toshiba International Corporation.
According to a recent report by Transparency Market Research (TMR), the global traction equipment market based on volume, in 2015, was pegged around 1.1 mn units. Witnessing a slow 2.09% CAGR within the forecast period from 2016 to 2024, the demand is foreseen to soar at 1.3 mn units by he end of forecast period. In terms of revenue, the market is likely to register a CAGR of 2.34% during 2016 to 2024.
Based on equipment, the traction equipment market was driven by traction engines in 2015. The segment registered a huge share of around 80% and is anticipated to hold its lead through 2024. Geographically, the global traction equipment market, In 2015, was driven by Asia Pacific with a share around 40% both by volume and revenue, both and has developed as the main income generator. The rapid development in economies and critical advancement of trade have contributed toward the extension of this market.
Demand for Adavnced Equipments in railway Sector to Fuel Global Demand
The global traction equipment market is pushed by the investment in railway industry and its advancement since past few years. The surging demand regarding cutting edge equipment for railway industry has brought about an enormous development in the entire market of traction equipment. The extension and improvement of railway systems and the flooding demand in various creating nations are estimated to contribute in a potential growth to the volume and revenue of the global market. Besides, policies and guidelines by different governments to control carbon footprints from transportation are destined to help the market grow over the coming years. Moreover, the capacity of traction engines of effectively transforming electrical power into mechanical power is well on the way to fill-in the expanding demand regarding proficient power converting products from different sectors.
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Low Unit-wise Product Shipment to Retsrict Market Growth
The unit-wise shipment of items in the railway industry is especially low. Moreover, the manufacturing time and delivery time for the results of traction equipment in the railway industry is high contrasted with automotive sector. These factors could impede the development of the market. Besides, the substitution demands and off-the-shelf deals are uncommon, which is further constraining the market to develop with its actual potential. Nevertheless, the expanding uses of traction equipment items in the automobiles and machines is estimated to continue the market development.
The demand regarding equipment, for example, blowers, compressors, controllers, rectifiers, controllers, and other frameworks in the railway industry is expanding, further helping the market to extend. In addition, the expanding interest for vehicles driving in all territories are anticipated to enroll an extreme demand regarding advanced products. The advancement of hybrid innovation is foreseen to support the market development in future.