Rail Components MarketSize and Trends

The global rail components market size was valued at USD 83.6 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 4.55% from 2023 to 2030. The growth of the market is due to the increasing population, rising investment in infrastructure, and increased use of trains as a mode of transport. The major driver of the rail components market is the increasing demand for railways as a means of transportation, especially in Asia Pacific. Moreover, the growing use of trains as a form of transportation in North America is projected to boost the global rail components market.

Global Rail Components Market Trends:

Bogie segment is gaining traction in the market

The bogie segment among component types is likely to gain a major share in the market over the forecast period, due to rise in adoption of powered bogie designs all over the world. Therefore, several locomotives, multiple units, such as high-speed trains, and mass transit vehicles such as metro cars, suburban trains, tramways, and light rail vehicles come with powered bogies. Rail bogies are increasing witnessing R&D in recent times. Many companies are involved in development of efficient and safe bogie designs for locomotives with embedding digital devices that work on the IoT principle. Thus, increasing growth of this segment is likely to drive growth of the market in the coming future.

Growing initiatives by governments for rail industry is a growing trend

Governments of countries around the world are taking initiatives for advancements in rail industry. Several governments are also increasingly investing on railway infrastructure of the country. In India, the flagship of government such as ‘Make in India’ initiative is encouraging several multinational organizations to invest as well as manufacture in India. Due to this, the rate of business collaboration is increasing among global and domestic players in the country. Moreover, the government of India is also focused on investment in railway infrastructure through investor-friendly policies. Thus, thus such initiatives are expected to support growth of the global rail components market during the forecast period.