TRAIN SEAT MATERIALS MARKET ANALYSIS

Market Challenges And Opportunities

Global Train Seat Materials Market- Drivers:

Increasing investment in railway industry is expected to drive growth of the global train seat materials market during the forecast period:

Railways are one of the most important mode of transportation in the developing countries where the railway infrastructure is extensively developed. Increased investment in the railway industry will increase the production of railway vehicles, which is expected to increase the demand for railway seating materials in the near future. These investments in the rail industry are being driven by increasing urbanization, energy shortages and concerns about green transportation. For instance, according to the data published in September 2022 by IBEF (India Brand Equity Foundation), a trust established by the Ministry of Commerce, Government of India, FDI inflows in railway related components stood at US$ 1.23 billion.

Growing demand for passenger trains:

The passenger trains refer to the trains that are used in transporting people across the railway line. These trains can either be the ones running within the city or the ones running across cities and regions. These trains are increasingly used by the daily commuters as well as the travelers across the regions. The people in developing countries like India and China prefer using passenger trains for domestic journeys as compared to other modes of transportation. For instance, according to the data published by IBEF (India Brand Equity Foundation), a trust established by the Ministry of Commerce, Government of India, the number of passengers travelling through trains in the year was 3.5 billion in the year 2022.

Global Train Seat Materials Market- Restraint

Stringent regulatory policies regarding the usage of train seat materials:

The railway sector is predominantly managed and operated by the government institutions. These government institutions are responsible to ensure the safety and comfort of the passengers traveling through trains. In response to this, they follow strict policies regarding safety ratings of the components used in trains. This includes the interior components such as train seats used in the interior of the train compartments. The governments across the globe are inclined towards imposing stringent quality standards for these components. For instance, in Europe, laws such as EN45545-2 and BS6853 restrict the use of polyester material in train seats. Hence, stringent regulatory policies in imposed by the government authorities across the globe are expected to act as hindrance for the growth of global train seat materials market.

Capital intensive nature of the train seat manufacturing industry:

The railway sector is considered to be one of the most capital intensive sector in the economy. The scale of operations of the sector make it one of the most significant cost centre. The ancillary industries supporting the railways are also characterized by high capital requirement. The components and parts used in railways are generally ordered in huge quantities by the government authorities. This requires large scale manufacturing facilities, procurement of material in huge quantities, etc. For instance, according to the data published in March 2021 by, Indian Railways portal, the cost of manufacturing different types of coaches/compartments of trains can go up to US$ 1.10 million. Moreover the order quantity is usually higher in the market. This extensive investment required in the train manufacturing industry would not be able to attract the new entrants and hamper the growth of global train seat materials market during the forecast period.

Global Train Seat Materials Market- Opportunity

Introduction of new train types:

The countries emphasizing on the importance of public transportation realize that trains are an integral part in promoting the adoption of public transportation. Consequently, government authorities of various countries are focusing on introduction of new trains such as high speed trains, metros, different types of intra-city locomotives, etc. These trains are introduced for shuttle services as well as long journeys. For instance, on February 2023, Alstom, a France based multinational company operating as a roll stock manufacturer in rail market, announce the launch of new model of TGV M train that would operate in France and other regions of Europe. The train would be designed specifically to meet the needs of foreign tourists who are willing to take a scenic route across Europe. Hence, the development of new trains would naturally increase the demand for train seats and related material and thus lead to the growth of global train seat materials market during the forecast period.

Global Train Seat Materials Market- Impact of COVID-19:

The Covid-19 pandemic disrupted the markets across the world. As a result of the country-wide lockdowns and strict social distancing norms, several markets witnessed a steep decline in demand and distortion of supply chain. The train seat materials market witnessed the adverse effects of the pandemic too. Due to the restrictions on the movement of people the demand for railway services declined significantly. This trend was visible for a significant period during the course of the pandemic. This resulted in the contraction of the market for train seat materials as the manufacturing activities were halted due to lower demand. As the markets gradually opened up the demand for railway services started gaining momentum and the market players were able to resume the operation sighting increase in demand.