Railway Aftermarket: Current Analysis and Forecast (2022-2028)

The railway aftermarket refers to the market for products and services that are required to maintain, repair, and upgrade railway equipment, components, and systems after they have been sold and are in use. This includes replacement parts, maintenance services, repair services, upgrades, and retrofits. The railway aftermarket is driven by a number of factors, including the age and condition of existing railway equipment, the need for upgrades and modernization, and regulatory requirements. One of the primary drivers of the railway aftermarket is the age and condition of existing railway equipment. As railway equipment ages, it is more likely to require repairs and replacement parts. This creates a steady demand for aftermarket products and services. Additionally, older equipment may be less efficient and reliable, making upgrades and modernization necessary.

The railway aftermarket is expected to grow at a strong CAGR of 6% during the forecast period owing to the need for upgrades and modernization. As technology advances, new and more efficient railway equipment becomes available. In order to remain competitive, railway operators must upgrade their equipment to take advantage of these advances. This creates a need for aftermarket products and services that can help retrofit existing equipment with new technology. For instance, In 2020, the UK's Network Rail installed new bridge monitoring technology that uses artificial intelligence and machine learning to detect defects and potential problems before they become safety issues.

Based on subsystem, the market is segmented into traction & propulsion, bogies/wheelsets & suspension, body structures, braking systems, auxiliary systems, rail tracks, and others. Amongst these, the bogies/wheelsets & suspension category of the railway aftermarket has been experiencing significant growth due to several drivers. Advancements in technology is one of the main driver driving the growth of the bogies/wheelsets & suspension category. Additionally, new sensor technologies and predictive maintenance tools are helping to improve the reliability and safety of railway systems, which is increasing demand for advanced bogies, wheelsets, and suspension systems that can support these technologies.

By service provider, the market is segmented into OEM, rail operators, and component suppliers. Among these, the OEM category of the railway aftermarket has significant growth for several reasons. One of the main drivers is the growing demand for reliable and high-quality railway components and systems. OEMs are often trusted by railway operators and maintenance teams as they offer products and services that are designed and tested to meet specific safety and performance requirements.

On the basis of product, the market is categorized into rail infrastructure, rolling stock & locomotives, metro, locomotives, passenger coaches, freight wagons, and others. The rail infrastructure segment has a dominant share of the railway aftermarket due to several key drivers. Firstly, rail infrastructure is an essential component of any railway system, and it requires ongoing maintenance, repair, and upgrades to ensure safe and efficient operation. This creates a significant demand for aftermarket services in areas such as track maintenance, signalling systems, and power supply infrastructure. Secondly, many countries around the world are investing heavily in rail infrastructure to address growing urbanization and congestion challenges, as well as to reduce greenhouse gas emissions from transportation. These investments often involve the modernization and expansion of existing rail networks, which in turn drives demand for aftermarket services to support these projects. For instance, In November 2021, the U.S. government passed a $1.2 trillion infrastructure bill, which includes $66 billion in funding for rail infrastructure. This funding will be used to improve Amtrak's Northeast Corridor, support high-speed rail projects, and modernize freight rail infrastructure.

For a better understanding of the market adoption of railway aftermarket industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. The APAC (Asia-Pacific) region has a dominant share of the railway aftermarket due to several key drivers. One of the main drivers is the significant growth in urbanization and industrialization in the region, which has led to a rapid increase in demand for transportation infrastructure, including railways. As countries in the APAC region continue to develop and expand their economies, the demand for efficient and reliable rail transportation solutions has increased, creating a strong demand for aftermarket products and services. Another driver is the large and diverse railway network in the APAC region, which spans many different countries and regions. This diversity has led to a wide range of railway systems and technologies being used, creating a significant demand for specialized aftermarket products and services to support and maintain these systems. Furthermore, the increasing focus on safety and reliability in the rail industry has also driven demand for aftermarket products and services. As governments and railway operators in the APAC region seek to improve safety and reliability standards, they are investing in advanced technologies and services to maintain and upgrade existing rail infrastructure. For instance, on December 9, 2021, Hitachi Rail and France's Alstom announced that the Hitachi-Alstom High Speed (HAH-S) 50/50 joint venture has signed contracts with the U.K.'s High Speed Two (HS2) to design, build, and maintain the next-generation of high-speed trains for HS2 Phase 1.

Some of the major players operating in the market include: CRRC Zhuzhou Electric Co., Siemens Mobility, ZF Friedrichshafen AG, Stadler, Bombardier, Alstom, Knorr-Bremse, Harsco Corporation, Wabtec, and Caterpillar.