Based on Future Market Insights, the locomotive traction transformer market is expected to grow at a CAGR of 4.4% from 2023 to 2033. The market is projected to reach a valuation of USD 737.7 million by 2033, from the current valuation of USD 479.6 million in 2023.
During the forecast period, factors positively influencing the growth of the locomotive tractions market are multifarious. These include rising investment in public transportation, the upgradation of railway infrastructure with new-age electrical systems, and the popularity of modern metro systems. Moreover, recent sustainability concerns have inspired many to opt for public transportation to minimize their carbon footprint.
| Attribute | Detail |
|---|---|
| Market Size Value in 2023 (base year) | USD 479.6 million |
| Market Forecast Value in 2033 | USD 737.7 million |
| Growth Rate (CAGR) | 4.4% |
| Forecast Period | 2023 to 2033 |
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Government initiatives to strengthen public transport, particularly railway systems, have bolstered market growth. Furthermore, Public-Private Partnerships (PPP) have been aiding in the expansion of public transport infrastructure. As a result of government policies bolstering private ventures into transport infrastructure expansion, the market shows a positive growth outlook.
Recently, there has been an increasing consumer penchant for lightweight, high-performing, compact traction transformers. Hence, there is a rising flow of research and development activities to craft high-performing and lightweight product variants. There is a rising demand for products that can withstand less than desirable, harsh external conditions. Many new-age variants are formulated to carry heavy loads through large distances, whether on roads or tracks. Such advanced variants can withstand wear and tear as well as uneven terrains.
The demand for highly sophisticated, advanced railway transformers is driving the market growth. Hence, key players are working towards meeting the demand for highly efficient and affordable railway transformers that enhance rail safety. Currently, specialized single-phase and multi-phased units are being mass manufactured for rail operations. As a result, global logistics standards are evolving since the quality standards are being raised.
The mass-scale electrification of railways has emerged as a significant growth driver for the market. However, the high costs of railways electrification processes have emerged as a market growth deterrent. This is especially true in developing markets, where public transport infrastructure still lacks necessary investment. Hence, more public-private partnerships are needed to ensure that the pace of railway electrification does not slow down in developing nations.
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Between 2018 and 2022, the locomotive traction transformer market grew at a CAGR of 3.6%. During the historical forecast period, the market grew from USD 366.9 to USD 457.2.
The current forecast period shows better growth prospects at a CAGR of 4.4% than the historical period. This is primarily due to the rapid expansion of public transport systems globally. Apart from the public transport networks enlarging, it is also being upgraded with advanced technologies.
Short Term (2023 to 2026): Currently, the growth of the high-speed trains sector is increasing demand for custom manufactured products. Hence, during the initial phase, the market growth shall primarily be driven by the rail sector. Furthermore, developing highly sophisticated automobile systems increases the demand for custom-designed locomotive traction transformers. The application of these new-age models is diverse across AC metros, high-speed trains, and other public transport rails.
Medium Term (2026 to 2029): Mid-term growth shall be bolstered by the widespread electrification of railways. Currently, railway electrification is impeded by the high capital costs that may be vulnerable to power interruptions. However, rising GDP and urbanization in developing nations are expected to aid in the wide-scale electrification of railways. Once railways electrification emerges as the norm in developing nations, the market is expected to witness rapid expansion.
Long Term (2029 to 2033): Both government and key private players in the market are investing heavily in research and development. Such initiatives could yield results in the long run. Several high-speed public transport systems in the early stages of development garnered wide publicity. For instance, California recently sought around USD 1.3 billion for beginning three new light rail projects.
During the forecast period, the market is expected to grow from USD 479.6 million to USD 737.7 million.
FMI analysis shows an upsurge in demand for new-age traction transformers. Besides properties such as being lightweight and highly efficient, sustainability is also driving this market trend. New-age locomotive traction transformers are equipped with sustainable cooling systems.
These sustainable cooling alternatives are preferred over traditional fan-based systems. These are also more cost-efficient and highly efficient. These new variants are conducive to reducing carbon emissions, thus abiding by sustainability norms.
Electrical insulation composite materials are integral to the locomotive traction transformers market. Hence, a wide range of materials, including Etronit, Etronax, and G-Etronax, is finding a wide application and demand for traction transformer manufacturing. Currently, glass and paper electrical insulation materials are highly in demand. Due to their desirable and efficient insulation properties, they aid in manufacturing new-age efficient traction transformer variants.
Hence, the growth of the electric insulation materials market could impact the locomotive traction transformers market.
During the forecast period, the Chinese and Indian markets are projected to register a CAGR of 3.6% and 4.3%, respectively. Heavy investment and large-scale infrastructural projects are currently underway in these countries. Most of these nations' demographics depend on their wide railway network. Hence, the Asia Pacific region's government has been attempting to upgrade and expand the existing railway networks.
For instance, the Indian government launched the anticipated Vande Bahrat Express in 2019. It is a line of semi-high-speed electric train units. The region is also expecting the commencement of multiple metro and freight corridor projects during the forecast period.
Unlike the developing markets, North America can sustain the high cost incurred in the wide-scale electrification of railway networks. Hence, the North American market is expected to become lucrative for locomotive traction transformers.
The infrastructural projects undertaken in these regions are often carried out rather swiftly, bolstered by heavy government-private investments. The demand in the region is also rising due to the wide utility of diesel-powered rail engines.
During the forecast period, the United States market is expected to grow at the highest CAGR of 18.2%.
| Region | North America |
|---|---|
| Country | United States |
| CAGR | 18.2% |
| Region | Europe |
|---|---|
| Country | United Kingdom |
| CAGR | 5.8% |
| Region | Asia Pacific |
|---|---|
| Country | China |
| CAGR | 3.6% |
| Region | Asia Pacific |
|---|---|
| Country | India |
| CAGR | 4.3% |
| Region | Asia Pacific |
|---|---|
| Country | Japan |
| CAGR | 2.8% |
The market is segregated into AC and DC based on the voltage network. Currently, AC systems dominate the market, accounting for a revenue share of over 70%. The AC section is expected to account for a higher CAGR during the forecast period.
This is primarily due to the vast consumer shift to energy-efficient variants. AC systems are preferred over DC variants to reduce environmental degradation. The application of AC systems is rapidly rising across public mainline railway systems. Thus, the expansion of railways and sustainability norms have collectively made AC systems holders of the largest revenue in the voltage networks segmentation.
Based on mounting positions, the market can be divided into underfloor, machine room, and over the roof. Underframe segmentation currently dominates the market with a revenue share of over 86%. Furthermore, this segment is expected to register a CAGR of 6.5% during the forecast period. This is primarily because underfloor traction transformers enhance train capacity and provide extra space. In developing economies with a large population, the demand for underfloor variants is expected to grow steadily during the forecast period. This can help alleviate the high pressure on the public transport infrastructure of countries experiencing a population boom.
The machine room segment is in demand for application in multi-phase rail systems. This finds a wide application in electric and high-speed trains and has emerged as the second most in-demand segment by mounting position.
Since technological innovations drive the automotive sector, key players have shifted their focus to necessary research and development activities. Only through introducing new and innovative products can key players fuel the demand for the rapidly evolving railway sector.
| Company | Hitachi ABB Power Grids Ltd |
|---|---|
| Details | Based in Switzerland, Hitachi Energy has an annual revenue of around USD 10 billion. The company aims to provide best-in-class energy solutions while abiding by its sustainability resolutions. Its presence is spread across 140 countries worldwide. |
| Recent Developments | Recently, Hitachi ABB Power Grids Ltd launched oil-free and plug-and-play traction transformers. The RESIBLOC® Rail dry-type traction transformer comes with an integrated cooling system that reduces CO2 emissions as well as operating costs. The product is in demand due to its high energy efficiency attributes. |
| Company | Siemens AG |
|---|---|
| Details | Siemens is a global technology-based company providing solutions across infrastructure, transport, and healthcare. The company currently has a global turnover of over USD 5 billion, with an employee strength of over 303,000, globally. |
| Recent Developments | In 2019, Siemens AG developed propulsion systems for use in public transport systems. This included the 9,000 HP electric locomotive, which is an indigenously developed integrated propulsion system equipped with a steel tank transformer. |
| Company | Alstom SA |
|---|---|
| Details | Alstom is an energy solutions provider that primarily focuses on reducing carbon emissions. The company provides diverse, sustainable mobility solutions for metros, monorails, high-speed rails, and other public transport infrastructure systems. |
| Recent Developments | Recently, Alstom SA started the production of onboard transformers. It finds application in the electric locomotive, as a part of an EKZ joint venture. Currently, the expected production capacity is about 300 transformers/per year. |
Total revenue generated by total sales in 2023 is estimated to be USD 479.6 million.
The net worth of the global market could reach USD 737.7 million by 2033.
The overall market progressed at 3.6% CAGR from 2018 to 2022.
India leads as it is expected to advance at 4.3% CAGR until 2033.
ABB, Mitsubishi, and Emco are some of the top manufacturers.
| Market Value (2023) | USD 4.23 Billion |
|---|---|
| Market Value (2033) | USD 7.94 Billion |
| Market CAGR (2023 to 2033) | 6.5% |
| Market Size Value (2023) | USD 445.8 Billion |
|---|---|
| Market Size Value (2033) | USD 712.5 Billion |
| Market Growth Rate (2023 to 2033) | 4.8% |
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Locomotive Traction Transformer Market
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