Monday, September 16, 2024 The global railway propulsion system market was valued at approximately $9.9 billion in 2022 and is projected to grow to $15.1 billion by 2032, with a compound annual growth rate (CAGR) of 4.
5% from 2023 to 2032. This expansion is primarily fueled by increased budget allocations for railway development projects, a growing reliance on public transport to alleviate traffic congestion, rising demand for safety and regulatory compliance in rail systems, and the need to enhance both passenger and freight capacities. Emerging economies, particularly in Asia, such as India and Japan, are investing heavily in modernizing their railway infrastructure.
These investments are driven by the allocation of higher budgets for railway development. For instance, India has announced plans to install Automatic Train Protection (ATP) systems on 300 to 400 Vande Bharat trains as part of its 2023-24 budget. In addition, the Indian government earmarked around $15.
06 billion for railway development with a total capital outlay of $30.80 billion for the fiscal year 2021-2022, reflecting a 33% increase in capital expenditure compared to the previous year. Similarly, substantial investments in advanced propulsion technologies and railway infrastructure improvements are expected to propel market growth.
In June 2022, the European Union (EU) committed $5.7 billion to fund 135 transport infrastructure projects across Europe, further highlighting the significance of infrastructure upgrades in driving the global railway propulsion system market. Additionally, the rising global population has led to an increase in the use of private vehicles, exacerbating traffic congestion.
As a result, more individuals are turning to public transportation, which offers a more efficient, comfortable, and cost-effective alternative. Factors such as heightened concerns about vehicle emissions, the need for enhanced safety, and the demand for faster transportation solutions have significantly boosted the preference for rail travel. Across the globe, various railway organizations are actively working on expanding and upgrading rail networks, investing heavily in high-speed train technology to accommodate the increasing demand for public transportation.
For example, in September 2022, British Columbia committed $300,000 to a high-speed rail study, aiming to connect key cities in the Pacific Northwest through the Ultra-High-Speed Ground Transportation Project, linking Vancouver, Seattle, and Portland. Similarly, in July 2021, the U.S.
Department of Transportation (USDOT) and the State of California allocated approximately $928.9 million in federal grants to advance California’s High-Speed Rail initiative..
