Dublin, Nov. 26, 2020 (GLOBE NEWSWIRE) -- The "Rail Wheel and Axle - Global Market Trajectory & Analytics" report has been added to ResearchAndMarkets.com's offering.
Souring Financials of Railway Operators Crushes Railway Fleet Expansion Plans. Rail Wheel & Axle Sales Plummets by -7.1%
The global market for Rail Wheel & Axle is expected to slump by -7.1% in the year 2020 and thereafter recover to reach US$4.2 billion by the year 2027, trailing a post COVID-19 CAGR of 4.4% over the analysis period 2020 through 2027.
The COVID-19 outbreak and associated restrictions on travel and movement have severely impacted transport connectivity across regions. The pandemic prompted various countries to close borders for passenger transport as well as impose varying bans on freight transport. The impact of COVID-19 pandemic on train operators around the global has already been severe.
To contain the spread of the virus, countries all over the world, restricted the passenger and freight transport along their borders. Economic conditions have a direct correlation to movement of goods & the rail freight sector is the barometer of economic conditions. Border shutdowns and travel restrictions imposed worldwide are expected to reduce global merchandize trade by over 28% in the year 2020. With global supply chains disrupted, rail transport of petroleum products, coal, chemicals, minerals & metals etc. stands massively impacted.
With the world in a steep recession at -4.9% GDP, consumer demand & manufacturing remains muted killing all hopes of a quick rebound in trade, logistics & transport. In addition, passenger rail transport services have also been severely impacted with all non-essential travel plans put on hold.
Diminished rail traffic numbers is a common thread cutting across countries worldwide. Lockdowns and interstate restrictions have interrupted rail movement. Virus led recession coupled with the decline in manufacturing output additionally is triggering huge traffic losses. Feeling the repercussions of the disruptions is upstream locomotive manufacturing including rail wheel and axle. Across countries, railroads are downsizing and closing yards as idle locomotives push up revenue losses.
Freight operators are coming under pressure due to the low margins within the transport sector. For instance, a potential re-introduction of lockdowns in the anticipation of resurgence of the coronavirus in autumn may result in 40% decline in the passenger traffic for the year 2020, while the freight transport throughout the European continent is expected to fall by 20%.
COVID-19 outbreak is having significant impact on freight transportation and logistics industries, as increasing costs and shrinking capacity having a considerable impact on the industry activity. In the US, for instance, rail intermodal traffic declined by about 50% during the Q1 2020. With the global supply chains coming under the impact of the virus outbreak, there will be significant impact on shippers in terms of capacity and pricing.
In Post-COVID-19 period, railways are nevertheless expected to bounce back. The travel mode is anticipated to gain from resurgence in domestic tourism market post-COVID-19 phase. Rail is likely to be considered by a large number of customers for regional travel to neighboring destinations. Rail is expected to provide a perfect option compared the slow sea travel and expensive flights. In contrast to airlines that are anticipated to face tax hikes by various governments, railways are expected to benefit from several initiatives. Rail is likely to benefit significantly from technological advances such as the Hyper loop intended to reduce travel time along with rising popularity of rail holidays.
The concept of rail holidays is also anticipated to erode the share of cruise industry. The COVID-19 pandemic is slated to accelerate the transition of passengers from other modes to rail in the coming years. In addition, the consistent focus on curbs on carbon emissions by the year 2050 is expected to drive more passengers to pay more attention to trains. The trend is likely to gain traction from the availability of more high-speed trains in China and Europe for business and leisure activities, which is estimated to reduce air traffic growth rate. Already second half of 2020 is beginning to witness increasing number of freight trains running between Europe and China. Freight trains along with container count registered a notable growth during the third quarter of 2020.
The gains registered for rail freight are credited to its distinct advantages over other modes. While the use of less manpower requires fewer quarantine checks, considerably higher load capacity makes rail freight transport a more effective option than road transport. In addition, railway border crossing is relatively easier and effective, which reduces the risk of spreading COVID-19. The pandemic caused major disruptions for landlocked countries that are affected by high transportation cost. The use of international rail freight transport is expected to help these countries in minimizing disruptions and recover quickly in the post-COVID-19 scenario.
In addition, rail freight transport is being extensively used for transportation of medical supplies along with other essential products to several European countries. Operators of rail transport are proactively implementing desirable measures for mitigating the impact of the outbreak. While Russian Railways has announced an Emergency Response Center for supporting shippers and pushing coordination across different components of the transportation chain, Turkish Railways is pursuing transport of specific goods with Iran without any human contact.
On the other hand, Uzbekistan Railways has come up with a software solution to process and provide customers with preliminary electronic information related to goods transferred by rail.
Competitors identified in this market include, among others:
Bharat Forge Limited
Bonatrans Group A.S.
CAF USA Inc.
CRRC Sifang Co., Ltd.
Lucchini RS SpA
Maanshan Iron & Steel Co., Ltd.
Nippon Steel & Sumitomo Metal Corporation
Rail Wheel Factory
Semco India (P) Ltd.
Simmons Machine Tool Corporation
United Metallurgical Company (OMK)
VELTRUP Technik Philippines,Inc.
Key Topics Covered:
1. MARKET OVERVIEW
Impact of COVID-19 Pandemic and Looming Economic Recession
Rail Freight Transportation Comes Under Pressure Due to COVID-19 Pandemic
Railways to Bounce Back in Post-COVID-19 Era
Amidst COVID-19 Pandemic, Potential Opportunities Emerge in International Rail Travel
Rail Wheel and Axle: An Introduction
Evolution of the Railroad Wheel
Global Market Outlook & Prospects
Asian Economies to Offer Lucrative Growth Opportunities
Select Innovations in Rail Wheels
Recent Market Activity
2. FOCUS ON SELECT PLAYERS
3. MARKET TRENDS & DRIVERS
Increase in New Railway Projects and Consequent Rise in Locomotive and Bogie Production Drives Demand for Rail Wheel and Axle
A Snapshot of Select Major Ongoing & Upcoming Projects Focused on Rail Freight Transport
Rise in Rail Passenger and Freight Traffic Translates into Market Growth
Development of Urban Rail Transport Infrastructure Presents Growth Prospects for Rail Wheel & Axle Market
A Snapshot of Select Upcoming Metro Rail Projects
Expanding Metro Train Network Drives Demand for Metro Train Wheels
With Rail Freight Transport Being Indispensable for the Global Logistics Chain, Long-term Network Expansion Initiatives Bode Well for the Market
World Trade Flows Determine Growth Dynamics of Rail Freight Transport Market, Setting Trends in the Rail Wheel Axle Market
Development of Europe-Asia Railway Line and Resultant Rise in Trade Flows Augurs Well for the Market
Growing Electrification of Rail Lines in Developing Economies Presents Growth Opportunity
Imperative Need to Replace Aging Diesel Locomotives to Reduce Emissions Supports Market Growth
Smart Urban Spaces and Emphasis on Smart Railway Infrastructure: Potential for Growth
As Governments Focus on Development of High-Speed Trains and Bullet Trains, Rail Wheel and Axle Market to Benefit
Aftermarket Segment Poised to Benefit from Growing Demand for Rail Wheel Machining
Advent of Solar Powered Trains Emerges as a Potential Driving Factor
R&D Efforts of Manufacturers Focused on Development of Lightweight Rail Wheels & Axles
Rail Operators Bet on Advanced Vibration Sensors to Detect Wheel Flats
Laser Triangulation Sensors Offer Compelling Option to Measure Lateral Positions of Rail Bogie Wheels
Bayesian DLM Presents Effective Option for Real-Time Detection of Wheel Defects in High-Speed Trains
With Few Countries Moving Towards Alternative Rail Technologies Such as Maglev, Challenges Ahead for Rail Wheel & Axle Market
4. GLOBAL MARKET PERSPECTIVE
For more information about this report visit https://www.researchandmarkets.com/r/lm83v5
Research and Markets also offers Custom Research services providing focused, comprehensive and tailored research.
CONTACT: CONTACT: ResearchAndMarkets.com Laura Wood, Senior Press Manager email@example.com For E.S.T Office Hours Call 1-917-300-0470 For U.S./CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900