Global electric traction systems market to surpass $426.54B by 2025
The global demand for electric traction systems has witnessed a steady rise in the past few years. Factors such as modernization of passenger railcars and growing urbanization, coupled with increase in electric locomotives, have primarily been the key driving forces for the market in the past few years.
The highly fragmented vendor landscape of the global electric traction market had the top five vendors collectively accounting for only about 9.5% of the entire market’s revenue in 2016, observes Transparency Market Research in a recent report.
In terms of type, the market for electric traction systems is presently dominated by the segment of electric traction motor. The segment accounted for more than 67% of the global market for electric traction systems in 2016 and is expected to witness strong growth over the report’s forecast period as well, retaining its dominance over other product segments by a significant margin.
Companies in the intensely competitive market strive to differentiate their offerings through pricing of components, market experience, and expertise of electric traction systems. Additionally, leading players are offering customized products and long-term maintenance services to make their mark in the market.
Companies are also focusing on strategic partnerships to achieve inorganic growth and gain strategic resources. A recent instance is the alliance between ABB Ltd. and Alstom. In November 2016, ABB Ltd. signed a partnership agreement with Alstom under which ABB Ltd. earned the contract from Alstom of supplying 1600 traction transformers for 800 new electric freight locomotives across India.
Transparency Market Research estimates that the global electric traction market will exhibit a moderate 2.5% CAGR from 2017 to 2025, rising from a valuation of US$342.94 bn in 2016 to US$426.54 bn by 2025.
Source: Transparency Market Research