May 27, 2024
Tram Systems Market
Ict

Tram Systems Market is in Trends by Increased Adoption of Hybrid-electric Trams

The tram systems market involves the development and maintenance of infrastructure to facilitate electric rail-based mass transit within cities and urban areas. Trams, also known as streetcars, are electric rail vehicles that run on tracks along public urban streets. Trams provide a smooth, comfortable, and reliable mode of transportation at a fraction of the cost of other public transit options like subways. They can carry more passengers than buses while offering a lower carbon footprint compared to personal automobiles. The growing demand for sustainable urban transportation has prompted many cities worldwide to invest in expanding their tram networks.

The Global Tram Systems Market is estimated to be valued at US$ 304.72 Bn in 2024 and is expected to exhibit a CAGR of 12.% over the forecast period from 2024 to 2031.

Key Takeaways

Key players operating in the Tram Systems Market Size are Bombardier Corporation, CRRC Corporation Limited, Hitachi Rail, Ansaldo STS, BYD Company ltd, General Electric, Alstom S.A., Thales Group, SIEMENS AG, Mitsubishi Electric, and ABB. Key players like Bombardier Corporation and Alstom S.A. have established a vast global presence with a strong focus on research and development of new tram technologies.

The growing demand for pollution-free public transportation across urban areas is a major factor driving the tram systems market. Many cities are expanding or establishing new tram networks to reduce traffic congestion and carbon emissions from private vehicles. Furthermore, trams can carry more passengers per hour than buses, making them an attractive mass transit option for densely populated areas.

The market is also witnessing significant expansion in the Asia Pacific region with Chinese firms like CRRC emerging as prominent suppliers of tram infrastructure and rolling stock. Countries like India are also actively investing in tram projects, such as the Delhi Metro Rail Corporation ordering 120 tram-train vehicles from CRRC, to develop sustainable urban transport.

Market Key Trends

One of the key trends in the tram systems market is the increased adoption of hybrid-electric trams. Hybrid trams integrate energy storage systems that allow them to recuperate braking energy and use it to boost acceleration. This significantly reduces their carbon footprint compared to totally electric models. Cities are opting for hybrid models to achieve environmental targets in a cost-effective manner. Major manufacturers like Bombardier have unveiled newer hybrid tram designs with advanced energy storage technology and reuse. This trend is expected to continue as hybrids provide a reliable and sustainable solution for expanding public transit networks worldwide.

Porter’s Analysis

Threat of new entrants: The threat is relatively low as considerable investment is needed for operating a tram systems business with heavy fixed costs. Bargaining power of buyers: The bargaining power of buyers is high as there are usually many players providing tram systems in a region. Bargaining power of suppliers: Suppliers have moderate bargaining power as there are several component suppliers for tram systems. Threat of new substitutes: The threat is moderate as alternate means of public transport like subways, buses pose competition to trams. Competitive rivalry: Rivalry is intense among the well-established players in tram systems market.

Europe accounts for a share of over 40% of the global tram systems market in terms of value. This is because trams are a preferred mode of public transport in many European countries like Germany, France, UK, Spain which have significantly invested in tram infrastructure over the decades. China is the fastest growing regional market for tram systems. Major Chinese cities like Beijing, Shanghai, Guangzhou have undertaken large tram projects which is boosting the demand for tram systems in the country at a high growth rate. With growing urbanization and focus on eco-friendly public transport, China is expected to dominate the tram systems market globally in the coming years.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it