Exclusive extracts from this 67-page-long report:
- Who are the key players?
The rail supply industry primarily serves four main market segments: rolling stock (freight and passenger vehicles), infrastructure, rail control and signalling, and other services. In recent years, a fifth segment has emerged: system integration, which encompasses a very small share of the total market value but is seeing fast growth. Rail products and services are destined for a range of rail sub-markets, including mainline passenger transport, mainline freight, light urban rail, metro systems and high-speed rail.
Groups analysed in this report include: CRRC, Siemens Mobility, Alstom, Bombardier – Transportation, Hitachi – Railway, Wabtec, The Greenbrier Companies, CAF, Hyundai Rotem – Railway system and Kawasaki Heavy Ind. – Rolling Stock.
- What are the players' strategies?
CRRC aims to seize the opportunities related to increased railway investment in China, particularly growing demand for maintenance and repair services, while adjusting production capacity. According to China's “Medium to Long-term Railway Network Plan”, high-speed tracks in the country should increase to 30,000km with overall rail length expected to reach 150,000km by 2020 (from 29,000 and respectively 131,000 in operation at the end of 2018).
- What are the players' key growth and profitability drivers?
Revenue at Kawasaki Heavy's Rolling Stock division plummeted in FY2018 (ending March 31, 2019) due to project execution delays at major projects in the US and Japan. For the same reasons, profitability declined further, being in the red for the second year in a row. The operating margin stood at 11% during FY2018.