The
tram systems market comprises rail vehicles or trains that run on tracks along
public urban streets used for intra-city transportation. Trams provide faster
transportation within cities, consuming less energy vis-à-vis other modes of
transport and helping reduce carbon emissions. Trams are gaining preference
over buses and other modes of transport as they have a higher passenger
capacity and require lesser road space. Trams boost urban connectivity, driving
economic growth of cities.
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 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. These players are
focusing on projects for new tram lines and extensions of existing networks and
are investing in research and development of digital technology applications to
enhance passenger experience. The growing investments in rail infrastructure
projects especially in emerging economies of Asia and Latin America are opening
new opportunities for tram system players. Likewise, European countries are
expanding and upgrading their existing tram networks to reduce road congestion
and carbon footprint of transportation sector which is benefiting tram market.
Market drivers
Rapid
urbanization is one of the key drivers of tram systems market. According to UN
projections, 68% of the world population will live in urban areas by 2050 up
from 56% in 2018. This urban population growth is increasing demand for
sustainable public transportation solutions within cities fuelling
installations of new tram networks.
Market restraints
High capital investment requirement for
setting up tram network infrastructure is a major challenge restraining faster
adoption of tram systems. It involves huge investments for acquiring rolling
stock, track construction, power supply installations, and signaling systems.
This makes tram projects financially unviable for low and middle-income cities
of developing nations.
Segment Analysis
The tram systems market is dominated by the rail segment. The rail segment
accounts for over 60% of the total market share as trams run on rail tracks.
Within the rail segment, the steel rail sub-segment holds the major share.
Steel rails have higher strength and durability as compared to other materials
which make them suitable for tram systems that handle heavy passenger traffic
on a daily basis.
Global Analysis
Europe is the fastest growing as well as the dominating region in the tram
systems market. Countries like Germany, France, Spain, Italy etc are focusing
on developing sustainable public transport infrastructure. Tram systems offer a
affordable and environmental friendly solution for intra-city transportation.
Cities across Europe are actively expanding and upgrading their tram networks.
Additionally, growing investment in rail infrastructure from Asian countries
like China and India is also driving the growth of tram systems market. South
East Asian countries are also investing in new tram projects to decongest city
roads and reduce pollution levels.
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