Locomotive Market Size, Share & Industry Analysis, By Propulsion Type (Combustion (Diesel and Hydrogen) and Electric), By End User (Passenger and Freight), By Technology (IGBT Module, GTO Module, and SiC Module), By Component (Rectifier, Alternator, Motor, and Others), and Regional Forecast, 2025-2032

The global locomotive market size was valued at USD 13.80 billion in 2024. The market is projected to grow from USD 14.42 billion in 2025  to USD 24.85 billion by 2032, exhibiting a CAGR of 8.1% during the forecast period. Asia Pacific dominated the global market with a share of 52.32% in 2024.

The locomotive is a crucial part of the train system; it is a specific type of train car that powers the entire train set. A locomotive is self-propelled and generates energy either by burning fuel or using electricity. Its primary function is to push or pull the other train cars, enabling the transport of goods and passengers globally from one point to another.

Increasing levels of carbon emission and the resulting degradation in air quality globally have raised significant environmental concerns. In response, governments globally are focused on reducing their carbon footprint and aiming toward sustainable mobility to reduce fossil fuel dependency and promote green energy transportation. As a result, electrification technologies are being adopted across multiple modes of road transport, including road and rail vehicles. Major railway ministries globally are actively expanding their rail network with electric lines to integrate electric engines to haul passengers and cargo shipments globally. Thus, the market is expected to witness a drastic change in operations, with more nations integrating electric units into their operation fleets.

Leading players such as Siemens AG, Hitachi Rail, Wabtec Corporation, Stadler Rail, and Alstom dominate the marketplace, leveraging extensive R&D, global manufacturing capabilities, and long-term government contracts to maintain their market positions.

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Market Dynamics

Market Drivers

Increasing Freight Transportation to Drive Market Growth

As the population is increasing, the difficulty in transportation is increasing, resulting in traffic congestion and higher levels of pollution emitted from road vehicles. In response, railway transit has emerged as a prime mode of transportation for daily commuting both within and between cities.  Moreover, mass transit of the people by rail offers people cost-efficient and time-efficient traveling. Rail freight transportation provides a cost-effective cargo transportation solution and helps lower carbon emissions. Furthermore, the increasing focus of governments globally on reducing the carbon footprint is expected to cause a shift from road to rail transportation for the supply of heavy bulk materials such as cargo goods.

Major countries, such as India, the U.S., and China, are aiming toward transporting cargo through rails instead of on roads to curb carbon footprints and support sustainable mobility. Additionally, railway networks across the globe are actively phasing out diesel-powered models in favor of green energy sources to enhance environmental sustainability in freight transportation. For instance, according to the Federal Railroad Administration, the U.S. freight rail network is one of the largest, safest, and cost-efficient freight systems in the world. The industry, valued at nearly USD 80 billion, is widely operated by 7 Class I railroads, each generating an average annual revenue of USD 490 million.

Rising Focus of Expanding Rail Networks in Developed and Developing Nations to Drive Market Growth

During the COVID-19 pandemic, the e-commerce segment witnessed a significant surge in demand, as it enabled end users to receive goods without visiting physical stores. This decreasing contactless delivery helped minimize the risk of virus transmission and has continued to grow steadily in the post-pandemic period due to its convenience.

Many developed and developing nations are increasingly focused on expanding their rail network to enhance the efficiency of passenger transport and cargo shipments. This shift is also expected to drive further investment in rolling stock across the rail industry. For instance, in September 2023, During the group summit of the top 20 economies, the U.S. and India revealed a rail and shipping corridor linking India to Europe and the Middle East. Similarly, in December 2022, the U.S. unveiled a USD 2.3 billion investment initiative to expand passenger rail services in the country. The program focuses on developing intercity passenger lines and high-speed railway services and improving the safety and performance of the national rail networks.

In June 2025, Turkey unveiled its strategic plan to expand the railways in the country. The country’s ultimate objective is to develop 28,500 kilometers of railways, which include traditional rail lines and high-speed and specialized freight corridors. As part of its efforts to reduce dependence on imports and bolster domestic production, Turkey successfully developed the E5000 electric train engine, entirely in Turkey, manufactured entirely within the country by TÜRASAŞ (Turkey Rail System Vehicles Industry Inc.). 5 Units were delivered, and an additional 15 were aimed to be delivered in 2025.

Market Restraint

High Cost Associated with Rail Systems to Hinder the Growth of the Market

Besides being a substantial mode of transportation, the railway network requires significant capital investment and ongoing maintenance costs for its establishment and operation. An entire rail system comprises numerous components and complex electrical systems and diesel systems, especially in diesel-electric models, which contribute significantly to the overall manufacturing and component cost. The high cost of individual components further adds to the total cost of a rail vehicle.

The costs of electric trains tend to be more expensive compared to diesel-electric due to the integration of advanced electrification systems within the engine. Additionally, the supporting rail infrastructure also needs to be electrified for the smooth functioning of electric propulsion on rail tracks. These infrastructure updates require high capital costs. Despite this, diesel models typically offer lower fuel efficiency, leading to higher long-term operational costs. Out of all the components, the locomotive represents the highest cost. Poor technical performance often results in higher fuel consumption, further increasing the operational cost. However, as more countries upgrade their railway infrastructure to support electric trains and gradually phase out diesel-powered units, a large-scale shift toward railway electrification is anticipated in the upcoming years.

Market Opportunities

Growing Rail Expansion and Infrastructure Projects Across Various Regions

Governments in major regions are motivated to expand their rail networks across national and international borders to reduce dependency on road transportation and promote more sustainable means of transportation for passengers and freight services. In line with environmental priorities, many governments are imposing strict regulations and increasing infrastructure budgets to accelerate the development of rail systems. These initiatives are contributing to the high demand for locomotives globally.

Countries in North America have well-established freight rail networks, which are responsible for a substantial amount of freight transport each year on the rail network. However, the passenger rail network is not well established, and the governments are increasing spending on developing passenger rail networks. For instance, in January 2022, Argentina and China signed three rail project contracts, which will include the electrification of the Belgrano Norte line and several sections on the Sarmiento line, part of the Buenos Aires rail network, and the renewal of the Urquiza line.

In February 2025, Northrail signed a contract with Siemens Mobility for the procurement of 50 new Vectron models. Deliveries are expected to begin in 2025. This fleet expansion is intended to enhance Northrails’s leasing offerings for sustainable rail transport and reflects the increasing demand for freight rail operations.

Market Challenge

Slow Return on Investment to Hamper Market Development

Rail projects have long gestation periods, which makes operators and investors hesitant due to long payback timelines, especially in freight corridors, where rail competes directly with road transport. Additionally, uncertainty surrounding future energy and environmental policies complicates long-term planning and ROI assessments. Train engines have an operational lifespan ranging from 25 to 35 years. This delayed ROI poses a challenge for private investors and commercial operators looking for quicker financial returns, making them more cautious about investing in large-scale rail projects.

Locomotive Market Trends

Technological Advancements to Emerge as a Key Trend in the Market

Autonomous trains are emerging as an innovative solution to enhance the efficiency and reliability of trains in cities and urban areas. Technological advancements, such as real-time data transmission systems and advanced sensor technology, fuel the development of autonomous trains in the locomotive industry. For instance, in November 2022, Alstom successfully demonstrated its autonomous shunter in Breda, the Netherlands. The vehicle is equipped with advanced obstacle-detection capabilities and provides positive results during testing.

Moreover, significant players and railway corporations have begun adopting automatic train control systems to enhance the exchange of data, minimize technical errors, and build passengers’ confidence in autonomous operations. Governments across various countries have started the pilot testing and adoption of autonomous trains on their tracks. For instance, in March 2023, the Indian Ministry of Railway announced plans to integrate IoT devices into over 8,700 locomotives as part of its Real-Time Train Information System project, enabling accurate live tracking. Thus, growing implementation of autonomous technology and sensor-based technologies in the rail industry is likely to shape locomotive market growth during the forecast period.

Impact of COVID-19

The government-enforced lockdowns and economic crisis triggered by the COVID-19 pandemic had widespread effects, including severe restrictions on mobility. The pandemic led to a global economic downturn and temporarily halted manufacturing and testing activities across several sectors. For instance, due to the pandemic, the Integral Coach factory based in India downsized its production target from 4402 to 1954 coaches. The industry witnessed a rapid recovery in 2021 as major players resumed development and manufacturing operations based on their individual capacities. That year also witnessed an increase in deliveries due to the fulfillment of outstanding package backlogs from existing contracts. During the initial period of 2022, the industry witnessed a surge in long-term and short-term contracts aimed at accelerating rail infrastructure development across various high-demand regions. The post-pandemic period saw increased demand for electric trains, driven by government initiatives focused on lowering carbon emissions and promoting sustainable mobility.

Segmentation Analysis

By Propulsion Type

Rising Focus on Environmental Sustainability Boosted the Electric Segment Growth

Based on propulsion type, the market is segmented into combustion and electric. The combustion sub-segment is further divided into diesel and hydrogen.

The electric segment accounted for the largest locomotive market share in 2024 and is anticipated to maintain its dominance during the forecast period. It is also the fastest-growing segment, registering the highest CAGR. As the leading rail economies of the globe are inclining toward the use of green energy for a better, sustainable future, the electrification of trains plays a significant role in this transformation. Thus, the increase in interest in environmental safety and green energy will drive market growth over the long term. In March 2024, Turkey launched its first domestically produced electric locomotive, developed by TURASAS; the E5000 model features a 5 MW power rating and is suitable for both passenger and freight transport.

The diesel segment held a decent market share in 2024. The demand for diesel models is attributed to the high need for freight rail transportation and the relatively low infrastructural costs, as diesel engines can operate on existing tracks without the need for electrification or substations. Thus, developing economies and countries with limited rail infrastructure resources continue to prefer diesel units for cargo and freight operations.

By Component

Motor Segment Displayed Highest Growth Rate due to Technological Advancements and Retrofitting Initiatives

Based on components, the market is segmented into rectifier, alternator, motor, and others.

The motor segment accounted for the highest growth rate owing to the strong focus of major players on developing and deploying high-efficiency traction motors. These motors help reduce power losses while improving overall power distribution to the wheels. Continuous innovation by manufacturers to provide energy-efficient motors with lower power consumption is expected to further drive the growth of this segment. For instance, in February 2025, Muller Technologies, a Swiss-based company, retrofitted its 1990s-era diesel engine with ABB’s advanced traction systems to support sustainable hybrid operations. The upgraded Aeam 841 will operate in three modes, including an overhead line, traction battery, and 500 KW diesel engine.

The others segment dominated the global market share in 2024 owing to the increasing number of components used in locomotives to improve the efficiency of the machine. Additionally, the segment encompasses a wide range of major and minor components essential for optimum operation efficiency. The broad scope of this category significantly contributes to its greater market share within the component segment.

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By Technology

Low Cost of IGBT Modules Contributed to Segment Growth

Based on technology, the market is segmented into IGBT Module, GTO Module, and SiC Module.

The IGBT module segment led the market share in 2024 and is expected to maintain its dominance during the forecast period. The dominance is attributed to several advantages, including lower cost, higher switching frequency, and lower power loss compared to GTO modules, which were commonly used in older models. For instance, in August 2023, The TRAXX developed by Bombardier (Now Alstom) switched from GTO to IGBT-based traction inverters, starting with second-generation models. These IGBT modules offer improved power efficiency, enhanced cooling, and superior performance, supporting outputs of up to 5,600 kW, especially in mixed traffic and cross-border operations. These performance and efficiency gains are expected to sustain the segment’s leadership during the forecast period.

SiC Modules are expected to grow at the highest rate owing to the additional benefits they offer compared to GTO modules and IGBT power modules. SiC modules are highly efficient and provide extremely lower power loss compared to IGBT power modules and GTO modules. However, the high cost associated with SiC Modules remains a key barrier, potentially limiting their widespread adoption in the near term.

By End User

Increasing Demand for Public Transportation Encouraged Passenger Segment Growth

Based on end users, the market is divided into passenger and freight.

The passenger segment held the major market share in 2024 and is expected to retain its dominance throughout the forecast period. This is primarily driven by the higher demand for public transportation across various European regions. Moreover, the growing government initiatives in Europe and Asia to promote sustainable and green energy transportation are contributing to the rising demand in the passenger segment. For instance, in November 2024, The Metropolitan Transportation Authority (MTA) launched 4,200hp locomotives to upgrade and replace the current fleet of Metro-North Railroad. The two SC42-DM models serve routes to Poughkeepsie, Southeast, Waterbury, and Danbury.

The freight segment is expected to grow at the fastest-growing CAGR owing to increasing demand for freight operations worldwide as a result of the expansion of e-commerce and logistics activities. Additionally, greater focus from major economies toward freight rail expansion in various regions is further expected to drive the freight segment growth. For instance, in August 2023, the Indian Cabinet approved various rail expansion projects worth USD 3.93 billion to expand the country’s rail infrastructure and strengthen its freight network.

Locomotive Market Regional Outlook

Asia Pacific

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Asia Pacific market stood at USD 7.22 billion in 2024 and held the largest locomotive market share owing to the high frequency and demand for rail operations, coupled with an extensive rolling stock industry. The rapid expansion of rail infrastructure across economies such as China, India, and Japan, where rail remains a primary means of transport, has significantly fueled the locomotive market growth in the region. Additionally, ongoing contracts for the procurement of orders from past years continue to support product demand. Additionally, countries in the region are also shifting toward sustainable transportation, adopting electric trains to reduce emissions. For instance, In May 2025, India launched a 9,000 HP electric freight engine, marking a key step in promoting sustainable transportation.

North America

North America held a sustainable market share in 2024. The U.S. rail system is predominantly freight-centric, in contrast to many regions where passenger rail dominates. Over 80% of locomotives in service in the U.S. are dedicated to freight operations, primarily used by Class I railroads. This strong demand for freight transport ensures a stable market for diesel-electric and continues to drive innovations in the freight segment.

Europe

Europe held the second-largest market share in 2024. Countries such as Germany play a significant role in the production and global supply of rail components. Government initiatives promoting rail travel to lower carbon emissions are also contributing to market growth. For instance, in July 2022, Germany’s federal and state governments expanded its rail network in central Germany from Frankfurt to Saarland.

Rest of the World

In the Rest of the World, regions such as the Middle East, Africa, and Latin America are witnessing growth in the market due to the rising demand for electric propulsion and increasing investments in rail infrastructure. These regions are focusing on revitalizing their rail industries to promote sustainable mobility. For instance, Vale partners with Wabtec Corporation to eliminate its carbon footprint and introduce electric-powered engines for various hauling operations. In March 2025, Vale finalized a substantial diesel-electric models purchase agreement with Wabtec to acquire 50 new Evolution Series for its Vitoria a Minas and Carajas railroads in Brazil.  

Competitive Landscape

Key Market Players

Key Players Focus on Innovation to Gain Competitive Edge

The global locomotive market is moderately consolidated yet highly competitive, shaped by rapid technological evolution, sustainability mandates, and strategic geographic expansion. Leading players such as Siemens AG, Hitachi Rail, Wabtec Corporation, Stadler Rail, and Alstom dominate the market by leveraging extensive R&D, global manufacturing capabilities, and long-term government contracts to maintain their market positions. These key players compete across various types, including diesel, electric, hybrid, and emerging hydrogen and battery electric platforms.

Market competitiveness is intensified by the growing demand for eco-friendly train engines that provide energy efficiency, pushing manufacturers to innovate with low-emission technologies, digital systems, and predictive maintenance tools. Stringent emission regulations, especially in Europe and North America, have further accelerated innovation in the industry.

List of Key Locomotive Companies Profiled

• Progress Rail (U.S.)


• General Electric Company (U.S.)


• Anglo Belgian Corporation NV (Belgium)


• Toshiba Corporation (Japan)


• Cummins Inc. (U.S.)


• CRRC Corporation Limited (CRRC) (China)


• San Engineering (India)


• Alstom SA (France)


• Siemens AG (Germany)


• Kawasaki Heavy Industries, Ltd. (Taiwan)


• Kolomensky Zavod (Russia)


• Bharat Heavy Electricals Limited (BHEL)


• Chittaranjan Locomotive Works (India)


• CAF, Construcciones y Auxiliar de Ferrocarriles, S.A. (Spain)


• Hyundai Rotem Company (South Korea)


• Stadler, Inc. (Switzerland)


• Hitachi Rail Limited (U.K.)


• Republic Locomotive (U.S.)


• Wabtec Corporation (U.S.)


• Medha (India)

Key Industry Developments

• May 2025- Siemens Mobility introduced the Vectron Dual Mode engine, combining electric and diesel propulsion systems powered by Cummins engines. This hybrid model delivers 2,210 kW in electric mode and 750 kW in diesel mode, achieving a maximum speed of 120 km/h.


• April 2025- TMH (Transmashholding), the parent company of Kolomensky Zavod, launched the Class DP2D diesel-powered push-pull train for Russian Railways (RZD). This train combines a six-axle TEP70BS diesel model, built by Kolomensky Zavod, with modified EP2DM EMU cars from the Demikhovsky Engineering plant. Designed for non-electrified suburban lines, the train can consist of two to six cars, including a driving tráiler, and accommodates up to 636 passengers with provision for wheelchair users.


• March 2025- CLW achieved a historic milestone by producing 700 electric-propelled engines in the fiscal year 2024-2025, marking the highest annual output in its history. This accomplishment underscores CLW’s commitment to enhancing India’s railway infrastructure and reflects its operational excellence in locomotive manufacturing.


• September 2024- SBB Cargo signed a framework agreement with Stadler Rail to procure up to 129 Bo’Bo’ multisystem train engines, beginning with an initial order of 36 units. These advanced electric models are compatible with 25 kV AC, 15 kV AC, and 3 kV DC systems and are designed to replace the aging Re420 fleet.


• August 2024- Medha unveiled the SMH-10 diesel, a 3,00 hp unit designed for freight and mixed-use rail operations. The locomotive features microprocessor-based control, electronically managed fuel systems, and modern diagnostics. Built for speeds up to 120 km/h, it is tailored for both industrial and marine use. With low maintenance needs and high fuel efficiency, the SMH-10 represents Medha’s commitment to enhancing the performance of diesel rail fleets across diverse geographic.

Investment Analysis and Opportunities

The global locomotive market presents strong investment opportunities, driven by increasing demand for sustainable transport, urbanization, and the ongoing modernization of rail networks. Key areas attracting investment include electric and hybrid models, hydrogen propulsion, and digitalization of rail operations. Emerging economies are focusing on infrastructure expansion, while developed regions are upgrading and expanding their fleets to comply with stringent emission norms. Investors focusing on innovative technologies and aftermarket services stand to benefit significantly, especially as countries commit to net-zero transportation targets and increasingly shift freight transport from road to rail. For instance, in May 2025, Siemens Mobility unveiled India’s first 9,000 horsepower electric freight model, the WAG D-9, at the Indian Railway’s Dahod facility. This Co’Co’ configured engine, operating on 25 kV AC, is designed to haul 4,500-ton loads at speeds up to 120 km/h. It is part of a EUR 3 billion (USD 3.3 Billion) contract for the supply of 1,200 units and incorporates AI-driven diagnostics and the Kavach safety system. The initiative aims to enhance freight efficiency and support India’s carbon reduction goals.

Report Coverage

The global locomotive market report analyzes the market in-depth. It highlights crucial aspects such as prominent companies, market segmentation, competitive landscape, propulsion type, component, technology, and end-user. Besides this, the report provides insights into the market trends and highlights significant industry developments. In addition to the aspects mentioned earlier, the report encompasses several factors contributing to market growth over recent years.

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Report Scope & Segmentation