DMU and LOCO Market Trend, Share, Growth, Size and Forecast 2030

DMU and LOCO Industry Prospective:

The global DMU and LOCO market size was worth around USD 6.27 billion in 2022 and is predicted to grow to around USD 8.39 billion by 2030 with a compound annual growth rate (CAGR) of roughly 3.74% between 2023 and 2030.

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DMU and LOCO Market: Overview

Diesel multiple units (DMUs) and Locomotive (LOCO) are transportation vehicles crucial to the modern infrastructure. DMUs are multiple-unit trains. It means that these vehicles are self-propelled and consist of one or more carriages joined after one another with the control of the entire unit by one driver. A DMU is powered by on-board diesel engines and they do not need a separate locomotive. This is because the engine is a part of either one or more carriages. The main classification of DMUs depends on the method through which motive power is transferred to the wheels. For instance, in a diesel-mechanical multiple unit (DMMU), a gearbox is used to transmit the energy while in a diesel-hydraulic unit, a torque converter is used for the same. A locomotive, on the other hand, is responsible for providing motive power to the train. If it can transport a payload, it can be called a multiple unit, a railcar, a motor coach, or a power car. Locomotives are used extensively to propel passenger cars. The industry for DMU and LOCO is important to global infrastructure and it is expected to grow at a steady rate during the forecast period.

Key Insights:

• As per the analysis shared by our research analyst, the global DMU and LOCO market is estimated to grow annually at a CAGR of around 3.74% over the forecast period (2023-2030)
• In terms of revenue, the global DMU and LOCO market size was valued at around USD 6.27 billion in 2022 and is predicted to grow to around USD 8.39 billion, by 2030.
• The DMU and LOCO market is projected to grow at a significant rate due to the rampant urbanization and city development projects
• Based on type segmentation, diesel multiple units segment was predicted to show maximum market share in the year 2022
• Based on application segmentation, mid-distance trips segment was the leading segment in 2022
• On the basis of region, Europe was the leading revenue generator in 2022

Request Free SampleDMU and LOCO Market: Growth Drivers

Rampant urbanization and city development to drive market growth

The global DMU and LOCO market is expected to be driven by the growing rate of urbanization across the globe in addition to the small or large-scale development of cities. These factors have resulted in an unavoidable need to create a transportation route connecting urban and rural areas. For instance, India’s urbanization rate has increased by around 19% between 2010 and 2021. Similar trends are observed globally. Additionally, governments have increased their spending on not only developing new urban areas but also redeveloping existing ones with better amenities and facilities for the population. In August 2023, it was reported that the African governments along with private companies will be spending USD 514 billion on new city development and land reclamation projects as the region has a rapidly growing urban population. North Africa may take the lead during this phase of planned development. Railroads play an important role in defining the quality of a region’s infrastructure. An effective and efficient rail network is not only beneficial to the population but also attracts foreign investments important for economic growth. This has resulted in greater expenses incurred by official bodies in newer DMUs and locomotives to ensure access to a functional transportation route through the railroad.

This is evident in the high stakes involved in partnerships taken to improve rail infrastructure. In June 2023, RIVE Private Investment, Northrail, and Alstom signed a framework contract dealing with 50 multi-system TRAXX Universal locomotives and a 16-year-long maintenance package. The contract is worth 370 million euros as per official reports. Along the same lines, Siemens and the Indian government entered a deal worth USD 3.25 billion allowing the former to deliver and manage 1200 electric locomotives in the country. The contract also includes a service duration of 35 years.

DMU and LOCO Market: Restraints

Extreme reliance on diesel as fuel to restrict market growth

The global DMU and LOCO market size may be limited owing to the high reliance of DMUs on diesel as fuel. It is a non-renewable source of energy and its use has heavy implications on the environment. A recent report by the U.S. Energy Information Association (EIA) estimated that diesel fuel consumption by the US transportation industry, in 2021, was responsible for almost 472 million metric tons of carbon dioxide emission. It is a greenhouse gas and leads to a rise in the surface temperature of several planets. Moreover, in recent times, the price points for diesel fuel have risen at an unprecedented rate. Official reports claim that since 2019, diesel production has dropped by 180,000 barrels per day leading to higher prices.

Operating locomotives, on the other hand, requires an extensive network of railway infrastructure, and many countries such as underdeveloped nations may not have sufficient supporting environments to create such architecture further causing a slump in the demand and subsequent revenue.

DMU and LOCO Market: Opportunities

Growing expenditure on rail corridors to create growth opportunities

There is a growing number of projects related to rail corridors which may translate to higher revenue in the DMU and LOCO industry. In July 2023, Larsen & Toubro (L&T) was awarded a project worth INR 7000 by the National High Speed Rail Corporation Limited (NHSRC) to build a railway line stretching from Mumbai to Ahmedabad, cities in India. The stretch length is around 135.35 kilometers. In August 2023, it was reported that Canada will be investing in one of the country’s largest and most ambitious projects called the High Frequency Rail (HFR) project. It is expected to help the region transform its transportation architecture. The initial phase is allocated CAD 369.8 million in funds.

Launch of new and advanced units of DMU and LOCO to generate expansion avenues

The growing number of new technology-driven DMUs and LOCOs could generate greater expansion opportunities. In October 2022, ZTR and Union Pacific announced a strategic partnership to develop hybrid-electric locomotives that will be built in one of the facilities owned by Union Pacific. In January 2020, DB Cargo bought its first 50 hybrid locomotives developed by Toshiba.

DMU and LOCO Market: Challenges

Noise pollution by DMU and performance limitations to challenge market growth

DMUs are known to cause vibration when they run on tracks which leads to noise generation and subsequently translates to noise pollution disturbing the nearby areas. This is a major challenge for DMU manufacturers to overcome. Additionally, these units are limited in terms of performance capacity when compared to alternatives. Other factors such as the increased maintenance cost of DMU and the requirement of efficient human personnel as conductors and engineers further limit global market expansion opportunities.

DMU and LOCO Market: Segmentation

The global DMU and LOCO market is segmented based on type, end-user, application, and region.

Based on type, the global market segments are diesel multiple unit (DMU) and LOCO. The demand for both units is dependent on varying factors. For instance, DMUs are used for passenger services while locomotives are mostly used to conduct freight transportation. Both segments are likely to witness high growth as demand for remote connectivity through rail medium is on the rise as a result of urbanization. Additionally, freight transport is also growing with expanding international trade relations and growing domestic demand for several products as the consumer population is growing considerably. India’s total route length in terms of railway system is around 68,043 kilometers.

Based on end-user, the DMU and LOCO industry segments are freight trains and passenger trains.

Based on application, the DMU and LOCO industry divisions are mid-distance trips, long-distance trips, and others. The highest application for DMUs is in the mid-distance trips; they are ideal for covering shorter distances carrying passengers. LOCOs are more significantly used for freight transportation and for longer distances. They can also be used to pull overnight trains carrying passengers through a complex and long network of railroads. A dual-mode locomotive can cost up to INR 18 crore.

DMU and LOCO Market: Report Scope

DMU and LOCO Market: Regional Analysis

Europe to register the highest growth rate in the near future

The global DMU and LOCO market is expected to generate the highest revenue in Europe due to the presence of an excellent and expansive rail network. The region has been a pioneer in developing rail infrastructure and almost all modern railway networks are inspired by the European systems. Until recently, Germany was the leading country with the highest number of railcars and locomotives. The number was close to 17000 units followed by the UK and France. The large number of DMU and LOCO producers along with their growing strategies to enter new markets and create international trade relations in emerging economies has helped them maintain their dominance in the global market. Moreover, the regional governments are constantly investing in connecting more areas using the rail network, further pushed by the surging rate of city development. Asia-Pacific is a huge market for DMU and LOCO with India acting as a leading consumer. Around 37% of India's railway network is fueled by diesel locomotives with around 5000 trains running every day.

DMU and LOCO Market: Competitive Analysis

The global DMU and LOCO market is led by players like:

• Siemens Mobility
• Bombardier Transportation
• Alstom
• CRRC (China Railway Rolling Stock Corporation)
• Stadler Rail
• Hyundai Rotem
• Talgo
• Hitachi Rail
• Skoda Transportation
• CAF (Construcciones y Auxiliar de Ferrocarriles)

The global DMU and LOCO market is segmented as follows:

By Type

• Diesel Multiple Unit (DMU)
• LOCO

By End-User

• Freight Trains
• Passenger Trains

By Application

• Mid-Distance Trips
• Long-Distance Trips
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa