The global locomotive market is expected to reach a value of more than USD 19.53 Billion in 2025, with a strong market size growth projected. The industry is anticipated to grow at a CAGR of 9.10% during the forecast period of 2026-2035, ultimately attaining a valuation of USD 46.66 Billion by 2035. Notably, the Asia Pacific region is poised to play a significant role in driving this growth.
Base Year
Historical Period
Forecast Period
As reported by the U.S. Department of Transportation's Federal Railroad Administration, USD 291.4 million allocated under the CRISI program were committed in 2020 for the upgrading of railway systems. Infrastructure development with a focus on safety improvements as well as promoting technological innovation in the locomotive sector enhances demand for more efficient and advanced locomotives and upgrades freight and passenger transport systems.
Growing demands for electrified and battery-powered locomotives are a part of efforts toward sustainable development across the globe. The drive towards emission-free practices is gaining pace as countries and industries target greener transport solutions. Electric and battery-powered locomotives work within these objectives as companies adopt more eco-friendly technologies in their pursuit for the growth of the locomotive market.
Government initiatives such as the U.S. CRISI program, amounting to USD 291.4 million, stimulate growth in the locomotive market. By funding infrastructure upgrades and supporting environmentally friendly transport solutions, these programs drive demand for modern, energy-efficient locomotives, thus further boosting the market for sustainable rail solutions worldwide.
Compound Annual Growth Rate
9.1%
Value in USD Billion
2026-2035
*this image is indicative*
Read more about this report - REQUEST FREE SAMPLE COPY IN PDF
The locomotive market plays a crucial role in the transportation and logistics industry, where locomotive systems, including self-propelled train cars, are essential for efficient freight movement. These trains operate on both energy sources, such as fuel and electricity, contributing to the modernisation of transport systems. The manufacturing and production capacity of locomotives is evolving to meet increasing demand, especially post-COVID-19 pandemic. The logistics industry relies heavily on these systems to streamline operations, ensuring timely and cost-effective deliveries. As the market recovers from the pandemic, investment in advanced locomotive technology continues to grow, enhancing the overall transportation infrastructure. In September 2024, Hitachi Rail delivered its 300th train to the UK, marking 15 years of innovation and partnerships. The company’s investments in infrastructure and technology have transformed UK rail, with its acquisition of Thales strengthening its global presence and future growth.
The locomotive market is increasingly focused on reducing carbon emissions and improving air quality, aiming to lower the carbon footprint of transportation. With a shift towards sustainable mobility, the industry is moving away from fossil fuel dependency and adopting green energy transportation solutions. Electrification technologies, including electric locomotives, are playing a crucial role in this transformation. As rail network expansion continues, electric locomotives are expected to enhance the efficiency of cargo shipments globally, supporting a greener, more sustainable future for the transportation sector. In March 2025, India announced the launch of the world’s first 1,200-horsepower hydrogen-powered train, marking a step towards sustainable transport. The country is also developing a 9,000-horsepower locomotive, positioning itself as a leader in green rail technology and global manufacturing.
Electrification, hydrogen trains, sustainability regulations, and technological advancements drive the locomotive market, enhancing demand for eco-friendly, efficient solutions globally.
As countries aim to reduce emissions, there is a strong push toward railway electrification. This trend is reflected in projects like the UK’s electrification of its rail network and India’s plan to electrify 100% of its tracks by 2030. Companies like Siemens and Alstom are investing heavily in electric locomotives, like Siemens’ Vectron and Alstom’s Coradia iLint hydrogen trains. Electrification makes a company less dependent on fossil fuel while making it meet sustainability requirements besides gaining operational efficiency. The electrification demand for locomotives and infrastructure will improve, thus augmenting the locomotive demand growth.
Hydrogen powered locomotives are the emerging alternatives for the diesel trains with cleaner energy. Alstom's Coradia iLint's entry in Germany, while UK committed to testing the hydrogen powered trains in 2023 is a reflection of the trend. Hydrogen trains provide zero emissions, long operational ranges, and efficiency. As the governments emphasize sustainability and clean transport, the market is expected to see growth and new opportunities through hydrogen locomotives in both domestic and international markets.
As governments get stricter on environmental regulations, the demand for eco-friendly locomotives is increasing. The European Union's Green Deal pushes for cleaner and greener transportation. Investments in sustainable infrastructure, such as electrified rail systems and battery-powered trains, would be covered by the US government through its CRISI program. The investments by Siemens and Bombardier for sustainability-based solutions would also gain in the wake of these government policies. Added regulatory thrust will thus attract more investments in clean technology, and therefore boost growth in the locomotive market, thus boosting the locomotive market revenue.
The locomotive market is transforming through technological innovations like autonomous trains, AI-based operations, and digital control systems. Companies are developing smart locomotives that can offer enhanced fuel efficiency, safety features, and predictive maintenance. For instance, with the advent of digital signaling systems and automated braking, the operations will be more efficient, and the costs will be low. With the growing availability of such technologies, demand for advanced locomotives will increase as operators would look forward to cost-effective, efficient solutions for modern rail transport.
Autonomous and Smart Trains are a Rising Trend in the Market
The global locomotive market is embracing innovative solutions such as autonomous trains, equipped with sensor technology for real-time data transmission and obstacle-detection capabilities. Alstom’s autonomous shunting locomotive is a key example, driving advancements in the locomotive industry’s efficiency and safety. In November 2022, Alstom demonstrated the highest grade of automation (GoA4) on a shunting locomotive in the Netherlands. The test showcased fully autonomous operations, including obstacle detection and reaction. This advancement paves the way for increased capacity in freight operations and sustainable mobility.
The locomotive market is embracing advancements in automation, with the introduction of automatic train control systems and autonomous trains. Pilot testing is underway for these technologies, aiming to digitalize rail passenger transport. Railway corporations are investing in smart products that facilitate seamless data exchange, enhancing operational efficiency and safety. As the industry focuses on developing autonomous trains, the risk of technical errors is minimised, ensuring a safer and more reliable rail passenger transport system. These innovations are driving the future of the global railway industry. In April 2024, US startup Intramotev launched its first self-propelled battery-electric railcar, ReVolt, in a freight train at a Pennsylvania mine. The railcar travelled over 1,000 miles, offering fuel savings and environmental benefits, marking progress in decarbonising mining transport.
Rising Freight Transport and Cargo Logistics Fuel Market Growth
The locomotive market is witnessing significant growth driven by increasing demand for freight transportation and efficient cargo logistics. As road traffic congestion rises, railway transit offers a reliable alternative for moving cargo goods over long distances. Rail transportation not only enhances delivery efficiency but also helps reduce carbon emissions and the overall carbon footprint. With growing emphasis on sustainability, shifting freight and cargo logistics to rail systems is becoming a strategic solution to meet environmental goals while supporting global trade demands. In December 2024, Amazon launched Amazon Freight and Amazon Shipping in India, offering nationwide logistics services for B2B and B2C operations. Following successful pilots, these solutions provided businesses with full truckload transport and last-mile delivery, streamlining operations and boosting efficiency.
The locomotive market is undergoing a significant transformation, driven by growing demands in the freight industry and a strong push towards sustainable mobility. Rail transportation plays a crucial role in reducing the carbon footprint associated with long-distance cargo transportation and exports. As railway networks expand, there is an increasing focus on environmental sustainability, supported by the adoption of green energy solutions. Modern rail systems are helping to flush out diesel dependency by replacing older fleets with cleaner alternatives. These efforts aim to enhance the efficiency and capacity of railway networks while promoting greener practices across the sector. With continued investment in sustainable rail transportation, the industry is well-positioned to meet future demands while addressing global environmental concerns and supporting economic growth.
Rapid Urbanisation and Rail Network Expansion to Fuel Market Growth
During the COVID-19 pandemic, the global locomotive market adapted to shifting demands driven by the surge in e-commerce. Logistics and freight loading operations became crucial, with Indian Railways playing a key role in ensuring the uninterrupted transport of goods. This period highlighted rail’s importance in supporting resilient supply chains. In March 2025, Indian Railways unveiled the EF-9K, its most powerful 9,000-horsepower locomotive, built by Siemens Mobility in Gujarat. Designed for freight corridors, it featured regenerative braking, real-time monitoring, and 89% localisation. The launch supported India’s electrification goals and marked a leap in sustainable freight transport.
The locomotive market has witnessed significant growth, driven by the rise in e-commerce logistics and increased demand for efficient freight rail services. As businesses seek faster delivery solutions, freight trains have become vital to moving goods across regions while reducing carbon emissions. The ongoing expansion of railway transportation infrastructure supports both passenger and freight transportation, ensuring seamless connectivity and reduced environmental impact. Rapid expansion and strategic investments in rail network expansion and infrastructure upgradation are further propelling locomotive market growth, making rail a preferred mode of transport. Governments and private players are focusing on modernising existing systems and deploying advanced locomotives, reinforcing the role of railways in supporting sustainable, large-scale logistics operations for the evolving needs of modern commerce and urban mobility.
High Costs of Electric Locomotives Likely to Restrain Market Growth
The railway network remains a vital mode of transport worldwide, offering efficiency and capacity for both freight and passengers. However, high capital and maintenance costs continue to challenge the sector, particularly concerning advanced components and electrical systems. Diesel-electric locomotives, though widely used, also incur substantial manufacturing costs. The demand for improved reliability and performance is pushing manufacturers to innovate while balancing cost-effectiveness. Enhancing locomotive design and technology remains crucial to sustaining long-term growth and competitiveness in the global railway market.
The growth of the electric locomotive market faces restraints despite its benefits in fuel efficiency and lower operational costs. Transitioning from diesel-electric locomotives to electric propulsion requires costly electrification systems and extensive railway infrastructure upgrades. High infrastructure costs pose a significant barrier, particularly in regions lacking existing support for bulk electrification. While electric locomotives promise sustainability, the financial burden of upgrading and maintaining electrified networks hinders adoption. These challenges impact market expansion, especially in developing economies where capital allocation is limited. Freightliner temporarily withdrew electric locomotives in 2021 due to soaring electricity prices, opting for diesel alternatives. This decision challenged the UK’s decarbonisation goals and raised concerns over the sustainability of energy policies. The shift posed significant implications for future rail freight operations and environmental commitments.
Read more about this report - REQUEST FREE SAMPLE COPY IN PDF
Major Rail Economies Worldwide Focus on Integrating Electric Locomotives, Driving Segment Growth
Diesel locomotives continue to play a vital role in the global locomotive market due to their versatility and ability to operate without reliance on external power sources. They offer significant benefits, including their use on non-electrified tracks and in areas where rail infrastructure is limited. Diesel locomotives are particularly advantageous for freight transportation, as they provide high power output, fuel efficiency, and flexibility. Additionally, they are cost-effective for shorter routes and remote areas lacking full electrification.
Electric locomotives offer numerous advantages in the global locomotive market, particularly in reducing carbon emissions and operational costs. Powered by electricity, these locomotives are more energy-efficient and eco-friendly compared to their diesel counterparts. They are ideal for high-speed rail services and long-distance travel, providing reduced fuel costs and lower maintenance requirements. In March 2025, the Indian Railways' new locomotive plant in Dahod, Gujarat, began production of a powerful electric locomotive, aimed at improving freight operations. The high-horsepower engine, set for completion soon, will support the Western Dedicated Freight Corridor, increasing train speeds and energy efficiency, and boosting local manufacturing.
The Growth of the "Others" Segment Was Driven by the Increased Integration of Components in Locomotives
In the global locomotive market, rectifiers play a crucial role in converting alternating current (AC) to direct current (DC), which is essential for electric locomotives. By ensuring smooth power conversion, rectifiers enhance the locomotive’s operational efficiency, reliability, and performance. The integration of high-quality rectifiers allows for a stable power supply to various systems, such as traction motors, lighting, and control units. The India-Kazakhstan container train, launched in March 2025, marked a milestone in international freight transport. The collaboration between logistics and rail companies from India, Kazakhstan, Uzbekistan, and Turkmenistan aims to reduce delivery times, offering a more direct and efficient rail connection.
Alternators are essential components in the global locomotive market, generating electricity to power essential systems onboard, such as air conditioning, lighting, and traction control. As a key part of the locomotive’s electrical system, alternators contribute to the overall efficiency and sustainability of the train. By converting mechanical energy into electrical power, they help optimise fuel consumption, reduce operational costs, and ensure smooth locomotive performance. The increasing adoption of electric and hybrid locomotives, along with the push for greener rail systems, has driven the demand for high-efficiency alternators. This trend supports the growth of the global locomotive market.
High Switching Speed and Low Cost of IGBT Modules Driven Segment Growth
Insulated Gate Bipolar Transistor (IGBT) modules provide high efficiency and fast switching, making them ideal for modern electric locomotives. They support compact, lightweight converter systems, reducing energy loss and improving traction control. In December 2023, Indian Railways implemented various energy-saving measures, including IGBT-based propulsion with regenerative braking, LED lighting, and solar geysers. It converted trains to HOG systems, trained staff in energy efficiency, and introduced monitoring tools to enhance overall energy conservation across operations and infrastructure.
Gate Turn-Off (GTO) thyristors offer robust performance in high-power locomotive traction systems. Known for handling large voltages and currents, they ensure reliable operation under demanding conditions. Although being gradually replaced by newer technologies like IGBT, GTOs remain valuable in existing fleets due to their proven stability, long service life, and suitability for regenerative braking systems, making them a key component in many electric locomotive platforms worldwide.
Rising Demand for Passenger Rail Travel Drove Segment Expansion
The passenger segment in the global locomotive market benefited significantly from increasing urbanisation, population growth, and a shift towards sustainable transport. Modern electric and hybrid locomotives offer greater energy efficiency, lower emissions, and enhanced passenger comfort. In April 2025, Iran and Turkmenistan agreed to launch their first cross-border passenger train linking Mashhad and Merv, boosting regional connectivity. They also planned to double freight volumes by 2027, with new infrastructure upgrades to support increased trade across their shared rail networks.
Freight locomotives gained traction in the global market due to the rising need for efficient, high-capacity goods transport across long distances. Their ability to haul heavy loads economically has made them crucial for industries such as mining, agriculture, and manufacturing. Innovations in locomotive technology—like dual-mode engines and digital tracking—have enhanced reliability and reduced operating costs, making rail freight a competitive alternative to road and air logistics.
Rising Demand for Rail Transport Across Asia Pacific Expected to Drive Locomotive Market Growth
North America held a significant share of the global locomotive market due to established rail infrastructure and ongoing investment in modernising fleets. The United States and Canada focused on enhancing rail efficiency and reducing carbon emissions, thereby increasing demand for electric and hybrid locomotives. In January 2025, Canadian National Railway launched a pilot project to test a 3,200-horsepower hybrid locomotive in US yards, aiming to cut fuel use by 50%. The battery-diesel unit, developed with Knoxville Locomotive Works, supported CN’s decarbonisation and emission reduction strategy.
Europe continued to demonstrate strong growth in the locomotive market, driven by environmental regulations and a focus on sustainable transportation. Countries such as Germany, France, and the United Kingdom prioritised the electrification of railways and invested heavily in high-speed rail projects. The European Union's Green Deal and related funding mechanisms encouraged innovation in low-emission locomotives. Moreover, cross-border rail connectivity projects contributed to steady demand, making Europe a major contributor to global locomotive development and sales.
Asia Pacific emerged as the fastest-growing region in the global locomotive market, supported by rapid urbanisation, population growth, and extensive railway development plans. China and India led the region, investing in high-speed rail networks and expanding freight capacity. In August 2024, at the APTRA Summer Networking event in Hong Kong, a fundraising initiative for Smile Train was launched. APTRA pledged to match donations, with guests including top retail brands. KPMG’s Anson Bailey shared insights on Asia Pacific retail trends.
Latin America saw moderate growth, with Brazil, Argentina, and Mexico playing key roles in regional demand. The need to improve freight transportation efficiency, particularly in mining and agricultural sectors, drove investment in new locomotives. Although budgetary constraints affected large-scale expansion, public-private partnerships and international support helped sustain progress. Efforts to modernise outdated fleets and upgrade rail infrastructure contributed to increased locomotive procurement and regional market development.
The Middle East and Africa experienced gradual growth in the locomotive market, fuelled by ongoing investments in railway infrastructure and economic diversification strategies. Countries such as Saudi Arabia, the UAE, and South Africa led the charge, developing urban and intercity rail projects. Wabtec Locomotive Private Limited, a joint venture between Indian Railways and Wabtec, planned to export Evolution Series ES43ACmi locomotives to Africa by 2025. This initiative marked the Marhowra plant’s first global export, enhancing India's role in global locomotive manufacturing.
Key Market Players Focus on Expanding Networks Through Rail Contract Acquisitions
The global locomotive market is home to several key players, each contributing to the industry with cutting-edge technology and innovative solutions. Leading companies include GE Transportation (now part of Wabtec Corporation), a prominent provider of diesel and electric locomotives, known for their commitment to sustainability and efficiency. Another major player is Siemens Mobility, renowned for its high-speed trains and electrification technologies, with a strong presence in Europe and beyond. Bombardier, now part of Alstom, is a key manufacturer of both passenger and freight locomotives, recognised for their advanced train systems and innovative design. Other notable companies include Alstom, a global leader in rail transportation, which manufactures a range of locomotives, including electric, hybrid, and hydrogen-powered units. Caterpillar, through its subsidiary Progress Rail, also plays a significant role in the market, providing both locomotives and rail-related services. Additionally, Hitachi Rail is a major contributor to the locomotive market, offering a variety of locomotives and signalling systems worldwide. These companies continue to drive advancements in locomotive technology, focusing on sustainability, efficiency, and automation to meet the growing demands of the global rail industry.
Alstom, with its global headquarters in France, is a leader in the transportation industry. The AGV, Avelia, TGV, Eurostar, and New Pendolino high-speed trains, as well as regional, suburban, and metro trains, and Citadis trams, are all produced by this rolling stock manufacturer, which was founded in 1928 and is active in the passenger transportation, signalling, and locomotives industries.
Wabtec Corporation, headquartered in the United States, is a major global supplier of machinery, systems, digital solutions, and value-added services. The scope of Wabtec's operations spans the whole rail sector. The business produces locomotives with a maximum power of 4,000 horsepower and also provides aftermarket services, including maintenance and logistics assistance.
Siemens Mobility, a German company, empowers operators to define passenger and freight transportation today with trains, infrastructure, and automation solutions for all rolling stock. It covers trams, commuter and regional trains, light rail, metro, high-speed and extremely high-speed trains, as well as associated services. Siemens Mobility continuously updates its offering in its primary business segments, including rolling stock, turnkey systems, rail automation and electrification, intelligent traffic systems, and related services.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
“Locomotive Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Propulsion Type
Market Breakup by Technology
Market Breakup by Component
Market Breakup by End User
Market Breakup by Region
Upto 15% Off
USD
$2499 $2249
$3999 $3599
$4999 $4249
$5999 $5099
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
Get in touch with us for a customized solution tailored to your unique requirements and save upto 35%!
In 2025, the market reached an approximate value of USD 19.53 Billion.
The locomotive market is assessed to grow at a CAGR of 9.10% between 2026 and 2035.
The market is estimated to witness healthy growth in the forecast period of 2026-2035 to reach a value of around USD 46.66 Billion by 2035.
Rapid urbanisation and expansion of rail transportation are driving market growth.
Rising growth in industrial and mining activities and widening the network of railways are the key industry trends propelling the growth of the market.
The major regions in the market are North America, Europe, the Asia Pacific, Latin America, the Middle East and Africa.
The major players in the industry are Alstom, Siemens Mobility, Wabtec Corporation, Toshiba Infrastructure Systems & Solutions Corporation, CZ LOKO, A.S., Hyundai Corporation, American Locomotive Company, TMH, CRCC Corporation, CAF, Stadler, Kawasaki Heavy Industries Ltd., and Titagarh Wagons, among others.
A small railroad locomotive used for manipulating railroad cars within a rail yard is known as a switcher, shunter, switch engine, yard goat, yard pilot, or shifter.
A locomotive is a unique kind of train car that drives the entire train. The locomotive can move independently by burning fuel, using electricity, magnetic levitation, or other means of energy generation. A train, on the other hand, is a group of linked automobiles that travel down a railroad track while carrying passengers or cargo. Although some trains, like multiple units, can move on their own, locomotives are usually used to pull or push trains.
In rail transportation operations, locomotives are primarily used for switching/shunting, transporting freight trains, and hauling passenger trains.
Asia Pacific is the leading region of the global market.
Passenger was the leading end-user segment.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
| Breakup by Propulsion Type |
|
| Breakup by Technology |
|
| Breakup by Component |
|
| Breakup by End User |
|
| Breakup by Region |
|
| Market Dynamics |
|
| Trade Data Analysis |
|
| Competitive Landscape |
|
| Companies Covered |
|
Datasheet
One User
USD 2,499
USD 2,249
tax inclusive*
Single User License
One User
USD 3,999
USD 3,599
tax inclusive*
Five User License
Five User
USD 4,999
USD 4,249
tax inclusive*
Corporate License
Unlimited Users
USD 5,999
USD 5,099
tax inclusive*
*Please note that the prices mentioned below are starting prices for each bundle type. Kindly contact our team for further details.*
Flash Bundle
Small Business Bundle
Growth Bundle
Enterprise Bundle
*Please note that the prices mentioned below are starting prices for each bundle type. Kindly contact our team for further details.*
Flash Bundle
Number of Reports: 3
20%
tax inclusive*
Small Business Bundle
Number of Reports: 5
25%
tax inclusive*
Growth Bundle
Number of Reports: 8
30%
tax inclusive*
Enterprise Bundle
Number of Reports: 10
35%
tax inclusive*
How To Order
Select License Type
Choose the right license for your needs and access rights.
Click on ‘Buy Now’
Add the report to your cart with one click and proceed to register.
Select Mode of Payment
Choose a payment option for a secure checkout. You will be redirected accordingly.
Gain insights to stay ahead and seize opportunities.
Get insights & trends for a competitive edge.
Track prices with detailed trend reports.
Analyse trade data for supply chain insights.
Leverage cost reports for smart savings
Enhance supply chain with partnerships.
Connect For More Information
Our expert team of analysts will offer full support and resolve any queries regarding the report, before and after the purchase.
Our expert team of analysts will offer full support and resolve any queries regarding the report, before and after the purchase.
We employ meticulous research methods, blending advanced analytics and expert insights to deliver accurate, actionable industry intelligence, staying ahead of competitors.
Our skilled analysts offer unparalleled competitive advantage with detailed insights on current and emerging markets, ensuring your strategic edge.
We offer an in-depth yet simplified presentation of industry insights and analysis to meet your specific requirements effectively.
Share