Tram systems, also known as streetcars, are a popular form of public transport used for passenger transport within urban areas and neighbouring municipalities. Trams provide a comfortable, affordable, and environment-friendly mode of public transport. They operate on tracks laid along city roads and use electricity drawn through overhead lines. With their dedicated tracks, trams experience fewer delays compared to other modes of transport. Trams also contribute to reduced traffic congestion and carbon emissions.
The global tram systems market is estimated to be valued at 136.67 Bn in 2024 and is expected to exhibit a CAGR of 12.1% over the forecast period 2024-2031. Rapid urbanization and the growing demand for efficient public transportation have driven the adoption of tram systems worldwide. Key players operating in the tram systems market are Alstom, Hitachi Rail, CRRC, Bombardier, Siemens, General Electric, Transmashholding among others.
Key Takeaways
Key players operating in the Tram Systems market are Alstom, Hitachi Rail, CRRC, Bombardier, Siemens, General Electric, Transmashholding. Alstom is a major player providing integrated solutions including trams, signaling, infrastructure maintenance and more. Hitachi Rail is a leading provider of rolling stock, rail systems, service and maintenance solutions.
The growing demand for efficient public transport and reduction of traffic congestion and pollution are fueling the adoption of Tram Systems Market Size globally. Many cities are investing in expanding their tram networks to offer reliable connectivity. For instance, Melbourne invested $1.6 billion to add over 38 km of new lines and upgrade existing infrastructure by 2023.
Countries across Europe, Asia, and North America are witnessing significant expansion of tram networks. Cities like Bordeaux, France and Changsha, China have commissioned new tram lines in recent years. The planned expansion of tram networks in cities like Toronto, Montreal, Boston and Dublin will further boost the global market during the forecast period.
Market Key Trends
The rising focus on developing sustainable mobility solutions is a key trend in the tram systems market. Trams offer a viable eco-friendly alternative to private vehicles and buses for intra-city travel needs. Their ability to run on electricity while emitting negligible emissions makes them attractive for city planners focusing on green transportation. Many cities are prioritizingBus Rapid Transit (BRT) and Light Rail Transit (LRT) including trams over road expansion projects to reduce pollution and congestion. The increasing investments in expanding existing tram networks as well as commissioning new systems will continue driving the global market for tram systems over the next few years.
Porter's Analysis
Threat of new entrants: Low investment requirements make entry easy in this market. However, established players have significant brand loyalty and economies of scale.
Bargaining power of buyers: Buyers have high bargaining power due to the availability of substitutes and undifferentiated products. However, delivery time and reliability are important decision factors.
Bargaining power of suppliers: Suppliers of key components like motors and other electronic parts have some bargaining power due to the specialized nature of products. However, availability of substitute suppliers keeps prices in check.
Threat of new substitutes: Substitutes like metro, monorail and buses pose a threat. However, trams have advantages in certain residential and short-distance routes.
Competitive rivalry: The market has few major players with global presence. Players compete based on reliability, connectivity with other transport modes, and innovation.
Geographical Regions
Europe accounted for the major share in the global market value terms owing to developed tram networks in major countries like Germany, France, UK and others. Cities like Dresden, Stuttgart, Hamburg have well-established tram systems serving thousands daily.
Asia Pacific region is expected to show fastest growth during the forecast period supported by ongoing infrastructure investments and urbanization. Countries like China and India are focusing on developing tram networks, especially in tier 2 and tier 3 cities, to supplement metro and bus services.
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