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Regulatory Changes and Rising Costs Drive Advances in Powertrain Technology for Diesel Locomotives and Railcars Finds Frost & Sullivan - Replacement of ageing fleet to create sizeable growth opportunity for alternative powertrain technologies
Regulatory Changes and Rising Costs Drive Advances in Powertrain Technology for Diesel Locomotives and Railcars Finds Frost & Sullivan

 

PRZOOM - /newswire/ - London, United Kingdom, 2011/11/23 - Replacement of ageing fleet to create sizeable growth opportunity for alternative powertrain technologies.

   
 
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The European stage IIIB emission directive for locomotives and railcars will be effective from the end of 2012. Stage IIIB norms require NOX and PM reduction of about 90.0 per cent from stage IIIA levels. Rolling stock and engine manufacturers are planning to use technologies such as exhaust gas recirculation to meet the emission norms. However, as competition heightens, additional alternative technologies are making their way into the rolling stock diesel powertrain.

New analysis from Frost & Sullivan (automotive.frost.com), Strategic Analysis of Alternative Powertrain Technologies in the European Diesel Locomotive and Railcar Market, finds that 10,862 diesel locomotives and 9,314 diesel railcars (new orders and replacements combined) are expected to be delivered by 2020 across Europe.

"The increasing operational and maintenance costs of an ageing fleet are pushing operators to place orders for new rolling stock, allowing for the replacement of locomotives and railcars that are close to retirement," notes Frost & Sullivan Research Analyst Shyam Raman. "Frost & Sullivan analysis has identified 2,326 diesel locomotives in France and Germany alone that are nearing or have crossed 40 years of service."

The average age of all diesel locomotives in France, Germany, Italy, Spain and the United Kingdom is approximately 37 years. There are 10,298 diesel locomotives in these countries that have been in active service for more than 30 years. As fuel costs have risen sharply in recent years, operators and leasing companies are aiming to procure the most energy-efficient and economic rolling stock in their fleet.

"Manufacturers feel that the cost of retrofitting a locomotive with a new engine, transmission and control systems are almost the same as purchasing a new state-of-the-art current generation locomotive," remarks Raman. "However, the biggest disconnect occurs between the demand for locomotives that the operators can afford and the supply that the manufacturers can deliver."

The major challenge faced by the diesel rolling stock industry is to accurately determine market size. Identification of market demand based on ageing stock, requirements and purchasing capabilities of budget-driven leasing agencies, operators and end users is a critical challenge for rail manufacturers.

To meet competition, manufacturers are offering new technologies in their rolling stock. It is expected that technologies like permanent magnet traction motors will become an industry standard by 2017. Manufacturers are incorporating new strategies in their business models as well.

"Standardisation of design platforms for locomotives and railcars has gained prominence, eliminating the need for individual designs," concludes Raman. "They are being shipped off-the-shelf as they have now moved to modular concepts where changes in the product are made as per order requirements."

If you are interested in more information on this study, please send an e-mail with your contact details to Katja Feick, Corporate Communications, at katja.feick[.]frost.com.

Strategic Analysis of Alternative Powertrain Technologies in the European Diesel Locomotive and Railcar Market is part of the Automotive & Transportation Growth Partnership Services programme, which also includes research in the following markets: Strategic Analysis of the European Rail Electrification Market, Strategic Analysis of the European Rail Signalling Systems Market and Strategic Opportunity Analysis of the Russian Rail Market: Implication for the Global Supply Chain. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents.

Strategic Analysis of Alternative Powertrain Technologies in the European Diesel Locomotive and Railcar Market / M6DB-18

 
 
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Regulatory Changes and Rising Costs Drive Advances in Powertrain Technology for Diesel Locomotives and Railcars Finds Frost & Sullivan

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