The tram system market comprises vehicles that run on a rail or track along city streets and is a popular mode of public transportation in many metropolitan areas worldwide. Trams provide efficient mass transit options with low carbon footprints benefitting urban planning and sustainability goals. They help reduce road congestion and air pollution through their electrically-powered systems. Trams allow for higher passenger carrying capacities than buses and provide seamless connectivity within cities.
The Global Tram Systems Market Is Estimated To Be Valued At US$136.67 Bn In 2024 And Is Expected To Exhibit A CAGR Of 12.1% Over The Forecast Period From 2024 To 2031
Key Takeaways
Key players operating in the Tram Systems are Bombardier Corporation, CRRC Corporation Limited, Hitachi Rail, Ansaldo STS, BYD Company ltd, General Electric, Alstom S.A., Thales Group, SIEMENS AG, Mitsubishi Electric, and ABB. These companies are investing in new product developments and innovations to meet the diverse needs of tram operators around the world.
The efficient public transportation solutions in urban areas is driving the
Tram Systems Market Growth. Trams help reduce traffic congestion and carbon emissions, in line with sustainability goals of many cities. Additionally, trams offer higher passenger carrying capacities compared to buses and interconnect various areas seamlessly within city limits.
Many cities across Europe, Asia Pacific, and Latin America are investing in tram infrastructure expansion projects. This is expected to boost the global tram systems market during the forecast period. Countries like China, India, Brazil, and several nations in Western Europe are focusing on tram systems to accommodate their growing urban populations.
Market Key Trends
One of the key trends in the Tram Systems Market Challenges And Opportunitiesis the increasing use of renewable energy sources like solar and wind to power trams. This helps reduce operational costs as well as the carbon footprint of tram services over time. Battery-powered trams are also gaining popularity and certain models can operate for longer periods without recharging compared to electric buses. Innovation and adoption of green technologies will remain important for future growth prospects of this market.
Porter’s Analysis
Threat of new entrants: High initial capital requirements in infrastructure and technology or vehicle manufacturing discourage new entrants in the industry. Bargaining power of buyers: Large transport networks and municipalities have significant bargaining power over tram system suppliers due to their purchasing power and potential for bulk orders. Bargaining power of suppliers: Suppliers of key components like rail, propulsion systems and signaling equipment have some bargaining power due to differentiated products and technologies controlled by few large companies. Threat of new substitutes: Transport alternatives like buses, underground metro and light-rail networks pose some threat of substitution, depending on city geography and population density. Competitive rivalry: Intense competition between major global players and some regional manufacturers to capture contracts for new tram networks or system upgrades in expanding urban markets.
The European region accounts for the largest share of the global tram systems market in terms of value. Countries like Germany, France, UK, Italy, Spain, Poland and Czech Republic have extensive existing tram networks as well as new infrastructure projects underway. The Asia Pacific region is expected to grow the fastest, led by rapidly urbanizing nations such as China, India and several Southeast Asian countries investing heavily in public transit solutions to address mobility needs. Tram systems are finding applications not just for intra-city transport but also inter-city rail corridors. The North American region is also witnessing a tram renaissance of sorts after decades of preference for buses and subways, with new projects launched recently in cities like Toronto, Portland and Washington D.C.
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- *Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author – Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc. LinkedIn Profile