The global locomotive market size was valued at USD 23.9 billion in 2024 and is projected to reach USD 40.70 billion by 2030, expanding at a CAGR of 9.7% from 2025 to 2030. Rising investments in rail network infrastructure by public and private stakeholders remain the primary driver of market growth. In addition, rapid urbanization and the expansion of metropolitan areas—largely due to increasing population density—are accelerating the need for enhanced and efficient rail systems, further supporting demand for modern locomotives.

Government initiatives aimed at upgrading railway infrastructure and deploying next-generation, high-speed locomotives also play a pivotal role in market expansion. For example, in November 2021, the U.S. government announced a USD 1.2 trillion infrastructure investment plan, channeling funding through the Federal Transportation Administration (FTA) over five years to significantly improve national transportation networks.

Locomotive manufacturers are increasingly collaborating with government agencies to develop advanced, sustainable rail technologies. A notable example occurred in February 2023, when Alstom partnered with the Government of Quebec, Charlevoix Railway, Train de Charlevoix, Harnois Energies, and HTEC to develop the Coradia iLint—North America’s first hydrogen-powered passenger demonstration train. Harnois Energies is responsible for producing the green hydrogen required for the train in Quebec City.

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Key Market Trends & Insights

• North America held a significant market share of 34.0% in 2024.
• By technology, the IGBT module segment represented the largest share of the global locomotive market in 2024.
• By component, the rectifier segment accounted for the largest share in 2024.
• By end-use, the passenger segment dominated the market in 2024.

Market Size & Forecast

• 2024 Market Size: USD 23.9 Billion
• 2030 Projected Market Size: USD 40.70 Billion
• CAGR (2025–2030): 9.7%
• Largest Market (2024): North America

Key Locomotive Company Insights

To meet rising demand and remain competitive, locomotive manufacturers are implementing various strategies such as mergers and acquisitions, product advancements, partnerships, and global expansion. Through technological innovation, collaboration with component suppliers, and geographical diversification, these companies are adapting to evolving requirements in freight logistics, passenger mobility, energy, and infrastructure. Such initiatives are helping modernize railway systems, enhance operational efficiency, and support long-term sustainability objectives—ultimately shaping the future of the global rail industry.

• CRRC Corporation Limited (China) is a global leader in rail transportation, producing locomotives, high-speed trains, urban transit vehicles, and freight wagons. Formed in 2015 through the merger of China CNR and China CSR, CRRC continues to innovate in electric locomotives, hydrogen-powered trains, and maglev systems while expanding its international presence.
• Bharat Heavy Electricals Limited (BHEL) (India), a government-owned enterprise, is a key player in manufacturing electric locomotives, propulsion systems, and railway electrification solutions. The company collaborates with Indian Railways to deliver high-power locomotives and energy-efficient rail technologies.

Key Locomotive Companies

• AEG Power Solutions B.V.
• Alstom
• Bharat Heavy Electricals Limited
• CRRC Corporation Limited
• Hitachi, Ltd.
• Mitsubishi Heavy Industries, Ltd.
• Siemens AG
• Strukton
• Toshiba Corporation
• Wabtec Corporation

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Conclusion

The global locomotive market is set for strong growth, supported by expanding rail infrastructure investments, rapid urbanization, and increased government focus on modern and sustainable transportation systems. North America currently leads the market, while technological advancements—such as hydrogen-powered locomotives, improved propulsion systems, and enhanced power electronics—are reshaping industry standards worldwide. As manufacturers adopt strategic partnerships and innovation-driven approaches, the locomotive sector is expected to play a critical role in advancing efficient mobility, reducing environmental impact, and strengthening global transportation networks through 2030.