FMI predicts that demand for battery-powered trains will increase in the coming years as locomotive operators look for more sustainable and energy-efficient solutions. Furthermore, the increased electrification of trains and a rise in the allocation of railway budgets for train modification is estimated to further fuel the growth of the market through 2033, FMI noted.
“Latest technology setups and heavy investment for developments in railway infrastructure are likely to curate a favorable market for the growth of the train battery industry,” noted an FMI analyst.
However, it has been identified that some aspects are likely to deter market growth. This includes stringent regulations from the government and the high maintenance costs involved, coupled with high capital investments.
The report also predicted that the lithium-ion battery segment by battery type category is projected to hold a dominant share of the market. Currently, the segment is advancing at a CAGR of 13.1% in 2023. The auxiliary battery segment by application type is also likely to hold dominant shares and account for a market share of 66.4% in 2022.
Other key takeaways include the US emerging as the leading country with a market share of 18.1% in 2023; and the train battery market in Europe is estimated to foster at a moderate pace, registering a CAGR of 3.1% through 2033.