HIGH-SPEED train developments in South East Asia and rising US demand for freight locomotives are helping to create boom conditions in the railway supply industry, new European research has shown.

A study for the European Rail Industry Association (UNIFE) predicts continued strong growth for the entire rail supply industry to 2016.

Commenting on publication of the new study, UNIFE Director-General Michael Clausecker said in Brussels: “Our study shows robust growth will continue globally for the foreseeable future.”

He added: “The study’s findings prove that politicians, investors, business leaders and the public are realising the importance and benefits of investing in rail as a sustainable means of transport. 

“Not only that but they see rail investment as a means to facilitate greater mobility, to sustainably tackle climate change and as a proven stimulant for increasing economic growth.”

The study surveyed market experts in rolling stock, railway infrastructure and services in 50 countries, representing 95 per cent of the global market for railway technologies.

The study’s author, Andreas Schwilling, of Roland Berger Strategy Consultants says that from 2006 to 2007 the industry witnessed a nominal growth rate of 9 per cent — with the total accessible world market leaping from €71.8 billion (£58bn, $102bn) in 2005 to €86 billion (£70bn, $123bn) in 2007.

“What’s clear is that from the data we’ve analysed, we’re seeing and will continue to see the rail supply industry performing well in the coming years with 2.5 per cent to 3 per cent growth per annum being added until 2016.  By then we expect the market volume to total  €111 billion (£90bn, $158bn),” said Mr Schwilling.

Michael Clausecker added: “Globally, we’re going to see high-speed train orders increasing by between 2 per cent and 2.5 per cent year-on-year until 2016 and, at the same time, we’re also going to see services increase by similar figures.  We see huge possibilities opening up, and high-speed rollout will be the area to watch, as it offers in many cases a real alternative to air and road transport.”

Mr Clausecker said: “The locomotive and rolling stock market will expand significantly in emerging industrial nations and it will be more pronounced in Eastern Europe. There will be growth rates of almost 7 per cent yearly in this segment in this market by 2016.” 

Next up, according to the survey, is the Middle East and Africa — with a figure of 6 per cent yearly — followed by an increase of 5.5 per cent in the Asia-Pacific region.

Michael Clausecker concluded:  “If there is one simple key message to be interpreted from the study it is this: rail is going through not only a global rollout renaissance, but also a fascinating technological revival.”

•  A summary of the full worldwide rail market study for UNIFE is available at
http://www.unife.org/uploads/2008/WRMS_flyer.pdf