Railway Equipment Prospect
Presently, the global railway sector is experiencing steady growth, particularly in equipment and maintenance services. According to UNIFE estimates, the average annual fixed investment from 2015 to 2017 is expected to reach around 1190 billion euros, marking a 9% increase compared to the average annual investment from 2012 to 2014. Unlike China, where infrastructure investment holds a high proportion, the global market exhibits the highest market share in railway vehicles (32.7%) and related services (37.8%). This market structure is conducive to the expansion of overseas markets for Chinese railway equipment manufacturers.
Chinese Railway Equipment Manufacturers Are Still in Need of Emerging Markets In terms of export orders, emerging markets currently represent 80%, while developed markets comprise 20%. Urban rail vehicles (30%) constitute the primary segment of exports, followed by locomotives and domestically developed high-speed trains. However, Chinese railway manufacturers have yet to penetrate the export market for high-speed bullet trains. Thus, focusing on emerging markets remains imperative in the short term, although the scale of opportunities in developed countries is larger.