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Sunday, July 12, 2020

Chinese rail market growing despite falling HSR investment

The Chinese railway market is growing ‘stably’ despite a levelling out of investment for high-speed rail, a new report has found.

A study published by global consultancy SCI Verkehr suggests that the after-sales market and regional and urban transport sectors were particularly strong.

‘The Chinese Market’ estimated China’s rail technology market at €26 billion, with a predicted growth of 4 per cent a year.

“In the past few years, China has developed into the largest and one of the most dynamic rail markets in the world,” according to SCI Verkehr.

“There have been massive investments in the rail sector, especially in high-speed systems. Investments reached an enormous peak in 2010 of €100 billion. Since then, investments for rail technology in China have been reducing, but have overall remained noticeably above the 2008 level in the years following 2012.

“Whereas in previous years investments were primarily in high-speed and long-distance passenger rail transport, China’s investments in the coming five years will focus on regional passenger rail and urban transport. Besides the market for metro vehicles which has been growing for years, new growth segments will emerge within the rail industry, such as multiple units for regional transport and light-rail vehicles. The after-sales market will also grow dynamically due to rapidly growing fleet sizes and network lengths.”

The study also recognised China’s rail growth overseas, suggesting that recent acquisitions pointed to a possible entry into the European market. In June, Chinese rail manufacturer Masteel took over French wheelset manufacturer Valdunes and the report predicts more acquisitions by Chinese companies in the coming months and years.


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