May 23, 2024
Tram Systems Market

Tram Systems Market is Estimated to Witness High Growth Owing to Increasing Urbanization

The tram systems market comprises trams or streetcars that run on tracks in public urban traffic. Tram systems offer low-cost, environmental-friendly, and efficient mobility solutions to transport people within cities over short-medium distances. Trams systems are integrated into public transport networks to fill the gap between underground/rail and bus. They have lower infrastructure costs as compared to metro rails and offer higher capacity than buses. Trams are gaining traction in many cities worldwide owing to benefits like reduced congestion and carbon emissions.

The Global tram systems market is estimated to be valued at US$ 304.72 Bn in 2024 and is expected to exhibit a CAGR of 12.% over the forecast period from 2024 to 2031.

Key Takeaways

Key players operating in the Tram Systems Market Size are Bombardier Corporation, CRRC Corporation Limited, Hitachi Rail, Ansaldo STS, BYD Company ltd, General Electric, Alstom S.A., Thales Group, SIEMENS AG, Mitsubishi Electric, and ABB. Key players are focusing on expanding their product portfolio and entering new markets through partnerships and mergers & acquisitions to gain market share.

Growing urbanization and increasing investments by governments worldwide in development of public transport infrastructure offer significant growth opportunities for players in the tram systems market. Rapid infrastructure development initiatives like smart cities further drive the adoption of efficient mobility solutions.

Global expansion of tram networks to new cities is expected during the forecast period. Many European and Asian countries are investing heavily to introduce or expand tram networks. Meanwhile, trams are regaining popularity in the North American markets after years of decline. Growing environmental consciousness is a key factor favoring adoption of electric mass transit systems globally.

Market Drivers

The increasing urbanization worldwide is one of the major drivers of the tram systems market. With over 50% of world’s population now residing in urban areas, municipal authorities are investing heavily in development of robust public transport networks to address mobility challenges. Tram systems help overcome infrastructural limitations in dense city areas and their low-cost per km makes them an attractive choice for expanding mobility ecosystem.

PEST Analysis

Political: The tram systems market is impacted by government policies and regulations regarding public transportation infrastructure development and upgrade. Favorable transport policies boost market growth.

Economic: A growing economy and rising disposable incomes increase consumer spending on public transit, thereby driving the tram systems market.

Social: Rapid urbanization is increasing the demand for efficient and sustainable urban transport systems. Tram systems help address traffic congestion issues and reduce pollution.

Technological: Advancements in tram technologies such as development of lighter, energy-efficient, and autonomous trams are expanding the potential of tram systems. Integration of IT systems is enhancing tram operations and management.

Geographical concentration
Europe accounts for a major share of the global tram systems market value owing to well-established tram networks across many cities in countries like Germany, France, and the UK. The region is an early adopter of advanced tram technologies.

Fastest growing region
The Asia Pacific region is expected to witness the fastest growth in the tram systems market during the forecast period. This can be attributed to infrastructure development projects and initiatives to establish tram networks in densely populated cities across emerging economies like China and India to reduce pollution and traffic congestion.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it