(060621) Worldwide Market for Light Rail Vehicles Seeing an Interim Low - Annual Market Volume Sinks to EUR 1.5 billion

In 2005/2006 the annual turnover for procurements of new light rail vehicles was EUR 1.5 billion. Compared to 2002, this represents a minus of more than EUR 200 million / year. At the same time, the number of vehicles supplied in this period fell to less than 700 vehicles / year (a drop of more than 300 vehicles / year). This is the result of the latest study on the worldwide market for light rail vehicles, put together by industry insider SCI Verkehr GmbH.

The worldwide market for new rail vehicles comprises an average annual market volume of almost EUR 20 billion. 7.5% of this market is accounted for by the light rail vehicle segment (LRV). The most important market region for light rail vehicle sales is still Western Europe. Around one third of the annual market volume is realised here. The leading market has been Germany up to now. However, the tough budget situation and the resulting cutbacks in funding have led to a significant slump in demand in this market. In 2006 only 100 vehicles are going to be supplied, this is 150 vehicles less than in 2002. Because of its many new construction projects, between 2002 and 2007 France has developed into the largest LRV market in Western Europe.

Figure 1: Distribution of market volume by world market regions (2002-2007)

For Western European manufacturers the Eastern European market continues to be characterised by non-competitive prices. Nevertheless, Western European suppliers have increasingly been able to hold their ground against the domestic competition.

The North American LRV market is mainly benefiting from new development and upgrade projects currently under construction or in planning, which will bring about an annual LRV market volume of approximately EUR 180 million in the coming years. An interesting aspect in this market is the LRV square metre prices that can be achieved. These are the highest in the world.

In Asia there are plans underway in almost every country. Because of unsettled financing, however, realisation before 2011 is highly unlikely in most cases.

"From 2010 onwards the number of vehicle suppliers worldwide will notably increase once again", says Alexander Schaeffer, LRV expert at SCI Verkehr GmbH. "The worldwide LRV market will therefore remain an interesting business segment for rail vehicle manufacturers and the supply industry."

A worldwide increase in vehicle prices is becoming apparent due to the growing use of high-quality components and western standards.

The previous trend towards low-floor vehicles is continuing. However, a clear trend away from 100% low-floor vehicles can be seen, as the susceptibility to faults of these technically sophisticated vehicles has transpired to be too great. Procurements these days are increasingly placing more value on high reliability and low susceptibility to faults. As, at the same time, vehicles with ground level entry are preferred, transport companies are purchasing more and more vehicles which are only partially low floor.

For more information on the study please visit www.light-rail-vehicles.com