Siemens Mobility Signs $7.3 Billion Contract With Amtrak To Develop Multi-Powered Trains
Railway company Siemens Mobility has signed a contract worth $7.3 billion with rail transport company Amtrak to produce around 83 multi-powered modern trains. The deal also includes an option for manufacturing up to 130 additional trains to assist in Amtrak’s growth plans. Amtrak’s new fleet of trains will come with remote monitoring and fully integrated digital diagnostics offering improved reliability. The fleet is expected to add more than 1.5 million riders per year, and will operate on the US Northeast Corridor, long-distance Palmetto and several state-supported routes. It is to replace Amtrak-owned Amfleet, Metroliner, and state-owned equipment on certain routes throughout the country.[i]
The company expects these advanced features to help reduce trip time, improve efficiency, increase availability, and reduce long-term costs. This deal also includes equipment buying, long-term parts supply and servicing, and facilities modification and upgrade, which is already a growing market globally.
According to data on the Global Market Model, the global train and components market is expected to grow from $196.5 billion in 2020 to $209.7 billion in 2021 at a compound annual growth rate (CAGR) of 6.7%.The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $286. billion in 2025 at a CAGR of 8%.
Western Europe was the largest region in the global train and components market, accounting for 41% of the market in 2020.Asia Pacific was the second largest region, accounting for 39% of the global market. Africa was the smallest region in the global train and components market.
Economic growth and a rapidly growing urban population is expected to increase the demand for new train and components manufacturing during the forecast period. Urbanization increases the demand for luxurious items among the population. Globally, around 60% of the urban settlements remained to be built. Large opportunities are expected to arise in Asian countries such as Indonesia, Vietnam and the Philippines, which are becoming increasing popular for export-oriented manufacturing. According to the World Bank, urban population in South Asia is expected to grow by 250 million by 2030.This rapid urbanization is expected to boost the growth of train and components manufacturing market.
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[i] https://railway-news.com/amtrak-signs-7-3bn-contract-for-new-multi-powered-trains-from-siemens-mobility/