Light Rail Market Report 2025 (Global Edition)

Global Light Rail Market Report 2025 Market Size Split by Capacity Type Outlook: (Low Capacity Light Rail, High Capacity Light Rail), by Application Outlook: (Passenger Transportation, Freight Transpo...

Light Rail Market Report Description

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Light Rail Market Insights Video

Competitive Landscape of the Light Rail Market

The light rail market is characterized by fierce competition amongst major firms that are using a variety of business tactics to improve their market positions. Major companies are concentrating on joint ventures, mergers, and acquisitions in order to increase the range of products they offer and enter new markets. Businesses are also giving product innovation priority in order to satisfy the changing demands of urban mobility, with a focus on energy-efficient and sustainable solutions. The development of new manufacturing facilities to increase production capacities, significant investments in R&D to create cutting-edge technology, and supply chain optimization to lower costs and speed up delivery are examples of strategic projects. Enhancing product portfolios, expanding market shares, and fortifying their worldwide presence are the goals of these initiatives.

In October 2024, Alstom delivered the trains and signalling systems for the Mumbai Metro Aqua Line's commercial launch. More than 1.6 million passengers would be transported daily by Alstom India's driverless Metropolis trains. (Source: https://www.alstom.com/press-releases-news/2024/10/mumbai-metro-aqua-line-inaugurated-commercial-operation-trains-and-signalling-solutions-supplied-alstom) In April 2023, Siemens Mobility secured two distinct contracts from the (GMRCL) Gujarat Metro Rail Corporation Limited for the Ahmedabad Metro Phase 2 and the Surat Metro Phase 1. (Source: https://press.siemens.com/in/en/pressrelease/siemens-consortium-partners-gujarat-metro-rail-corporation-advanced-rail)

Top Companies Market Share in Light Rail Industry: (In no particular order of Rank)

• ALSTOM SA
• CRRC Corp. Ltd.
• General Electric Co.
• Hitachi Ltd.
• Hyundai Heavy Industries Group
• Kawasaki Heavy Industries Ltd.
• Kintetsu Group Holdings Co. Ltd.
• Knorr Bremse AG
• Mitsubishi Heavy Industries Ltd.
• Mott MacDonald
• Parsons Corp.
• Pesa Group
• Samvardhana Motherson International Ltd.
• Schunk GmbH
• Siemens AG
• Stadler Rail Ag
• SYSTRA SA
• Thales Group
• WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORP.
• WSP Global Inc.
• Confidential Data
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*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

If any Company(ies) of your interest has/have not been disclosed in the above list then please let us know the same so that we will check the data availability in our database and provide you the confirmation or include it in the final deliverables.

Regional Analysis of the Light Rail Market

Which Region Dominates the Light Rail Market in 2024?

According to Cognitive Market Research, North America currently dominates the Light Rail market, and the region is expected to have significant growth during the projected period. The market for light rail in North America is expanding significantly due to the growing need for environmentally friendly, sustainable urban transportation options. Light rail systems are becoming more and more popular in cities as a way to ease traffic, cut emissions, and provide accessibility to public transportation. The use of electric and hybrid rail systems, as well as developments in automation and smart technologies, are important themes. Modernizing current infrastructure and extending light rail networks in underserved areas present opportunities. Government efforts and funding schemes for public transportation projects also provide favourable conditions for market expansion across North America.

Which Region is Expanding at the Fastest CAGR?

Asia-Pacific is expected to make significant gains during the projected period, with the greatest compound annual growth rate (CAGR). Due to factors like growing traffic, urbanization, and a growing interest in environmentally friendly transportation options, the Asia Pacific light rail industry is expanding significantly. Governments in nations like China, India, and Japan are making significant investments in the construction and expansion of light rail networks to lower pollution and increase the effectiveness of public transportation. There are opportunities to build new infrastructure, especially in developing nations where urban populations are expanding quickly. Furthermore, developments in smart technology, such as real-time tracking and driverless cars, present additional opportunities for integration and innovation, propelling market expansion in the area.

The current report Scope analyzes Light Rail Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Switzerland, Luxembourg, Rest of Europe)
• Asia Pacific (China, Japan, South Korea, India, Australia, Singapore, Taiwan, South East Asia, Rest of APAC)
• Latin America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East (Saudi Arabia, Turkey, UAE, Egypt, Qatar, Rest of Middle East)
• Africa (Nigeria, South Africa, Rest of Africa)

The above graph is for illustrative purposes only.

North America Light Rail Market Analysis

According to Cognitive Market Research, the global Light Rail market size was estimated at USD 16215.5 Million, out of which North America held the major market share of more than 40% of the global revenue with a market size of USD 6486.20 million in 2024 and will grow at a compound annual growth rate (CAGR) of 3.2% from 2024 to 2031.

• According to Cognitive Market Research, the US had a major share in the Light Rail market with a market size of USD 5117.61 million in 2024 and is projected to grow at a CAGR of 3.0% during the forecast period. Rapid urbanization in cities like New York and Los Angeles creates a need for efficient public transportation to reduce congestion.
• The Canada Light Rail market had a market share of USD 778.34 million in 2024 and is projected to grow at a CAGR of 4.0% during the forecast period. Light rail construction is being aided by significant investments made by Canadian governments in green transportation infrastructure in order to fulfil climate commitments.
• The Mexico Light Rail market is projected to witness growth at a CAGR of 3.7% during the forecast period, with a market size of USD 590.24 million in 2024.

Europe Light Rail Market Analysis

According to Cognitive Market Research, the global Light Rail market size was estimated at USD 16215.5 Million, out of which Europe held the market share of more than 30% of the global revenue with a market size of USD 4864.65 million in 2024 and will grow at a compound annual growth rate (CAGR) of 3.5% from 2024 to 2031.

• The United Kingdom Light Rail market had a market share of USD 817.26 million in 2024 and is projected to grow at a CAGR of 4.3% during the forecast period. The UK faces the challenge of modernizing ageing public transit systems, and light rail is seen as an ideal solution.
• The France Light Rail market is projected to witness growth at a CAGR of 2.7% during the forecast period, with a market size of USD 447.55 million in 2024.
• According to Cognitive Market Research, the German Light Rail market Size was valued at USD 963.20 million in 2024 and is projected to grow at a CAGR of 3.7% during the forecast period. Because of Germany's strict environmental laws, light rail is a well-liked way to cut down on carbon emissions and urban pollution.
• The Italy Light Rail market is projected to witness growth at a CAGR of 2.9% during the forecast period, with a market size of USD 418.36 million in 2024.
• The Russian Light Rail market is projected to witness growth at a CAGR of 2.5% during the forecast period, with a market size of USD 754.02 million in 2024.
• The Spain Light Rail market is projected to witness growth at a CAGR of 2.6% during the forecast period with a market size of USD 398.90 million in 2024
• The Luxembourg Light Rail market is projected to witness growth at a CAGR of 3.6% during the forecast period, with a market size of USD 150.80 million in 2024.
• The Portugal Light Rail market is projected to witness growth at a CAGR of 3.3% during the forecast period, with a market size of USD 102.16 million in 2024.
• The Greece Light Rail market is projected to witness growth at a CAGR of 3.8% during the forecast period, with a market size of USD 58.38 million in 2024.
• The Rest of Europe's Light Rail market is projected to witness growth at a CAGR of 2.2% during the forecast period, with a market size of USD 754.02 million in 2024.

Asia Pacific Light Rail Market Analysis

According to Cognitive Market Research, the global Light Rail market Size was estimated at USD 16215.5 Million, out of which Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 3729.57 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.0% from 2024 to 2031.

• According to Cognitive Market Research, the China Light Rail market Size was valued at USD 1678.30 million in 2024 and is projected to grow at a CAGR of 6.5% during the forecast period. The Chinese government is making significant investments in light rail and other infrastructure projects to increase urban mobility and lower pollution.
• The Japan Light Rail market is projected to witness growth at a CAGR of 5.5% during the forecast period, with a market size of USD 514.68 million in 2024.
• The India Light Rail market had a market share of USD 447.55 million in 2024 and is projected to grow at a CAGR of 8.8% during the forecast period. Reliable public transportation systems like light rail are necessary in India's fast-expanding cities, such as Delhi and Mumbai, which are severely congested.
• The South Korean Light Rail market is projected to witness growth at a CAGR of 6.1% during the forecast period, with a market size of USD 372.96 million in 2024.
• The Australian Light Rail market is projected to witness growth at a CAGR of 6.7% during the forecast period, with a market size of USD 193.94 million in 2024.
• The South East Asia Light Rail market is projected to witness growth at a CAGR of 8.0% during this forecast period, with a market size of USD 257.34 million in 2024.
• The Rest of the Asia Pacific Light Rail market is projected to witness growth at a CAGR of 6.8% during the forecast period, with a market size of USD 264.80 million in 2024.

South America Light Rail Market Analysis

According to Cognitive Market Research, the global Light Rail market Size was estimated at USD 16215.5 Million, out of which Latin America held the market share of around 5% of the global revenue with a market size of USD 810.78 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.4% from 2024 to 2031.

• According to Cognitive Market Research, the Brazil Light Rail market Size was valued at USD 347.01 million in 2024 and is projected to grow at a CAGR of 5.0% during the forecast period. The government of Brazil is concentrating on transportation infrastructure in order to ease traffic congestion and accommodate the country's expanding urban population.
• Argentina's Light Rail market had a market share of USD 136.21 million in 2024 and is projected to grow at a CAGR of 5.3% during the forecast period. Light rail expansion is possible as Argentina looks to update its transit networks to increase connectivity and lower pollution.
• Colombia Light Rail market is projected to witness growth at a CAGR of 4.2% during the forecast period, with a market size of USD 72.16 million in 2024.
• Peru Light Rail market is projected to witness growth at a CAGR of 4.6% during the forecast period, with a market size of USD 66.48 million in 2024.
• Chile's Light Rail market is projected to witness growth at a CAGR of 4.7% during the forecast period, with a market size of USD 58.38 million in 2024.
• The Rest of Latin America's Light Rail market is projected to witness growth at a CAGR of 3.5% during the forecast period, with a market size of USD 130.53 million in 2024.

Middle East Light Rail Market Analysis

According to Cognitive Market Research, the global Light Rail market Size was estimated at USD 16215.5 Million, out of which the Middle East and Africa held the major market share of around 2% of the global revenue with a market size of USD 324.31 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.7% from 2024 to 2031..

• The GCC Countries Light Rail market is projected to witness growth at a CAGR of 5.5% during the forecast period, with a market size of USD 138.80 million in 2024. Light rail demand is being driven by GCC nations' investments in sustainable infrastructure as part of their efforts to diversify their economies away from oil.
• The Egypt Light Rail market is projected to witness growth at a CAGR of 5.0% during the forecast period, with a market size of USD 34.05 million in 2024.
• The South Africa Light Rail market is projected to witness growth at a CAGR of 5.7% during the forecast period, with a market size of USD 51.24 million in 2024. The demand for light rail is rising as a result of the strain that expanding urban populations are putting on the public transportation networks in places like Johannesburg.
• The Turkey Light Rail market is projected to witness growth at a CAGR of 4.2% during the forecast period, with a market size of USD 27.89 million in 2024.
• The Nigeria Light Rail market is projected to witness growth at a CAGR of 3.8% during the forecast period, with a market size of USD 34.05 million in 2024.
• The Rest of the MEA Light Rail market is projected to witness growth at a CAGR of 3.7% during the forecast period, with a market size of USD 38.27 million in 2024.

Light Rail Market Analysis

How are Segments Performing in the Global Light Rail Market?

Light Rail Market Capacity Type Segment Analysis

According to Cognitive Market Research, Low-Capacity Light Rail is likely to dominate the Light Rail Market over the forecast period. Because low-capacity light rail systems are more affordable and more appropriate for suburban and smaller cities. For areas where full-scale metro systems are neither practical nor affordable, these systems are perfect because they can handle moderate passenger levels. Because they may be built more quickly, use less energy, and require less infrastructure investment, low-capacity light rail technologies are appealing to governments looking to increase urban mobility. Furthermore, their ability to adapt to different urban layouts and integrate with current transit networks increases demand, particularly in developing markets and places where commuter needs are increasing but still manageable.

The High-Capacity Light Rail is the fastest-growing segment in the Light Rail Market. As urbanization increases and cities are under more strain to handle an expanding number of commuters, there is a growing need for high-capacity light rail systems. High-capacity light rail is a popular option for densely populated urban areas because it provides an economical and environmentally responsible way to move huge numbers of passengers. When compared to road-based transportation, these systems offer shorter travel times, less traffic, and lower pollutants. Technological developments like energy-efficient propulsion systems and modular designs further increase their allure. High-capacity light rail systems are anticipated to become more widely used as governments and transit authorities place a higher priority on scalable and sustainable public transportation options.

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Light Rail Market Application Segment Analysis

According to Cognitive Market Research, the Passenger Transportation segment holds the largest share of the market. Because of the need for sustainable, economical, and effective urban mobility solutions. Light rail systems are being adopted by cities as a dependable substitute for automobile transportation due to traffic congestion and environmental issues brought on by the growing urban population. With benefits including high capacity, low carbon emissions, and energy economy, light rail is a desirable choice for everyday passengers. Its smooth integration with other public transportation networks also improves convenience and connectivity, which raises demand even more. To keep up with the increasing demands of passengers, both public and private organizations are investing in network expansion.

In the Light Rail Market, Freight Transportation has been expanding at a rapid pace. The market for light rail freight transportation is expanding as cities look for sustainable, effective logistical solutions. Originally designed for passenger transit, light rail systems are now being modified for freight transportation in an effort to lower pollution and traffic on the roads. For last-mile deliveries in crowded cities, this is especially advantageous. By utilizing current infrastructure, governments and corporations are investigating the integration of mixed-use systems or freight-dedicated light rail lines. This need is further driven by the need for sustainable urban logistics and an increase in e-commerce activities. In the light rail market, freight transportation is showing promise due to developments in cargo-specific vehicles and digital logistics management.

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Light Rail Component Outlook: Segment Analysis

Light Rail Market Component Segment Analysis

According to Cognitive Market Research, the Pantograph segment holds the largest market share. Due to the requirement for dependable and effective power collection systems in contemporary urban transit networks. For seamless and continuous operation, pantographs—which transmit energy from overhead wires to rail vehicles—are essential. The use of sophisticated pantograph technologies is growing as light rail networks expand throughout the world and attention shifts to environmentally friendly, electric modes of transportation. Their need is further increased by innovations like aerodynamic designs and lightweight materials, which improve durability and efficiency. The need for pantographs is also increasing as a result of increased investments in modernizing current infrastructure and incorporating smart energy systems.

In the Light Rail market, the rapidly growing sector is Axle. The increasing use of light rail systems around the world as cities place a higher priority on sustainable and effective urban transportation is driving the need for axles in the light rail market. In light rail cars, axles are essential parts that guarantee stability, load-bearing capability, and smooth operation. Strong and long-lasting axles are becoming more and more necessary as a result of increased investments in growing light rail networks, especially in areas with high population density. Technological developments that improve performance and energy efficiency, like lightweight materials and improved designs, are increasing their demand. The need for sophisticated axle solutions is rising as a result of the expansion of high-speed and updated rail systems.

• Pantograph
• Axle
• Traction Motor
• Passenger Information System
• Air Conditioning System

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Sumedha Gosavi

Research Associate at Cognitive Market Research

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