Railway Coupler Market Size, Share & Trends Analysis Report By Type (Semi-permanent, Automatic, Manual), By Application (Regular passenger train, High-speed train, Freight train, Subway Train, Other), By Sales Channel (Direct channel, Distribution channel) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global railway coupler market size was valued at USD 4045 million in 2022. It is projected to reach USD 5638 million by 2031, growing at a CAGR of 3.76% during the forecast period (2023–2031).

A coupler is a device that connects two things, especially mechanical components or systems. The railway coupling is a mechanism used for connecting rolling stock in the trains including passenger trains, high-speed trains, and freight trains. These couplers are available in two types: semi-permanent railway couplers and automatic railway couplers.  They are coupled by hand using a hook and link system. The cars have buffers, one at each end which is pulled together and compressed by the coupling device.

The increasing dependence of companies on the import of raw materials for manufacturing final products in countries where raw materials are inadequately available is expected to increase the freight transport by railway, which, in turn, propel the demand for railway couplers. For instance, almost all the industrial sectors in Sweden are largely dependent on imported raw materials. At the same time, the country is strongly focusing on increasing revenue generation through exports. Thus, increasing imports and exports have created pressure on the global freight transport system. Similarly, Japan has also witnessed a continuous rise in the imports during 2010–2014 owing to increasing industrialization in the region.

Market Dynamics

Market Drivers

Growing Demand and Need for Virtual Coupling Drives the Global Market

The market for railroad couplers is expanding to accommodate the growing popularity of virtually linked trains. The idea is that trains can run closer together without colliding. Virtual coupling maximizes the utilization of the pre-existing rail network by utilizing a rendezvous manoeuvre while in motion. When used for rail freight services, the virtual coupling has the potential to improve efficiency by cutting down on both travel time and money. On the other hand, virtually linked trains only take up one slot, whereas freight trains operating take up multiple slots. Several nations are investing in railway projects to enhance domestic & global connectivity and logistics channels, even though the notion of virtual coupling is still in the research and development stage.

Market Opportunities

New Railway Projects Creates Tremendous Opportunities 

Multiple railway projects, including brand-new lines and the doubling of existing ones, have been given the green light by the government of India. China is also spending extensively on building railway networks connecting several Asian and European countries. Similarly, other countries are in various stages of designing, developing, and building brand-new railways. Thus, spending on new railway projects will drive future market expansion. Significant investments are needed for railway construction, which adds a significant financial strain to the national economy. Delays in completing railway projects affect the demand for railway couplers, slowing the expansion of the industry.

Regional Analysis

Geographically, the Railway Coupler Market has been segmented into North America, Europe, Asia Pacific, and Latin America and the Middle East & Africa (LAMEA).

North America is expected to hold a significant share of the global railway couplers market during the forecast period owing to rapidly developing rail freight industry, especially in the U.S. and Canada. The governments of these countries are spending and investing huge capital in building, maintain, and expand rail freight networks, which, in turn, will drive the demand for the railway couplers. Furthermore, the development of high-speed train routes in the U.S. will thereby propel the railway couplers market growth in this region. In September 2018, the Brightline Trains, a private rail company, opened its first high-speed rail routes in Florida, the U.S. Moreover, the U.S. is planning to build a 27,000 km national high-speed rail system in four phases by 2030.

Europe is expected to witness considerable growth during the forecast period owing to increasing demand for high-speed rail as a popular and efficient means of transport. TGV is one of the fastest trains in the world, which reach up to 320 kilometres per hour and are the most efficient way to explore the regions of France. For instance, in September 2018, France has approved USD 15.6 billion of investment into five new high-speed rail TGV lines. The high-speed rail budget grew by 40% in the last five-year. Therefore, the rising expansion of high-speed train is flourishing the railway couplers market in Europe.

Asia Pacific is expected to dominate the global railway couplers market revenue and is expected to grow at a CAGR of 3.6% during the forecast period. The Indian railway is expanding its network. According to the Indian Brand Equity Foundation, the route length network of Indian railways is spread over 115,000 km, with 12,617 passenger trains and 7,421 freight trains each day from 7,349 stations plying 23 million travelers and 3 million tons (MT) of freight daily. Therefore, the rising rail network is likely to fuel the growth of the global railway couplers market. Additionally, the government of India has approved several railway projects such as new lines and doubling of existing lines.

The Middle East and Africa are expecting a steady growth during the forecast period owing to the delays in the execution of the railway projects, which simultaneously affects the demand for the railway couplers. For instance, in March 2018, more than USD 200 billion were invested in 2,117km-long GCC railway network linking the UAE with Saudi Arabia will open by the end of December 2021. Moreover, Saudi Arabia is in the process of starting the high-speed rail line, which therefore increases the demand for railway couplers.

Segmental Analysis

The railway coupler market has been segmented by type, application and sales channel.

Based on type, the railway coupler market has been segmented into semi-permanent, and automatic. The semi-permanent couplers ensure a permanent mechanical and pneumatic connection between the vehicles. It is not necessary to uncouple it unless an emergency or maintenance requirement.

The demand for the semi-permanent couplers is expected to increase during the forecast period. These couplers are mostly used for bogie in a passenger train rather than for engine and the number of the bogie is more than the engine. Thus growing use of the railway for travelling is likely to upsurge the demand for railway couplers in the near future. For instance, in April 2017, in India, more than 70 million passengers travelled in trains.

In terms of application, the railway coupler market has been segmented into a regular passenger train, high-speed train, freight train, and others. The coupler connects two coaches with each other in a regular passenger train. This train travels a very short distance as compared to others. To improve safety measures and provide a smooth ride, these couplers are fitted in the train.

A freight train coupler is mainly used to carry the loads, where safety and comfort do not matter as compared to the high-speed trains. Therefore, freight train coupler has relatively less demand in the market. SA3 Coupler is a type of railway coupling majorly used for railcars, freight, and heavy-load transport. It is mainly equipped with a modified coupler head and energy absorption systems, which is integrated with various automation system to improve its efficiency. 

By the sales channel, the railway coupler market has been segmented into the direct channel and distribution channel. A distribution channel is a chain of businesses or mediators through, which goods or services pass until it reaches the end consumer. It mainly includes retailers, wholesalers, distributors, and even the internet. A distribution channel helps in increasing the products and services portfolio, which are available to end-customers.

Impact of covid-19

The pandemic led to a temporary lockdown of the nations, which on a wide scale hindered the verticals of businesses and the industry. The automobile industry, which primarily involves outdoor jobs, has been poorly exposed to the challenges that have contributed to a dramatic decrease in car sales. Furthermore, the instability of the supply chain market mainly due to the closing of national and foreign borders and the adherence to the decision not to use Chinese produced products hampered the growth of the market. However, the considerable spike seen in the sale of the automotive vehicle to limit the usage of public and crowded places may positively affect the growth of the market in the upcoming years.

Recent Developments

• In November 2021, Escorts Limited and Kubota Corporation reaffirmed their commitment to their long-standing collaboration. Kubota's investment in Escorts Limited has grown.
• In November 2022, with the purchase of Super Metal, Wabtec expanded its portfolio of railway maintenance services.