Analysis of the locomotive repair market in India
The relevance of research
Works on maintenance and repair of locomotives operated on railways are mandatory and strictly regulated in terms of time
Purpose of the study
Analyzing the state of the locomotive repair market in India, assessing the market size, analyzing competitors, and identifying factors affecting the locomotive repair market
Content
Part 1. India Locomotive Repair Market Overview
1.1. Main characteristics of the market
1.2. Dynamics of market volume 2015-2020 Potential market capacity
1.3. Current trends and development prospects of the studied market (including development trends of the private repair depot market)
1.4. Assessment of factors affecting the market
1.4.1. Social factors
1.4.2. Technological factors
1.4.3. Economic forces
1.4.4. Political factors
1.4.5. Conclusions about the influence of factors on the market
Part 2. The largest players in the market in 2019 (TOP-5)
2.1. The level of competition in the market
2.2. The largest players in the market, their profiles
2.3. Market shares of the largest competitors
Part 3. Forecasts and conclusions
3.1. Market Growth Drivers
3.2. Market development forecast until 2025
3.3. Go-to-Market Recommendations
Research excerpt
Part 1. India Locomotive Repair Market Overview
1.1. Main characteristics of the market
The market for locomotive repair services is inextricably linked with the market for locomotives and rail transportation itself. The beginning of the development of the locomotive economy is associated with ...
Overhaul of steam locomotives and wagons was carried out in ...
There have also been changes in...
In modern locomotive depots, as well as in repair shops, …
A locomotive is a traction machine designed to move moving units - wagons, along special guides - a rail track.
Locomotives can be divided according to the following classification criteria:
...
Diagram 1. Structure of the operated locomotive fleet of Indian Railways by type of work performed in 2013-2019, %
For example, in the structure of the fleet of locomotives operated by Indian Railways, … account for … locomotives, while their share … in the period from 2013 to 2019 was …% to …%. In 2019, …% of the fleet was occupied by … and locomotives for .., …% - for locomotives for …
...
The system of maintenance and repair of locomotives of Indian Railways provides for the following types of work:
maintenance of TO-1;
maintenance of TO-2;
...
overhaul of the KR.
The maintenance and repair system for Indian Railways locomotives that have not been taken out of production is determined by ...
For locomotives of Indian Railways, discontinued from production, the following is established:
...
Maintenance TO-1 is performed for ...
...
Current repairs of TR-1 and TR-2 are intended for…
Overhaul of the CD is being carried out for …
Terms of repair and maintenance:
The frequency of maintenance of TO-2 locomotives is regulated by time ...
Rationing the duration and complexity of maintenance and repair of locomotives:
The average norms for the duration and laboriousness of repairing locomotives (hereinafter referred to as the norms) are established ...
Differentiated norms for the duration of maintenance and repair of locomotives for locomotive depots are established by agreement ...
...
As can be seen from the tables, the norms for the frequency of maintenance and repair vary significantly not only for different series of locomotives, but also ...
Medium repairs are carried out for electric locomotives ...
Most locomotive repair companies choose…
1.2. Dynamics of market volume 2015-2020 Potential market capacity
According to ... the total revenue of Indian companies by type of activity OKVED2: (30.20.9) ""Providing services for the restoration and equipping (completion) of railway locomotives, tram motor cars and other rolling stock"" amounted to ... billion rupees in current prices in 2020, which by …% … the level of 2015.
The dynamics of the volume of the locomotive repair market in India at current prices has … character - an indicator ... In 2014 and 2015, the market growth rates were ... Despite the fact that at the end of 2016, which accounted for …, the market growth amounted to …% in current prices, in comparable prices (or in kind, volumes of services rendered) …
… was observed in 2017 and 2018 – during this period, the growth in current and comparable prices exceeded …
Let's analyze the quarterly dynamics, which allows us to explain the performance of 2020.
...
According to the main activity of companies engaged in the repair of locomotives, the following is noted:
- In the 1st quarter of 2020, the level of revenue fell ...;
- In the 2nd and 3rd quarters of 2020, revenue under the considered OKVED2 code ...;
- In the 4th quarter of 2020, demand and, accordingly, revenue show ...
According to … the decline in freight and passenger rail traffic in the first half of 2020 led to … This was largely due to … There was a boom …
To determine the potential capacity of the locomotive repair market, we present information on the degree of its saturation.
...
At the moment, the locomotive repair market is at the stage of ... the life cycle. At the same time, the quality of services is already…
Locomotive repair services…
At the same time, since the physical volume of the market is …, the potential capacity of the locomotive repair market is estimated at the amount of … to the existing volume, that is, within … billion Rs. in 2020 prices.
1.3. Current trends and development prospects of the studied market (including development trends of the private repair depot market)
Among the trends and features of the locomotive repair market, the following can be noted:
- Market annually...
- In conditions ...
...
- In the context of new relationships, service companies ...
- A significant role in improving the efficiency of the entire transportation process is played by …
...
Perspectives:
- development of new...
- for private repair depots ...
- As the experience of foreign countries shows, a comprehensive ...
...
1.4. Assessment of factors affecting the market
Macroeconomic factors affect the dynamics of all sectors of the Indian economy, including the locomotive repair market. The main groups of factors are: economic, political, social and technological.
1.4.1. Social factors
During 2010-2018, there was an increase in the population. The increase in ..% in 2015 compared to the previous year 2014 is due, in addition to natural growth and growth due to migration ... As of January 1, 2021, …% was observed. This factor has … an impact on the market in question.
...
1.4.2. Technological factors
...
Locomotive fleet in India.
The dynamics of the fleet of locomotives operated by Indian Railways during the period under review is …: in 2015 it is noticeably …% compared to 2014. In 2016-2018, the locomotive fleet was stable ... In 2019, … the number of traction stock amounted to …% or … units, the number of operating fleet exceeds …
...
Degree of wear and renewal of traction rolling stock.
Let us consider the dynamics of locomotive fleet renewal at Indian Railways.
Diagram 15. Dynamics of the acquisition of new locomotives by Indian Railways in 2013-2020, units
The dynamics of acquisition of new locomotives by Indian Railways is of … nature – the minimum levels of purchases were observed in … years and in … years, the maximum volumes were noted in … years. At least ... rolling stock was purchased annually.
According to Indian Railways, in the period from 2009 to 2019, the company purchased ...
...
1.4.3. Economic forces
...
1.4.4. Political factors
...
1.4.5. Conclusions about the influence of factors on the market
Let's summarize the main factors influencing the market in the framework of the Step-analysis.
Table 10. STEP analysis of factors affecting the locomotive repair market
In general, the impact of macro factors on the locomotive repair market in India can be assessed as … moderate. Negative influence is exerted by ... Positive influence is exerted by ... The influence of groups of economic and social factors ... The influence of a group of political factors ..., the influence of a group of technological factors ...
Part 2. The largest players in the market in 2019 (TOP-5)
2.1. The level of competition in the market
The reform of railway transport, which began in 2001, also affected the locomotive complex, which …
The main task of the structural reform of the railway transport is …
In order to optimize the activities for the repair of locomotives, the model ...
The first contract for the provision of services was concluded ...
...
Thus, the repair of locomotives in India is carried out ...
As for the level of competition, the Herfindahl-Hirschman index allows assessing the degree of concentration of players in the market - an indicator used to assess the degree of monopolization of the industry. According to the values of the Herfindahl-Hirschman indices, there are three types of market:
Type I - highly concentrated markets: 1800
Type II - moderately concentrated markets: 1000
Type III - low-concentration markets: HHI <1000
For the locomotive repair market, according to GidMarket's calculation, the Herfindahl-Hirschman index is ... in value terms ... - the market is ...
At the same time, JSC Indian Railways, which owns a significant number of locomotives, signed …
Competition in the market in this case can be noticeable in the segment …
2.2. The largest players in the market, their profiles
Let's present a brief information about the Top 5 participants in the locomotive repair market in India in the form of a table.
Table 11. Major players in the locomotive repair market in 2019
According to GidMarket, the largest companies in the locomotive repair market in India in 2019 were: ...
Let's provide more detailed information about the leading market participants.
Company group …
...
Holding Companies…
...
2.3. Market shares of the largest competitors
The main parameters for determining the shares of companies in the locomotive repair market were:
- Revenue ...;
- Estimated share...
Chart 24. Shares of the largest competitors in the locomotive repair market in India in 2019,
According to GidMarket estimates, in the locomotive repair market in India with shares of more than …%, … groups of companies are leading: … (…%) and … (…%) with prisoners … In third place with a share of about …% are companies …
The share of companies ranked from 6 to 10 in the structure accounted for …% of the market. Other companies occupy another …% of the market.
The dynamics of the total revenue of the leading market operators has … character – an indicator… In 2019, the revenue amounted to … billion Rs., which is …% higher than the level of 2018.
The dynamics of the indicator is similar ...
Part 3. Forecasts and conclusions
3.1. Market Growth Drivers
Among the main drivers of market growth (with the exception of price dynamics) for the medium term, the following can be noted:
- Positive dynamics …;
- Gradual recovery…;
- Processes…;
- Recovery …;
- Digitization, …;
- ...
Thus, according to GidMarket, the number and strength of the influence of drivers in the medium term ...
The dynamics of the market in terms of value (current prices) can be largely determined by …
3.2. Market development forecast until 2025
...
3.3. Go-to-Market Recommendations
To understand the degree of attractiveness of the market for entering it, we will conduct a comprehensive analysis of factors.
The most significant positive factors…
The most significant negative factors. …
Thus, ... investment climate factors of the locomotive repair market dominate over ... A comprehensive assessment of investment attractiveness factors is ... points - ... investment climate, but close to the border with .. This means that within the industry under consideration ...
Companies entering the market are advised to…
Diagrams
Diagram 1. Structure of the operated locomotive fleet of Indian Railways by type of work performed in 2013-2019, %
Diagram 2. Dynamics of the volume of the locomotive repair market in India in 2015-2020 (est.), billion Rs.
Diagram 3. Quarterly dynamics of the total revenue of companies according to the OKVED2 code: (30.20.9) “Provision of services for the restoration and equipping (completion) of railway locomotives, tram motor cars and other rolling stock” in 2019-2020, billion Rs.
Figure 4. Life cycle stage of the locomotive repair market
Figure 5. Life cycle of a locomotive
Diagram 6. Population dynamics in India as of January 1, 2010-2021, million people, %
Diagram 7. Population forecast in India for the period 2021-2024, million people
Diagram 8. Dynamics of real incomes of the population of India, 2011 - 2020, % to the previous year
Figure 9. Closed loop control in the ACS ""Network diagram""
Figure 10. Map of the depot with visualization of the status of locomotives in the ACS ""Network Schedule""
Figure 11. Scheme of the processes for obtaining and converting hydrogen into electrical energy
Diagram 12. Dynamics of the number of locomotives operated by Indian Railways in 2013-2019, units
Diagram 13. Dynamics of the number of locomotives used at industrial enterprises (at the end of the year), in 2013-2019, thousand units
Diagram 14. Dynamics of the number of the total fleet of locomotives in India in 2013-2019, thousand units
Diagram 15. Dynamics of acquisition of new locomotives by Indian Railways in 2013-2020, units
Diagram 16. Dynamics of depreciation of the locomotive fleet at Indian Railways in 2010-2019, %
Diagram 17. Dynamics of freight turnover of railway transport in India in 2013-2020, billion t*km
Diagram 18. Dynamics of passenger traffic of railway transport in India in 2013-2020, billion passenger-kilometers
Diagram 19. Dynamics of the average daily performance of a locomotive at Indian Railways in 2014-2019, thousand tkm gross
Diagram 20. Dynamics of India's GDP, 2007-2020, % to the previous year
Chart 21. Monthly dynamics of the US dollar against the rupee, 2015-2021 (Jan-Mar), Rs. for 1 US dollar
Diagram 22. Dynamics of India's IPP in 2014 - 2020, % to the previous year
Chart 23. Dynamics of the size of the average interest rate on loans, 2015-2020 (Jan-Nov), years, %
Diagram 24. Shares of the largest competitors in the locomotive repair market in India in 2019, %
Diagram 25. Aggregate revenue of the Top 5 companies in the locomotive repair market in 2015-2020 (estimate), billion Rs.
Diagram 26. Forecast of the volume of the locomotive repair market in 2021-2025, billion Rs.
Tables
Table 1. Comparison of advantages and disadvantages of locomotives by types
Table 2. Average norms for the duration of maintenance of TO-3 and scheduled repairs of electric locomotives in conditions of locomotive depots for Indian Railways, units rev.
Table 3. Average norms for the duration of maintenance of TO-3 and scheduled repairs of diesel locomotives in conditions of locomotive depots for Indian Railways, units rev.
Table 4. Standards for the frequency of maintenance and repair of locomotives of Indian Railways, discontinued, organizations that hold original operational documentation of which are located in India (electric locomotives), units rev.
Table 5. Standards for the frequency of maintenance and repair of locomotives of JSC ""Indian Railways"", discontinued, the organizations-holders of the original operational documentation of which are located in India (main series diesel locomotives used in freight and passenger traffic), units. rev.
Table 6. Standards for the frequency of maintenance and repair of locomotives of Indian Railways, discontinued from production, organizations holding original operational documentation of which are located in India (mainline locomotives used in shunting work, in economic, export and transfer traffic, as well as shunting locomotives), units rev.
Table 7. Forecasts of various sources for real GDP in India in 2021-2023 (baseline scenario, data for January-March 2021), %
Table 8. CPI for certain types of industrial goods in India at the end of the period in 2014-2020, %
Table 9. Weighted average interest rates of credit institutions on credit operations in rupees, excluding PJSC Sberbank (% per annum), 2015-2020 (Jan-Nov)
Table 10. STEP analysis of factors affecting the locomotive repair market
Table 11. Major players in the locomotive repair market in 2019
Table 12. Profiles of the largest players in the locomotive repair market
Table 13. Main indicators of the forecast for the socio-economic development of India until 2023 (base case), units rev.
Table 14. Assessment of factors of investment attractiveness of the locomotive repair market
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