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Executive Analysis of Implication of Shale Gas on the Global Rail Industry 

  • September 2015
  • 38 pages
  • Frost & Sullivan
Report ID: 3284131

Summary

Table of Contents

Executive Analysis of Implication of Shale Gas on the Global Rail Industry : An Overview of Trends and Powertrain Technologies for Natural Gas in Locomotives

This market insight provides an outlook of growth opportunities in the global rail market for natural gas in the rail industry. Secondary and primary research was conducted, including interviews with suppliers, regulation authorities, and distributors. The study provides key trends, opportunities, and a forecast of rolling stock deliveries for the rail industry. It also highlights the competitive factors and landscape in North America, the primary region for natural gas in rail locomotives. Key conclusions and a future outlook of the market have been provided. The base year is 2015; the forecast period is through to 2022.

Key Findings

Growth in natural gas locomotives is expected to be concentrated in the North American market

- US domestic production of natural gas is expected to exceed imports by 2017.
- Tier-4 emission norms with 2015 deadlines require new technologies and strategies to participate in the market. 2 Dual Fuel Locomotives are likely to soon to become standard
- GE, Cummins, and EMD engines are able to use natural gas through conversion kits from companies such as Westport and GFS Corp.
- New entrants in the market such as Brookeville, MPI, and MP&ES are competing fiercely in the low-emission locomotives market. 3 Growth of natural gas locomotives heavily relies on fuel costs and availability
- Investment in natural gas breaks even earlier only in scenarios where diesel prices are high; if fuel prices are low, it starts losing its advantage.
- Other markets such as Russia and India are also experimenting with natural gas as a primary fuel in rail locomotives. However, growth in other regions is not expected to be comparable to that in North America.

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