Railway Traction Motor Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (DC Traction Motor, AC Traction Motor, Synchronous AC Traction Motor), By Application (Diesel Locomotive, Electric Locomotive, Diesel-Electric Locomotive), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 13.01 Billion
CAGR (2026-2031)	5.71%
Fastest Growing Segment	DC Traction Motor
Largest Market	Europe
Market Size (2031)	USD 18.15 Billion

Market Overview

The Global Railway Traction Motor Market will grow from USD 13.01 Billion in 2025 to USD 18.15 Billion by 2031 at a 5.71% CAGR. A railway traction motor is a specialized electric motor designed to convert electrical energy into mechanical energy for the propulsion of rail vehicles, including locomotives, high-speed trains, and mass transit systems. The market is primarily supported by the accelerating global shift toward sustainable transportation and the urgent requirement to decarbonize logistics networks. Governments and operators are prioritizing energy efficiency and the electrification of existing lines to meet stringent environmental mandates, creating a sustained demand for advanced propulsion systems. According to the European Rail Supply Industry Association, in 2024, the global rolling stock segment recorded an average annual market volume of €63.3 billion for the previous triennial period, underscoring the substantial demand for traction equipment.

Despite the positive outlook, the market faces a significant challenge regarding the high initial capital expenditure required for railway electrification infrastructure. Implementing the necessary overhead catenary systems or third-rail networks involves substantial financial outlay and complex civil engineering works, which can delay or limit the deployment of electric traction solutions in developing regions. Consequently, reliance on legacy diesel systems persists in areas where the cost of infrastructure modernization outweighs the immediate operational benefits of electric propulsion.

Key Market Drivers

The increasing electrification of global railway networks is a primary catalyst propelling the traction motor market, as operators aggressively replace diesel-powered fleets with electric alternatives to reduce carbon emissions and operational costs. This fundamental shift necessitates the large-scale deployment of electric traction motors for both new rolling stock and infrastructure upgrades. For instance, according to The Economic Times, December 2025, in the 'Indian Railways nears complete electrification' article, Indian Railways has achieved electrification of 99.2% of its broad gauge network, surpassing major global peers. This modernization drive fuels substantial equipment orders; according to Alstom, January 2025, in the 'Alstom's third quarter 2024/25' press release, the company booked €4.3 billion of orders in the third quarter alone, reflecting the robust global appetite for advanced electric propulsion solutions.

Simultaneously, the surge in high-speed rail corridor development is generating specific demand for high-performance traction motors capable of sustaining rapid acceleration and extreme velocities. Governments are investing heavily in dedicated high-speed lines to enhance intercity connectivity, requiring specialized motors with superior power-to-weight ratios and thermal efficiency. This trend is most visible in Asia; according to the National Railway Administration, January 2025, in the 'China's high-speed railways offer majority of passenger trips in 2024' report, the total length of China's operating high-speed railway network reached 48,000 kilometers. Such expansive infrastructure growth directly correlates with increased procurement of high-speed trainsets, thereby securing a steady revenue stream for traction motor manufacturers focused on this premium segment.

Download Free Sample Report

Key Market Challenges

The high initial capital expenditure required for railway electrification infrastructure constitutes a significant barrier to the growth of the global traction motor market. The deployment of electric traction motors is intrinsically linked to the availability of powered networks, such as overhead catenary systems and substations. Constructing this infrastructure involves immense financial outlays and complex civil engineering works, which often strain the budgets of state-owned operators and private rail companies. When the cost of grid modernization proves prohibitive, railway authorities frequently postpone electrification projects or extend the operational life of legacy diesel fleets, directly reducing the volume of new orders for electric propulsion units.

This economic constraint is particularly evident in regions with extensive non-electrified tracks where the return on investment for full electrification is not immediately realized. The sheer scale of funding needed for basic network upgrades often diverts capital away from the procurement of advanced rolling stock. According to the Association of American Railroads, in 2024, major U.S. freight railroads projected spending over $23 billion on capital expenditures and maintenance, illustrating the massive financial burden associated with sustaining and upgrading rail infrastructure. Consequently, the high costs associated with civil works limit the addressable market for electric traction motor manufacturers by slowing the rate at which rail networks can transition to electric power.

Key Market Trends

The development of specialized motors for hybrid and battery-electric trains is expanding as operators seek to decarbonize non-electrified routes without funding expensive catenary infrastructure. Manufacturers are engineering traction motors with high torque densities specifically optimized for the duty cycles of Battery Electric Multiple Units (BEMUs), allowing trains to operate emission-free on discontinuous lines. This technological shift is generating significant commercial activity; according to Alstom, September 2025, in the 'Alstom awarded a €538m contract in Wellington, New Zealand' press release, the company secured a €538 million agreement to supply 18 Adessia Stream battery-electric trains, confirming the growing reliance on these specialized propulsion systems for regional transit.

Simultaneously, the widespread adoption of Permanent Magnet Synchronous Motors (PMSM) is transforming the market by offering superior energy efficiency compared to traditional induction motors. These motors utilize rare-earth magnets to eliminate rotor excitation losses, resulting in substantial reductions in electricity consumption. The performance advantages are quantifiable; according to CRRC, January 2025, in the '2024 CRRC Top 10 Scientific and Technological Innovation Achievements' report, their newly developed high-torque permanent magnet traction motor system demonstrated a 15% reduction in energy consumption compared to standard asynchronous traction technologies. This efficiency gain drives the replacement of legacy motor systems across global high-speed and metro applications.

Segmental Insights

Based on market intelligence, the DC Traction Motor segment is recognized as the fastest-growing category within the Global Railway Traction Motor Market. This accelerated expansion is primarily driven by the motor's exceptional ability to deliver high torque at low speeds, a critical performance requirement for heavy-haul locomotives and urban light rail systems initiating movement under substantial loads. Furthermore, the segment benefits from the established reliability and comparative cost-effectiveness of Direct Current technology, which remains the preferred solution for numerous diesel-electric locomotive fleets and modernization projects worldwide.

Regional Insights

Europe maintains a dominant position in the global railway traction motor market due to substantial investments in infrastructure modernization and network electrification. The region benefits from strict environmental directives established by the European Commission, which mandate significant reductions in transportation emissions. This regulatory framework drives operators to replace aging diesel fleets with electric alternatives, thereby creating sustained demand for traction motors. Additionally, the concentration of major original equipment manufacturers within the region strengthens the local supply chain, ensuring the efficient deployment of compliant traction technologies across both national and cross-border railway networks.

Recent Developments

• In August 2025, Mitsubishi Electric Corporation commenced the supply of traction systems for the new Double-Decker New Generation (DDNG) trains manufactured by Construcciones y Auxiliar de Ferrocarriles (CAF) for the Dutch operator Nederlandse Spoorwegen. The company began delivering the traction equipment, which included high-efficiency inverters and traction motors, for a fleet of 60 trainsets. This delivery marked a continued collaboration between the Japanese manufacturer and the European railway sector, leveraging their established track record to enhance the reliability and energy performance of the Dutch railway network's passenger services.
• In September 2024, Hitachi Industrial Products, Ltd. announced the commercialization of the world’s first copper die-cast rotor designed specifically for railway traction motors. This breakthrough research focused on replacing traditional aluminum die-cast rotors with copper to achieve higher efficiency while overcoming the manufacturing challenges previously associated with copper die-casting. The new rotor technology enabled a significant reduction in the weight of the traction motors without compromising power output, directly contributing to energy savings and lower environmental impact for railway operators deploying these advanced propulsion systems.
• In May 2024, CRRC Corporation Limited unveiled a heavy-duty electric locomotive characterized by its use of high-torque permanent magnet traction motors. This eight-axle locomotive, developed for the Shuohuang Railway in China, was marketed as the world's most powerful permanent magnet direct-drive electric locomotive, boasting a maximum traction power of 10,400 kilowatts. The integration of permanent magnet motor technology allowed for a significant increase in efficiency and a direct-drive mechanism that eliminated the need for traditional gearboxes, thereby enhancing transmission efficiency and reducing maintenance requirements for heavy-haul freight operations.
• In February 2024, ABB secured a significant contract worth USD 150 million to supply comprehensive traction packages for 65 new six-car passenger trains under the Queensland Train Manufacturing Program (QTMP) in Australia. Awarded by Hyundai Rotem Company, the deal entails the delivery of state-of-the-art traction converters, traction motors, and traction battery systems to power the new fleet. As part of this collaboration, the company also committed to establishing a specialized Traction Center of Excellence in Maryborough, Queensland, to support local manufacturing and service capabilities for these critical railway components.

Key Market Players

• Mitsubishi Electric Corporation
• VEM motors GmbH
• Saini Electrical and engineering works
• Siemens AG
• HYUNDAI ROTEM COMPANY
• Hitachi Industrial Products, Ltd.
• ABB Ltd.
• Sulzer Ltd.
• Alstom SA
• CG Power and Industrial Solutions Limited

By Type	By Application	By Region
DC Traction Motor AC Traction Motor Synchronous AC Traction Motor	Diesel Locomotive Electric Locomotive Diesel-Electric Locomotive	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Railway Traction Motor Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Railway Traction Motor Market, By Type:

• DC Traction Motor
• AC Traction Motor
• Synchronous AC Traction Motor

• Railway Traction Motor Market, By Application:

• Diesel Locomotive
• Electric Locomotive
• Diesel-Electric Locomotive

• Railway Traction Motor Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE