The key driving factors of the Traction Converter Market include the increasing electrification of railways, government initiatives to reduce carbon emissions, and the need for energy-efficient railway systems. With the increasing electrification of railways globally, there is a growing demand for traction converters.
Reduced reliance on fossil fuels results in decreased carbon emissions as a result of the electrification of railways. This is a major factor in the traction converter market's expansion. The need for energy-efficient railway systems is another key driver of the traction converter market. Electric locomotives are more efficient than diesel locomotives and require less energy to operate. They are therefore a more economical choice for railway operators.
The need for the market arises from the increasing demand for technologically advanced propulsion systems in rail vehicles, which has resulted in the development of new and improved traction converters. The market is further driven by government policies and regulations regarding emission standards, which are mandating the use of cleaner and more efficient propulsion technologies in rail vehicles. Additionally, the growing trend of electrification of railway lines is also providing a boost to market growth.
Traction converters are used in locomotives and railcars to convert alternating current (AC) from the grid into direct current (DC) required by the traction motors. They are also used to provide DC power for other onboard systems such as lights, ventilation, and air-conditioning. The main advantages of traction converters are their high efficiency, compactness, ruggedness, and low weight.
Over the projected period, the market for traction converters is anticipated to expand significantly due to the rising demand for electric cars (EVs). Another key element fueling the market's expansion is the surge in government programmes to promote EVs. For instance, the Chinese government has proposed a sales target of 7 million EVs by 2025. Moreover, several countries have announced plans to ban sales of fossil fuel-powered vehicles in the coming years, which is expected to boost the demand for EVs and consequently drive the market for traction converters.
A traction converter is a type of electrical power converter that is used to supply electric traction motors in railway locomotives, trams, and electric road vehicles with the correct DC voltage.
The main function of a traction converter is to convert the alternating current (AC) from the grid into direct current (DC), which is then inverted back to AC to power the traction motors. High-power semiconductor components, such as insulated-gate bipolar transistors (IGBTs) or gate turn-off thyristors, typically make up the inverter stage (GTOs).
Traction converters can be classified into two main types: propulsion converters and integrated compact converters. Propulsion converters are used in locomotives and other rail vehicles where the weight and size of the converter are not significant considerations. Integrated compact converters are used in lighter rail vehicles such as EMUs and metro cars, where weight and space are more important considerations.
The traction converter market is expected to reach USD 14.01 billion by 2031 from an estimated value of USD 10.13 billion in 2021, growing at a CAGR of 5.2% during the forecast period (2021 - 2031).
A traction converter is an electronic device used to convert direct current (DC) electricity into alternating current (AC), which is then used to power electric locomotives.
The rising demand for efficient and clean energy sources is one of the major factors driving the growth of the traction converter market. The increasing electrification of railways and the need for sustainable transportation are also fuelling market growth. However, the high cost of installation and maintenance is restraining the market growth.
The propulsion converter segment held the largest share of the traction converter market in 2020 and is expected to grow at the highest CAGR during the forecast period. The propulsion converter is used in diesel locomotives, electric locomotives, EMUs, metros, and DEMUs to supply power to traction motors. These converters are responsible for providing adjustable DC voltage and current to traction motors as per requirement.
The diesel locomotive application segment held the largest share of the traction converter market in 2020 due to a large number of diesel-powered locomotives globally. Diesel locomotives are widely used in freight applications as they provide higher tractive effort than electric locomotives and are less expensive to operate and maintain. However, electric locom
The restraining factors of the traction converter market are as follows:
-The high cost of manufacturing converters
-The need for skilled labour to operate converters
-The limited number of suppliers of raw materials
-The volatility of the prices of raw materials
However, With the increasing demand for electric vehicles (EVs), the market for traction converters is expected to grow significantly over the forecast period.
Traction Converter Market Key Players:
The key players in the traction converter market are Siemens AG, Hitachi Ltd., Alstom SA, ABB Ltd., and Bombardier Inc. These players are expected to dominate the market during the forecast period.
The Electric Traction Converter segment forms the major portion of the market
The global traction converter market is broadly classified into six segments based on type, namely, propulsion converter, integrated compact converter, power supply unit (PSU), auxiliary power supply unit (APSU), motor control unit (MCU), and traction control unit (TCU). Of these, the electric traction converter segment is anticipated to grow at a higher CAGR during the forecast period.
The increasing demand for the electrification of railways and rising investments in railway
Infrastructure is the major factor driving the growth of the electric traction converter market. The adoption of green energy solutions is another factor fuelling the market growth. Electric locomotives are more environment-friendly than diesel locomotives as they emit no pollutants. This is expected to boost the demand for electric locomotives, thereby propelling the growth of the traction converter market.
Propulsion Converter Segment to be on top of the market
The propulsion converter segment is expected to grow during the forecast period. This growth can be attributed to the increasing demand for traction converters in various applications such as diesel locomotives, electric locomotives, EMUs, metros, and DEMUs.
The propulsion converter segment is expected to grow at the highest CAGR during the forecast period. This growth can be attributed to the rising demand for propulsion converters in various applications such as diesel locomotives and electric locomotives.
The integrated compact converter segment is expected to grow at a significant CAGR during the forecast period. This growth can be attributed to the advantages offered by these converters such as compact size, lightweight, less maintenance, and easy installation.
North America to dominate the market
North America is expected to be the largest market for traction converters during the forecast period.
The region has a large number of railway lines and a large number of diesel-electric and electric locomotives. In addition, the region has many high-speed rail projects under construction or in the planning stage. These factors are expected to fuel the growth of the traction converter market in North America during the forecast period.
Europe is expected to be the second-largest market for traction converters during the forecast period. The region has a well-developed railway network and a large number of electrified railway lines. In addition, several countries in Europe are investing in high-speed rail projects. These factors are expected to boost the demand for traction converters in Europe during the forecast period.
Asia Pacific is expected to be the fastest-growing market for traction converters during the forecast period. The region has a large number of unelectrified railway lines and a large population. In addition, there are several high-speed rail projects underway or in the planning stage in Asia Pacific countries such as China, India, Japan, and South Korea. These factors are expected to drive the growth of the traction converter market in Asia Pacific during the forecast period
Covid-19 Impact & Market Status
The outbreak of the COVID-19 pandemic has resulted in a decrease in demand for traction converters globally. The market is expected to recover from the impact of the pandemic from 2021 onwards. Additionally, the lockdown across various countries has resulted in a decrease in the production of automotive vehicles, which is expected to have a significant impact on the sales of traction converters.
The outbreak of the COVID-19 pandemic has had a significant impact on the traction converter market. The market is expected to witness a decline in demand due to the suspension of railway projects and a decrease in passenger and freight traffic. Moreover, the lockdown imposed by various governments across the globe has led to production disruptions and supply chain disruptions, which are further expected to impact market growth. However, with the gradual easing of lockdown restrictions and the restarting of railway projects, the market is expected to recover in the coming years.
Latest Innovations in the Global Traction Converter Market: A Snapshot
- 2019 – ABB Ltd. acquired ASTA Powertrain AG. This acquisition will help ABB to expand its presence in the traction converter market. ASTA Powertrain AG is a leading supplier of transmissions and powertrains for electric and hybrid vehicles.
- 2019 – Siemens Mobility signed an agreement with Alstom SA. Under this agreement, Siemens Mobility will supply traction converters to power Alstom’s new generation of Coradia Polyvalent regional trainsets for SNCF (French National Railways). This contract is valued at around EUR 90 million.
Traction Converter Market Scope
|Revenue forecast in 2031
|USD 14.01 billion
|CAGR of 5.2% during 2021-2031
|Type, Application, Regions
|North America, Europe, Asia Pacific, South America, Middle East and Africa
|Key Players Profiled
|Siemens AG, Hitachi Ltd., Alstom SA, ABB Ltd., and Bombardier Inc.
Key Segment of Global Traction Converter Market
By Type Overview 2021-2031, (USD Billion)
- Propulsion Converter
- Integrated Compact Converter
By Application Overview 2021-2031, (USD Billion)
- Diesel Locomotive
- Electric Locomotive
- Metro and DEMU
By Region Overview 2021-2031, (USD Billion)
- Rest of Asia Pacific
- Rest of North America
- Rest of Europe
Middle East and Africa