Railway Equipment Manufacturing in France - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Railway Equipment Manufacturing in France industry analysis

France has a robust Railway Manufacturing industry producing equipment, locomotives and signalling systems for both domestic and European rail operators. Rising rail passenger numbers are causing the French government and private companies like Proxima to pour money into track upgrades and new trains, pushing up revenue. The Société Nationale des Chemins de fer Français, France’s national rail operator, is stepping up investment in the network to address inequalities between Paris and other regions, leading to the creation of lucrative long-term contracts, cementing order books for rolling stock manufacturers. Alstom is the main beneficiary of these contracts, securing a contract worth €300 million to build new trains and equip two metro lines in the Île-de-France region between 2023 and 2035, which includes the latest signalling technology. Import competition is sizeable, as China’s CRRC Corporation competes for European contracts with Alstom SA responding by acquiring competitor, Bombardier to be able to secure contracts. Still, revenue is projected to decline at a compound annual rate of 8.8% over the five years through 2025 to €2.1 billion, including forecast growth of 16.1% in 2025. The drop in revenue is due to the way payments are made to train makers, with instalments made periodically and a large payment made at the end of the project – large companies holding strong order books indicates future revenue growth. The average profit margin is expected to be 10.9% in 2025, a rise over the past five years as steel prices have come down and more contracts have been won.

Trends and Insights

• Intense import competition weighs on revenue prospects. Manufacturers come up against competition from foreign companies like China Railway Rolling Stock Corporation, the world's largest manufacturer of rail vehicles, weighing on revenue growth.
• Electric and hydrogen trains present environmentally friendly options. Catering for the electrification of European rail networks has been the primary focus of train manufacturers. Hydrogen-propelled trains are gaining traction as the industry phases out diesel locomotives.
• Large rolling stock companies dominate. Parts suppliers have a small market share compared with the major train makers; Alstom SA, Siemens Mobility Gmbh and Stadler Rail AG all hold lucrative rolling stock contracts for passenger rail companies across Europe.