Light Rail market gaining popularity

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Per Trains NewsWire:

Research: Light rail transit market in North America gaining popularity



MOUNTAIN VIEW, Calif. – A new study shows light rail transit is gaining popularity across North America. The analysis from transportation consultant Frost & Sullivan "Strategic Analysis of Light Rail Transit in North America," finds that the light rail transit vehicles market revenue was $8.48 billion in 2012 and estimates this to reach $11.50 billion by 2020. The research covers the light rail and streetcar segments in North America, the second largest market after Europe.

"With the introduction of Moving Ahead for Progress in the 21st Century Act (MAP-21), the U.S. Federal Transit Authority has streamlined its approach to administer its capital public transportation program for expanding transit systems, as such light rail transit will be one of the benefactors. Replacement of aging light rail rolling stock will also propel the North American light rail transit market in the coming decade," says Frost & Sullivan Automotive & Transportation Research Analyst Sundar Shankarnarayanan. "Although the average age of light rail transit vehicles in the U.S. and Canada is currently 16 years, this will gradually reduce due to new procurements. This will give the region a younger fleet by 2020."

Frost & Sullivan says urban light rail transit systems will have to compete with bus rapid transit systems for market share. Bus rapid transit has a similar capacity of 20,000-25,000 passengers per hour, but costs four times less to construct than light rail, according to the report. Nonetheless, the federal government is now extending more funding support to the market with the release of the MAP-21.