SOURCE: SBI

SBI

August 24, 2010 10:38 ET

High Speed Rail: U.S. States Outbid $8 Billion U.S. Government Pie, Reports SBI Energy

NEW YORK, NY--(Marketwire - August 24, 2010) - Since the Obama administration awarded $8 billion to states for 13 high-speed rail (HSR) projects, the race has been on for companies and manufacturers to get a slice of the pie. Competition is fierce between Amtrak, the nation's only operator of high-speed trains, and foreign HSR manufacturers eager to win bids in the United States.

The successful installation of a fast moving transportation system is beneficial on two levels. First, it would decrease the nation's reliance on depleting fossil fuels and secondly, HSR would stimulate local economies and drive growth across the U.S. According to SBI Energy's new industry study High Speed Rail Infrastructure Component Manufacturing, the accumulated market value of global HSR manufacturing sectors was $244 billion from 2005 to 2009 and will grow to reach $907 billion between 2010 and 2015.

Nations around the globe are increasing their roll out of high-speed rail initiatives during 2010, making HSR an integral part of their overall transportation infrastructure. Several countries in Europe, for example, currently lacking an HSR system have made commitments to begin construction by the end of the year. In Asia, a multitude of HSR development projects are underway with anticipated completion dates between 2015 and 2020 and of the 17,000 miles of planned HSR track implementations worldwide, nearly 10,000 is allocated for Asia, SBI Energy reports.

The move for high-speed rail in the U.S. will create or save tens of thousands of jobs in areas such as track-laying, manufacturing, planning and engineering, and rail maintenance and operations. Over 30 rail manufacturers, both domestic and foreign, have agreed to establish or expand their base of operations in the U.S. if they are hired to build the country's next generation HSR lines -- a commitment the Obama Administration secured to help ensure new jobs are created in the U.S.

"We expect North America to grow the fastest in the TGV technology sector through 2014, although its total sales pale in comparison to Europe," observes SBI Energy publisher Shelley Carr. "Revenues will increase at a 39% compound annual growth rate (CAGR) to reach $3 billion for the four-year cycle. The lion's share of accumulated market value in technology will come from Europe, which will grow at a 4% CAGR to reach $10 billion by 2014." 

As global expansion of HSR initiatives accelerate through the next decade, manufacturers of HSR components remain cautiously optimistic about their long-term profitability. New developments in HSR and intercity passenger rail could bring a resurgence in railroad engineering and manufacturing that could help to bolster the globe's industrial base.

High Speed Rail Infrastructure Component Manufacturing covers shipments, imports and exports, as well as the economic and market trends driving the HSR manufacturing industry. It identifies key market trends and dynamics, and profiles major market players, outlining their strategies to maximize growth and profitability. The research methodology for this report involved aggregating, synthesizing, and analyzing data from several sources, including the U.S. government and several third-party market research syndicated data suppliers. For more information, please visit: http://www.sbireports.com/High-Speed-Rail-2496796/.

About SBI Energy
SBI Energy, a division of MarketResearch.com, publishes research reports in the industrial, energy, building/construction, and automotive/transportation markets. SBI Energy also offers a full range of custom research services. To learn more, visit www.sbireports.com. Follow us on LinkedIn and Twitter.

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