Alstom Business Model Canvas

Alstom's success hinges on its robust network of suppliers and component manufacturers, who provide essential parts and materials crucial for producing high-quality trains and signaling systems. These partnerships are foundational to Alstom's operational efficiency and its ability to meet demanding delivery schedules. For instance, Alstom's collaboration with Schaeffler, a leading supplier of rolling bearing technology, exemplifies a strategic alliance focused on enhancing product performance and reliability.

These supplier relationships are not merely transactional; they are strategic alliances designed to foster innovation and ensure supply chain resilience. By working closely with key partners, Alstom can mitigate risks associated with material availability and component quality, which is particularly important in the complex and highly regulated rail industry. In 2023, Alstom reported a significant portion of its revenue was tied to its supply chain, underscoring the critical nature of these partnerships.

• Supplier Network: Alstom maintains a global network of over 10,000 suppliers, ensuring access to a wide range of specialized components and raw materials required for its diverse product portfolio.
• Strategic Alliances: Partnerships like the one with Schaeffler for advanced rolling bearing solutions are vital for integrating cutting-edge technology and ensuring long-term product competitiveness.
• Supply Chain Stability: In 2024, Alstom continued to focus on strengthening its supplier relationships to navigate global supply chain disruptions, aiming to maintain production continuity and on-time project delivery.
• Quality Assurance: Collaborative efforts with component manufacturers are integral to Alstom's stringent quality control processes, guaranteeing the safety and performance standards of its rail solutions.

Alstom frequently collaborates with major construction and civil engineering firms to execute complex, turnkey railway projects. These partnerships are crucial for integrating Alstom's rolling stock and signaling solutions with the necessary civil infrastructure, such as tracks and power systems.

These alliances ensure the seamless delivery of comprehensive transport networks. For instance, Alstom partnered with DT Infrastructure on a significant high-capacity signaling upgrade project in Perth, Australia, demonstrating the necessity of such collaborations for large-scale developments.

• Turnkey Project Execution: Alstom partners with construction giants for end-to-end project delivery, covering civil works and system integration.
• Infrastructure Integration: Collaborations are vital for building tracks, power supply, and signaling systems alongside rolling stock.
• Example Partnership: Alstom's work with DT Infrastructure on Perth's signaling project highlights the importance of these construction alliances.

Access to significant financial capital is absolutely vital for Alstom's operations. This capital fuels large-scale infrastructure projects, crucial research and development, and the everyday running of the business.

Alstom's financial strength is clearly demonstrated by its substantial order backlog. As of March 31, 2025, this backlog stood at an impressive €95 billion. This figure provides excellent visibility into future revenue streams and underpins the company's ability to pursue its strategic goals.

• Financial Capital Access: Enables investment in major infrastructure projects and R&D.
• Order Backlog: €95 billion as of March 31, 2025, ensuring revenue visibility.
• Strategic Support: Financial strength allows for the execution of long-term business strategies.

Alstom's established brand reputation as a global leader in sustainable mobility is a cornerstone of its business model. This long-standing trust, built over decades, significantly smooths the path for securing new contracts and fostering enduring partnerships.

The company's strong relationships with key customers, particularly government entities and public transport operators worldwide, are a critical asset. These deep-seated connections, often spanning many years, translate into reliable revenue streams and a competitive edge in bidding processes.

For instance, in 2024, Alstom continued to leverage its reputation to win significant orders. A notable example includes the contract secured with the Greater Manchester Combined Authority for the supply of new Metrolink trams, valued at over €100 million. This win underscores how trust in Alstom’s brand directly translates into tangible business opportunities.

• Global Recognition: Alstom is consistently recognized as a top-tier innovator in rail transport solutions.
• Customer Loyalty: Strong, long-term relationships with over 80% of its major clients provide a stable foundation for recurring business.
• Contract Wins: In the fiscal year 2023-2024, Alstom secured new orders totaling €19.7 billion, demonstrating the ongoing impact of its brand and customer relationships.
• Future Pipeline: The company's order backlog stood at €37.6 billion as of March 31, 2024, reflecting sustained customer confidence.

Alstom provides extensive training and knowledge transfer to customer staff, ensuring they can effectively operate and maintain Alstom's complex rail systems. This focus on customer empowerment is crucial for maximizing the long-term value and performance of their investments.

These programs are designed to equip customers with the necessary skills, leading to improved operational efficiency and reduced reliance on external support. For instance, in 2024, Alstom continued its commitment to enhancing customer capabilities through various initiatives aimed at skill development.

• Operational Efficiency: Training directly contributes to smoother operations and fewer disruptions.
• Cost Reduction: Empowered customers can handle more routine maintenance, lowering service costs.
• Technology Adoption: Knowledge transfer facilitates better understanding and utilization of advanced features.
• Customer Satisfaction: Skilled personnel lead to better system performance and happier end-users.

Alstom actively engages customers as innovation partners, co-creating cutting-edge mobility solutions. This collaborative strategy transforms clients into integral players in Alstom's strategic evolution, fostering a shared vision for future transportation. For instance, Alstom's focus on digital transformation and sustainable mobility solutions is often shaped by direct customer feedback and joint development projects.

This customer-centric innovation model allows Alstom to tailor offerings to specific market needs and anticipate future trends. By embedding customers into the research and development process, Alstom ensures its innovations are not only technologically advanced but also commercially viable and directly address real-world mobility challenges. This approach was evident in the development of next-generation high-speed train technologies, where early customer input significantly influenced design and performance specifications.

• Co-development of new technologies: Alstom works with clients to pioneer advancements in areas like autonomous train operation and advanced signaling systems.
• Addressing emerging mobility challenges: Partnerships focus on solutions for urban congestion, decarbonization, and enhanced passenger experience.
• Customer as strategic partner: This approach integrates client needs into Alstom's long-term strategic planning and product roadmaps.

Airport authorities are key customers for Alstom, particularly those operating airport people mover systems. These entities prioritize robust and highly reliable automated transport to ensure seamless passenger flow and operational efficiency within their facilities. Alstom’s experience with major airport infrastructure projects underscores their value proposition to this segment.

Alstom's engagement with airport authorities is demonstrated through significant contract renewals. For instance, their partnership with the Port Authority of New York and New Jersey for the JFK International Airport AirTrain and their continued involvement with Denver International Airport for its Innovia APM system highlight long-term relationships built on trust and performance. These contracts often involve substantial investment and long operational lifecycles, reflecting the critical nature of these systems.

• Key Airport Authority Clients: Port Authority of New York and New Jersey (JFK AirTrain), Denver International Airport (Innovia APM).
• Customer Needs: High reliability, operational efficiency, passenger throughput, long-term asset management.
• Alstom's Offering: Proven automated people mover technology, system integration, maintenance, and upgrade services.
• Market Significance: Airport authorities represent a vital segment for Alstom's urban mobility solutions, driving revenue through large-scale infrastructure projects and ongoing service contracts.

Industrial companies needing specialized rail solutions represent a distinct customer segment for Alstom. These businesses, while smaller in number compared to major public transit operators, rely on rail for critical internal logistics or unique transport requirements, such as moving raw materials or finished goods within large industrial complexes or across specific, often challenging, terrains. Alstom's comprehensive product and service portfolio is well-equipped to address these niche demands, offering tailored solutions that go beyond standard passenger or freight rail.

For instance, a mining company might require a robust, heavy-duty rail system for transporting ore from extraction sites to processing plants, a task demanding specialized rolling stock and infrastructure designed for extreme conditions. Similarly, a large manufacturing plant could utilize Alstom's expertise for an internal shuttle system connecting different production facilities. The global industrial sector's ongoing investment in efficiency and automation, even in specialized areas, underscores the persistent need for such tailored rail capabilities. In 2024, Alstom continued to engage with these sectors, highlighting its capacity for bespoke engineering and long-term maintenance contracts that ensure operational reliability for these critical industrial applications.

• Niche Industrial Needs: Focuses on companies requiring internal logistics or specialized transport, such as mining or large manufacturing operations.
• Alstom's Broad Portfolio: Leverages its extensive range of products and services to meet these specific, often complex, requirements.
• Tailored Solutions: Emphasizes the ability to provide bespoke engineering for unique operational challenges, ensuring efficiency and reliability.

Alstom generates revenue from turnkey projects, offering complete transport system solutions from concept to operation. This encompasses design, manufacturing, installation, and commissioning of integrated systems, providing a comprehensive service to clients.

Significant contributions to this revenue stream come from major turnkey projects. For instance, Alstom secured a significant contract in 2023 for the development of the Riyadh Metro's Line 4, 5, and 6, a project valued in the billions of euros. Additionally, ongoing projects in France, such as the modernization of regional train fleets, and substantial infrastructure developments in Saudi Arabia and Mexico continue to bolster this revenue segment.

• Comprehensive Delivery: Alstom manages the entire project lifecycle, from initial design to final operational readiness.
• Integrated Systems: Revenue is derived from the sale and implementation of complete transport solutions, not just individual components.
• Key Project Examples: Major turnkey contracts in France, Saudi Arabia, and Mexico are significant revenue drivers.

Alstom's digital mobility and data-driven services are a growing revenue engine. This segment includes income from software, advanced data analytics, and predictive maintenance solutions, which are crucial for optimizing train operations and reducing downtime. The company is actively enhancing the digitalization of its entire product and service portfolio.

In 2024, Alstom reported significant progress in its digital services. For instance, its predictive maintenance solutions, leveraging AI and IoT, are designed to anticipate equipment failures before they occur, leading to substantial cost savings for operators. This focus on digital transformation is key to Alstom's strategy for future growth and competitiveness in the rail industry.

• Software and Analytics: Revenue generated from the sale and licensing of digital platforms and advanced data analysis tools for rail operations.
• Predictive Maintenance: Income derived from services that use real-time data to predict and prevent equipment failures, enhancing reliability and reducing maintenance costs.
• Digitalization of Solutions: Alstom's commitment to integrating digital technologies across its rolling stock, signaling, and infrastructure offerings to create smarter, more efficient transportation systems.
• Data Monetization: Exploring opportunities to monetize the vast amounts of operational data collected from its connected fleet, offering insights and value-added services to customers.