Connected Rail Solutions Market by Safety and Signaling System and Geography - Forecast and Analysis 2022-2026

The connected rail solutions market's growth momentum will accelerate at a CAGR of 6.34% and the market share will increase by USD 37.25 billion from 2021 to 2026.

This connected rail solutions market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers connected rail solutions market segmentation by:

• Safety and Signaling System - CBTC, PTC, and ATC
• Geography - Europe, APAC, North America, Middle East and Africa, and South America

The connected rail solutions market report also offers information on several market vendors, including ABB Ltd., ALSTOM SA, Atos SE, CalAmp Corp., Cisco Systems Inc., Digi International Inc., General Electric Co., Hitachi Ltd., Huawei Technologies Co. Ltd., Indra Sistemas SA, International Business Machines Corp., Mitsubishi Electric Corp., Nokia Corp., Robert Bosch GmbH, Schneider Electric SE, Siemens AG, Sierra Wireless Inc., Telefonaktiebolaget LM Ericsson, Thales Group, and Trimble Inc. among others.

What will the Connected Rail Solutions Market Size be During the Forecast Period?

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Connected Rail Solutions Market: Key Drivers, Trends, and Challenges

Based on our research output, there has been a negative impact on the market growth during and post COVID-19 era. The increasing adoption of technologically advanced connected devices is notably driving the connected rail solutions market growth, although factors such as the high cost of implementation may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the connected rail solutions industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Connected Rail Solutions Market Driver

One of the key factors driving growth in the connected rail solutions market is the increasing adoption of technologically advanced connected devices. The high adoption of connected devices among individuals encourages railway operators to adopt advanced devices that can connect railway operations and end customers. Factors such as improved user interface and the use of mobile devices, such as smartphones and tablets with high processing speed, have increased the adoption of connected rail solutions that connect end-customers of the railway industry and railway infrastructure through mobile apps. Currently, connected rail solutions are also used to obtain real-time information such as weather forecasts, directions to nearby locations, and train time updates. The growth in the number of connected devices across the globe is a significant factor that encouraged railway operators to incorporate connected rail solutions in their operations. The presence of a conducive technology environment or platform that enables the viability of connected rail solutions drives market growth.

Key Connected Rail Solutions Market Trend

The advent of smart cities is a connected rail solutions market trend that is expected to have a positive impact in the coming years. Smart cities refer to the interconnection of many digital technologies that enhance communication among connected devices while improving their performance, reducing costs, and ensuring the efficient use of resources. Smart cities help railway operators in responding quickly to the challenges faced by urban settlements. Vendors in the market are updating their offerings or launching new connected rail solutions to cater to the growing need for smart city transportation infrastructure. Smart city plans include the development of efficient urban mobility and public transport, which fosters the demand for connected rail solutions in the development of smart city projects. Technology has evolved from personal computers to laptops to even smaller versions such as smartphones, tablets, and portable navigation devices. The incorporation of such advanced technologies in smart cities is expected to drive the growth of the market during the forecast period.

Key Connected Rail Solutions Market Challenge

The high cost of implementation will be a major challenge for the connected rail solutions market during the forecast period. Railway projects are usually large and take a long time to complete. A majority of projects have witnessed issues such as a significant increase in installation costs. In addition, controlling and monitoring the ongoing projects have been a cause of concern for both vendors and end-users. The cost of connected rail solutions includes the cost of licensing, system design and customization, implementation, and upgrades. Railway platform operators that purchase connected rail solutions also require trained IT professionals with relevant skills to manage the solutions. After the implementation, the software and hardware need to be upgraded regularly to keep pace with the current market trends. These factors will lead to an increase in the implementation and maintenance cost of such software and hardware, which will hinder the growth of the global connected rail solutions market.

This connected rail solutions market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the global connected rail solutions market as a part of the global information technology (IT) spending market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the connected rail solutions market during the forecast period.

Who are the Major Connected Rail Solutions Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

• ABB Ltd.
• ALSTOM SA
• Atos SE
• CalAmp Corp.
• Cisco Systems Inc.
• Digi International Inc.
• General Electric Co.
• Hitachi Ltd.
• Huawei Technologies Co. Ltd.
• Indra Sistemas SA
• International Business Machines Corp.
• Mitsubishi Electric Corp.
• Nokia Corp.
• Robert Bosch GmbH
• Schneider Electric SE
• Siemens AG
• Sierra Wireless Inc.
• Telefonaktiebolaget LM Ericsson
• Thales Group
• Trimble Inc.

This statistical study of the connected rail solutions market encompasses successful business strategies deployed by the key vendors. The connected rail solutions market is fragmented and the vendors are deploying growth strategies such as investing in product R&D to compete in the market.

Product Insights and News

• global.abb - The company offers connected rail solutions such as traction systems and products for rolling stock, passenger stations, and traction power supply

• global.abb - Through the electrification segment, the company offers electrification and building management solutions, products, and services for utilities, industry, transport, and infrastructure

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The connected rail solutions market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Connected Rail Solutions Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the connected rail solutions market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

Which are the Key Regions for Connected Rail Solutions Market?

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36% of the market's growth will originate from APAC during the forecast period. China and Japan are the key markets for connected rail solutions in APAC. Market growth in this region will be faster than the growth of the market in the European, MEA, and North American regions.

The rising demand for an alternative mode of transportation due to high road traffic congestion, owing to the growth of the industrial and manufacturing sector will facilitate the connected rail solutions market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

In 2020, the outbreak of COVID-19 had adversely impacted the growth of the market in focus in the region. The lockdown measures implemented by the government of different countries, primarily during the first half of 2020 in the wake of COVID-19, have significantly impacted the growth of the transportation industry, including railway transportation. However, with the relaxation of lockdown norms, railway freight revenues increased significantly in the region during the second half of 2020. Few major railway projects were launched during the second half of 2020. 

What are the Revenue-generating Safety and Signaling System Segments in the Connected Rail Solutions Market?

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The connected rail solutions market share growth by the CBTC segment will be significant during the forecast period. The increasing use of CBTC solutions for rail route management and infrastructure control in railways is driving the growth of this segment. CBTC is a type of railway safety and signaling system that tracks the location of trains using satellite and location-based technologies. The growing need for safe transportation due to government regulations, along with the growing traffic congestion, has led to the high adoption of CBTC safety and signaling systems among railway industry participants.

This report provides an accurate prediction of the contribution of all the segments to the growth of the connected rail solutions market size and actionable market insights on post COVID-19 impact on each segment.

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What are the Key Data Covered in this Connected Rail Solutions Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive connected rail solutions market growth during the next five years
• Precise estimation of the connected rail solutions market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the connected rail solutions industry across Europe, APAC, North America, Middle East and Africa, and South America
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of connected rail solutions market vendors

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