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The railway management system market size is estimated to grow at a CAGR of 8.76% between 2022 and 2027. The market size is forecast to increase by USD 22.01 billion. The growth of the market depends on several factors, including the expansion of urban mass transit railway infrastructure, the expansion of railways to address efficiency and environmental concerns, and the need for an enhanced cross-border railway network. A railway management system uses information technology (IT) for the effective management of railway infrastructure in areas such as traffic monitoring and control, train monitoring and control, communication and networking, passenger and freight information, security, and ticketing. Railway management systems comprise solutions, devices and components, and services that are used for railway systems. The global demand for railways as a transportation medium has been growing.
This railway management system market report extensively covers market segmentation by deployment (on-premises and cloud-based), product (control system and information system), and geography (APAC, Europe, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The continuous expansion of railways to meet the growing demand for efficient transportation is a key factor driving the global railway management system market. Growing environmental concerns have increased the preference for rail transport, as it emits less emissions than other modes of transport, contributing 1.4% of total emissions. transportation emissions. According to the International Transport Forum of the Organization for Economic Cooperation and Development (OECD), by 2050, passenger demand will increase by 200% to 300% and freight activity by 150% to 250 % compared to 2010. It is estimated that these numbers will impact every component (from passenger services to back-end organizations) in the rail industry value chain.
Therefore, there is a need to expand capacity, and this involves not only the modernization of stations and the introduction of new trains but also the adoption of efficient and intelligent systems. As a result, the expansion of the railway industry, coupled with growing demands for efficiency and environmental concerns, will drive the need for railway management systems as the industry moves towards tapping the benefits of railways during the forecast period.
The rise in the adoption of ERTMS is the primary trend in the market. The ERTMS is a control, command, signaling, and communication system for railway management and safety regulation, adopted by the EU as a common standard for all trains operating in Europe. Europe currently has almost 30 signaling systems, leading to significant interoperability problems. ERTMS consists of four parts, namely ETCS, GSM-R Global System, European Traffic Management Layer (ETML), and European Operating Rules (EOR).
Furthermore, the adoption of ERTMS has led several players to offer ETCS solutions for use in ERTMS. For example, Thales offers a complete portfolio of ETCS solutions for railway operators to install green and brown mines. The adoption of ETCS has grown worldwide with increasing demand from non-European countries. This opens up opportunities for market players by providing complete one-stop solutions for ETCS, which will accelerate the growth of the railway management systems market during the forecast period.
The requirement for a skilled workforce is the key challenge that affects the growth of the market. Successful implementation of railway management systems requires a skilled workforce that can ensure timely installation, operation, and maintenance. The lack of skilled labor can slow down the process without realizing the real benefits of the system. The lack of qualified professionals such as engineers, project managers, and drivers with the necessary knowledge of European train control systems (ETCS) is one of the factors leading to slow adoption.
In addition, the issue of a skilled workforce becomes even more important when implementing highly technical IoT-based solutions. Deploying such solutions also requires cybersecurity professionals to deal with the threat of cyberattacks. A lack of qualified in-house technicians can force companies to rely on third-party market players to maintain their software packages, which increases the total cost of ownership. Hence, such factors will impede the growth of the market during the forecast period.
The market share growth by the on-premises segment will be significant during the forecast period. On-premises deployment in the global railway management systems market refers to software systems that are installed and operated locally within a railway operator's infrastructure. These solutions are designed to meet the specific requirements and workflows of the railway operator, offering a high degree of customization and control. One of the main advantages of on-premise solutions is the level of control and security they provide.
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The on-premises segment showed a gradual increase in the market share of USD 17.72 billion in 2017 and continued to grow by 2021. The on-site deployment requires a high amount of capital to purchase hardware, servers, and other computing equipment to manage data, especially for railways as railways are the largest means of transport handling. huge amount of data. Because of this huge investment in computing resources and large sensor networks, railway authorities are now moving to cloud-based deployments. It also requires additional human resources to manage as an infrastructure. Hence, the on-premises segment of the global railway management systems market is expected to grow during the forecast period.
The control system segment comprises the software used for the traffic management system, train control and monitoring system, programmable logic controller (PLC), supervisory control and data acquisition (SCADA) automation software, and communication and networking system. The need for safety and improved management of railway network operations are the key drivers of growth in the control systems segment. The advent of high-speed trains has raised the need for advanced safety systems. Furthermore, in APAC and South America, the deployment of signaling systems is marked by the need to modernize aging rail infrastructure to reduce operational problems. The increased adoption of monitoring and control systems also provides growth opportunities for communications and network systems manufacturers. As control systems are an important part of the railway industry, this is expected that the growth of the control systems segment in the global railway management systems market during the forecast period.
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APAC is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The modernization of the existing national railway networks and the construction of new urban railway networks are the key factors for the growth of the APAC region.
Countries such as China, Japan, the Philippines, Thailand, Australia, Malaysia, and Vietnam are key contributors to urban high-speed rail investment. The new urban rail transport systems in these countries use advanced railway management systems to provide efficient service to passengers. Several cities in these countries are major business centers. As a result, governments are investing large sums of money in transport networks. Thus, these factors will drive the growth of the market in the region during the forecast period.
The outbreak of COVID-19 adversely impacted the growth of the market in the region in 2020. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown restrictions, which led to the resumption of supply chain activities in the railway sector. The increased investment in the global railway management system helps the railway sector to bounce back and move toward the growth phase. For example, in India, the train collision avoidance system (TCAS) will be fixed on 2,000 km of track. In 2022, the Indian government also allocated USD 245 billion to create a rapid transit system. Such initiatives by the regional government will further drive the demand for railway management systems which in turn will drive the growth of the railway management systems market in APAC during the forecast period.
The Railway Management System Market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Railway Management System Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The railway management system market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Railway Management System Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.76% |
Market growth 2023-2027 |
USD 22.01 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
8.42 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 39% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., ALSTOM SA, Cisco Systems Inc., DXC Technology Co., EKE Group, EUROTECH Spa, Frequentis AG, GAO Group Inc., General Electric Co., Hitachi Ltd., Huawei Technologies Co. Ltd., International Business Machines Corp., Nokia Corp., Railway Technology, Siemens AG, Thales Group, Toshiba Corp., Trimble Inc., Wabtec Corp., and Indra Sistemas SA |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
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