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The railway network cables market size is estimated to grow at a CAGR of 5.67% between 2023 and 2028. The market size is forecast to increase by USD 2.81 billion. The growth of the market depends on several factors such as smart railways gaining popularity, an increase in government and private sector investments in railways and an increase in government and private sector investments in railways. Our report examines historical data from 2018 - 2022, besides analyzing the current market scenario.
This report extensively covers market segmentation by application (power cables, signal, and communication cables), installation sites (overhead and underground), 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.
Railway Network Cables Market Forecast 2024-2028
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Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
The rise in air traffic and road transport congestion has made rail transport a feasible alternative in both advanced and emerging economies such as India and China. Rails are safer cleaner, and provide a more credible and competitive alternative compared to road and air transport. Despite challenges such as high initial investment and high maintenance costs, the geographical, financial, and environmental factors help towards the growth of rail infrastructure.
However, smart railways include passenger information systems, freight information systems, rail traffic management, operations management, security monitoring, communications, ticketing, and rail analytics. As a constant and uninterrupted power supply is needed to support such a sophisticated infrastructure, these operating systems will significantly influence the use of railway network cables, which will drive the growth of the market in focus during the forecast period.
The rise in passenger and freight traffic, primarily in APAC and Europe, has been driving the global market for high-speed railways. The rapid growth in developing countries such as China, in terms of both economy and infrastructure, has significantly expanded the demand for high-speed rail over the past 20 years. In North America, with increased traffic congestion in different rail corridors, Mexico, the US, and Canada have started investing in high-speed rail networks. The growth of the high-speed rail market is due to the shorter travel time and the lower carbon dioxide emissions, which results in energy savings.
Moreover, the growth of this market will heavily influence generator requirements in these trains, as operational efficiency depends considerably on the supply of continuous power. Thus, a huge demand for generators will be created during the forecast period, resulting in increased use of network cables. This, in turn, will drive the growth of the market in focus during the forecast period.
Aluminum and copper are the primary raw materials that constitute a cable. All vendors invest heavily in acquiring these raw materials. These materials are ideally suitable for application in extreme conditions in industries because of their high melting point and ruggedness. The prices of these materials are influenced by several other factors like inflation, availability, and production. Approximately 85% of the total production cost comprises the material cost.
Additionally, the purchase of raw materials in bulk escalates inventory costs for manufacturers. Purchasing raw materials in advance may impact manufacturers' revenue if the demand after purchase decreases. Therefore, volatile raw material prices are a major challenge for the vendors in the market, which will negatively impact the growth of the market during the forecast period.
The market share growth of the power cables segment will be significant during the forecast period. Power cables form an integral network of railway systems, as these cables are responsible for transmitting the necessary power to the desired locations within the coaches for the effective and efficient functioning of the system. The power supply has an integral role to play in the signaling system of railways, and hence, it becomes essential for reliable operation and safety purposes.
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The power cables segment was the largest and was valued at USD 4.21 billion in 2018. The traditional electromechanical installations used in railways operate on a conventional power supply system. Considering the drawbacks like frequent loss of power or voltage fluctuations, modern railways have started adopting the Integrated Power Supply (IPS) system. This advanced system helps in providing stable and reliable AC and DC power to various parts of the train. Power supply sources involve inverters, rectifiers, traction systems, generators, and battery banks. A reliable power cable system is essential for transmitting the power to the desired places. With significant infrastructure development along with the production of new railway coaches, it is anticipated that demand for power cables will increase during the forecast period. Such factors will drive the segment and market in focus during the forecast period.
Based on installation sites, the market has been segmented into overhead and underground. The overhead segment will account for the largest share of this segment.? Overhead power cables are used for power transmission for rail systems. Owing to technological innovations, the global railway industry has undergone changes in the recent past. The growing population and expanding metropolitan areas have resulted in increased demand for railways. The increase in passenger traffic is expected to increase the demand for railways. Rising investments in railways have also been a factor driving the growth of the market. The European Rail Supply Industry Association (UNIFE) is an organization that looks into the proper channelization of these funds into European nations. The railway sector in China is also witnessing significant investments. Such investments are expected to drive the demand for the distribution of power cables, including overhead cables, which, in turn, will boost the growth of the global railway network cables market during the forecast period.
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APAC is estimated to contribute 46% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. With the shift in the economic power from West to East and the growing Asian economy and urbanization, the APAC is expected to witness large-scale developments in the transport infrastructure. Following road transport infrastructure, the railway comes second in terms of investments being made for its development. By 2025, trillions of dollars worth of investments are expected in the railway sector for infrastructure development in countries like China and India. The increased fossil fuel prices and rising concerns over air pollution have encouraged more countries to opt for electric trains instead of diesel locomotives.
In addition, rapid urbanization and globalization have resulted in congestion in road and air transport, making electric trains a better option. Therefore, several countries in APAC, such as India, are expected to witness an increase in the adoption of electric trains, which will fuel the demand for overhead cable solutions, which will drive the market growth during the forecast period.
The COVID-19 outbreak took a toll on the regional railway network cables market. Moreover, large-scale vaccination drives being conducted helped countries such as China and India to contain the spread of the pandemic in 2021. Additionally, the Indian government has integrated data analytics into the railways, which is proving to be advantageous for the operations of the Indian Railways and is of utmost significance. By incorporating data analytics, maintenance will be enhanced, train schedules will run more efficiently, and operating costs will be decreased in the coming years. Such developments in the railway industry are expected to support the growth of the railway network cables market in the region during the forecast period.
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.
Aberdare Cables - The company offers railway network cables, such as Industrial cables, fiber optic for transport, and many more, under the subsidiary of CABLES DE COMUNICACIONES ZARAGOZA SL.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Aberdare Cables, Alma Srl, Baosheng Science and Technology Innovation Co. Ltd., Bhuwal Insulation Cable Pvt. Ltd., Caledonian Cables Ltd., Eaton Corp. Plc, Eland Cables Ltd., Hengtong Group Co. Ltd., Hitachi Ltd., HUBER PLUS SUHNER AG, Lapp Holding SE, Leoni AG, Nexans SA, Prysmian Spa, SAB BROCKSKES GmbH and Co. KG, Schwechater Kabelwerke GmbH, Siechem Technologies Pvt. Ltd., TE Connectivity Ltd., Tecnikabel SpA, and TPC Wire and Cable Corp.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak based on their quantitative data analysis.
The railway network cables market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
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Railway Network Cables Market Scope |
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Report Coverage |
Details |
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Page number |
164 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.67% |
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Market Growth 2024-2028 |
USD 2.81 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.24 |
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Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 46% |
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Key countries |
US, China, Japan, Germany, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Aberdare Cables, Alma Srl, Baosheng Science and Technology Innovation Co. Ltd., Bhuwal Insulation Cable Pvt. Ltd., Caledonian Cables Ltd., Eaton Corp. Plc, Eland Cables Ltd., Hengtong Group Co. Ltd., Hitachi Ltd., HUBER PLUS SUHNER AG, Lapp Holding SE, Leoni AG, Nexans SA, Prysmian Spa, SAB BROCKSKES GmbH and Co. KG, Schwechater Kabelwerke GmbH, Siechem Technologies Pvt. Ltd., TE Connectivity Ltd., Tecnikabel SpA, and TPC Wire and Cable Corp. |
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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 the forecast period. |
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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. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Installation Sites
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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