Enjoy complimentary customisation on priority with our Enterprise License!
The smart railway systems market size is estimated to grow at a CAGR of 12.59% between 2022 and 2027. The smart railway systems market size is forecast to increase by USD 20,129.36 million. The growth of the market depends on several factors, including the expansion of railways to address efficiency and environmental concerns, the rising adoption of advanced technologies in smart railway systems, and an increase in government and private sector investments in railways.
This smart railway systems market report extensively covers market segmentation by product (solutions, components, and services), type (passenger information system, rail and freight operations management system, smart ticketing system, rail analytics system, and others), and geography (Europe, North America, APAC, 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.
To learn more about this report, View Report Sample
The expansion of railways to address efficiency and environmental concerns is notably driving the market growth, although the requirement for higher Investments in initial infrastructure may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The expansion of railways to address efficiency and environmental concerns is notably driving the smart railway systems market growth. Continuous expansion of rail to meet the growing demand for efficient transportation is a key factor driving the global intelligent rail system market. Moreover, growing environmental concerns have increased the priority of rail transport due to its lower emissions compared to other modes of transport. According to the International Transport Forum of the Organization for Economic Co-operation and Development (OECD), by 2050 passenger mobility will increase by 200% to 300% compared to 2010, and freight activity will increase by 150% to 250%. These figures are estimated to impact all components of the rail industry value chain, from passenger services to back-end organizations. Increasing environmental awareness around the world is expected to encourage the use of rail transport in the long term.
Rail transport is better than other modes of transportation in terms of its environmental impact, but it can be further improved by incorporating smart technologies that can control and reduce the amount of emissions and noise produced. There is, therefore a need for capacity expansion, which means not only the modernization of stations and the introduction of new trains but also the introduction of intelligent and efficient systems. Therefore, the expansion of the rail industry and growing efficiency and environmental concerns will increase the demand for intelligent rail systems. Hence, the market is expected to witness significant growth during the forecast period.
The adoption of IoT and big data driving efficiency is a key trend influencing the smart railway systems market growth. Railroads generate large amounts of big data from interconnected stakeholders. This data is critical and can be used to improve passenger safety and streamline station and freight operations. Building smart railways requires large-scale data structures that include various components such as cyber-physical systems, IoT, and cloud computing. As rail networks become smarter, there are many sources from which data can be generated. For example, an in-vehicle control and monitoring system can turn a train into an integrated communications hub, sending data to a network control center to exchange relevant data. Similarly, billions of data points from sensors and software platforms can be used to bring efficiencies to different areas of the rail industry. Similarly, train tracking and recognition systems inform drivers of the location of other trains, reduce collisions, and allow trains to run nearby efficiently and safely.
Data sources include not only line and train sensors, but also station ticket booths, parking lots, and video surveillance sensors. By incorporating sensors into train systems and components, multiple data points can be collected such as position, speed, direction, and temperature. Sensors can also provide data on the condition of onboard equipment and rail-wheel interfaces. Also, railway operators have started to implement IoT and big data on a small scale in various functions of the railway industry. This monitoring process can be performed remotely and helps flag potential problems while the train is running. Therefore, the use of IoT and big data will benefit the railway industry and shape its future. Hence, the incorporation of IoT and big data is expected to boost the growth of the market during the forecast period.
The requirement for higher Investments in initial infrastructure is challenging the smart railway systems market growth. The high investment required for early infrastructure hinders the deployment of intelligent rail systems. Using an intelligent railway system requires a large investment due to the use of advanced technology. Railways are largely controlled by state-owned enterprises and funded by government sanctions. This means that development projects that require large investments should be carefully evaluated. Such infrastructure development projects are characterized by long payback periods and large cash inflows. Therefore, most railway projects are implemented by governments in collaboration with private entities.
Such projects can also place a heavy burden on budget-constrained countries, allowing governments to borrow from international agencies and increasing the debt of governments and companies involved in managing the railways. Railways, especially small carriers, are reluctant to implement Positive Train Control (PTC) due to the financial and technical burden after deploying a complete on-premises solution that includes large sensors and massive computational resources. Similarly, wiring trains for network access, especially over wired Ethernet networks, are expensive due to high installation costs. Also, each time the train is reconfigured, rewiring may be required, increasing maintenance costs. Post-deployment infrastructure element failures due to technical errors or integration issues can have serious consequences. All these factors may hinder the growth of the market during the forecast period.
The 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 Smart Railway Systems Market Customer Landscape
Vendors 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.
ABB Ltd: The company is involved in providing different types of electronics services such as control systems, power electronics, safety, and UPS and power conditioning.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the solutions segment will be significant during the forecast period. The solutions segment of the smart railway systems market includes solutions such as passenger information systems, advanced safety monitoring systems, rail communication and network systems, cargo information systems, analytics systems, and intelligent ticketing systems. These systems have specific applications and are integrated to intelligently utilize all rail resources, from tracks to trains, to meet the growing consumer demand for efficient and safe transport services.
Get a glance at the market contribution of various segments View the PDF Sample
The solutions segment was valued at USD 6,789.85 million in 2017 and continued to grow until 2021. Railway communication and network systems are expected to gain higher popularity during the forecast period as they play an important role in providing network solutions in railway stations. Another advantage of the system is that it helps with online ticket booking and provides real-time updates on train operations for both commuters and fleet managers. As demand for safe, fast, and reliable rail services continues to grow, and operational inefficiencies and other safety issues remain concerns, the need to modify existing rail infrastructure continues to grow. As more operators invest in infrastructure upgrades and new technologies, the solutions segment is expected to grow and continue to hold the largest market share during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
Europe is estimated to contribute 30% to the growth of the global smart railway systems market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Rising transport demand, growing environmental concerns, and a tight regulatory framework are factors driving the rail industry in the region. Demand for transport continues to grow, especially in terms of service quality. Additionally, increasing traffic congestion is increasing the need for more efficient modes of transport. With three-quarters of the European Union's (EU) population living in urban areas, increased competition from urbanization and globalization is driving major changes to the region's rail industry. As decarbonization gains momentum as a policy priority, so do environmental concerns. These factors have increased the adoption of rail as the preferred mode of transportation. In addition, Europe has a wealth of know-how in building railway networks, and construction costs can be kept down. Additionally, the presence of OEMs and intelligent rail system providers will increase access to advanced technology during the forecast period.
In 2020, the rail industry suffered a severe setback due to the COVID-19 outbreak. Rail passenger services were severely impacted by governments of several countries imposing lockdown measures to stem the spread of the virus. This impeded the operation of the railway industry. However, the rail industry made up for lost revenue in 2021 with government aid packages and the launch of large-scale vaccination campaigns across the world. From 2021 to 2024, several railway projects are scheduled to start. Such developments are thus expected to drive the growth of the market during the forecast period.
The smart railway systems 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.
Technavio categorizes the global smart railway systems market as part of the global electronic components market within the global electronics market. The global electronics market includes manufacturers of communications equipment, technology hardware storage and peripherals, electronic devices and equipment, electronic components, consumer electronics, industrial electronics, and electronic manufacturing services. The Electronic Components segment includes manufacturers of connectors, electronic tubes, electronic capacitors and resistors, electronic coils, printed circuit boards (PCBs), transformers and other inductors, and lighting products.
|
Smart Railway Systems Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
189 |
|
Base year |
2022 |
|
Historic period |
2017-2021 |
|
Forecast period |
2023-2027 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 12.59% |
|
Market growth 2023-2027 |
USD 20,129.36 million |
|
Market structure |
Fragmented |
|
YoY growth 2022-2023(%) |
12.27 |
|
Regional analysis |
Europe, North America, APAC, Middle East and Africa, and South America |
|
Performing market contribution |
Europe at 30% |
|
Key countries |
US, China, Germany, France, and UK |
|
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
|
Key companies profiled |
ABB Ltd., ALSTOM SA, Atos SE, Capgemini Service SAS, 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, Teleste Corp., Thales Group, Trimble Inc., and ZTE Corp. |
|
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. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Type
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
Certified ISO 9001 : 2015
We are ISO 9001:2015 recognized that ensures quality services and product delivery to our clients.
We are GDPR and CCPA compliant! Your transaction & personal information is protected from unauthorized use.
Get lifetime access to our
Technavio Insights
Customized Report as per your Business Needs
Let us help you make report more suited to your requirements.
Get the report (PDF) sent to your email within minutes.
