smart-railways-market

Smart Railways Market System, By Measuring, By Solution, By Services, By Digital Solution, By Sensor - Growth, Share, Opportunities & Competitive Analysis, 2024 – 2032

27 Aug 2018 Format PDF icon PPT icon XLS icon Request Sample

The market for smart railways market is expected to grow at a CAGR of 15% during the forecast period of 2023 to 2030. The term "smart railway" refers to a technologically advanced method of managing railway operations in an effective manner. This is accomplished by the sharing of rail data across the various components of rail infrastructure, including passengers, control centers, the ticketing department, and freight. The concept of a "smart railway" centers primarily on the digitalization and integration of several sets of technologies in order to improve train operations The integration of the most recent technologies, such as the Internet of Things (IoT), big data, cloud, analytics, artificial intelligence (AI), global positioning system (GPS), and machine learning (ML), is what constitutes a smart railway. The digitalization of the railway industry is the primary focus of smart railway technology, with the goals of optimizing infrastructure and operating costs, expanding network capacity without the construction of new infrastructure, providing the best passenger experience possible, and continually improving operational efficiency. The numerous developments that have been carried out by the leading Smart Railway manufacturers have contributed to the expansion of the market, which in turn has led to the growth of the market. In addition, long-term agreements with rail operators serve as a primary driving force behind the expansion of the global market for smart railways. It is anticipated that an increase in the number of rail projects being developed all over the world as well as an increase in the use of digital technology in public transportation would drive demand for smart railways.

The need for efficiency in rail operations, high demographic growth and hyper-urbanization enhancing the need for efficient railway systems, technological advancements targeted toward the enhancement of customer experience, increase in government initiatives and Public-Private Partnerships (PPP), and adoption of IoT as well as automation technologies to enhance optimization of smart railways are some of the major factors driving the growth of the smart railways market. This growth can be attributed to the emergence of global trends like networking, digitalization, sustainability, energy saving, and IoT integration. As a consequence of this, governmental institutions have an obligation to ensure that the railway network is ready to meet the growing need for connectivity. The most important reasons for the development of the market are the rising demand for freight as well as the capacity for passenger transportation. In addition, digitization, which is gaining a huge amount of traction among the various modern railway technologies, is anticipated to be a driving force behind the industry's expansion. As a consequence of this, it is projected that the implementation of this technology will be embraced by a significant number of railway transportation service providers all over the world. Established companies that provide smart railway systems are putting more of their focus on collaborating with both the public and private sectors in an effort to increase the profitability of the business. At the moment, smart railways own a portion of the worldwide smart transportation market which is equivalent to 45%.

Increasing Accessibility to 5G Across the Globe

The market for smart trains is undergoing significant change as a result of the global commercial rollout of 5G. The advent of 5G technology has made it possible to unlock bandwidths of more than 1 GHz, and it is also delivering dependable connections that lead to extremely low latency. Conventional radio systems, such as Terrestrial Trunked Radio (TETRA), the Global System for Mobile Communications (GSM-R), and Wi-Fi, are unable to keep up with the rising demands of rail operators and passengers. 5G services are helping to enable a wide variety of intelligent railway technologies, including intelligent signaling and controlling as well as electrification optimization. The capabilities of train-to-train communications, also known as T2T communications, are expanding thanks to accelerated transcoding and processing speed together with accurate 5G positioning. These advances in technological capability are the primary factor contributing to the market's growing revenue.

Adoption of Advanced Technologies

The role of data and the Internet of Things in the transportation industry, such as the railways, has expanded to include day-to-day train operations. Previously, these technologies were primarily utilized for accounting, logistics and shipping management, and resource management. These functions include, but are not limited to, scheduling, the safe operation of trains, the calculation of economic advantages, and many others. In combination with the increased utilization of technology by railway operators, IT solution providers have upgraded their offerings for the various players involved. Virtualization, analytical and predictive modeling, and custom asset management software have all been developed as standard business operations that demand an efficient IT solution. These three categories include virtualization. The demand for intelligent railway systems is expected to increase over the next few years as railways transition to semi-autonomous modes of transportation. In the meanwhile, corporations that operate railways are conducting trials of intelligent railway systems in order to make commuting more streamlined and secure.

Smart Railways to Increase Efficiency

The ever-increasing demand for rail services places pressure on the existing systems, which in turn necessitates the optimization of the existing passenger and freight timetables in order to achieve improved throughput on the rail infrastructure that is now in place. Maintaining, monitoring, and scheduling rail assets according to best practices is essential to running a productive rail business. Accurate planning, monitoring, and repair of rail-based assets are necessary for the efficient operation of rail transportation. These schedules raise asset productivity and lower the amount of time spent in downtime. Because manual diagnostics are performed, which have a low success rate, this downtime is further prolonged. Rail authorities place a significant emphasis on condition-based and predictive maintenance solutions as a means of improving overall efficiency and reducing the amount of time needed for various tasks. The reliance on manual diagnostics is lessened thanks to the use of condition-based and predictive maintenance, both of which focus primarily on real-time analytics. The use of rail assets can be improved by using the data that is collected from those assets. Additionally, it makes it possible to maintain the assets and resource intensities and costs that were specified. The use of rail assets can be improved by using the data that is collected from those assets. In addition to that, it makes it possible to perform scheduled maintenance on assets and calculate resource intensities and costs.

A Growing Demand for Intelligent Freight Rails to Facilitate International Trade

The volume of global trade is contributing to an increase in the importance of railway logistics transportation. The United Nations Conference on Trade and Development (UNCTAD) estimates that the value of global trade has reached USD 28.5 trillion, representing a 25% rise over the previous year. In order to provide real-time monitoring of railway systems and logistics operations, railway operators are integrating "smart railway" components into their operations. These components include Communication-Based Train Control (CBTC) systems, high-speed sensors, and intelligent computing equipment. When traveling from a maritime logistics point to a land logistics location, the principal mode of transportation for logistics is freight trains. Communication of data in real-time is necessary for logistics operations that span international borders. The implementation of 4G LTE or 5G technology has made it possible to connect a local device with a cloud device and gain access to the onboard logistics tracking nodes. The International Energy Agency (IEA) estimates that rail networks are responsible for carrying 7% of the total freight that is moved throughout the world. In addition, players in the worldwide railway sector are improving environmentally friendly and intelligent electric locomotives. These factors, along with others like the fact that several governments have begun awarding Build-Operate-Transfer (BOT) contracts in an effort to reduce the overall cost of projects, are anticipated to drive demand throughout the course of the forecast year.

The rise in The Amount of Demand for Both Passenger and Freight Capacity

When compared to other forms of public transportation, the railroad industry has seen a significantly larger increase in the number of passenger ridership. This is mostly attributable to the increased fare frequency and an overall reduction in travel time. According to the Organization for Economic Co-operation and Development (OECD), the number of passengers who choose to travel by train during the course of a million passenger kilometers has been steadily increasing over the previous decade. In addition, nations such as China, India, and Japan are picking up speed in terms of million passenger kilometers. In 1998, China reported 0.37 million rail passenger–kilometers, and in 2018, that number increased to 1.41 million rail passenger–kilometers, according to a source with very similar information. In addition to this, India had a total of 0.40 million rail kilometers in 1998, but in 2017 that number increased to 1.16 million rail passenger kilometers. In addition, in 2019, the U.S. saw a rise in rail ridership of almost 60% since 1997, and this upward trend is anticipated to continue in the not-too-distant future. In the U.S., rail transit accounts for approximately 48% of the total public transit system. The number of passengers using the railway has increased noticeably, and this trend is anticipated to continue in the years to come. Therefore, it is anticipated that an increase in passengers would generate demand for rail systems that are both cost-effective and operationally efficient. Smart Railway is likely to deliver a variety of services such as passenger and freight operations management, safety and security monitoring, rail communication and networking, and a ticketing system. These services are anticipated to cater to the shifting demands of passengers in addition to reducing the amount of time spent commuting and improving the overall quality of the travel experience.

Environment-Friendly Solution

Several national governments and commercial railway administrations are actively promoting and adopting new environmentally friendly technology, such as solar-powered train headlights. As the discussion surrounding the efficient use of energy heats up, the development of environmental protection standards and evaluation systems for railways has emerged as an area of essential importance. Smart trains are expected to play a vital role in lowering coal and electricity usage in the operation of this gigantic gear. The reduction of monetary costs through increased energy efficiency has been cited as a primary motivation for the implementation of railways. As a result, stakeholders in the railway industry are implementing a number of initiatives to limit noise pollution whenever practical. For example, solution providers are now marketing vibration-generated alerts that may be connected to an existing train's infrastructure in order to notify riders of the impending arrival of the train. The incorporation of such environmentally friendly solutions into a singular system is one of the factors that is driving the development of smart trains, which in turn helps address environmental concerns.

Enhancing Safety

The development of intelligent railways has been given high priority by governments all over the world in an effort to make traveling by train safer for people of all ages and abilities. Investing in the modernization of railway infrastructure has been driven by the commitment to the fulfillment of the promise of a means of transportation that is both secure and cost-effective. The growth of the market is anticipated to be facilitated by developments such as infrared sensors that can provide precise human detection on bridges in order to cut down on accidents. In addition, the utilization of technology to aid those with varying degrees of mobility in safely navigating platforms and bridges will reinforce the case for smart trains throughout the course of the upcoming years. Future Market Insights predicts that research and innovation in smart railways technology will assist in providing a trade-off between activities required to provide improved safety and easier access to trains. This is in light of the complex network of railroads.

Concerns About the Safety of The Data

Data security concerns continue to be a significant obstacle to the development of the smart trains business. The databases and analytics solutions utilized by railway systems store terabytes worth of data associated with railway information, passenger information, and sensor data. The vast majority of passenger information systems are run by third-party service providers, and these service providers have the ability to change or expose user data, including names, photographs, addresses, and financial information. Phishing, spyware, and SQL injection attacks are some of the methods that can be used to control or hack railway databases. Problems with data security and improper manipulation of databases could be detrimental to the company's reputation. These factors have the potential to significantly impede the development of the smart railways market as a whole. Additionally, the expense of upgrading technology for a smart railway takes a significant amount of capital. In order to operate a smart railway, railway operators will need to make investments in the modernization of railway lines.
 
Expensive Initial Set-Up Fees

installation of intelligent rail solutions comes with a hefty outlay of cash right off the bat. It is possible that the costs associated with the financing of a smart railway project would be a major issue that will slow the expansion of the market. The widespread implementation of smart railway technologies is hampered by the enormous capital expenditure (CAPEX) expenditures that are incurred, in addition to the rising initial installation expenses. The restricted funding that is now available for railways acts as a factor that prevents governments and private enterprises from deploying the most cutting-edge railway technologies and solutions. Setting up field-level devices, replacing aging infrastructure, arranging transmission networks between end users, and managing the integration of new and existing systems within railway premises all require a substantial initial financial investment. Smart railway technologies fall into this category. The high expenses of both operation and maintenance are another major worry for the authorities in charge of railways.

Integration Challenges

Intelligent railway systems require the seamless integration of a multitude of technological factors, including hardware, software, and networks, all of which can be challenging to design. This is a prerequisite for the systems' ability to function effectively. There is a possibility that the older system architecture will make it difficult to integrate a variety of hardware devices as well as smart railway management software. It is difficult to develop digital infrastructure without solid pre-existing information technology or employees with extensive experience. The owners and operators of railways have the option of completely upgrading their information technology systems; however, the costs associated with such an upgrade would take a significant amount of time to recoup. Legacy systems frequently are unable to interface with newer generations of smart devices because of issues with the underlying protocols. These systems are not capable of properly connecting with systems that have a higher level of technological sophistication. In the coming years, it is anticipated that integration problems would restrain market growth in emerging countries. This is due to the fact that the majority of emerging economies will continue to rely on legacy infrastructure.
 
Need For More Sophisticated Transportation Infrastructure Presents an Opportunity

The effects of globalization have a direct impact on the volume of traffic across all forms of railway transportation. There is a need for enhanced speed, as well as increased security and dependability. Therefore, the future ecosystem for railway transportation needs to be able to provide solutions to meet the demand, from the point of origin to the final destination, while maintaining a high level of service. This is true regardless of the amount of distance that must be traveled or the number of steps that must be taken to reach the final destination. People's demands shift on a daily basis, and as a result, there is a constant demand for travel options that are more convenient. Intelligent solutions such as advanced PIS, advanced vehicle control systems, and various other systems provide information on the real-time position of vehicles. This information can then be used to monitor schedule adherence and provide passengers with information regarding the location of vehicles while they are in transit. It is anticipated that increasing passengers' access to reliable real-time information regarding the status and location of cars currently in transit will increase their level of satisfaction.

Rail Communication and Networking to Lead the Revenue and Growth Within the Systems Market

The global market for smart railways, by systems, was dominated by rail communication and networking systems in 2021. The implementation of intelligent communication solutions across the many different applications of railways management enables more prompt decision-making on a variety of challenges, such as the distribution, maintenance, and exploitation of assets. Communication that is exact and on time between stations, control, dispatch centers, and rolling stock is necessary for efficient railroad operations since it helps to maintain safety and security while also allowing for uninterrupted service. This will become an important consideration for producers and vendors of smart railway technology all around the world. In addition, it is anticipated that the market segment for rail communication and networking systems would exhibit the strongest CAGR throughout the forecast period. Accelerating the growth of the market over the coming years are the robust expansion of strategic partnerships between rail operators and service providers of smart solutions, as well as consistent technological advancements in the railway infrastructure of growing nations.

Managed Services to Continue its Dominance the Smart Railways Services Market

With respect to the services market in 2021, the managed services segment contributed to the largest revenue share, and it is anticipated to lead the market all through the forecast period. The demand for managed services is expected to be driven in part by factors such as the growing demand to outsource the maintenance of smart railways, which is expected to drive the industry. One of the primary reasons that are anticipated to drive the expansion of the smart railroads market is an increase in resource usage, which should be improved by organizations.

The track Measurement Segment Dominated the Measuring Systems Segment

By measuring systems, the track measurement segment accounted for the largest revenue in 2021. The track measurement segment plays a significant part in the smart railways market. In order to successfully operate a smart railway network, precise track measurement is required. The longitudinal level and track condition for operating passenger trains such as bullet trains, metro, and other types of passenger trains are measured by a track measurement system. The functioning of the track measurement system is accomplished through the application of digital signal processing algorithms such as speed variable moving summation and frequency variable difference filter. These factors are driving revenue growth of the segment, which includes several companies that specialize in the construction of railway networks. These companies use track measuring equipment for maintenance and for testing new networks.

A consistent revenue share will be accounted for by hand-type tracking methods in the year 2023. The accuracy of geometric measurement is critically important to the proper operation of rail systems. The smooth measurement of railway tracks and lines is the primary purpose that hand-type tracking devices provide. Recording track characteristics with equipment of the hand type track measurement kind are both quick and reliable. Test techniques calculate 10 m versing longitudinal levels with excellent precision. These intelligent pieces of equipment are seeing widespread adoption across the industry and are making a major contribution to the segment's overall sales growth.

Rolling Stock Segment Dominated the Solution Segment of the Market

In the year 2021, the rolling stock segment was responsible for the largest revenue share. The rolling stock is an essential part of the smart railway system. Components of rolling stock include locomotives, electric multiple units, mainline electric multiple units, locomotives, and other types of coaches and engines. The advancement of technology has resulted in a significant rise in the demand for rolling stock that is more efficient in its use of energy. Smart trains are being designed and manufactured with new materials and aerodynamic designs in order to be cost-effective, efficient in their use of energy, and have a smaller negative impact on the environment. In 2021, a consistent proportion of the revenue will be accounted for by electrification and energy storage systems. The component that handles the system's electrification and energy storage is an essential one. There are energy storage systems available for standardized traction voltages ranging from 750 V to 1500 V, and these types of systems are seeing widespread adoption in railway networks such as suburban, mainline, and other urban transport systems. Because it saves so much energy, component makers are increasingly adopting the smart railway. These factors are what are driving the segment's growth in terms of revenue.

The Passenger Information System Market Ruled the Digital Solution Segment of the Market

In 2021, the passenger information system will be responsible for a higher proportion of the total income. Through the integration of live data from a variety of data sources, passenger information systems make it possible for smart rail operators to provide passengers and rail operators with information that is current and reliable. In applications ranging from the metro to high-speed rail, passenger information systems are seeing widespread adoption. On-premise and cloud servers can both be used to access passenger data, and data can be accessed via mobile devices, websites, and live display boards. Passenger data is also stored in both locations. A passenger information system is an absolute necessity for the intelligent management of railway data. These variables are what is driving the segment's rise in terms of revenue.

A consistent revenue share is accounted for by the use of smart ticketing systems in 2021. Users are able to pay for smart railway travel in a seamless manner with the help of an innovative ticketing technology known as smart ticketing. When making contactless payments, customers can swipe their credit or debit cards or scan barcodes using their smartphones. In addition, a large number of smart trains have implemented a biometric system, which is a crucial factor driving the segment's revenue growth.

Europe to Remain as the Global Leader, APAC to Lead the Growth

Europe accounted for the largest market segment of the global smart railways market in 2021 and is projected to dominate the market over the forecast period. This dominance may be attributed to Europe's geographical location. The countries of Europe, particularly those in Western Europe, such as the United Kingdom, Germany, and France, have an established railroad infrastructure, and there are multiple railroad companies operating in the continent. These countries are increasingly putting some of the most cutting-edge smart railway technology to use. Large-scale passenger traffic and cross-border trade in Europe have been boosted as a result of social and trade agreements between the countries that make up the EU. Moreover, Asia Pacific is predicted to contribute a substantial CAGR during the forecast period. The improvements in smart railways have provided economic prospects in railways and paved the door for business models, innovation, and new services. Market growth in the region is being driven by factors such as increasing research and development activities in the digitization of railways, as well as robust demand for IT-based solutions and services to protect the essential infrastructure of railways. According to the statistics provided by the United Nations (UN), Asia and the Pacific are home to 60% of the total global population. Manufacturing of electronic sensors and products for the Internet of Things (IoT) is concentrated in Asia and the Pacific. As a direct consequence of this, traditional railways are being upgraded to "smart railways" on a massive scale. The most important metropolitan areas in this region, including Beijing, Hong Kong, Shanghai, Singapore, Sydney, and Tokyo, have all installed smart rail technologies for their metro systems as well as their passenger railways. The fact that major industry leaders in smart railroads are currently competing for contracts for smart railway installation and maintenance is another crucial factor driving growth in this region. Industrialization is expanding at a breakneck pace, which is driving up demand for freight transportation. According to The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), Asia and the Pacific accounted for 10.0% and 9.1% year on the rise in exports and imports in 2021. Over the course of the forecast period, it is anticipated that demand for intelligent railways will be driven by these indications.

Geographic Reach Remains the Key Competitive Factor Impacting Market Shares

The smart railroads market features a competitive landscape that is moderately fragmented, with only a few important competitors competing on both the global and regional levels. The most important competitors in the industry are currently forming strategic agreements in order to broaden their product lines and establish a solid foothold in the international market. Some of the major companies that are dominating the market include Hitachi Rail Limited, ABB, Schneider Electric, TE Connectivity, Siemens Mobility, Alstom, TOSHIBA CORPORATION, Hyperloop Transportation Technologies, KONUX GmbH, INDRA SISTEMAS, ALE USA Inc., Thales, Uptake Technologies Inc., EKE-Electronics Ltd, Televic, Aitek S.p.A., and others. Companies such as ABB have focused their efforts on building ties with foreign governments to improve the worldwide appeal of their products.

Rail operators, which are primarily government bodies, are the ones who make use of the smart railway technology solution in order to operate rail functions within the nation in an easy and effective manner. In addition, the digitalization of intelligent railway technology is anticipated to gain pace in the near future. It is anticipated that the vast majority of rail transportation service providers around the world will agree to the installation of this technology. The installation of this technology is carried out according to the terms of open contracts and agreements reached between service providers of rail transportation and the developers or manufacturers of smart railway technology. The capability to acquire new contracts across the globe is the key competitive factor that is enhancing the market share of the key companies in this market.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Smart Railways market are as follows:

  • Research and development budgets of manufacturers and government spending
  • Revenues of key companies in the market segment
  • Number of end users and consumption volume, price and value.
  • Geographical revenues generate by countries considered in the report
  • Micro and macro environment factors that are currently influencing the Smart Railways market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

ATTRIBUTE DETAILS
Research Period  2022-2032
Base Year 2023
Forecast Period  2024-2032
Historical Year  2022
Unit  USD Million
Segmentation
System
  • Passenger Information Systems (PIS)
  • Railway Traffic Management System (RTMS)
  • Advanced Security Management Systems (ASMS)
  • Smart Ticketing Systems (STS)
  • Rail Operations Management Systems
  • Rail Communication & Networking Systems
  • Others (Rail Analytics Systems and Freight Information Systems)

Measuring System Outlook
  • Track measurement
  • Bullet train lines
  • Conventional lines
    •     Hand type track measuring equipment
    •     Traction type track measuring equipment
    •     Monitoring console
    •     Others

Solution
  • Rolling stock
  • Electrification and energy storage system
  • Control and Signaling
  • Tunnels
  • Others

Services
  • Professional Services
    •     Consulting
    •     System Integration and Deployment
    •     Training, Support and Maintenance
  • Managed Services

Digital Solution
  • Passenger information system
  • Smart ticketing System
  • Rail Analytics System
  • Operations and control solutions
  • Others

Sensor
  • Speed sensors
  • Crossing sensors
  • Vibration sensors
  • Pressure sensors
  • Position sensors
  • Temperature sensors
  • Level sensors
  • Others

 Region Segment (2022-2032; US$ Million)

  • North America
    • U.S.
    • Canada
    • Rest of North America
  • UK and European Union
    • UK
    • Germany
    • Spain
    • Italy
    • France
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
    • South Korea
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East and Africa
    • GCC
    • Africa
    • Rest of Middle East and Africa

Key questions answered in this report

  • What are the key micro and macro environmental factors that are impacting the growth of Smart Railways market?
  • What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
  • Estimated forecast and market projections up to 2032.
  • Which segment accounts for the fastest CAGR during the forecast period?
  • Which market segment holds a larger market share and why?
  • Are low and middle-income economies investing in the Smart Railways market?
  • Which is the largest regional market for Smart Railways market?
  • What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
  • Which are the key trends driving Smart Railways market growth?
  • Who are the key competitors and what are their key strategies to enhance their market presence in the Smart Railways market worldwide?
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