Global Smart Railway Market is Estimated to Witness Rise due to Growing Digitalization and Need for Efficient Transportation
Global smart railway market is estimated to be valued at US$ 36.45 Bn in 2024, exhibiting a CAGR of 11.08% over the forecast period (2024-2031). The market is witnessing strong growth on account of rapid digitalization and growing need for efficient transportation systems globally. Furthermore, rapid urbanization and increasing passenger traffic are prompting railway operators to adopt smart solutions for optimized operations.
Market Dynamics:
Growing Digitalization - Digitalization is becoming increasingly important in railways with deployment of advanced technologies such as IoT, cloud, AI and data analytics. This is helping railway operators gain real-time visibility, predict failures, enhance safety and improve passenger services. Substantial investments by governments worldwide in smart rail infrastructure are driving the digitalization of rail operations.
Need for Efficient Transportation - With rising urbanization and increasing demand for public transport, there is a growing need to upgrade existing railway infrastructure and modernize operations. Smart railway solutions help meet this need by enabling congestion-free and optimized train movement. This improves throughput and enhances the overall transport experience. Systems like automatic train operation are helping rail operators improve capacity utilization and offer reliable services.
Growing demand for safety and security systems is driving the global smart railway market
The demand for safety and security systems such as railway surveillance cameras, alarms, sensors etc. is growing significantly across the globe. Smart railway safety and security systems help in preventing train accidents, protecting passengers and infrastructure from vandalism or terror attacks. They enable real-time monitoring of railway assets and operations. With rising concerns over security breaches and incidents of train accidents, governments worldwide are investing heavily in deploying advanced safety and security solutions. This is a major driver propelling the growth of global smart railway market.
Growing need for operation management systems is boosting market growth
The complexity of railway operations is increasing rapidly with greater number of trains running on the network. This necessitates the use of smart operation management systems for tasks like train scheduling, traffic management, passenger information systems etc. Smart operation management solutions enable efficient planning and coordination of train operations. They help reduce delays, cancelations and improve overall operational efficiency of railway networks. Growing investments into upgrading ageing rail infrastructure with digital operation management platforms is fueling the demand for smart railway solutions significantly.
High initial investment requirements pose a challenge
Developing smart railway systems require huge initial investments for installation of advanced ICT infrastructure, sensor network, train control and management platforms. It involves costs for upgrading signaling systems, rolling stock, and trackside equipment with latest communication technologies. The upgradation of existing railway networks involve disruptions and requires time for implementation. This high upfront capital requirement poses a major challenge for rail operators and acts as a restraint for widespread adoption of smart railway technologies especially in developing nations with budget constraints.
Issues with integration of legacy systems is a key restrain
Railway networks across major regions have traditionally run on ageing and diverse legacy systems that were developed independently over time. Integrating such heterogeneous legacy platforms with new smart railway systems involves technical complexities and compatibility issues. It requires additional investments and long transformation timelines. Issues related to integration of diverse legacy infrastructure with digital platforms is a critical challenge restraining faster adoption of smart railway technologies on a larger scale.
Growing investments in high-speed rail networks present an opportunity
Several countries are aggressively investing in developing high-speed rail corridors to boost connectivity and ease traffic congestions. High-speed rail projects necessitate deployment of latest transportation technologies for ensuring safety, efficient operations and superior passenger experience. This growing focus on high-speed rail infrastructure modernization worldwide presents a major market opportunity for smart railway solution providers. Suppliers can tap into large projects for developing advanced smart rail solutions.
Emerging opportunities in railway automation is another key market driver
With increasing demand for improved railway efficiencies, there is a rising focus on automating core operations and processes. Automation of train protection systems, signaling, station operations etc. helps optimize resource utilization and enhance safety. The untapped potential for railway automation across regions presents lucrative opportunities. Solution providers are innovating autonomous train technologies, advanced signaling controls and other intelligent platforms to tap into emerging opportunities in railway industry automation. This is expected to boost the growth trajectory of global smart railway market over the coming years.
Link: https://www.coherentmarketinsights.com/market-insight/smart-railway-market-2134
Key Developments:
- In November 2023, Siemens Mobility, a leading provider of intelligent transport solutions and a subsidiary of Siemens AG, introduced its inaugural electric Mireo Smart train at its Krefeld factory in Germany. This train is primarily aimed at regional and commuter rail operators and is a crucial element of Siemens' strategy to address the increasing demand for sustainable rolling stock solutions. The Mireo Smart is designed to improve operational efficiency and promote environmental sustainability within the rail industry.
- In October 2023, Huawei Technologies, a global leader in ICT solutions, unveiled a base station that adheres to the next-generation Future Railway Mobile Communication System (FRMCS) standard. Alongside this launch, Huawei released a white paper outlining its vision for the FRMCS, which is intended to aid customers in the global transportation sector in expediting their digital transformation initiatives. This effort underscores Huawei's dedication to improving safety and efficiency in railway communications, facilitating the industry's transition toward advanced digital technologies.
- In September 2023, Alcatel-Lucent Enterprise (ALE), a prominent provider of communications and networking solutions, formed a partnership with Nokia to support the Grand Paris Express project, one of Europe's largest metro rail initiatives. This ambitious project entails the construction of 200 kilometers of new rail, which includes four new lines (15, 16, 17, and 18) around Paris and an extension of the existing Line 14. The collaboration aims to deliver certified and integrated end-to-end mission-critical infrastructure that features a high-speed backbone network from Nokia designed to meet all operational and maintenance needs for the Grand Paris Express.
- In June 2023, Huawei Technologies launched four Intelligent OptiX innovative practices of F5.5G targeting various sectors including smart homes, small and micro enterprises, smart manufacturing, and metro networks. Utilizing Huawei's Alps-WDM technology, China Unicom Chongqing has developed metro networks that optimize total cost of ownership (TCO). The Alps-WDM technology has significantly improved single-wavelength rates from 10G to 100G at integrated access sites, enhancing bandwidth management efficiency and supporting the demand for high-speed connectivity.
- In May 2023, Kyushu Railway Company (JR Kyushu), an integral component of Japan's extensive rail network and part of the Japan Railway Group, announced plans to issue NFTs on the Astar Network, a multichain smart contract platform, in collaboration with PRO Co. Ltd. This initiative aims to provide sponsors with secure and real-time access to all clinical documentation throughout the clinical trial lifecycle. JR Kyushu also engages in bus transportation, freight services, hospitality, and other related sectors while seeking to enhance customer engagement and transparency in service management.
Key Player:
Siemens AG, Alstom S.A., Bombardier Inc. (now part of Alstom), Hitachi Rail, General Electric Company, Mitsubishi Heavy Industries, ABB Ltd., Thales Group, Cisco Systems, Inc., Huawei Technologies Co., Ltd., Honeywell International Inc., Schneider Electric SE, Knorr-Bremse AG, Indra Sistemas, S.A., and Wabtec Corporation
