Smart Railways Market registering 16.3% CAGR during the forecast period (2022 – 2031), to reach US$ 43.33 Bn by the end of 2031
Adoption of Big Data and Internet of Things (IoT) in railways are expected to deliver smt travel and trade solutions in the coming decade. Equipped with real-time monitoring and schedule updates, end users are expected to benefit from efficient cargo movement with error-tracking. Unique elements such as wake up call for railway passengers, destination alerts, and passenger information management are projected to up the adoption of smart railways across nations as governments will strive for better security measures and efficient operations.
For instance, Network Rail Telecom (NRT) in the U.K. is targeting IoT to enhance its own internal service capabilities. The company has partnered with giant vendors like Cisco Systems Inc. Thus, partnerships are expected to be the best way of companies to tap in developing markets to improve offerings.
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Liberalisation of rail transport is likely to create new growth opportunities for smart railways market players. Creation of open market conditions will have a positive impact on rolling stock, solution, and professional service providers of both freight and passenger transportation services.,” says the FMI analyst.
The market is also expected to thrive as government is projected to offer tremendous support to development of smart railways. For instance, in India, as per the proposed investment plan for the period of 2015 to 2019, information technology and research and development departments have received a funding of approximately US$ 753 Mn by the government. These funds were utilized for the integration of network-enabled train control systems and asset management applications to complement smart Indian railways.
Key Takeaways of Smart Railways Market Study
- Methods of payment have evolved in the railway sector as traditional payment methods are replaced by smart cards and Point-of-Sale (POS) technologies
- FDIs and PPP to generate and raise funds for infrastructural development in the railways, booting installation of smarter railroads
- India to allow 100% FDIs in railways to improve its railroads, making Asia Pacific the fastest-growing region
- Europe to lead global market for smart railways as private sector funds R&D across European Union
Smart Railways to Gain Momentum as Safety becomes Imperative
As legacy infrastructure is being replaced by advanced technologies, the deployment of IoT across modern railroads will assume tremendous importance. Connected vehicles for machine-to-machine communication via cloud will ensure seamless movement between tracks and stations. Increasing focus on averting dangerous accidents such derailments are expected to up the demand for smart railways in emerging economies.
Future Market Insights predicts that smart railways will be in high demand in the coming years as they will allow categorization of faults across multiple assets and operators for preventive measures.
Competition Landscape of Smart Railways Market
Smart railways market leaders are ramping up their production capabilities and enhancing their sales channels in developing nations, such as India and Thailand. This strategy is projected to bolster their global footprints.
Companies like Hitachi, Ltd. are focusing on developing control systems locally using local technologies. Use of local resources helps such companies cut down on procurement and production costs, consequently increasing profits.
The primary strategy incorporated by key players is to enhance their attractiveness on a global level by collaborating with local and foreign governments to upgrade existing railway infrastructures. These partnerships involve governments awarding short-term and long-term contracts to manufacturers and service providers operating in the global smart railways market.
Market participants such as Ansaldo STS acknowledge the rising demand for innovative technologies in the smart railways market, and by making those technologies available in the market, these companies are attracting new customers. Some of these technological innovations include railway management systems with satellite connection and catenary free power supply.
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Key Segments Of Smart Railways Industry Survey
Smart Railways Market by Device and Component:
- Rail Sensors
- Video Surveillance Cameras
- Smart Cards
- Networking & Connectivity Devices (Router, Wi-Fi, Switches, etc.)
- Others (Multimedia Displays)
Smart Railways Market by Service:
- Professional Services
- Cloud Services
- Integration Services
Smart Railways Market by 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)
Smart Railways Market by Region:
- North America Smart RailwaysMarket
- Latin America Smart RailwaysMarket
- Europe Smart RailwaysMarket
- East Asia Smart RailwaysMarket
- South Asia & Pacific Smart RailwaysMarket
- Middle East & Africa (MEA) Smart RailwaysMarket