The smart railways market size is expected to reach USD 57.97 Billion in 2030 and register a revenue CAGR of 9.3% during the forecast period, according to the latest report.
The industry is predicted to grow owing to the increasing investment by governments in railway infrastructure. Also, the need for reducing carbon footprint and inefficient energy consumption is expected to contribute to market expansion.
With the increasing focus on developing efficient and automated transportation systems, railway operators have started adopting smart technologies to enhance their passenger experience. Moreover, several countries are investing in upgrading their railway infrastructure and networks, which is expected to lead to increased demand for smart railways market solutions during the forecast period.
The report further states that many countries are investing in developing high-speed railways. This, in turn, is projected to fuel market growth during the forecast period. The European Union (EU) is investing in the development of high-speed railways. For instance, in 2017, the EU allocated around EUR 30 Billion for developing high-speed railways across Europe. Moreover, China has also invested in the development of its high-speed railway network. The country has plans to invest USD 361 Billion by 2025 to develop nearly 26,000 kilometres of high-speed railway. Such initiatives are anticipated to create a demand for smart railways, thereby driving market growth.
Railways have a major impact on farming, since these provide the main link between farms and food markets. Railways help to bring goods to the market quickly and efficiently, which is essential for the farmers. In addition, railways also allow farmers to transport their goods to different parts of the country, which can be very helpful during peak seasons.
Connected transportation systems are being developed to manage the demand and supply of transportation, by reducing the cost of Travel and waiting time. Also with this, there is an increase in safety and security at railway stations, as these systems are integrated with various technologies such as video analytics, beacon technology, etc. In addition to this, connected transportation systems enable real-time monitoring of assets and resources, thereby reducing the downtime. The demand for connected transportation systems is being driven by the need to reduce congestion and traffic jams, as well as to improve safety.
Some Key Highlights from the Report
The solutions segment is expected to grow at the highest rate during the forecast period as it provides passenger information systems (PISs), ticketing management systems (TMSs), security & surveillance systems, operations management systems (OMSs), and asset management systems (AMSs). Increasing demand for these solutions from key countries, such as the US, China, India, Japan, and South Korea is contributing to the growth of this segment.
By type, the on-board trains segment is estimated to lead the smart railways market in 2019. On-board trains are equipped with features such as CCTV cameras, infotainment systems, and passenger information systems, among others. These features make on-board trains more secure and comfortable for passengers as well as staff. In addition, the introduction of high-speed trains has further boosted the demand for on-board train solutions.
Smart railways market in Europe is expected to grow at a significant pace during the forecast period. The major factor driving the growth of smart railways market in Europe is the rapid urbanization and industrialization in the region. The European countries are focusing on developing their infrastructure by investing in smart railway projects. This is expected to create several opportunities for the key players operating in the smart railways market in Europe.
Smart Railways market in Asia Pacific is expected to grow at a significant CAGR during the forecast period of 2018 to 2025. This growth is attributed to the increasing number of rail projects and digitalization in railways sector. China and India are the two leading countries in the Asia Pacific region for smart railways market. The Chinese government has been investing heavily in the railway sector for past few years. In 2016, China's railway budget was USD 33.3 billion which increased to USD 37.5 billion in 2017. This trend is expected to continue in the forecast period as well. The Indian railway sector is also expected to grow at a significant rate in the coming years. The government of India has allocated USD 23 billion for railway infrastructure development in the Union Budget 2018-19.
In December 2021, Alstom and Hitachi Rail announced the formation of a strategic partnership to create a world-leading smart railways business. The partnership will enable both companies to offer an even more comprehensive product and service offering to customers worldwide, as well as benefitting from significant operational synergies. This will enable the companies to further accelerate their expansion in the growing global market for smart railways solutions.
Companies profiled in the global market report include Alstom SA, Cisco Systems Inc., IBM Corporation, Huawei Technologies Co. Ltd., Hitachi Ltd., General Electric Company, Cyient Limited, Thales Group, Siemens AG, ABB Ltd., and Bombardier Inc.
