Growing adoption of automation technologies and IoT are the major factors driving the growth of the smart railway market
The global smart railway market size is anticipated to reach over USD 39 billion by 2025. In addition, it is expected to exhibit a CAGR of over 14% during the forecast period 2018-2025. Globally the railway networks are getting busier and complex due to the growing population and urbanization. The railway systems have already been using information technologies. However, with the increasing load on trains and growing demand to provide better customer services are the crucial factors generating the need for smart railway solutions.
The existing and future smart railway market developments are defined to define the attractiveness of the market. Key impacting factors highlight the smart railway market opportunities throughout the forecast period. Factors such as the globally increasing government initiatives for PPP working models and smart cities. Also, the growing need for better network connectivity while traveling to enhance customer experience is the key factor boosting the global smart railway market growth. However, the high deployment cost of infrastructures is expected to impede market growth. Furthermore, the advent of autonomous trains is expected to be opportunistic for the market in the forthcoming years.
The report also highlights numerous aspects of the global smart railway market by evaluating the market through value chain analysis. Besides, the smart railway market report covers various qualitative aspects of the smart railway' industry in market drivers, restraints, and key industry opportunities. Furthermore, the report offers a complete assessment of the market competitiveness along with company profiling of local as well as global vendors.
The smart railway market has strong competition among the pre-established and new emerging players. Also, the smart railway industry players are targeting prospective markets to capture a competitive advantage over the other industry players by forming agreements, mergers & acquisitions, acquiring new startups & other companies, forming collaboration and partnerships, and expanding their business presence.
Based on the solutions, the market is segmented into security and safety solutions, passenger information systems, rail networking and communication system, rail analytics, and others. The rail networking and communication system segment leads the market growth in 2019 and it is expected to do so throughout the forecast period. The growth of this segment is mainly attributed to the growing demand for mobile internet-based solutions and applications such as passenger infotainment, navigation, smart ticketing, and passenger connectivity. However, the rail analytics segment is anticipated to experience the highest market growth in the forthcoming years.
The European region dominated the overall market in 2019 and it is expected to maintain its position throughout the forecast period 2018-2025. The dominance of this region mainly attributed to the well-established infrastructure in countries such as France, German, UK, and others. However, the Asia-Pacific region is anticipated to see the highest growth throughout the forecast period. Moreover, the North America region will be the second-largest market during the forecast period.
The major players of the global smart railway market are Cisco, ABB, Siemens, Honeywell, Bombardier, Thales, Toshiba, Fujitsu, IBM, and Hitachi. Moreover, the other potential players in the smart railway market are Advantech, Wabtec, Huawei, Indra, and Alcatel-Lucent. The recognized companies are coming up with innovative and new smart railway solutions. For instance, in April 2019, IBM announced a collaboration with Sund & Bælt, an infrastructure company. With this collaboration, Sund & Bælt is assisting IBM in its AI-powered IoT solution that is specifically designed to increase the lifespan of aging tunnels, highways, bridges, and railway.
Segment Overview of Global Smart Railway Market
Device Type Overview, 2018-2025 (USD Billion)
- Network & Connectivity Devices
- Surveillance Cameras
Solutions Overview, 2018-2025 (USD Billion)
- Security and Safety Solutions
- Passenger Information System
- Rail Networking and Communication System
- Rail Analytics
Services Overview, 2018-2025 (USD Billion)
- Managed Services
- Professional Services
Regional Overview, 2018-2025 (USD Billion)
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia-Pacific
- Middle East and Africa
- South Africa
- Rest of Middle East and Africa
- South America
- Rest of South America