The global railway system market is expected to be USD 39.93 billion in 2024 and USD 64.31 billion by 2029 growing at a CAGR of over 10% between projection period.
Railway management contains instrumented and interconnected smart railway systems. It comprises devices and components, solutions, and services that help rail companies gather new information needed to monitor all railway-related operations more closely and accurately. Smart railways facilitate the sharing of data across the enterprise and with various partners, including passengers, rail operators, component providers, system integrators, solution and repair providers, and government agencies.
The rising trend of urbanization and growth within the adoption of advanced technologies has resulted in the rapid evolution of railway systems over the past decade. Radical developments within the railway environment, enabled by communication technologies, require the current strategies and business models adopted by rail operators to be updated. Railway management systems assist railway operators by making use of data technologies and control systems, providing advanced control centers for railway operations. These systems deliver increased quality and high levels of safety, greater consistency, and potential cost savings, driving their adoption within the market.
The worldwide railway system market is predicted to witness significant growth during the forecast period due to a substantial surge in passengers and freight traffic across the world. Factors like increased railway development and a rise in demand for safe, secure, and efficient transport systems drive the expansion of the railway market. Additionally, the increase in the use of conveyance services as an answer to attenuate traffic jams is anticipated to propel the development of the market.
The high capital requirement is restraining the market's growth. Moreover, the infrastructural development of railways in developing countries and the hike in mining and industrial activities offer remarkable growth opportunities for the players operating within the global railway system market.
|
REPORT METRIC |
DETAILS |
|
Market Size Available |
2023 to 2029 |
|
Base Year |
2023 |
|
Forecast Period |
2024 to 2029 |
|
CAGR |
10% |
|
Segments Covered |
By System Type, Rolling Stock Type, End-use, and Region |
|
Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
|
Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
|
Market Leaders Profiled |
Alstom SA, Cisco Systems Inc, General Electric, ABB Limited, IBM Corporation, Hitachi Limited, Huawei Technologies Co. Ltd., Indra Sistemas SA, Siemens AG, Alcatel-Lucent and Others. |
The rail system helps in streamlining rail operations, augmenting security and delivering enhanced environmental protection. These systems allow station operators to more effectively coordinate and manage train arrivals, departures, and cargo handling to reinforce the throughput. They also provide efficient revenue & ticketing management solutions, ensuring accuracy within the fare collection, increased security against frauds, lesser revenue losses, improved end-user customer satisfaction, and low maintenance costs. Rail automation management solutions are growing at the fastest rate within the railway system market and are projected to grow at a CAGR of over 10% over the forecast timespan. Providing enhanced reliability, speed, and convenience are the critical factors for ensuring the attractiveness of the fashionable transit railways. These criteria are often fulfilled by adopting railway automation management solutions. Various countries worldwide are adopting rail management solutions to enhance their operational efficiency and deliver rail solutions with improved safety and compliance.
The North American railway system market is growing at a moderate rate, accounting for over 27% of the overall revenue share in 2017. Freight transportation is vital in this region and accounts for around 70% of the market size, while passenger railway transportation is in the growth stages. Stringent government regulations, robust infrastructure, and, therefore, the rising adoption of advanced technologies by North American railway providers are a number of the main factors driving the market demand. Furthermore, the businesses residing in this region, including IBM, Bombardier, and General Electric, are also implementing strategic initiatives to expand their rail management product portfolio through rail solutions, starting from rail maintenance services, subsystems, and signaling systems. The European railway system market generated the best revenue within the global market in 2016 due to adequate technology infrastructure, high adoption of the Internet of Things (IoT), and growth in demand for railway management system tools. The LAMEA railway system market is predicted to grow at the best CAGR due to the rise in demand for technological upgrades in railway infrastructure from Africa and South America. Several rail management system providers are witnessing a better demand from emerging markets of Latin America, Asia, Eastern Europe, and Africa, as these regions contribute majorly to the world’s population. These companies offer numerous rail management solutions & services and invest in advanced technologies to satisfy the growing demand of the marketplace.
The Major players operating in the global railway system market are:
Alstom has currently signed a contract with Banedanmark - the Danish railway infrastructure owner - to bring onboard equipment to railway operators in Denmark and equip 503 of their trains with Atlas ERTMS1signalling solution.
Alstom will provide driverless trains and a digital signaling system for the Sydney Metro add-on in Australia.
French wheeled vehicle manufacturer Alstom SA is now in advanced talks to accumulate the whole rail business unit of bombardier inc.
The new Cisco® Connected Transportation Solutions present a safer and more productive commuter experience and deliver on the worth of the Web of Everything.
Indian Railways has presented General Electric with the choice to manufacture electric locomotives rather than diesel engines at its forthcoming factory in Marhowrah in Bihar since it does not envisage a requirement for diesel engines.
By System Type
By Rolling Stock Type
By End Use
By Region
Frequently Asked Questions
The key drivers include urbanization, increasing need for efficient and sustainable transportation, government investments in rail infrastructure, technological advancements in train control and signaling systems, and the rising demand for high-speed rail.
The demand for high-speed rail is a significant market driver, particularly in regions like Asia and Europe. High-speed rail projects enhance connectivity, reduce travel time, and provide a competitive alternative to air travel, thereby boosting the market.
Railway systems offer substantial environmental benefits, including lower greenhouse gas emissions, reduced air pollution, and decreased road congestion. Trains are more energy-efficient and have a smaller carbon footprint per passenger kilometer compared to cars and airplanes.
In the next decade, the railway system market is expected to evolve with increased adoption of digital technologies, greater focus on sustainability, expansion of high-speed rail networks, and enhanced intermodal connectivity. Urban rail systems like metros and trams will also see significant growth as cities strive to improve public transportation.
Related Reports
Access the study in MULTIPLE FORMATS
Purchase options starting from $ 2500
Didn’t find what you’re looking for?
TALK TO OUR ANALYST TEAM
Need something within your budget?
NO WORRIES! WE GOT YOU COVERED!
Call us on: +1 888 702 9696 (U.S Toll Free)
Write to us: [email protected]
Reports By Region