The market for Smart Railways was valued at USD 26.32 billion in 2021 and is anticipated to grow at a 9.2% revenue CAGR during the forecast period. The growth in market revenue is being driven by the rising consumer demand for environmentally friendly rail transportation. The International Energy Agency (IEA) predicts that by 2050, yearly investments in rail infrastructure would reach USD 315 billion. Global railway network operators are implementing cutting-edge technology and machinery to minimize expenses per passenger-kilometer or tonne-kilometer. As a result, railway operators are converting from the traditional railway system to high-speed rail.
To reduce pollution and save the environment, governments in various areas are funding energy-efficient passenger transportation, while railroad companies are moving to high-speed locomotives to increase rail system earnings. The market for smart railways is seeing considerable revenue development as a result of these causes.
The global commercial rollout of 5G is revolutionizing the market for smart trains. With over 1GHz in open bandwidth, 5G technology is enabling dependable communications with extremely low latency. The rising objectives of rail operators and passengers cannot be met by conventional radio technologies like Terrestrial Trunked Radio (TETRA), Global System for Mobile Communications (GSM-R), and Wi-Fi. A variety of smart railway systems, including intelligent signaling and controlling and electricity optimization, are being supported by 5G services. T2T (train-to-train) connections are becoming more efficient thanks to faster transcoding and processing times combined with precise 5G positioning. The market’s rising revenue is being driven by these technological developments.
Some Key Highlights from the Report
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.
Driver: Increasing Demand For Smart Freight Railways For Global Trade
With an increase in worldwide trade, railroad logistics transportation is growing. The United Nations Conference on Commerce and Development (UNCTAD) estimates that the value of world trade increased by 25% to USD 28.5 trillion. To provide real-time monitoring of railway systems and logistical activities, railway operators are implementing smart railway components such as Communication-Based Train Control (CBTC) systems, high-speed sensors, and intelligent computing equipment.
The main mode of transportation for logistics from sea to land is the freight railroad. Cross-border logistics activities demand real-time data communication. Access to the onboard logistics tracking nodes between the local device and the cloud device is now possible thanks to the deployment of 4G LTE or 5G. The International Energy Agency (IEA) estimates that 7% of all global freight is transported via rail networks. Additionally, major participants in the world’s railway business are modernizing smart, sustainable electric locomotives. To reduce project costs overall, several governments are awarding Build-Operate-Transfer (BOT) contracts, and it is anticipated that these factors will fuel demand over the forecast period.
The use of historical data resources by smart trains enables predictive maintenance and creative problem-solving using machine learning. To improve the experiences and efficiency of both drivers and passengers, operators are utilizing smart technology to create integrated digital experiences like infotainment and driver-machine interfaces. When used effectively, this information can enhance operations and increase efficiency across the train network in addition to passive safety.
The Asia Pacific region’s Smart Railways market is anticipated to experience a faster revenue CAGR during the projected period due to expanding urbanization and rising demand for sustainable long-distance transportation. To improve customer experience and ensure the highest degree of safety, the government is also working to regulate new regulations to create railways based on world-class standards. The installation of smart technologies to give commuters a safe and enjoyable journey is also required for the development of smart cities, and this is anticipated to boost market revenue growth.
Measuring System Outlook (Revenue, USD Billion; 2019-2030)
- Track measurement
- Bullet train lines
- Conventional lines
- Hand-type track measuring equipment
- Traction-type track measuring equipment
- Monitoring Console
Solution Outlook (Revenue, USD Billion; 2019-2030)
- Rolling stock
- Electrification and energy storage system
- Control and Signaling
Digital Solution Outlook (Revenue, USD Billion; 2019-2030)
- Passenger information system
- Smart ticketing System
- Rail Analytics System
- Operations and control solutions
Sensor Type Outlook (Revenue, USD Billion; 2019-2030)
- Speed sensors
- Crossing sensors
- Vibration sensors
- Pressure sensors
- Position sensors
- Temperature sensors
- Level sensors
Regional Outlook (Revenue, USD Billion; 2019-2030)
- North America
- Latin America
- Middle East & Africa