An Incisive, In-depth Analysis on the Smart Railways Market
This study offers a comprehensive, 360 degree analysis on the Smart Railways market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global Smart Railways market across key regions, and offers in-depth commentary and accurate quantitative insights. The study also includes incisive competitive landscape analysis, and provides key recommendations to market players on winning imperatives and successful strategies.
Smart Railways Market Outlook & Key Findings
- Global smart railways market likely to grow at over 20% during the forecast period of 2020 to 2030, subjected to engaged stakeholders increased spending on IoT in transportation industry
- Companies are deploying network connected devices, software and services to facilitate digital identification at railway stations
- By the end of 2025, spending on professional services for smart railways is estimated to increase by 9x its value in 2015 by 2030
- Among all the systems, Advanced Security Management Systems (ASMS) are projected to offer the most attractive opportunity worth approximately US$ 15 Bn over the forecast period
- Well-established smart railways solution providers are focusing on government as well as private sector integration in order to increase the attractiveness of the sector
Smart Railway Adoption is on Fast Track
Role of data and IoT in transportation sectors including railways has not confined to accounting, logistic and shipping management, managing resources, but has integrated in day to railway operation. Such functions include scheduling, run trains safely, measuring economic benefit etc., to mention a few.
At pace with technology adoption by rail operators, IT solution providers have also enhanced their offering for engaged stakeholders. Integration of virtualisation, bespoke asset management software, analytical and predictive modelling has surfaced as regular business function that necessitates effective IT solution.
Need for these smart railway solution will receive increased traction, as railways transition to semi-autonomous transportation over the next ten year. Meanwhile, railway operators are experimenting with smart railways solutions to offer a seamless and safe transportation experience. Rail operators use analytical software to forecast the likely breakdown, and accordingly fix the problem in advance for a better and safer passenger experience, as well as enhancing the overall efficiency for the operator.
Asset management is another critical sector where these smart railway solutions are being used and implemented. Integrated modules of predictive and analytical tools are in use by railways to map likely spike in demand volumes and accordingly optimize capacity and mobilize resources.
Collectively these developments are well synced and aligned to fast track the adoption of smart railways across the industry, resultantly northward trend in market revenue anticipated over the forecast period 2020 – 2030 for global smart railways market.
Ecological and Energy Saving Attributes Boosting Market Growth
National governments and private railway authorities are actively promoting and adopting new green technologies like solar power driven headlight for trains. As conversations around energy savings intensifies, establishing railway environment protection standards and evaluation systems have become imperative.
Smart railways are expected to play a critical role in improving coal and electricity consumption in operating this giant machinery. Reducing the financial costs by achieving energy efficiencies has also been identified as a primary cause in adoption of railways.
In light of this, railway industry stakeholders are undertaking comprehensive measures to prevent noise pollution wherever possible. For instance, solution providers are offering vibration generative alarms that can be integrated into a train’s existing infrastructure to notify the commuters about its arrival. Consolidation of such ecological solutions into a single system helps tackle environmental issues are thus driving the adoption of smart railways.
Case of Smart Railways Gets Stronger as Safety Concerns for Aged and Differently Abled Rise
Development of smart railways to make them safer for aged and the differently abled has been the top priority of governments across the globe. Committing and delivering the promise of safe and affordable means of transported has prompted the investments in upgrading the existing railway infrastructure with smart railways. Features such as infrared sensors for accurate human detection on bridges to minimize the accidents are expected to favor market growth.
Furthermore, use of technology to help differently abled individual use platforms and bridges with utmost safety will also make the case of smart railways stronger in the coming ten years. Future Market Insights predicts that research and innovation in smart railways technology can help ensure trade-off between actions needed in favor of ensuring greater safety and easy access to trains given the complex network of railways.
Smart Passenger Services to Enhance Attractiveness for the Commuter
Smart passenger services support a wide range of commuter services, such as provision of convenient ticketing methods, digitization of passenger identity data, intelligent navigation, and personalization of information services, among others. As all of these collectively aim towards saving time and better record-keeping, consumers are expected to opt for smarter ways of using railways by the end of 2030.
Smart railways with intelligent services that will consider commuter demands for optimized goals will bode well for the market. Intelligent navigation services that will offer commuters accurate updates about train schedules, weather, and consignment support, and decision assistance are expected to drive the growth of this market as governments are looking at infrastructure expansion.
Impact of COVID-19 on Smart Railways Market
COVID-19 has adversely affected many countries worldwide, resulting into negative impact on the global economy. The pandemic has driven most of the affected nations into shutdowns, restricting their commercial and industrial activities. Resultantly, new investments in smart railways has been impeded.
The mandatory lockdowns legislated across nations had put a halt of public transportation, as governments strive to tackle the ever-rising rate of COVID-19 infections. In order to combat COVID-19, governments in countries like India and China have frozen R&D and procurement funding across multiple sectors, including railways.
As the global economy heals, the investments in R&D and procurement of smart railways technologies is likely to resume.
Europe and North America Lead Smart Railways Adoption
The market in Europe currently leads the global smart railways market, followed by the smart railways market in North America. Heavy procurement of IoT solutions, along with high focus on technological innovations in the transportation sector, drive the markets in Europe and North America.
Smart railways solutions and service providers are focused on deploying their products in Europe as the European Union, along with Russia, constitute the world’s longest railway network. Also, Europe hosts some of the leading players operating in the global smart railways market, which has given this regional market an edge over others.
High demand for smart devices and components, such as rail sensors, video surveillance cameras, smart cards, and other networking and connectivity devices that complement smart railways, is being observed across Latin America and the Middle East and Africa. Further, the cost of professional cloud integration services in these countries is likely to decrease during the forecast period.
The market value of smart railways in Asia Pacific excluding Japan is likely to increase at the fastest rate, among all the regional markets. The swift growth may be attributed to the increasing demand for assembled smart railway systems like Railway Traffic Management System (RTMS), Passenger Information System (PIS), and ASMS. High population and the consequent demand for safe and efficient transportation modes is one of the key factors propelling the adoption of smart railways in the region.
Competitive Innovation Strategies in the Smart Railways Market
Key players operating in the global smart railways market are deploying products that accelerate digitization in the railway sector. Companies like ABB are focused on developing relationships with foreign governments in order to enhance the attractiveness of their solutions on a global level. For instance, ABB and Indian Railways announced a partnership in February 2019. As per the agreement, Indian Railways has awarded a contract to ABB for manufacturing and supplying smart converters for electric locomotives. Other key players are undertaking mergers and acquisition strategies in order to expand their product portfolio and extend its reach towards emerging economies.
Following are the key players operating in the global smart railways market –
- Huawei Technologies Co., Ltd.
- Alstom S.A.
- Indra Sistemas, S.A.
- Hitachi, Ltd.
- Bombardier Inc.
- Cisco Systems, Inc.
- GENERAL ELECTRIC
- Ansaldo STS
Following are some promising players that are estimated to lead the technical innovation to complement smart railways over the coming years:
- Alstom S.A.
- CSR Corporation Limited
- Bombardier Inc.
*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with competition deep dive available in the report
Global Smart Railways Market: Trends to Watch Out For
- Methods of payment have evolved in the railway industry. Today, commuters can readily pay using smart cards, thus replacing the traditional method of having change or the right amount of cash for the transaction
- Optical sensors in railways can detect major problems such as vibrations, technical faults or differences in rail speed and temperature. These systems are wired to warn smart railway operators immediately of problems, so that they can avoid derailment and other railway accidents
- Smart railway operators globally are predicting the supply-demand scenario and, thus, making optimum utilization of railway assets
- Global System for Mobile Communications in Railway (GSM-R) solution is in high demand and is considered extremely reliable for high speed railways. GSM-R enhances rail network safety and provides greater coverage than analogue radio networks.
- Since 2014, smart railway providers have been utilizing cloud computing services and big data analytics in their operations in order to gain better understanding of their customers’ needs. Adoption of a new cloud integrated system would bestow the railway providers with a wider view across logistics and passenger operations, so that they can manage railway traffic across their network more effectively.
Smart Railways Market: Global Industry Analysis 2015-2019 and Opportunity Assessment 2020-2030
A recent market study published by Future Market Insights on the Smart Railways market includes a global industry analysis for 2015-2019 and opportunity assessment for 2020-2030, and delivers a comprehensive assessment of the most important market dynamics. After conducting a thorough research on the historical as well as current growth parameters, growth prospects of the market are obtained with maximum precision.
Smart Railways Market: Segmentation
The global Smart Railways market is segmented in detail to cover every aspect of the market and present a complete market intelligence approach to readers.
Device and Component
Chapter 01 – Executive Summary
The report begins with the executive summary of the smart railways market, which includes a summary of key findings and statistics of the market. It also includes the demand and supply-side trends pertaining to the market.
Chapter 02 – Market Overview
Readers can find the definition and detailed taxonomy of the smart railways market in this chapter, which will help them understand the basic information about the market. Along with this, comprehensive information pertaining to smart railways and its properties are provided in this section. This section also highlights the inclusions and exclusions, which help readers understand the scope of the smart railways market report.
Chapter 03 – Key Market Trends
The smart railways market report provides key market trends that are expected to significantly impact market growth during the forecast period. Detailed end-user trends are also provided in this section.
Chapter 04 – Key Success Factors
This section includes the key trends directly impacting the market, along with product innovation and development trends. This section also includes promotional strategies undertaken by companies operating in the global smart railways market.
Chapter 05 – COVID-19 Impact Analysis
This chapter offers analysis on the impact of the ongoing COVID-19 pandemic on factors, such as enterprise spending on smart railways, adoption of blockchain to tackle supply chain disruptions, and spending analysis on trending end-uses of smart railways like crypto-gaming and data analytics.
Chapter 06 – Global Smart Railways Market Demand Analysis 2015-2019 and Opportunity Assessment 2020-2030
This section explains the global market value and volume analysis and forecast for the smart railways market during the forecast period. It includes a detailed analysis of the historical smart railways market, along with an opportunity analysis of the future. Readers can also find the absolute $ opportunity for the current year (2019), and an incremental $ opportunity for the forecast period (2020-2030). Along with this, the year-on-year growth trend analysis of the smart railways market has also been provided in this section.
Chapter 07 – Market Background
This chapter explains the key macroeconomic factors that are expected to influence growth of the smart railways market during the forecast period. Along with the macroeconomic factors, this section also highlights forecast factors and value chain analysis of the smart railways market. Moreover, in-depth information about the market dynamics and their impact on the market have been provided in this section.
Chapter 08 – Global Smart Railways Market Analysis 2015-2019 and Opportunity Assessment 2020-2030 by Device and Component
Based on device and component, the smart railways market is segmented into rail sensors, video surveillance cameras, smart cards, and networking and connectivity devices like router, Wi-Fi, switches, among others. In this chapter, readers can find market attractiveness analysis based on device and component.
Chapter 09 – Global Smart Railways Market Analysis 2015-2019 and Opportunity Assessment 2020-2030 by Service
Based on service, the smart railways market is segmented into professional services, cloud services and integration services. In this chapter, readers can find market attractiveness analysis based on service.
Chapter 10 – Global Smart Railways Market Analysis 2015-2019 and Opportunity Assessment 2020-2030 by System
This chapter provides various details about the smart railways market based on system, and has been classified into Passenger Information System (PIS), Railway Traffic Management System (RTMS), Advanced Security Management System (ASMS), Smart Ticketing System (STS), rail operations management system, and rail communication & networking systems, among others like rail analytics system and freight information system. In this chapter, readers can find the market attractiveness analysis based on system.
Chapter 11 – Global Smart Railways Market Analysis 2015-2019 and Opportunity Assessment 2020-2030 by Region
This chapter explains how the Smart Railways market is anticipated to grow across various geographic regions such as North America, Latin America, Western Europe, Eastern Europe, Asia Pacific excluding Japan, Japan, and the Middle East and Africa. In this chapter, readers can find the market attractiveness analysis based on regional markets.
Chapter 12 – North America Smart Railways Market Analysis 2015-2019 and Opportunity Assessment 2020-2030
This chapter includes a detailed analysis on the growth of the North America smart railways market, along with a country-wise assessment that includes the U.S. and Canada.
Chapter 13 – Latin America Smart Railways Market Analysis 2015-2019 and Opportunity Assessment 2020-2030
This chapter provides the growth scenario of the smart railways market in Latin American countries such as Brazil, Mexico, and rest of Latin America.
Chapter 14 – Western Europe Smart Railways Market Analysis 2015-2019 and Opportunity Assessment 2020-2030
Important growth prospects of the smart railways market in several countries such as Germany, Italy, France, the U.K., Spain, BENELUX, and rest of Western Europe are included in this chapter.
Chapter 15 – Eastern Europe Smart Railways Market Analysis 2015-2019 and Opportunity Assessment 2020-2030
This chapter provides the growth scenario of the smart railways market in Eastern Europe countries such as Russia, Poland, and rest of Eastern Europe.
Chapter 16 – Asia Pacific excluding Japan Smart Railways Market Analysis 2015-2019 and Opportunity Assessment 2020-2030
This chapter highlights the growth of the smart railways market in the Asia Pacific excluding Japan region by focusing on India, China, ASEAN. Oceania, and Rest of Asia Pacific excluding Japan.
Chapter 17 – Japan Smart Railways Market Analysis 2015-2019 and Opportunity Assessment 2020-2030
This chapter presents analysis and forecast of growth of the smart railways market in Japan.
Chapter 18 – Middle East and Africa Smart Railways Market Analysis 2015-2019 and Opportunity Assessment 2020-2030
This chapter provides information about how the smart railways market is anticipated to grow in major countries in the Middle East and Africa region, such as Northern Africa, GCC countries, South Africa, Turkey, and the rest of Middle East and Africa, during the forecast period.
Chapter 19 – Key Countries Smart Railways Market Analysis
This chapter provides analysis on smart railways market in the key countries – China, India and Brazil – considered in the market report.
Chapter 20 – Market Structure Analysis
In this chapter, readers can find detailed information about the tier-wise analysis of companies and market concentration of key players in the smart railways market, along with their market share analysis.
Chapter 21 – Competition Analysis
In this chapter, readers can find a comprehensive list of all the prominent stakeholders in the smart railways market, along with the detailed information about each company. This includes the company overview, key financials, product portfolio, revenue share by operating segment, and key strategies. Some of the market players featured in the report are Huawei Technologies Co., Ltd.; ABB; Alstom S.A.; Indra Sistemas, S.A.; Hitachi, Ltd.; Bombardier Inc.; Siemens; Cisco Systems, Inc.; IBM; GENERAL ELECTRIC; Alcatel-Lucent and Ansaldo STS.
Chapter 22 – Assumptions and Acronyms
This chapter includes a list of acronyms and assumptions that provides a base to the information and statistics included in the smart railways market report.
Chapter 23 – Research Methodology
This chapter help readers understand the research methodology followed to obtain various conclusions as well as important qualitative and quantitative information about the smart railways market.
Sources and Primary Research Splits (%)