Smart Railways Market Size, Share Global Analysis Report, 2023 – 2030

Industry Insights

[225+ Pages Report] According to Facts and Factors, the global smart railways market size was valued at USD 29.87 billion in 2022 and is likely to surpass USD 66.48 billion by the end of 2030. The global smart railways industry is expected to grow with a CAGR of 10.53% during the forecast period.

Market Overview

Smart railways refer to the integration of digital innovation and modern technology into the traditional railway infrastructure to offer more passenger-friendly, safe, connected, and efficient transportation networks. The major aim of smart railways is to improve the different aspects of railway operations and services by leveraging modern technologies, thereby enhancing the passenger experience and streamlining the system performance.

The key features of smart railways include data-driven decision-making, urban mobility solutions, high-speed rail, cyber security, passenger amenities, remote monitoring & control, intermodal integration, energy efficiency, smart ticketing, payment passenger information system, and several others.

Key Insights

• As per the analysis shared by our research analyst, the global smart railways market size is estimated to grow annually at a CAGR of around 10.53% over the forecast period (2023-2030).
• In terms of revenue, the global smart railways market size was valued at around USD 29.87 billion in 2022 and is projected to reach USD 66.48 billion by 2030.
• Increasing demand for public transportation is expected to positively influence the growth of the global smart railways market.
• Based on the system, the rail analytic system segment accounts for the largest share of the global market.
• Based on the offerings, the solution is the fastest-growing segment of the global market.
• Based on the type, the onboard train segment is expected to register a high growth rate in the global market.
• Based on components, the networking and connectivity devices segment is likely to dominate the global market.
• Based on services, the cloud services segment is likely to dominate the global market.
• Based on region, North America is expected to dominate the global market during the forecast period.           

Growth Drivers

• Increasing demand for public transportation is expected to boost the growth of the global market.

Increasing traffic congestion and environmental concerns are some of the major factors that are propelling the demand for sustainable public transport options. However, smart railways have emerged as the most comfortable and efficient travel alternative, which is likely to align with the increasing initiatives of the government.

Moreover, the integration of transportation like subways, buses, and trains with smart rail systems further offers passengers a smooth travel experience. Therefore, such a landscape is likely to propel the growth of the global smart railways industry in the forthcoming years.

For instance, Alstom, in January 2021, successfully acquired Bombardier Transportation. The company’s position will be strengthened with enhanced maintenance facilities. Also, Siemens Mobility in May 2021 took over Padam Mobility to expand the company’s portfolio of intelligent infrastructure. Padam Mobility offers AI-powered applications and platforms for the paratransit and mobility industry.

Restraints

• High initial investment is likely to hamper the growth of the global market.

Implementing smart technologies and upgrading the rail infrastructure is quite an expensive task that is likely to restrict rail operators with limited financial resources. Also, many rail systems globally are not compatible with the modern technology of the existing system. However, retrofitting is both complex and costly in nature. However, such a landscape is expected to hamper the growth of the global smart railways market.

Opportunities

• Digital transformation is likely to offer lucrative growth opportunities in the global market.

The rail industry is undergoing digital transformation, which is likely to offer lucrative growth opportunities in the global smart railways market. Rail operators are including modern technologies in the new rail system to increase efficiency and streamline management, which is likely to widen the scope of the industry in the forthcoming years.

Challenges

• Regulatory and policy barriers are a challenge in the global market.

Regulatory policies are not changing fast as technological advancements. Therefore, it is likely to lead to delays and uncertainty in executing new technology systems, which is a big challenge in the global smart railways industry.

Moreover, data security is another major reason restricting the adoption of smart technologies in the sector. The ongoing cyberattacks and hacking further restrict users from using their personal data while opting for smart ticketing systems.

Segmentation Analysis

The global smart railways market can be segmented into systems, offering, types, services, components, and regions.

By system, the market can be segmented into rail analytic systems, smart ticketing systems, rail communication & networking system, smart safety & security monitoring system, rail & freight operation management system, passenger information systems, and others.

The rail analytic system is likely to dominate the global smart railways market in the coming years. The growth can be attributed to the continuously growing global industrialization. Rail network operators are increasing their research and development activities in the field of analytic systems to cater to the fast-growing demand. Cloud-based technology is becoming popular in the railway sector.

Also, the advanced tools that reduce maintenance costs, maximize maintenance intervals, and improve overall efficiency are further contributing to the high growth rate of the segment. These analytic-based solution functions by aligning with surveillance and security systems which utilize the video system to check for errors and thereby enhance the efficiency of the railway network.

By offerings, the market can be segmented into services, components, solutions, and others. The solution is the fastest growing segment in the global smart railways industry because of the need to offer enhanced passenger experience. The various solutions offered in the market help provide real-time information to passengers regarding the routes, train delays, train schedules, and other travel information.

Furthermore, asset management solutions help in asset monitoring, condition monitoring, and predictive maintenance, which further eliminate downtime, optimize maintenance schedules, and extend the lifespan of the railway infrastructure.

By type, the market can be segmented into onboard trains and station types. The onboard train segment is expected to register notable growth in the forthcoming years. The onboard train refers to the collection of solutions, systems, and technologies that are executed directly on trains to offer a better passenger experience by improving connectivity, safety, and operation efficiency of the vehicle.

By components, the market can be segmented into networking & connectivity devices, smart cards, video surveillance cameras, rail sensors, and others. The networking and connectivity devices segment is likely to gain more popularity in the global smart railways industry because of the increasing importance of communication, data exchange, and connectivity within the rail industry. The emergence of the Internet of Things has further increased the demand for networking devices for the implementation of smart technologies in railway infrastructure.

By services, the market can be segmented into integration, cloud, and professional services. The cloud services segment is likely to grow significantly during the forecast period because of the increasing role of cloud services in the smart railway infrastructure. Cloud computing provides various benefits like cost efficiency, flexibility, scalability, and enhanced data management in the railway sector.

Report Scope

Regional Analysis

• North America is projected to dominate the global market.

North America is expected to experience a high growth rate during the forecast period because of the continuous innovations and wide adoption of advanced technologies to improve the efficiency of rail transport systems. North American railways are increasingly investing in modern technologies like data analytics, IoT, and cloud computing to improve safety, enhance passenger experience, and optimize operations.

Moreover, the adoption of predictive maintenance solutions to reduce downtime is another major factor driving the growth of the regional market in the forthcoming years.

Asia Pacific is expected to witness a steady growth rate in the global smart railways market during the forthcoming years due to the high urbanization and population growth in the region. The region is densely populated, with high demand for sustainable and efficient transportation solutions. Governments are trying hard to connect major cities and reduce traffic congestion, thereby improving intercity travel, which in turn is also likely to fuel the growth of the regional market.

For instance, Altson SA and the Serbian Government in January 2021 mutually signed an agreement with a Memorandum of Understanding (MoU). As per the agreement, they will take up charge of a variety of projects like platform screen doors, integration of transportation systems, digital train control systems, etc.

Competitive Analysis

The key leaders in the global smart railways market include:

• Cisco Systems Inc. 
• Aitek S.P.A. 
• BOMBARDIER INC. 
• Hitachi Ltd. S.A. 
• Indra Sistemas 
• Alstom 
• Huawei Technologies Co. Ltd. 
• ABB Ltd 
• IBM 
• Siemens AG 
• CRRC Corporation Limited 
• Thales Group 
• Hitachi Rail 
• Wabtec Corporation 
• Trimble Transportation 
• Transmashholding 
• Cubic Transportation Systems 
• Teltronic

For instance, Hitachi Rail and Alstom in December 2021 partnered with each other to innovate a market-leading smart train business. Both companies are likely to take advantage of better operational efficiencies. It is also likely to offer users a more comprehensive range of services and products.

The global smart railways market is segmented as follows:

By System Segment Analysis

• Rail Analytic System
• Smart Ticketing System
• Rail Communication & Networking System
• Smart Safety & Security Monitoring System
• Rail & Freight Operation Management System
• Passenger Information System
• Others

By Offering Segment Analysis

• Services
• Components
• Solutions
• Others

By Type Segment Analysis

• Onboard Trains
• Station Type

By Services Segment Analysis

• Integration
• Cloud
• Professional Services

By Component Segment Analysis

• Networking & Connectivity Devices
• Smart Cards
• Video Surveillance Cameras
• Rail Sensors
• Others

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America