USD 94.6 Billion
Connected Rail Market Size, Share, Growth Analysis, By Service(Pickup Trucks, Passenger Mobility, Passenger Information System (PIS), Train Tracking and Monitoring), By Rolling Stock(Freight Wagons, Passenger Wagons, Diesel Locomotive, Electric Locomotive), By Safety & Signaling System(Positive Train Control, Communication-based Train Control, and Automated Train Control), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG25A2240 |
Region:
Global |
Published Date: April, 2024
Pages:
219
|Tables:
95
|Figures:
76
Connected Rail Market Insights
Global Connected Rail Market size was valued at USD 94.6 Billion in 2022 and is poised to grow from USD 99.9 Billion in 2023 to USD 154.48 Billion by 2031, growing at a CAGR of 5.6% in the forecast period (2024-2031).
Continued advances in digital technologies such as IoT, AI (Artificial Intelligence), and Big Data analytics are driving innovation in connected railway solutions. These technologies enable real-time, predictive monitoring to maintain and optimize train operations, increasing safety, reliability and performance. Rapid urbanization and increasing population are causing road congestion, making railway transport an attractive option. Railway infrastructure has connectivity and provides efficient and sustainable transport solutions, reducing traffic congestion and emissions in cities. Governments around the world are investing in smart transportation systems to improve connectivity, reduce accidents and enhance passenger experience. Economic policies, subsidies and support for railway modernization are driving the adoption of associated rail technologies. Safety and security are paramount in the rail industry, prompting the adoption of integrated rail solutions for real-time monitoring of track conditions, train traffic and passenger safety.
Market Snapshot - (2024-2031)
Global Market Size
Largest Segment
Pickup Trucks
Fastest Growth
Passenger Trains
Growth Rate
5.6% CAGR
Global Connected Rail Market ($ Bn)
Country Share for North America Region (%)
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Connected Rail Market Segmental Analysis
By service, the market is segmented into pickup trucks, passenger mobility, passenger information system (PIS), train tracking and monitoring, automated fare collection system, and predictive maintenance. By rolling stock, it is classified into freight wagons, passenger wagons, diesel locomotive, electric locomotive, and light rail & trams. By safety & signaling system, it is classified into positive train control, communication-based train control, and automated train control. Region wise, the connected rail industry is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Analysis by Rolling Stock
Freight wagons are the dominant segment in the market. The railway is one of many routes for businesses and can be the cheapest. Compared to road transport, this mode of transport can carry more goods in a single trip but takes less time over longer distances than sea routes Governments around the world invest heavily in the last miles channeling trade, leading to improvements in logistics investment. A growing number of projects to extend the railroad for interstate and intrastate trade. Similarly, innovations such as dedicated freight corridors are expected to increase employment opportunities, thus increasing demand for freight.
The passenger wagon segment plays an important role in the global connected rail market as it contributes significantly to the overall efficiency of rail transport systems. Connected rail refers to the integration of advanced communication and information technologies into rail systems to provide safe, flying performance improved efficiency and passenger experience. Passenger carriage integration gives passengers access to high-speed internet, entertainment and real-time information during their journey. Integrating IoT (Internet of Things) devices into carriages can provide personalized services, such as seat preferences, temperature control and multimedia options, enhancing the overall passenger experience.
Analysis by Service
By 2022, pickup trucks dominated the market, and were expected in the forecast period, leading the way. This growth is mainly due to new technologies in the connected rail system, which is expected to greatly expand the market. Railways in various states have decided to install GPS technology in their freight carriages to provide real-time tracking and information to people involved in booking carriages.
Moreover, passenger trains are expected to hold the largest share of the global market throughout the forecast period. This increase can be attributed to a significant increase in travel and a subsequent rise in the demand for passenger cars on the railway system. Indian railways have taken steps to cater to the increasing number of passengers by increasing the number of trains in its network. This proactive approach has helped the market expand through the growing demand for passenger cars.
Global Connected Rail Market By Service (%)
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Connected Rail Market Regional Insights
The North America region dominated the global connected rail market with a share of around 37% by 2021, due to investments in digital transformation of rail systems, high emphasis has been placed on R&D activities related to railways integrated solutions etc. Furthermore, government regulations or initiatives related to ensuring passenger safety, increased use of trains, and increased focus of railway authorities on providing improved passenger services and modernized will drive the market forward. Furthermore, to carry out predictive maintenance, increase train fatalities, switch to smart railways, and provide overtime investment in railway modernization increased could contribute to the growth of the market in the region.
Asia-Pacific is expected to witness the highest growth in the market during the forecast period. Factors such as easy-to-operate rail networks and increasing urbanization in countries such as India and China are expected to fuel the market growth. North America is expected to hold the largest market share in due course of the prophecy. Factors such as increased adoption of IoT (Internet of Things) and increase in freight rail are expected to fuel the market growth.
Global Connected Rail Market By Geography
- Largest
- Fastest
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Connected Rail Market Dynamics
Drivers
Rising Deployment of the Internet of Things
- The deployment of the Internet of Things (IoT) in railways is predicted to be a key driver of the global connected rail market. IoT in railways enhances the reliability and safety of railways. Data collected by IoT sensors can learn and interpret previously impossible situations. IoT now allows for more expertise in train system optimization and equipment management, which are two key challenges for high-performance railways IoT, when combined with analytics, can improve train performance. This technology improves connectivity and system management by connecting intelligent onboard devices to cloud-based applications. Information submitted by drivers and checkpoints is stored in a rich database and can be used for future troubleshooting and remediation.
Internet Access in Railroads
- IoT on rail improves the reliability and safety of rail systems. The data generated by IoT sensors enable analysis and interpretation of situations that were not possible before. With the implementation of IoT, trains can now use more data to optimize planning and maintain equipment. Two serious challenges for high-performance railways. Combined with analytics, IoT can streamline railway operations to make them more efficient. The technology uses on-board intelligent devices along with cloud-based applications to improve connectivity and systems management. The data displayed for the driver and monitoring stations is stored in a database so that it can be used later for troubleshooting and repairs. Technologists are partnering with telecommunications companies to improve network connectivity. The IoT in railways represents an opportunity for a range of digital railway solutions and the provision of telecommunications technologies.
Restraints
Lack Of Technical Infrastructure and Communication
- Poorly developed telecom infrastructure, lack of smart devices in developing countries and high Internet costs that create barriers in the market are also barriers for smart railways. With organizations increasingly adopting IoT technologies, pursuing ambient computing technologies, and providing different IoT solutions, standards in data standards, wireless protocols and technologies have become more specialized to reduce complexity and costs.
Passenger Privacy and Security
- The main activity in the fleet management industry is navigation, which is a high-risk activity. Events such as accidents and vehicle breakdowns can damage the company’s products and services and increase the cost of damages. Additionally, they delay shipments and increase corporate maintenance, downtime, and liability costs. To reduce such accidents and damage, companies have adopted advanced transport solutions with integrated security sensors and cameras. However, there may be issues with driver safety and security, as drivers may not be properly trained and accustomed to using new technology. Digitized train activity, in terms of cyberattacks, gives attackers greater access to train activity. In a highly digitized railway, the damage from cyberattacks can be significant compared to rail operations with limited digital content.
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Connected Rail Market Competitive Landscape
Some of the major key players operating in global connected rail market are Trimble, Inc., Hitachi Limited, Siemens AG, IBM Corporation, Cisco Systems, Inc., Wabtec Corporation, Tech Mahindra Limited, Calamp Corp., Nokia Corporation, Huawei Investment & Holding Co., Ltd, Atos Corporation etc.
Top Player’s Company Profiles
- Huawei Investment & Holding Co., Ltd
- Robert Bosch GmbH
- Cisco Systems, Inc.
- IBM Corporation
- Atos Corporation
- Sierra Wireless
- Tech Mahindra Limited
- Calamp Corp.
- Bombardier Inc.
- Alstom SA
- Sierra Wireless Inc.
- Abb Limited
- Ericsson
- Digi International Inc.
- Schneider Electric
- Indra Sistemas S.A.
- Ansaldo Sts
- General Electric
- Tech Mahindra Limited
- Thales Group
Recent Developments
- In December 2021, Siemens AG and VGF jointly developed a digital train management system. The technology is expected to replace train management systems used in metros and monorail corridors. The system is being designed to reduce rail traffic, increase capacity and reduce operations.
- In November 2021, Robert Bosch GmbH launched a new driver assistance system for city railways to help reduce accidents caused by human or technical errors by signaling the driver in case of an accident it can be fulfilled.
- In September 2021, Hitachi launched PTC to help automate manufacturing processes, increase product innovation and reduce rail time. This initiative will also help the company reduce overhead costs and simplify manufacturing processes.
Connected Rail Key Market Trends
- Autonomous Rail Represents a Significant Opportunity for the Connected Rail Market: Semi-autonomous and autonomous railway technology is witnessing rapid growth with significant technological advances. Trains move independently with little or no human intervention. The trend towards driverless car development can be seen across the transportation industry. Although widespread deployment of autonomous locomotives will take considerable time, it is expected that many railroad operators will adopt semi-autonomous locomotives soon. Some autonomous vehicle companies are now operating part-work technology that is playing a role in automobiles. The use of autonomous vehicles is crucial for the development of the intelligent transportation industry, as these vehicles do not require drivers and will reduce costs for transportation service providers.
Connected Rail Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
The global market refers to the integration of digital technologies and communication systems into train infrastructure and rolling stock to enhance safety, efficiency and passenger experience. Railway connectivity solutions use technologies such as IoT (Internet of Things), sensors, data analytics, communications including networks and automation. The major drivers of the global rail connectivity market are the need to strengthen safety measures, increasing urbanization leading to road congestion, demand for efficient and sustainable transportation solutions, and government policies that encourage intelligent transportation systems. This market is characterized by intense competition among key players, including technology providers, locomotive manufacturers and system integrators. Partnerships and partnerships between industry stakeholders are common ways to enhance supply chains, expand markets and drive innovation in integrated rail solutions.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 94.6 Billion |
| Market size value in 2031 | USD 154.48 Billion |
| Growth Rate | 5.6% |
| Base year | 2023 |
| Forecast period | (2024-2031) |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Connected Rail Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Connected Rail Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Connected Rail Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Connected Rail Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Connected Rail Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Connected Rail Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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