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The smart railway is a system of interconnected and instrumented system that provides several solutions.  Smart railway systems are comprised of software, hardware, and other services that redefine and make intelligent use of rail assets and rail network communication. This is done by combining information and communication (ICT) technology with smart transportation systems. Moreover, it involves information integration, data modeling, and data analytics that facilitate to impart strategic and operational decision making. Moreover, smart railway allows sharing of information across the enterprise and with different partners including system integrators, rail operators, solution and service providers, passenger government agencies, etc.

The global smart railways market is estimated to be valued at US$ 21,988 million in 2021 and is expected to exhibit a CAGR of 19.9% over the forecast period (2021-2028).

Recent Developments:

  1. The rail network operators in developed parts of the world are actively investing in the development of analytics systems such as cloud-based systems. Some of the reason of adopting rail analytic systems are Timely Travel Service, Time-table Management, Capacity Optimization and Predictive Maintenance.
    • For instance, UK-based Network Rail is working with Deloitte MCS Limited, to develop a cloud-based data analytics system which saves 1.3m hours of manual data processing and leverage the railway signaling systems to deliver 92.5% public performance measure (PPM).
  2. In November 2019, Alstom signed a ten-year maintenance contract with SBB, the Swiss national railway company, to maintain SBB’s European Train Control System (ETCS), the signaling and control component of the European Rail Traffic Management System (ERTMS).
  3. In April 2019, IBM announced a collaboration with Sund & Bælt to assist in IBM's development of an AI-powered IoT solution designed. The collaboration will help to prolong the lifespan of aging bridges, tunnels, highways, and railways. The new industry solution, IBM Maximo for Civil Infrastructure, also extends the IBM Maximo portfolio to help organizations manage, monitor, and administer their infrastructure assets.

Western Europe held dominant position in the global smart railways market in 2020, accounting for almost 1/3rd of market share in terms of volume, followed by North America and Asia Pacific Excluding Japan hold 25.2% and 19.4% of market share, respectively.

Figure 1. Global Smart Railways Market Value (US$ Mn), by Region, 2020

Smart Railway  | Coherent Market Insights

Global Smart Railways Market: Drivers

Rising government support in railway infrastructure is expected to drive growth of the global smart railways market during the forecast period. Governments of various countries are focused on increasing budget for railway infrastructure, in order to incorporate novel technologies and offer advanced services. For instance, in 2015, the Government of India planned provisions for e-governance and information technology initiatives railway starting from SMS alert service and provision of Wi-Fi at every railway station to digitalized mapping of rail-land. Considering the importance of the smart railway concept, India framed the budget as “Technology-Enabled Traveler Centric.”  Some features include free Wi-Fi would be made available at 400 railway stations across the country, CCTVs to be introduced in select trains and suburban trains for ensuring women safety, and the Ministry of Urban Development in India plans to invest US$ 20 Bn in metro rail projects. Moreover, the Government of China’s five-year plan for 2006-2010, US$ 182 Bn were allocated for the development of railways in the country between 2010 and 2020. The Romania government intends to allocate US$ 639 Mn for railway and metro infrastructure projects in 2016.

Increasing urbanization and population across worldwide is expected to propel the global smart railways market growth over the forecast period. Urbanization and population are increasing rapidly across the globe. According to the United Nations (UN) Department of Economics and Social Affairs, urban areas would account for over 60% share of the total world population in the near future. As a result of this, the need for smart railway operators who can provide key solutions to keep rail passenger traffic and congestion under control.

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Smart Railways Market Report Coverage

Report Coverage Details
Base Year: 2020 Market Size in 2021: US$ 21,988 Mn
Historical Data for: 2017 to 2020 Forecast Period: 2021 to 2028
Forecast Period 2021 to 2028 CAGR: 19.9% 2028 Value Projection: US$ 78,400.0 Mn
Geographies covered:
  • APEJ: (Australia & New Zealand, China, India and Rest of APEJ
  • Eastern Europe: (Poland and Rest of Eastern Europe, Russia)
  • Japan:
  • Latin America: (Brazil, Mexico and Rest of Latin America)
  • Middle East & Africa: (GCC, Rest of MEA, South Africa)
  • North America: (Canada, US)
  • Western Europe: (BENELUX, France, Germany, Italy, Nordic, Rest of Western Europe, Spain, UK)
Segments covered:
  • By Device: Rail Sensors, VSC, Smart Cards, Networking & Connectivity Devices, Others
  • By Services: Professional Services, Cloud Services, Integration & Implementation Services
  • By Solution: PIS, RTMS, ASMS, Smart Ticketing System, Rail Operations Management System, Rail Communication & Networking System, Others
Companies covered:

Siemens AG, Ansaldo STS, Huawei Technologies Co. Ltd, Alcatel-Lucent, Asea Brown Boveri (ABB) Limited, Alstom SA, Indra Sistemas, S.A., Cisco Systems, Inc., Bombardier, Inc., General Electric, IBM Corporation, and Hitachi Limited.

Growth Drivers:
  • Rising government support in railway infrastructure 
  • Increasing urbanization and population across worldwide
Restraints & Challenges:
  • High cost of installing and integrating smart systems 
  • Security and safety challenges

Global Smart Railways Market: Opportunity

Growing preference for rail transport over air & water transport due to enhance efficiency can provide major growth strategies. A UIC study shows that rail transportation is, on average, two to five times more energy-efficient as compared to road, water, and air transport. Oil scarcity and rising fuel prices could lead to the rise in adoption of more efficient and safe railway transportation in the long run.

Technological advancements have led people to become dependent on mobile. The methods of payment have evolved over the years with traditional payment methods being replaced by card or mobile payments. According to Coherent Market Insights’ analysis, by 2025, over 90% of railway transactions globally would not involve the use of paper tickets. Moreover, Greater London, now, has a fully integrated contactless payment system for railways that comes under the responsibility of TFL (Transport for London).

Market Trends

Key players in the market are focused on mergers and acquisitions, in order to enhance the market presence. For instance, in 2012, Siemens AG acquired Invensys Rail for around US$ 2.2 Bn. In 2014, Alstom SA acquired GE Transportation’s rail signaling business to strengthen in presence in smart rail market. Moreover, in July 2014, Herzog Technologies Inc., partnered with Lilee Systems to provide Positive Train Control (PTC) system.

GSM-R solution is considered highly reliable for high-speed railways. This technology is highly effective and efficient in improving rail network safety and comes equipped with value-added functions and provides greater coverage than analog radio networks. For instance, in 2010, Huawei Technologies Co. Ltd provided the GSM-R solution for Australia RailCorp’s radio communication upgrades to the metropolitan rail network in New South Wales (NSW). Moreover, in 2014, Nokia introduced the GSM-R (Global Systems for Mobile Communication–Railway solution), which was intended to enable rail operators to manage 40% more train traffic and, thereby, enhance the safety and security of passengers.

Figure 2. Global Smart Railways Market Share, By Services, 2020

Smart Railway  | Coherent Market Insights

Key Takeaways of the Graph:

  • The Integration & Implementation Services (By Service Segment) held dominant position in the market and accounted for 2% share in the global smart railways market in 2020. The segment is expected to reach US$ 36,221 million in 2028. This is owing to fact that building a new generation and integration & implementation of information infrastructure enhances of the ability of railway intelligence development.
  • The Professional Services and Cloud Services Segment followed by Integration & Implementation Services and accounted for the market share of 9% and 17.9% in the global smart railways market in 2020.

Market Dynamics- Restraints

High cost of installing and integrating smart systems are expected to restrain growth of the global smart railways market during the forecast period. High cost of installation and integration of a smart solution, followed by its continuous operation and maintenance is a major restraining factor. When the system is implemented, the management is required to train its staff, in order to operate the software thereby leading to additional costs. The maintenance and software upgrades for the systems are also an additional burden for the railway company operators.

Security and safety challenges regarding a large amount of data generated are expected to hamper the global smart railways market growth over the forecast period. Smart railway includes a number of technology-related challenges, which include consolidating different systems in place into a single system. The challenge is to manage the critical and large amount of information generated whether it is from smart ticketing, passenger information or any other system.

Competitive Section

Key players involved in the global smart railways market are Siemens AG, Ansaldo STS, Huawei Technologies Co. Ltd, Alcatel-Lucent, Asea Brown Boveri (ABB) Limited, Alstom SA, Indra Sistemas, S.A., Cisco Systems, Inc., Bombardier, Inc., General Electric, IBM Corporation, and Hitachi Limited.

Key Developments

  1. June 2019, Siemens AG supplied propulsion system to Indian Railways for its electromotive locomotives from 6,000 HP and 9,000 HP as a part of its rail electrification initiative.
  2. Major companies in the market are involved in product and service launches, in order to enhance the market presence. For instance, in September 2018, Huawei Technologies Co. Ltd introduced ICT solutions for cloud-based railways at InnoTrans 2018.

Smart railways refer to an integrated system of railway, which includes software solutions, devices & components, cloud services, etc. Smart railways make intelligent use of rail assets and rail network communication by combining Information and Communication Technology (ICT) with smart transportation systems. This is done by combining information and communication (ICT) technology with smart transportation systems. Moreover, it involves information integration, data modeling, and data analytics that facilitate to impart strategic and operational decision making.

Market Dynamics

Increasing urbanization and population across worldwide is expected to drive the market for global smart railway market over the forecasted period (2021-2028).  For Instance, According to the United Nations (UN) Department of Economics and Social Affairs, urban areas would account for over 60% share of the total world population in the near future. As a result of this, the need for smart railway operators who can provide key solutions to keep rail passenger traffic and congestion under control. Therefore, these factors are expected to boost the global smart railways market growth in the near future. Moreover, Introduction of Big Data and the Internet of Things (IoT) in railways is expected to support growth of the market by 2025. Various features are offered by IoT and Big Data such as real-time IoT, monitoring of trains, a mobile-related wake-up call for railway passengers, destination alerts, and passenger information which is also the major reason affecting the market positively.

Key features of the study:

  • This report provides an in-depth analysis of the global smart railway market and provides market size (US$ 78,400.0 Million for 2028) and Compound Annual Growth Rate (19.9%) for the forecast period (2021-2028), considering 2020 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, regional outlook, and competitive strategy adopted by leading players
  • It profiles leading players in the global smart railway market based on the following parameters – regulatory landscape, company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
  • Key players involved in the global smart railways market are Siemens AG, Ansaldo STS, Huawei Technologies Co. Ltd., Alcatel-Lucent, Asea Brown Boveri (ABB) Limited, Alstom SA, Indra Sistemas, S.A., Cisco Systems, Inc., Bombardier, Inc., General Electric, IBM Corporation, and Hitachi Limited.  
  • Insights from this report would allow marketers and management authorities of companies to make informed decision regarding future product launches, technology up-gradation, market expansion, and marketing tactics
  • The global smart railway market report caters to various stakeholders in this industry including investors, suppliers, distributors, new entrants, and financial analysts.
  • Stakeholders would have ease in decision-making through the various strategy matrices used in analyzing the global smart railway market.

Detailed Segmentation:

  • Global Smart Railway Market, By Offerings:
    • Devices
      • Rail Sensors
      • Video Surveillance Cameras
      • Smart Cards
      • Networking & Connectivity Devices (Router, Wi-Fi, Switches, etc.)
      • Others (Multimedia Displays)
    • Services
      • Professional Services
      • Cloud Services
      • Integration Services
    • Solutions
      • Passenger Information System (PIS)
      • Railway Traffic Management System (RTMS)
      • Advanced Security Management System
      • Smart Ticketing System (STS)
      • Rail Operations Management System
      • Rail Communication & Networking Systems
      • Others (Rail Analytics System and Freight Information System)
    • Global Smart Railway Market, By Geography:
      • North America
      • Europe
      • Asia Pacific
      • Latin America
      • Middle East and Africa
  • Company Profiles
    • Siemens AG *
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • Ansaldo STS
    • Huawei Technologies Co. Ltd
    • Alcatel-Lucent
    • Asea Brown Boveri (ABB) Limited
    • Alstom SA
    • Indra Sistemas, S.A.
    • Cisco Systems, Inc.
    • Bombardier, Inc.
    • General Electric
    • IBM Corporation
    • Hitachi Limited.

*Browse all the market data tables and figures on "Global Smart Railway Market - Forecast to 2027”

Table of Contents

  1. Research Objectives and Assumptions
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, By Devices
      • Market Snippet, By Services
      • Market Snippet, By Solution
      • Market Snippet, By Region
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
    • Regulatory Scenario
    • Industry Trend
    • Merger and Acquisitions
    • New system Launch/Approvals
  4. Global Smart Railways Market, By Devices, 2017-2028 (US$ Million)
    • Introduction
      • Market Share Analysis, 2020 and 2028 (%)
      • Segment Trends
    • Rail Sensors
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • VSC
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Smart Cards
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Networking & Connectivity Devices
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Others
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
  5. Global Smart Railways Market, By Services, 2017-2028 (US$ Million)
    • Introduction
      • Market Share Analysis, 2020 and 2028 (%)
      • Segment Trends
    • Professional Services
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Cloud Services
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Integration & Implementation Services
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
  6. Global Smart Railways Market, By Solution, 2017-2028 (US$ Million)
    • Introduction
      • Market Share Analysis, 2020 and 2028 (%)
      • Segment Trends
    • PIS
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • RTMS
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • ASMS
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Smart Ticketing System
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Rail Operations Management System
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Rail Communication & Networking System
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Others
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
  7. Global Smart Railways Market, By Region, 2017-2028 (US$ Million)
    • Introduction
      • Market Share Analysis, By Region, 2020 and 2028 (%)
    • North America
      • Regional Trends
      • Market Size and Forecast, By Devices, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Services, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Solution, 2017–2028 (US$ Million)
      • Market Share Analysis, By Country, 2020 and 2028 (%)
        • U.S.
        • Canada
    • Western Europe
      • Regional Trends
      • Market Size and Forecast, By Devices, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Services, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Solution, 2017–2028 (US$ Million)
      • Market Share Analysis, By Country, 2020 and 2028 (%)
        • BENELUX
        • France
        • Germany
        • Italy
        • Nordic
        • Rest of Western Europe
        • Spain
        • U.K.
    • Eastern Europe
      • Regional Trends
      • Market Size and Forecast, By Devices, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Services, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Solution, 2017–2028 (US$ Million)
      • Market Share Analysis, By Country, 2020 and 2028 (%)
        • Poland
        • Russia
        • Rest of Eastern Europe
    • Asia Pacific Excluding Japan
      • Regional Trends
      • Market Size and Forecast, By Devices, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Services, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Solution, 2017–2028 (US$ Million)
      • Market Share Analysis, By Country, 2020 and 2028 (%)
        • Australia & New Zealand
        • China
        • India
        • Rest of APEJ
    • Japan
      • Regional Trends
      • Market Size and Forecast, By Devices, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Services, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Solution, 2017–2028 (US$ Million)
    • Latin America
      • Regional Trends
      • Market Size and Forecast, By Devices, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Services, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Solution, 2017–2028 (US$ Million)
      • Market Share Analysis, By Country, 2020 and 2028 (%)
        • Brazil
        • Mexico
        • Rest of Latin America
    • Middle East and Africa
      • Regional Trends
      • Market Size and Forecast, By Devices, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Services, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Solution, 2017–2028 (US$ Million)
      • Market Share Analysis, By Country, 2020 and 2028 (%)
        • GCC Countries
        • South Africa
        • Rest of the Middle East and Africa
  8. Competitive Landscape
    • Company Profiles
      • Siemens AG
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Ansaldo STS
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Huawei Technologies Co. Ltd.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Alcatel-Lucent
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Asea Brown Boveri (ABB) Limited
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Alstom SA
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Indra Sistemas, S.A.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Cisco Systems, Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Bombardier, Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • General Electric
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • IBM Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Hitachi Limited
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
  9. Section
    • References
    • Research Methodology
    • About us and Sales Contact

*Browse 60 market data tables and 40 figures on “Global Smart Railways Market-forecast to 2028”.

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.


Data Triangulation Methodology | Coherent Market Insights

Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.

Market Analysis | Coherent Market Insights

Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users

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