|Status : Published||Published On : Jun, 2021||Report Code : VRICT5018||Industry : ICT & Media||Available Format :||Page : 177|
The global railway management system market size is anticipated to grow from USD 38.6 billion in 2019 to USD 62.9 billion by 2027, growing at a CAGR of 8.8% during the forecast period.
Furthermore, high demographic growth and hyper-urbanization, technological advancements in railways, use of IoT and automation technologies, increase in congestion due to the aging railway infrastructure, and a large number of initiatives undertaken by the government authorities and public-private partnerships across the globe are the major factors driving the growth of the railway management system market worldwide.
The COVID-19 outburst had a severe impact on the railway management system market as many rail services have been stalled for a quarter in various countries while many countries have resumed the rail operations with limited trains on track. Nevertheless, some countries have incurred severe losses but some countries have revamped the whole infrastructure and constructed new tracks and freight corridors during the lockdown period. Remote monitoring and predictive maintenance technology will be needed, as rolling stock will require proper maintenance
Insight by Solution
Based on solution, the railway management system market is divided into rail traffic management system, rail maintenance management system, passenger information system, rail operations management system, rail security, freight information system, rail asset management system, rail communication and networking system, rail control system and rail analytics.
Furthermore, rail asset management system is further subdivided into train information solution and track monitoring solution; rail communication and networking system is further subdivided into ground-to-train communication solution and train-to-train communication solution; rail operations management system is subdivided into facility management solution, rail automation management solution, workforce management solution and revenue management solution; revenue management solution is further sub-segmented into ticketing revenue management and freight revenue management. Additionally, the rail traffic management system is further subdivided into centralized traffic control solution, intelligent signaling solution, and real-time train planning and route scheduling/optimizing solution.
The rail control system is further subdivided into communication-based train control solution, positive train control solution, and integrated control solution. Among all these segments, the rail traffic management system segment is expected to have the largest share due to its advantages such as centralized supervision and traffic control of the entire railway network, enforcement of laws and regulations. Moreover, the system provides flexibility, time and operational efficiency, and improvement of risk in the event of network disaster.
Insight by Service
Based on service, the railway management system market is categorized into system integration and deployment, consulting, and support and maintenance. Among all these market segments, system integration and development services are expected to achieve the fastest growth during the forecast period. System integration and deployment services assist software of smart railways which helps in finding out the requirement for upgradation and alteration. In addition, system integration and deployment help in saving time and costs, reduce deployment time, enable efficient working, reduce interruptions related to deployment and testing, and solution integration.
The development of wireless connectivity, remote monitoring of railway systems, and the usage of sensors are the main trends observed in the global railway management system market. Furthermore, the rising trend of optimization in many fields such as technology, electronics, and media is playing an important role in the transportation sector, especially the railway sector around the world.
In emerging economies, the rise in urbanization, the advent of smart cities, and the rapid growth of demographic variables are the main factors that drive the growth of the railway management system market. In addition, globalization and the increasing number of passenger traffic and freight are other factors driving the growth of the market worldwide. The emergence of the latest technologies, cloud models and the increasing popularity of the Internet of Things has led to the rapid development of globalization in several emerging economies such as the Asia-Pacific region. This effectively promotes the digital transformation of the region, further intensifying the global demand for railway management systems.
Increasing barriers to existing rail infrastructure capacity and growing operational inadequacies are expected to hamper the growth of the rail management systems market. Furthermore, the high initial cost associated with installation and deployment is expected to further hamper the market growth in the near future. Also, the railway management system requires massive initial investment to set field-level devices, replace the old infrastructure, and integrate new and existing systems with railway premises.
Global industry players are taking advantage of market growth through technological developments and are confined to industry safety standards and regulations in order to maintain reliability and security. In addition, the adoption of the latest information and communications technology solutions by the major players in strengthening their position in the global market for railway management systems.
Geographically, Asia-Pacific is anticipated to account for the fastest growth in the railway management system market, globally, during the forecast period. The extensive growth is attributed to the increasing adoption of new technologies, rising investment towards digital transformation, and rise in disposable income of the citizens residing in Asia-Pacific. Moreover, the rise in GDP of countries such as China, Australia, Hong Kong, Singapore, Korea, and India will propel market growth.
The high growth rate of the population in the region has intensified the need for transformation. Furthermore, it is expected that the increase of the population and the expansion of the existing rail infrastructure will further promote the market growth of the railway management system in this area. In addition, North America is expected to have the highest growth in the global market during the forecast period. The rise in revenue growth in the railway management system in this region is due to technological advancement and extensive development of infrastructure.
The key players operating in the railway management system market across the globe include Computer Sciences Corporation, Indra Sistemas, GE Transportation, Ansaldo STS, Alstom, Hitachi Ltd., ABB Ltd., IBM Corporation, and Bombardier Inc. These companies are focusing on joint ventures, mergers and acquisitions to increase market share and increase product portfolio. They also invest in research and development activities to develop new products and gain a competitive edge.
• Hitachi and BART (Bay Area Rapid Transit) had a partnership to build and deploy the latest technology for digitally operated trains in San Francisco, California. The company aspires to expand its capacity and enhance its offerings.
• Siemens and ARM, a renowned producer of automotive IP and software, had a partnership. Active safety, improved driver assistance, in-vehicle infotainment, and self-driving vehicles are all goals that Siemens wants to achieve from this partnership.
• Alstom and Public Transport Authority of Western Australia (PTA) signed a deal in December 2019 to produce and service the next generation of C-series trains for Perth's expanding rail network.