The Global Rail Asset Management Market size is expected to reach $13.9 billion by 2027, rising at a market growth of 5.9% CAGR during the forecast period.
The term "asset management" has quickly gained traction in the rail sector. A combination of coordinated operations that optimize asset performance to assist an organization achieve its goals is the core defining principle of an often complicated system. It includes all systems, methods, and tools for maximizing asset availability at the lowest total cost and risk possible. This frequently entails the use of sophisticated software to collect and analyses usage data in order to perform predictive and preventative maintenance rather than reactive fixes.
The rail sector has a significant impact on a country's economic and financial situation. It transports billions of people and freights every day and creates enormous profits. The reliance on trains for both passengers and commodities is rapidly increasing owing to the ease and comfort of transportation. The majority of nations are spending considerably in rail infrastructure in order to give their citizens with a smooth rail experience.
Railways also assist governments in reducing the cost of passenger and freight transportation by providing a large carrying capacity in a single run. The increasing reliance on trains is putting further strain on the current rail system. Due to system wear and tear, breakdowns, damages, and repair demands, this results in a slew of unplanned and unplanned maintenance with both rolling stock and infrastructure.
Due to tight mobility limitations enforced by municipal and national governments, the spread of the virus has hindered the expansion of rail asset management solutions. However, many rail operators are seeing a surge in demand for novel rail asset management solutions that can successfully combine IoT, analytics, big data, security, cloud, and network connectivity. Regulatory authorities in various countries are primarily focused on providing faster medical care and emergency support services, so the adoption of IoT and cloud for emergency services and healthcare services is expected to increase the adoption of rail asset management solutions during the pandemic.
All kind of transport mediums were stopped in order to prevent a huge spike in COVID-19 cases, which has negatively impacted the growth of the railways sector as well as rail asset management market.
Rail assets must be properly scheduled, monitored, and maintained for an efficient rail operation. Due to downtime, maintenance plans diminish asset productivity. Because manual diagnostics have a low success rate, this downtime is extended even more. Rail authorities are working substantially on condition-based and predictive maintenance technologies to improve efficiency and reduce time consumption. These technologies aid in prompt asset monitoring and efficient asset scheduling, reducing downtime. The use of real-time analytics for condition-based and predictive maintenance reduces the need for manual diagnostics.
Because of their effective IT administration and secure security environment, demand for cloud-based services, internet technologies and analytics is growing. The big data cloud approach is, without a doubt, rail transportation's best opportunity to accommodate the changing structure of data and maximize its use. It has the potential to create a significant shift for all rail management organizations, enabling them to improve both rail infrastructure and operations. Because of the expanding data, evolving technologies and the growing need to improve cost-efficiency, the degree of difficulty in big data applications is likely to rise. These considerations are likely to have an impact on the implementation of innovative analytics platforms and data storage.
Project funding for large initial capital expenditure is one of the primary barriers for the rail asset management market's growth. The national/local governments have taken on the primary task of extensively investing in the rail infrastructure modernization process. It's simple to see how, even if governments have the need, vision, and clarity for these kind of reforms, a lack of budgetary allocations for large-scale deployments slows the transformation process down, either directly or indirectly. Such large investments may increase the economic strain on debt-ridden states or local governments, putting future general budgets at risk.
Based on Component, the market is segmented into Solution and Services. Further, the solution segment is bifurcated into Asset Performance Management (APM), Asset Planning & Scheduling, Workforce Management, Security, Analytics, Network Management, Incident Management, and Others. Based on Services, the market is segmented into Professional Services and Managed Services. The services segment registered a substantial revenue share in rail asset management market in 2020. Service segment is further divided into managed services and professional services. The growth of the segment is attributed to the fact that many companies are investing a huge amount in hiring dedicated or professional workforce. In addition, several companies is expected to outsource rail asset management services and hence, contributing the growth of the segment.
Based on Deployment Type, the market is segmented into On-premise and Cloud. The on-premise segment garnered the largest revenue share in the rail asset management market in 2020. The on-premises deployment is method in which software and solutions are installed on the company's premises. The organization is responsible for sustaining the solution and all related processes under this deployment option.
Such solutions come with a one-time license price and an annual service agreement that covers free modifications, upgrades, and installation of new features. Rail asset management solutions that are deployed on-premises require dedicated equipment and servers. It also necessitates the hiring of dedicated IT personnel to maintain and support the high-end IT infrastructure. On-premises solutions are typically used by companies who can afford to manage dedicated servers. Offline data analytics and setup are also available in the on-premises deployment mode, which gives users more control over their systems and data.
Based on Application, the market is segmented into Rolling Stock and Infrastructure. The rolling stock segment dominated the rail asset management market with the maximum revenue share in 2020. The railway industry is an asset-intensive industry, with rolling stock being one of the most important asset types. The rail operator can save a large amount of money by efficiently managing rolling stock. Rolling stocks typically have a lengthy service life, therefore keeping one in service for that long might present a number of servicing issues, like securing parts, unexpected repair, and so on. Asset management solutions for rolling stocks could help you get a better handle on asset performance, make better use of resources, and manage risk more effectively. A large number of rail companies are spending in rolling stock.
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. Europe emerged as the leading region in the rail asset management market with the largest revenue share in 2020. Western European countries with well-established railway infrastructure, like France, the United Kingdom, and Germany, employ a variety of advanced rail asset management solutions. European countries have made significant investments in modernizing and upgrading their rail systems. Large-scale, cross-border trade and passenger traffic have increased in Europe as a result of EU social and trade accords. The region is expected to witness rapid adoption of rail asset management solutions, particularly in communication technology, thanks to the formation of a separate committee by the European Telecommunications Standards Institute (ETSI) to focus on Machine-to-Machine (M2M) communication privacy standardization and high trading standards.
The major strategies followed by the market participants are Acquisitions. Based on the Analysis presented in the Cardinal matrix; Cisco Systems, Inc. and Huawei Technologies Co., Ltd. are the forerunners in the Rail Asset Management Market. Companies such as Siemens AG, IBM Corporation, and Hitachi, Ltd. are some of the key innovators the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include ALSTOM Holdings, Siemens AG, IBM Corporation, Hitachi, Ltd. (Hitachi ID Systems, Inc.), SAP SE, Cisco Systems, Inc., Capgemini SE, Accenture PLC, Wabtec Corporation, and Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.)
By Component
By Deployment Type
By Application
The term "asset management" has quickly gained traction in the rail sector. A combination of coordinated operations that optimize asset performance to assist an organization achieve its goals is the core defining principle of an often complicated system. It includes all systems, methods, and tools for maximizing asset availability at the lowest total cost and risk possible. This frequently entails the use of sophisticated software to collect and analyses usage data in order to perform predictive and preventative maintenance rather than reactive fixes.
The rail sector has a significant impact on a country's economic and financial situation. It transports billions of people and freights every day and creates enormous profits. The reliance on trains for both passengers and commodities is rapidly increasing owing to the ease and comfort of transportation. The majority of nations are spending considerably in rail infrastructure in order to give their citizens with a smooth rail experience.
Railways also assist governments in reducing the cost of passenger and freight transportation by providing a large carrying capacity in a single run. The increasing reliance on trains is putting further strain on the current rail system. Due to system wear and tear, breakdowns, damages, and repair demands, this results in a slew of unplanned and unplanned maintenance with both rolling stock and infrastructure.
COVID-19 Impact Analysis
Due to tight mobility limitations enforced by municipal and national governments, the spread of the virus has hindered the expansion of rail asset management solutions. However, many rail operators are seeing a surge in demand for novel rail asset management solutions that can successfully combine IoT, analytics, big data, security, cloud, and network connectivity. Regulatory authorities in various countries are primarily focused on providing faster medical care and emergency support services, so the adoption of IoT and cloud for emergency services and healthcare services is expected to increase the adoption of rail asset management solutions during the pandemic.
All kind of transport mediums were stopped in order to prevent a huge spike in COVID-19 cases, which has negatively impacted the growth of the railways sector as well as rail asset management market.
Market Growth Factors:
Growing requirements for improved rail operations
Rail assets must be properly scheduled, monitored, and maintained for an efficient rail operation. Due to downtime, maintenance plans diminish asset productivity. Because manual diagnostics have a low success rate, this downtime is extended even more. Rail authorities are working substantially on condition-based and predictive maintenance technologies to improve efficiency and reduce time consumption. These technologies aid in prompt asset monitoring and efficient asset scheduling, reducing downtime. The use of real-time analytics for condition-based and predictive maintenance reduces the need for manual diagnostics.
Rise in demand for cloud-based solutions
Because of their effective IT administration and secure security environment, demand for cloud-based services, internet technologies and analytics is growing. The big data cloud approach is, without a doubt, rail transportation's best opportunity to accommodate the changing structure of data and maximize its use. It has the potential to create a significant shift for all rail management organizations, enabling them to improve both rail infrastructure and operations. Because of the expanding data, evolving technologies and the growing need to improve cost-efficiency, the degree of difficulty in big data applications is likely to rise. These considerations are likely to have an impact on the implementation of innovative analytics platforms and data storage.
Marketing Restraining Factor:
Huge cost of deployment
Project funding for large initial capital expenditure is one of the primary barriers for the rail asset management market's growth. The national/local governments have taken on the primary task of extensively investing in the rail infrastructure modernization process. It's simple to see how, even if governments have the need, vision, and clarity for these kind of reforms, a lack of budgetary allocations for large-scale deployments slows the transformation process down, either directly or indirectly. Such large investments may increase the economic strain on debt-ridden states or local governments, putting future general budgets at risk.
Component Outlook
Based on Component, the market is segmented into Solution and Services. Further, the solution segment is bifurcated into Asset Performance Management (APM), Asset Planning & Scheduling, Workforce Management, Security, Analytics, Network Management, Incident Management, and Others. Based on Services, the market is segmented into Professional Services and Managed Services. The services segment registered a substantial revenue share in rail asset management market in 2020. Service segment is further divided into managed services and professional services. The growth of the segment is attributed to the fact that many companies are investing a huge amount in hiring dedicated or professional workforce. In addition, several companies is expected to outsource rail asset management services and hence, contributing the growth of the segment.
Deployment Type Outlook
Based on Deployment Type, the market is segmented into On-premise and Cloud. The on-premise segment garnered the largest revenue share in the rail asset management market in 2020. The on-premises deployment is method in which software and solutions are installed on the company's premises. The organization is responsible for sustaining the solution and all related processes under this deployment option.
Such solutions come with a one-time license price and an annual service agreement that covers free modifications, upgrades, and installation of new features. Rail asset management solutions that are deployed on-premises require dedicated equipment and servers. It also necessitates the hiring of dedicated IT personnel to maintain and support the high-end IT infrastructure. On-premises solutions are typically used by companies who can afford to manage dedicated servers. Offline data analytics and setup are also available in the on-premises deployment mode, which gives users more control over their systems and data.
Application Outlook
Based on Application, the market is segmented into Rolling Stock and Infrastructure. The rolling stock segment dominated the rail asset management market with the maximum revenue share in 2020. The railway industry is an asset-intensive industry, with rolling stock being one of the most important asset types. The rail operator can save a large amount of money by efficiently managing rolling stock. Rolling stocks typically have a lengthy service life, therefore keeping one in service for that long might present a number of servicing issues, like securing parts, unexpected repair, and so on. Asset management solutions for rolling stocks could help you get a better handle on asset performance, make better use of resources, and manage risk more effectively. A large number of rail companies are spending in rolling stock.
Regional Outlook
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. Europe emerged as the leading region in the rail asset management market with the largest revenue share in 2020. Western European countries with well-established railway infrastructure, like France, the United Kingdom, and Germany, employ a variety of advanced rail asset management solutions. European countries have made significant investments in modernizing and upgrading their rail systems. Large-scale, cross-border trade and passenger traffic have increased in Europe as a result of EU social and trade accords. The region is expected to witness rapid adoption of rail asset management solutions, particularly in communication technology, thanks to the formation of a separate committee by the European Telecommunications Standards Institute (ETSI) to focus on Machine-to-Machine (M2M) communication privacy standardization and high trading standards.
Cardinal Matrix - Rail Asset Management Market Competition Analysis
The major strategies followed by the market participants are Acquisitions. Based on the Analysis presented in the Cardinal matrix; Cisco Systems, Inc. and Huawei Technologies Co., Ltd. are the forerunners in the Rail Asset Management Market. Companies such as Siemens AG, IBM Corporation, and Hitachi, Ltd. are some of the key innovators the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include ALSTOM Holdings, Siemens AG, IBM Corporation, Hitachi, Ltd. (Hitachi ID Systems, Inc.), SAP SE, Cisco Systems, Inc., Capgemini SE, Accenture PLC, Wabtec Corporation, and Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.)
Recent Strategy Deployed in Rail Asset Management Market
Partnerships, Collaborations and Agreements:
- Nov-2021: Siemens Mobility came into a cooperation agreement with RazorSecure, a provider of rail cyber security solutions. Together, the companies focused on offering improved rail cybersecurity monitoring solutions to Rolling Stock operators. Moreover, through this acquisition, the company aimed to manage the highest level of cybersecurity by providing real-time monitoring and the earliest possible detection of irregularities in the IT and software structure of its trains.
- Dec-2020: Wabtec Corporation came into a partnership with Keolis Group, a global leader in shared mobility. Together, the companies focused on developing innovative products for the freight and transit industries. In addition, the companies aimed to deliver tailored solutions that concentrate on HVAC energy efficiency, rolling stock monitoring systems, smart solutions for brakes, pantographs, and improved passenger information systems.
- Nov-2020: Capgemini came into a partnership with SNCF Réseau, the service provider that manages railway infrastructure. Through this partnership, the company aimed to enhance its performance and satisfy the increasing demand for mobility by deploying an innovative application that optimizes the supervision of its rail network. Moreover, the tool is expected to support enhancing the regularity of traffic flows and passenger information.
Acquisitions and Mergers:
- Jan-2022: Wabtec Corporation completed the acquisition of the railway friction business from India-based Masu, a producer of friction products. Through this acquisition, the company aimed to expand its installed base and bake product portfolio. Moreover, the acquisition is expected to complement the company’s growth strategy to offer operators scalable and innovative products which raise productivity, capacity, and utilization.
- Nov-2021: Accenture completed the acquisition of T.A. Cook, a consultancy focused on asset performance management and capital projects for customers in capital-intensive industries and infrastructure. Through this acquisition, the company aimed to boost its capabilities in enhancing asset performance, raising safety as well as minimizing environmental impact and costs in life sciences, chemicals, metals and mining, and oil and gas industries.
- Oct-2021: Siemens Mobility acquired Sqills, a public transport software technology company. The acquisition aimed to complement the company’s ambition of developing its software portfolio for digital intermodal and connected mobility solutions.
- Oct-2021: Accenture completed the acquisition of Advoco, an information EAM software consulting services company. Following the acquisition, the company aimed to create the operations and supply chains safer, productive, sustainable, and cost-effective for clients of industrial, consumer goods & services, transit, life sciences, and other industries
- Aug-2021: Hitachi Rail entered into an agreement to acquire Thales’ Ground Transportation Systems business (GTS). Through this acquisition, the company aimed to introduce an improved turnkey railway offering in a new market across the world as well as accelerate its growth by strengthening the scale of its rail signaling systems business globally.
- Apr-2021: Hitachi Rail completed the acquisition of Perpetuum, a UK-based rail technology firm providing self-powered, wireless remote condition monitoring systems. Through this acquisition, the company aimed to expand its digital innovation and sustainability offers as well as enhance customer service by leveraging Perpetuum’s data-driven insights that accelerate better journeys for passengers.
- Jan-2021: Alstom took over Bombardier Transportation, a Germany-based rail transport manufacturer. Following the acquisition, the company aimed to strengthen its position in the sustainable mobility market through integrating more solutions and assets for enhancing its service for customers globally.
- Jul-2020: Cisco took over Fluidmesh Networks, a leader in resilient wireless backhaul systems. Through this acquisition, the company aimed to strengthen its industrial wireless offerings in industries with on-the-move assets and mission-critical applications where no data loss is significant to uptime and business resiliency.
- Jan-2020: Wabtec Corporation took over RELCO Locomotives, a leader in the locomotive overhaul and maintenance industry. From this acquisition, the company aimed to accelerate growth in the remanufacturing and repair business by strengthening its freight services capabilities and capacity.
Product Launches and Product Expansions:
- Jan-2022: Cisco expanded its Cisco Catalyst 9000 portfolio based on the strengthened Unified Access Data Plane (UADP) ASIC silicon. Through this, the company aimed to introduce more enterprise-grade switching capabilities in the industrial edge for industries operating in complex environments and helping critical infrastructures such as utilities, rail, roadways, oil, and gas.
- Oct-2020: IBM introduced new features in IBM Maximo for Civil Infrastructure. Through the new capabilities, the company aimed to assist prolongs the lifespan of aging bridges, highways, railways, and tunnels. The new capabilities is expected to have the ability to deploy on Red Hat OpenShift for hybrid cloud environments and new AI and 3D model annotation tools which offers deep industry and task-specific insights to help engineers.
Scope of the Study
Market Segments Covered in the Report:
By Component
- Solution
- Asset Performance Management (APM)
- Asset Planning & Scheduling
- Workforce Management
- Security
- Analytics
- Network Management
- Incident Management
- Others
- Services
- Professional Services
- Managed Services
By Deployment Type
- On-premise
- Cloud
By Application
- Rolling Stock
- Infrastructure
By Geography
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- ALSTOM Holdings
- Siemens AG
- IBM Corporation
- Hitachi, Ltd. (Hitachi ID Systems, Inc.)
- SAP SE
- Cisco Systems, Inc.
- Capgemini SE
- Accenture PLC
- Wabtec Corporation
- Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.)
Unique Offerings from the Publisher
- Exhaustive coverage
- The highest number of market tables and figures
- Subscription-based model available
- Guaranteed best price
- Assured post sales research support with 10% customization free
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market Overview
Chapter 3. Competition Analysis - Global
Chapter 4. Global Rail Asset Management Market by Component
Chapter 5. Global Rail Asset Management Market by Deployment Type
Chapter 6. Global Rail Asset Management Market by Application
Chapter 7. Global Rail Asset Management Market by Region
Chapter 8. Company Profiles
Companies Mentioned
- ALSTOM Holdings
- Siemens AG
- IBM Corporation
- Hitachi, Ltd. (Hitachi ID Systems, Inc.)
- SAP SE
- Cisco Systems, Inc.
- Capgemini SE
- Accenture PLC
- Wabtec Corporation
- Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.)
Methodology
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