Furthermore, the connected rail market is projected to witness considerable growth, especially in Europe, owing to presence of sophisticated infrastructure to undertake various projects and earliest & highest adoption of connected rail solutions across various industries. Commercial and government rail operators are adopting various innovative techniques to provide customers with advanced and innovative offerings. Furthermore, increase in adoption of artificial intelligence (AI), machine learning (ML), and cloud computing in the railway sector and rise in use of rail data in development of trains and passenger services are major factors expected to offer lucrative opportunities for the market growth.
Region wise, North America is the highest revenue contributor, followed by Europe, Asia-Pacific, and LAMEA. Europe is expected to maintain its lead during the forecast period, owing to increase in funding for conducting connected rail projects in the region and presence of big market players, such as Alstom, Robert Bosch GmbH, and Siemens that have a global presence.
The connected rail market is segmented on the basis of service, rolling stock, safety & signaling system, and region. By service, the market is divided into passenger information system, train tracking & monitoring, automated fare collection system, passenger mobility, 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 market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The prominent players profiled in connected rail market includes Alstom, Cisco Systems Inc., Hitachi Ltd., Huawei Technologies Co., Ltd., IBM (International Business Machines) Corporation, Nokia, ROBERT BOSCH GmbH, Siemens AG, Wabtec Corporation, and Trimble, Inc.
KEY BENEFITS FOR STAKEHOLDERS
- This study presents analytical depiction of the global connected rail analysis along with current the trends and future estimations to depict imminent investment pockets.
- The overall connected rail opportunity is determined by understanding profitable trends to gain a stronger foothold.
- The report presents information related to the key drivers, restraints, and opportunities of the global connected rail with a detailed impact analysis.
- The current connected rail is quantitatively analyzed from 2021 to 2031 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.
Key Market Segments
By Service
- Predictive Maintenance
- Passenger Information System
- Train Tracking and Monitoring
- Automated Fare Collection System
- Passenger Mobility
By Rolling Stock
- Freight Wagons
- Passenger Wagons
- Diesel Locomotive
- Electric Locomotive
- Light Rail and Trams
By Safety and Signaling System
- Positive Train Control
- Communication Based Train Control
- Automated Train Control
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- U.K.
- Germany
- France
- Russia
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Rest Of Asia Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- Bombardier Inc.
- Alstom SA
- Siemens AG
- Hitachi Limited
- Robert Bosch GmbH
- Huawei
- Cisco Systems Inc.
- Wabtec Corporation
- Nokia Corporation
- IBM Corporation
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Table of Contents
Executive Summary
According to the report, titled, “Connected Rail Market," the connected rail market was valued at $86.8 billion in 2021, and is estimated to reach $143.8 billion by 2031, growing at a CAGR of 5.4% from 2022 to 2031.Presently, the global connected rail market is dominated by North America followed by Europe, Asia-Pacific, and LAMEA. In Asia-Pacific, the market is mainly driven by China owing to the optimistic market scenario for the railway sector in the region. In North America, the US is foreseen to witness considerable growth in the connected rail market during the forecast period.
The connected rail market is segmented on the basis of service, rolling stock, safety & signaling system, and region. By service, the market is divided into passenger information system, train tracking & monitoring, automated fare collection system, passenger mobility, 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 market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Furthermore, the significant factors impacting the demand for connected rail are integration of the Internet of Things (IoT) in the railway industry, rise in demand for safety and compliance in rail transit, and increase in demand for passenger and freight capacity are expected to drive the market growth. However, lack of technological infrastructure & consistency in developing countries and infrastructure changes of the existing system are expected to hamper the market growth. Furthermore, technological advancements in autonomous rail & green transport and increase in reliance on computing systems are anticipated to offer remunerative opportunities for expansion of the market in the future.
COVID-19 Impact Analysis
COVID-19 has presented the world with an unprecedented economic, humanitarian, and healthcare challenge. Lockdown measures have helped to contain the spread of coronavirus, but exacted an immense economic toll. On the business side, the railway sector is one of the considerably hit sectors. The standstill situation of the rail industry was reflected in the connected rail market. Short of raw materials and components, owing to limited logistics capabilities and limited labor force to carry on day-to-day operations were among preliminary business impacts. Furthermore, this pandemic has led to a slowdown in the economic growth of China, which negatively impacted the global economic growth as well. As a result of the COVID-19 pandemic, most connected rail solution manufacturing units were completely closed or were unable to reach full production potential, owing to lack of raw materials and staff. However, with initiation of coronavirus vaccination across the world and consequent resuming of all domestic and international ports, the global connected rail market is expected to revive soon.Key Findings of the Study
- By service, the passenger vehicle segment dominated the global connected rail market in 2021, in terms of revenue.
- By rolling stock, the electric locomotive segment is expected to register significant growth, registering a CAGR of 7.0% during the forecast period.
- By safety & signaling system, the communication-based train control segment is expected to register significant growth, registering a CAGR of 6.1% during the forecast period.
- By region, Europe dominated the global connected rail market in 2021 in terms of market share.
- The prominent players profiled in connected rail market includes Alstom, Cisco Systems Inc., Hitachi Ltd., Huawei Technologies Co., Ltd., IBM (International Business Machines) Corporation, Nokia, ROBERT BOSCH GmbH, Siemens AG, Wabtec Corporation, and Trimble, Inc.
Companies Mentioned
- Bombardier Inc.
- Alstom Sa
- Siemens AG
- Hitachi Limited
- Robert Bosch GmbH
- Huawei
- Cisco Systems Inc.
- Wabtec Corporation
- Nokia Corporation
- Ibm Corporation
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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