Digital Railway Global Market Report 2024

The digital railway is a concept used to increase rail capacity and improve network performance. It is Network Rail’s concept for change in the rail industry by integrating the latest software solutions with the railway infrastructure to meet the increasing demand for passengers effectively and provide safer rail services.

The main services of the digital railway are managed services and professional services. Managed services refer to a way to offload general tasks to an expert to reduce costs, improve service quality, or free internal teams to do work that’s specific to their business. The solutions are remote monitoring, route optimization and scheduling, analytics, network management, predictive maintenance, security, and other solutions (including digital railway, content management for infotainment, and preventive maintenance). The deployment models are on-premises and cloud-based. The various applications involved rail operations management, passenger information systems, asset management, and other applications (other applications include connectivity and communication).

The digital railway market research report is one of a series of new reports that provides digital railway market statistics, including digital railway industry global market size, regional shares, competitors with a digital railway market share, detailed digital railway market segments, market trends and opportunities, and any further data you may need to thrive in the digital railway industry. This digital railway market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The digital railway market size has grown strongly in recent years. It will grow from $51.31 billion in 2023 to $56.1 billion in 2024 at a compound annual growth rate (CAGR) of 9.3%. The growth in the historic period can be attributed to need for increased rail network capacity, advancements in communication technologies, demand for enhanced passenger experience, integration of real-time monitoring and control systems, regulatory push for safety and efficiency in rail operations.

The digital railway market size is expected to see strong growth in the next few years. It will grow to $81.04 billion in 2028 at a compound annual growth rate (CAGR) of 9.6%. The growth in the forecast period can be attributed to implementation of 5g networks in railways, adoption of internet of things (iot) in railway infrastructure, growth in autonomous and connected trains, focus on energy efficiency and sustainability, integration of artificial intelligence in rail operations. Major trends in the forecast period include digital twin technology for rail asset management, predictive maintenance and condition monitoring, smart ticketing and passenger information systems, cybersecurity measures for digital rail systems, emphasis on interoperability in digital railway solutions.

The increase in government initiatives is expected to propel the growth of the digital railway market going forward. Government initiatives refer to an important act or statement that is intended to solve a problem. Governments across various countries are investing in digitalizing and modernizing railway operations, such as automating ticket processing, customer service support, preparing maintenance schedules with self-learning algorithms, and managing railway traffic. For instance, in June 2022, according to the Government of the UK, a UK-based public sector information website announced a $1.18 billion investment to replace outdated Victorian infrastructure with cutting-edge digital signaling technology, which will result in fewer delays and more consistent service for millions of passengers. The funding will be used to remove outdated lineside signaling and replace it with the European Train Control System (ETCS), which brings signaling into train drivers’ cabs and offers them real-time, continuous information during their journey. It will reduce carbon emissions by 55,000 tons, which is the equivalent of more than 65,000 one-way flights from London to New York. Therefore, the increase in government initiatives is driving the digital railway market growth.

Rising urbanization is expected to propel the digital railway market going forward. Urbanization refers to the process of increasing the population concentration in urban areas, typically resulting from rural-to-urban migration and natural population growth within cities and towns. Digital railway systems play a pivotal role in urbanization by providing efficient, reliable, and sustainable transportation solutions for rapidly growing urban areas. These systems help alleviate traffic congestion, reduce environmental impact, and enhance the mobility of urban populations. For instance, in October 2022, the World Bank, a USA-based international financial institution published an article that said globally, over 50% of the population lives in urban areas in 2022. By 2045, the world's urban population is expected to increase by 1.5 times to 6 billion. Therefore, the rising urbanization is driving the digital railway market.

Technological advancements are a key trend gaining popularity in the digital railway market. Major companies operating in the digital railway market are focused on developing new technological solutions to strengthen their position. For instance, in March 2021, Thales Group, a France-based company operating in digital railways, launched CBTC (communications-based train control) and real-time passenger density systems. The company is also developing technology that allows trains to track potential obstacles in partnership with Invision AI and Metrolinx. SelTracTM G8 is the eighth-generation CBTC system with distributed intelligent video analytics, which would monitor passenger density in trains and on platforms, and is regarded as the 'first-ever digital event that has been dedicated to rail transport with the smart mobility experience. ' The benefits of this system include flexibility and evolution capabilities that rely on the latest technologies to significantly reduce installation and lifecycle costs while maintaining passenger safety.

Major companies in the digital railway market are developing innovative solutions and products to sustain their position in the digital railway market such as Future Railway Mobile Communication System. The Future Railway Mobile Communication System is a solution focused on improving safety and reliability in the railway system. For instance, in September 2022, Huawei, a China-based information and communications technology launched the Huawei Future Railway Mobile Communication System which achieves maximum coverage using a unique technology called 8T8R Smart MIMO. Train control and dispatch are just the beginning of Huawei FRMCS' expansion of train-to-ground wireless services, which also include railway O&M and IoT. It guarantees the safety of train operations, boosts the effectiveness of railway operations, and enables the widespread digital transformation of the rail industry. The deployment of new services and the interconnection of wireless networks and railway industry applications are made easier by Huawei FRMCS, which eliminates single-point failures on networks, guarantees high device and network reliability, and conforms with industry standards in terms of architecture.

In August 2021, Hitachi Rail Signaling and Transportation Systems (STS), a Japan-based global provider of rail solutions, acquired Thales' Ground Transportation Systems (GTS) for a deal amount of $1.96 billion. This acquisition helps Hitachi Rail expand the scale of its rail signalling systems business globally, bringing an enhanced turnkey railway offering to new markets around the world and enhancing the availability of its Mobility as a Service (MaaS) to a global clientele. Thales' Ground Transportation Systems is a France-based company operating in digital rail.

Major companies operating in the in the digital railway market report are Siemens AG, Cisco Systems Inc., Hitachi Ltd, Wabtec Corporation, Alstom SA, International Business Machines Corporation (IBM), Asea Brown Boveri (ABB), Huawei Technologies Co Ltd, Thales Group, Fujitsu Limited, DXC Technology, Indra, Nokia Corporation, Atkins, Toshiba Corporation, Bombardier Inc, General Electric (GE), Ansaldo STS, Toshiba Infrastructure Systems & Solutions Corporation, Mitsubishi Electric Corporation, CAF Signalling, Advantech Co. Ltd., EKE-Electronics Ltd., Mermec Group, Prover Technology AB, Frauscher Sensor Technology Group, Kontron AG, L&T Technology Services Limited, Trimble Inc., Thales Canada Inc.

Asia-Pacific was the largest region in the digital railway market in 2023. North America was the second-largest region of the digital railway market. The regions covered in the digital railway market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the digital railway market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The digital railway market consists of revenues earned by entities by providing route optimization, scheduling, and remote monitoring. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified)).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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