Railway System Global Market Report 2024

The railway system market size has grown strongly in recent years. It will grow from $31.93 billion in 2023 to $33.92 billion in 2024 at a compound annual growth rate (CAGR) of 6.2%. The growth witnessed in the historic period can be attributed to several key factors. Significant government investments played a crucial role in bolstering railway infrastructure development, while the economic benefits derived from such initiatives further fueled expansion. Increased globalization facilitated collaborative efforts in railway projects, fostering innovation and efficiency. Additionally, a rising demand for energy-efficient transportation solutions propelled advancements in the sector, driving further growth and development.

The railway system market size is expected to see steady growth in the next few years. It will grow to $41.16 billion in 2028 at a compound annual growth rate (CAGR) of 5%. In the forecast period, the anticipated growth in the railway sector can be attributed to several factors, including the rapid pace of urbanization, governmental backing for alternative fuel-driven operations, increased globalization fostering collaborative endeavors, a heightened emphasis on environmental sustainability, and a growing demand for energy-efficient transportation options. Noteworthy trends expected to shape the industry include the adoption of cutting-edge technology, a focus on enhancing passenger transportation services, continued governmental support and investment, an emphasis on environmental conservation, and an ongoing trend of globalization and collaboration within the sector.

The anticipated surge in infrastructure development is poised to drive the growth of the railway system market in the foreseeable future. Infrastructure, encompassing fundamental physical and organizational structures and facilities essential for societal, economic, or organizational operation, serves as the backbone for social advancement, economic prosperity, and improved quality of life. Infrastructure development plays a pivotal role in establishing and maintaining essential power sources, transportation networks, and communication systems, thereby facilitating economic expansion and societal progress. The expansion of the railway system relies heavily on infrastructure development to meet the increasing demand for transportation, enhance operational efficiency, stimulate economic growth, and address environmental concerns. For instance, in July 2023, as per the U.S. Census Bureau, the projected annual rate of construction spending in May 2023 stood at $1.92 trillion, marking a 0.9% increase from the April estimate of $1.9 trillion. Moreover, the May figure represents a 2.4% surge compared to the projection of $1.88 trillion in May 2022. Consequently, infrastructure development is anticipated to serve as a key driver propelling the growth of the railway system market.

Key players within the railway system market are leveraging innovative technologies such as the multipurpose digital experience center to enhance customer service and efficiency. The digital experience center serves as a centralized hub for the development and implementation of cutting-edge signaling solutions across various railway operations encompassing urban, mainline, and freight segments. For instance, in December 2023, Alstom SA, a renowned France-based manufacturing company, introduced its technologically advanced digital experience center. This center is tailored to enhance railway system efficiency by integrating cybersecurity measures, conducting end-to-end project testing, and spearheading projects across urban, mainline, freight, and mining domains. Furthermore, it serves as a catalyst for innovation in remote system monitoring and troubleshooting, with the capability to support over 7 million hours of engineering work for projects.

In December 2023, SYSTRA Group, a prominent France-based transport engineering company, completed the acquisition of Rail Systems Australia for an undisclosed amount. This strategic acquisition is poised to bolster SYSTRA Group's service offerings and reinforce its position as a systems integration expert within the burgeoning Australian and New Zealand rail system markets. Rail Systems Australia, based in Australia, specializes in offering rail transportation systems integration solutions, aligning seamlessly with SYSTRA Group's strategic objectives for market expansion and service diversification.

Major companies operating in the railway system market report are Hitachi Ltd., Siemens AG, General Electric Company, Mitsubishi Heavy Industries Ltd., ABB Ltd., Toshiba Corporation, Alstom SA, Wabtec Corporation, Knorr-Bremse AG, Bombardier Inc., STADLER RAIL AG, Stadler Rail AG, Construcciones Y Auxiliar de Ferrocarriles, Hyundai Rotem Company, Thermo King, Trinity Industries Inc., Bharat Heavy Electricals Ltd., American Equipment Company, Fuji Electric Co. Ltd., Calamp Corporation, Skoda Transportation a.s, Medcom GmbH, TransMash Holding, CRR Corporation Limited, Ingeteam Power Technology S.A.

North America was the largest region in the railway system market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the railway system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the railway system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A railway system encompasses the infrastructure, equipment, and operational mechanisms required for the transportation of passengers and freight via trains along a network of tracks or railways. This vital transportation network facilitates the movement of individuals to various destinations for purposes such as commuting to work, accessing educational facilities, and reaching other locations efficiently.

The primary transit types within the railway system market include conventional and rapid transit systems. Conventional railway systems play a crucial role in fostering economic development by offering dependable transportation infrastructure for businesses to transport goods effectively and for commuters to travel to employment hubs. These systems comprise auxiliary power systems, train information systems, propulsion systems, train safety systems, HVAC systems, and on-board vehicle control mechanisms, serving diverse applications encompassing both passenger and freight transportation.

The railway system market research report is one of a series of new reports that provides railway system market statistics, including railway system industry global market size, regional shares, competitors with railway system market share, detailed railway system market segments, market trends, and opportunities, and any further data you may need to thrive in the railway system industry. This railway system 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 railway system market consists of revenues earned by entities by providing passenger transportation services, freight transportation services, ticketing and reservation services, logistics, and supply chain services. The market value includes the value of related goods sold by the service provider or included within the service offering. The railway system market also includes sales of ticketing and reservation systems, maintenance and repair equipment, and safety and security products. 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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