Smart Railways Global Market Report 2024

The smart railways market size has grown strongly in recent years. It will grow from $26.1 billion in 2023 to $28.64 billion in 2024 at a compound annual growth rate (CAGR) of 9.7%. The growth observed during the historical period can be attributed to several factors, including increased urbanization and population growth, a rise in government investments and initiatives, aging railway infrastructure, heightened environmental concerns and emissions regulations, and an increase in passenger demand for seamless connectivity.

The smart railways market size is expected to see rapid growth in the next few years. It will grow to $41.89 billion in 2028 at a compound annual growth rate (CAGR) of 10%. The forecasted growth can be linked to several factors, notably the ongoing digital transformation initiatives in the rail sector, a transition towards Mobility-as-a-Service (MaaS) models, government policies advocating for sustainable transportation solutions, and an increasing emphasis on data-driven decision-making in railway operations. Key trends expected in the forecast period include the integration of IoT sensors and devices, the adoption of AI technologies for predictive analytics, the implementation of digital twin technologies, the incorporation of 5G connectivity, a heightened focus on cybersecurity, and the integration of railway services into multimodal transportation ecosystems.

The smart railways market is anticipated to experience growth driven by an increasing demand for transportation options that are both environmentally friendly and efficient. These options aim to minimize negative environmental impacts like air and noise pollution while maximizing energy usage and resource efficiency. The surge in demand for eco-friendly and efficient transportation is fueled by heightened awareness of environmental issues, government regulations promoting sustainability, and evolving consumer preferences favoring greener travel modes. Smart railway systems leverage technology to optimize operations, reduce emissions and energy consumption, improve transportation efficiency, and provide sustainable mobility alternatives. For example, Eurostat reported in March 2024 that the quantity of electric-powered railcars in France increased to 7,113, up from 7,081 in 2021 and 6,908 in 2020. Similarly, Sweden saw a rise to 2,889 electric railcars in 2022, marking a growth rate of 25.99% compared to 2,291 in 2021. Thus, the growing demand for environmentally friendly and efficient transportation options is fueling the expansion of the smart railways market.

Key players in the smart railways market are concentrating on the development of innovative mobility solutions, such as smart electric trains, to gain a competitive advantage. Smart electric trains, modern trains powered by electricity and equipped with advanced technologies, aim to enhance performance, efficiency, and passenger experience. For instance, Siemens Mobility GmbH launched the Mireo Smart Electric Train in November 2023. This electric version of the Mireo model features spacious seating for 214 passengers, room for 21 bicycles, and impressive performance metrics, including a maximum speed of 160 km/h and rapid acceleration of up to 0.96 m/s^2. The Mireo Smart is equipped with advanced passenger information and security monitoring systems, offering a practical and cost-effective solution for rail operators while being compatible with existing Mireo and Desiro HC trains.

In January 2021, Alstom SA acquired Bombardier Inc. for an undisclosed sum, enhancing its ability to provide comprehensive rail solutions across the entire rail value chain. This acquisition strengthened Alstom's product lines, including rolling stock, signaling, and infrastructure, enabling the company to offer interconnected mobility solutions to mobility operators and network providers. Bombardier Transportation, a Germany-based smart rail transport manufacturer, brings interconnected mobility solutions to the rail industry.

Major companies operating in the smart railways market are Huawei Technologies Co. Ltd., Hitachi Ltd., Siemens AG, General Electric Company, Accenture plc, International Business Machines Corporation, Cisco Systems Inc., SAP SE, ABB Ltd., Toshiba Corporation, Capgemini SE, L&T Technology Services Limited, Thales Group, Alstom SA, Infosys Technologies Private Limited, Atos SE, HCL Technologies Limited, Insight Enterprises Inc., Wipro Limited, Wabtec Corporation, Tech Mahindra Limited, Presidio Inc., ALE International SAS, Televic N.V., Moxa Technologies.

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

Smart railways encompass the utilization of advanced technologies like the Internet of Things (IoT), artificial intelligence (AI), and data analytics to enhance the efficiency, safety, and sustainability of railway systems. These innovations facilitate real-time monitoring of trains and tracks, predictive maintenance, optimized routing, and an enhanced passenger experience.

The primary categories within smart railways include rail freight and passenger rail. Rail freight involves the transportation of goods or cargo via rail, utilizing trains to move commodities between destinations. Various devices and components employed in smart railways include rail sensors, video surveillance cameras, smart cards, networking and connectivity devices, among others, which offer a range of services including consulting and system integration. Solutions within smart railways encompass passenger information systems, freight management systems, smart ticketing systems, security and safety solutions, rail communication and networking systems, rail analytics systems, rail asset management and maintenance solutions, as well as rail operation and control solutions. These solutions find applications across diverse sectors such as mining, construction, agriculture, and others.

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

The smart railways market consists of revenues earned by entities by providing services such as integrated ticketing systems, energy management, digital signage, and advertising real-time passenger information, intelligent infrastructure management, energy management solutions, and environmental monitoring. The market value includes the value of related goods sold by the service provider or included within the service offering. The smart railways market also includes sales of communication equipment and smart infrastructure components that are used in optimizing railway operations. 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.


This product will be delivered within 3-5 business days.