Connected Rail Global Market Report 2024

Connected rail involves an integrated rail system that utilizes advanced communication and information technologies to improve safety, efficiency, and the passenger experience. This system facilitates real-time data exchange among trains, infrastructure, and control centers, enabling predictive maintenance, optimized scheduling, and enhanced service reliability.

The primary components of connected rail include passenger mobility, passenger information systems (PIS), train tracking and monitoring, automated fare collection systems, and predictive maintenance. Passenger mobility focuses on facilitating seamless movement for passengers across various transportation modes such as trains, trams, and light rail systems. Rail signaling systems such as positive train control (PTC), communication-based train control (CBTC), and automated train control (ATC) are integral parts, as are different types of rolling stock such as electric multiple units (EMU), diesel locomotives, electric locomotives, passenger wagons, light rail or tram cars, among others.

The connected rail market research report is one of a series of new reports that provides connected rail market statistics, including connected rail industry global market size, regional shares, competitors with a connected rail market share, detailed connected rail market segments, market trends and opportunities, and any further data you may need to thrive in the connected rail industry. This connected rail 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 connected rail market size has grown strongly in recent years. It will grow from $88.82 billion in 2023 to $94.25 billion in 2024 at a compound annual growth rate (CAGR) of 6.1%. The growth in the historical period can be credited to the widespread adoption of Internet of Things (IoT) sensors, improved last-mile trade connectivity, enhanced rail connectivity and operational efficiency, increased implementation of communication-based train control for automated traffic management, and heightened focus on smart railway system installations.

The connected rail market size is expected to see strong growth in the next few years. It will grow to $120.05 billion in 2028 at a compound annual growth rate (CAGR) of 6.2%. The growth in the forecast period can be attributed to the rise of smart transportation initiatives, increased emphasis on smart railway system installations, automation advancements in the automotive sector, and greater integration of embedded systems in electric and hybrid vehicles. Key trends expected in the forecast period include the expansion of rail electrification, continuous product innovation, advancements in technology, and strategic mergers and acquisitions.

Governmental efforts aimed at expanding rail connectivity are expected to drive growth in the connected rail market. These initiatives are gaining momentum due to increasing recognition of the economic, environmental, and social benefits of efficient and sustainable transportation systems. Governments play a pivotal role in promoting and financing the adoption of connected rail technologies, which enhance transportation efficiency, safety, and infrastructure modernization. For example, in November 2023, the UK government allocated $10.42 billion (£9.7 billion) to rail infrastructure and rolling stock, with a significant portion earmarked for the High Speed 2 (HS2) project. Thus, governmental initiatives to enhance rail connectivity are fueling the growth of the connected rail market.

Key players in the connected rail market are concentrating on technological advancements such as fully autonomous railway systems to maintain competitive advantage. Fully autonomous railway systems operate without human intervention, leveraging AI, sensors, and communication networks for navigation and control. For instance, Hitachi Ltd. introduced the Honolulu Skyline in June 2023, the first fully autonomous urban railway system in the US. This 10.75-mile elevated rail line features nine stations connecting East Kapolei to Aloha Stadium, aiming to alleviate traffic congestion and reduce pollution in Honolulu. The system, powered by electricity, boasts advanced safety measures including over 1,500 cameras linked to a central control center for rapid emergency response.

In January 2021, Alstom SA bolstered its leadership in smart and sustainable mobility by acquiring Bombardier Inc., a Canadian provider of connected rail, although financial details were not disclosed. This acquisition strengthens Alstom's global position with an expanded product portfolio, enhanced R&D capabilities, and broader market presence.

Major companies operating in the connected rail market are Russian Railways, Huawei Technologies Co. Ltd., Hitachi Ltd., General Electric Company, Siemens AG, International Business Machines Corporation, Cisco Systems Inc., Deutsche Bahn AG, ABB Ltd., Toshiba Corporation, Nokia Corporation, Union Pacific Railroad, BNSF Railway, Thales Group, CSX Corporation, Network Rail, Canadian National Railway Company, Norfolk Southern Corporation, Central Japan Railway Company, Alstom SA, Wabtec Corporation, Bombardier Inc., Trimble Inc., Ansaldo STS, Australian Rail Track Corporation.

North America was the largest region in the connected rail market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the connected rail market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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

The connected rail market consists of revenues earned by entities by providing services such as data analytics and management, consulting and system integration, and cybersecurity services. The market value includes the value of related goods sold by the service provider or included within the service offering. The connected rail market also includes sales of trackside sensors, onboard sensors, and digital signage. 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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