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Smart Railways Market: Industry Analysis (2024-2030) and Emerging Future of Transportation
The Smart Railways Market size was valued at US $ 32.75 Billion in 2023 and the Smart Railways market revenue is expected to grow at 12.37% through 2024 to 2030, reaching nearly US $ 74.10 Billion. The report analyzes Smart Railway's market dynamics by region, solutions, and services.
Format : PDF | Report ID : SMR_384
Smart Railways Market Overview:
As the demand for urban mobility and freight transportation grows, so does the desire for unconventional railway operations. The global rail market is expected to continue to grow steadily, with urban transportation seeing the highest CAGR of 12.37%. Simultaneously, despite no increase in the size of the train network, rail traffic volume has increased by 84% since 1981. This rapid expansion, combined with a constrained network, puts a lot of strain on railway operators as they try to satisfy the next generation of passenger and shipping demand.
Governments all around the world are setting new goals to improve mass rail transportation to alleviate traffic congestion, improve products delivery, and promote sustainability. Global transportation emissions may rise in the 2030s, according to the International Energy Agency (IEA), unless trains are "actively" expanded. Smart rail technology improvements allow operators to meet these goals while actively enhancing railway administration and management.
One example of transformation is Transportation 4.0, which is the vision of a worldwide multimodal transportation future in which many means of transportation are integrated. Transportation 4.0 looks at new ways to streamline passenger services while also making it easier for operators to provide them. Consider buying a single ticket that permits you to travel by train, plane, and hotel, all while your luggage awaits you. The goal is to improve passenger travel experiences by making them more efficient, greener, safer, and less disruptive, all while reducing travel times and costs.
Smart railways give transportation executives the chance to update their core technology and infrastructure, laying a new and better foundation for meeting expanding mobility and cargo movement demands.
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Smart Railways Market Dynamics:
The high-speed railway network is expanding:
High-speed trains, which run at speeds of 300-500 kph (kilometers per hour), offer considerable advantages over personal transportation by road, sea, or air. There are high-speed train connections all over the world, with China leading the way with 35,000 kilometers of track that is still being built. Not only is high-speed rail often less expensive and faster than flying, especially when considering flight cancellations and delays due to weather and other factors, but it can also transport more people.
Surging Internet of things (IoT) and autonomous operations:
The railway industry is expected to spend an estimated US $30 billion on IoT efforts over the next 12 years. AI is being used to estimate rail delays, allowing capacity to be driven without the need for additional infrastructure. By operating contemporary, smart railways, Network Operation Centers (NOC) can assist operators in increasing efficiency and safety. The NOC can slow, halt, or speed up the train as needed, lowering the risk of human error-related accidents. By 2030, an estimated 106,290 autonomous railway units are likely to be in operation, indicating a 4.87% compound annual growth rate (CAGR) throughout the forecast period.
Ecological integrity at the forefront:
The railway sector transports 8% of global passengers and 7% of global freight while utilizing only 2% of total transportation energy demand, making it one of the most energy-efficient modes of transport. Smart trains may lead the way in environmental sustainability thanks to automation and near real-time input for operators, resulting in better efficiency and lower emissions. Governments around the world are adjusting their policies to focus transportation investment on constructing trains and related infrastructure to reduce pollution and increase safety.
Growing competition across the globe:
Railways compete with air travel for passengers, while trucking companies battle for freight — with trucking winning the freight race so far. However, rail's long-term viability is one of the most persuasive arguments in its favor. In the United States, rail freight contributes only 2% of total greenhouse gas emissions. Over the forecast period, rising greenhouse gas levels pose a serious threat to the planet's stability.
Using railroads to transport just 10% of the freight transported by the largest truck would save approximately 1.5 billion gallons of petroleum annually. This may result in a decrease of more than 17 million tonnes of greenhouse gas emissions each year, the equivalent of removing 3.2 million cars from the road or planting 400 million trees.
Passenger experience:
The train passenger journey begins with trip planning and ticket or pass purchase and ends with luggage check-in at the railway station. Once onboard and rolling, the on-train portion of the ride can make or break passenger perception. The passenger disembarks, collects their luggage, and exit the terminal to catch the next available form of transportation to their destination after the train arrives at its destination.
Any mistake along the route could have an impact on passengers' inclination to adopt rail as a form of transportation, and thus on the railway's reputation. Overcrowding in terminals with insufficient food or retail concessions, problems with online train schedules, delays on board, or no in-terminal or onboard internet connectivity is all instances of passenger experience challenges.
Data Security:
Cyberattacks against transportation organizations might have multiple stages due to the interconnected nature of many information technology systems. Experts estimate that cybercrime may cost the world US $6 trillion per year by 2021. Railway executives and governments must employ a wide range of cyber security solutions to protect operating systems, workers, and operating systems from cyber-attacks.
In 2018, a hack impacted every functional unit of the Colorado Department of Transportation. Using administrator credentials that were kept active after firing, a disgruntled employee infiltrated the transcontinental railway system's main switches. Employees', responders', and consumers' contact information was among the information released. Administrators must examine the impact on freight and key infrastructure, as well as the network's core information technology, given the potential of such attacks. A sophisticated hack might take weeks, not days, to recover from.
Smart Railways Market Segment Analysis:
Based on Services:
The managed services segment is expected to dominate the market over the forecast period, with a CAGR of roughly xx%. The increased requirement to outsource the maintenance of smart railway systems is likely to drive the industry's demand for managed services.
The need for enterprises to enhance resource usage is one of the key factors likely to drive the growth of the smart railroads market. Managed services provide ongoing upgrades and customized features to fulfill clients' ever-increasing expectations. As a result, businesses are rapidly outsourcing their responsibilities to managed service providers (MSPs).
Smart Railways Market Regional Insights:
According to the International Union of Railways, Asia-Pacific accounts for approximately 28% of the total railway network (in terms of length of lines). India and China account for the majority of the network, with 65,000 km and 100,000 km, respectively. Regional administrations in this region have made significant efforts to "revamp" and "upgrade" existing lines to increase the overall efficiency of their operations.
Also, with China accounting for four of the world's current 24 megacities, the growth of megacities is expected to be strongest in Asia-Pacific rising countries. From Shenzhen to Guangzhou, Chinese planners want to join nine cities in the Pearl River Delta to create a 26,000-square-kilometer urban area. Greater London is expected to be 26 times the size of this region. Over the next four years, this project, which is expected to link water, energy, transportation, and telecommunication networks, is expected to cost roughly US $260 billion.
Various Chinese banks, on the other hand, have partnered together to spend more than US $28 billion on PPP projects for the smart railway system. Similarly, Japan is attempting to deploy smart solutions, such as leveraging artificial intelligence (AI) to provide a personal concierge service for travelers.
The Shanghai Hongqiao railway station is one of Asia's busiest in terms of passenger flow. In conjunction with Huawei, China Mobile Shanghai deployed a 5G network at the station, which includes a 5G digital indoor system (DIS). In less than 20 seconds, passengers can connect to a system-supported network and download 2 GB of high-definition movies.
The objective of the report is to present a comprehensive analysis of the Smart Railways Market to the stakeholders in the industry. The report provides trends that are most dominant in the Smart Railways Market and how these trends will influence new business investments and market development throughout the forecast period. The report also aids in the comprehension of the Smart Railways Market dynamics and competitive structure of the market by analyzing market leaders, market followers, and regional players.
The qualitative and quantitative data provided in the Smart Railways Market report is to help understand which market segments, regions are expected to grow at higher rates, factors affecting the market, and key opportunity areas, which will drive the industry and market growth through the forecast period. The report also includes the competitive landscape of key players in the industry along with their recent developments in the Smart Railways Market. The report studies factors such as company size, market share, market growth, revenue, production volume, and profits of the key players in the Smart Railways Market.
The report provides Porter's Five Force Model, which helps in designing the business strategies in the market. The report helps in identifying how many rivals are existing, who they are, and how their product quality is in the Market. The report also analyses if the Smart Railways Market is easy for a new player to gain a foothold in the market, do they enter or exit the market regularly if the market is dominated by a few players, etc.
The report also includes a PESTEL Analysis, which aids in the development of company strategies. Political variables help in figuring out how much a government can influence the Market. Economic variables aid in the analysis of economic performance drivers that have an impact on the Market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the Smart Railways Market is aided by legal factors.
Smart Railways Market Scope:
|
Smart Railways Market |
|
|
Market Size in 2023 |
USD 32.75 Bn. |
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Market Size in 2030 |
USD 74.10 Bn. |
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CAGR (2024-2030) |
12.37 % |
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Historic Data |
2018-2022 |
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Base Year |
2023 |
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Forecast Period |
2024-2030 |
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Segment Scope |
by Solutions
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by Services
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Regional Scope |
North America- United States, Canada, and Mexico Europe – UK, France, Germany, Italy, Spain, Sweden, Austria, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa - South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America |
Smart Railways Market Key Players
- Alstom (France)
- Cisco (United States)
- Wabtec (United States)
- ABB Ltd. (Switzerland)
- IBM (United States)
- Hitachi (Japan)
- Huawei (China)
- Indra Sistemas (Spain)
- Siemens (Germany)
- Honeywell (United States)
- Thales (France)
- Advantech (Taiwan)
- Fujitsu (Japan)
- Toshiba (Japan)
- Alcatel Lucent Enterprise (France)
- Moxa (United States)
- Others
Frequently Asked Questions
The surging competition, security of data, and experience of the passenger are key challenges expected to hinder the market growth during the forecast period.
The Smart Railways market is expected to grow at a CAGR of 12.37% during the forecast period (2024-2030).
The expansion of high-speed railways, surging autonomous and IoT operations, and leading ecological integrity are the key factors expected to drive the growth of the market during the forecast period.
Alstom (France), Cisco (United States), Wabtec (United States), ABB Ltd. (Switzerland), IBM (United States), Hitachi (Japan), Huawei (China), Indra Sistemas (Spain), Siemens (Germany), Honeywell (United States), Thales (France), Advantech (Taiwan), Fujitsu (Japan), Toshiba (Japan), Alcatel Lucent Enterprise (France), Moxa (United States), and Others are the key players covered.
Chapter 1 Scope of the Report
Chapter 2 Research Methodology
2.1. Research Process
2.2. Global Smart Railways Market: Target Audience
2.3. Global Smart Railways Market: Primary Research (As per Client Requirement)
2.4. Global Smart Railways Market: Secondary Research
Chapter 3 Executive Summary
Chapter 4 Competitive Landscape
4.1. Market Share Analysis, By Value,2023-2030
4.1.1. Market Share Analysis, By Region, By Value,2023-2030 (In %)
4.1.1.1. North America Market Share Analysis, By Value,2023-2030 (In %)
4.1.1.2. Europe Market Share Analysis, By Value,2023-2030 (In %)
4.1.1.3. Asia Pacific Market Share Analysis, By Value,2023-2030 (In %)
4.1.1.4. South America Market Share Analysis, By Value,2023-2030 (In %)
4.1.1.5. Middle East and Africa Market Share Analysis, By Value,2023-2030 (In %)
4.1.2. Market Share Analysis, By Solutions, By Value,2023-2030 (In %)
4.1.2.1. North America Market Share Analysis, By Solutions, By Value,2023-2030 (In %)
4.1.2.1.1. USA Market Share Analysis, By Solutions, By Value,2023-2030 (In %)
4.1.2.1.2. Canada Market Share Analysis, By Solutions, By Value,2023-2030 (In %)
4.1.2.1.3. Mexico Market Share Analysis, By Solutions, By Value,2023-2030 (In %)
4.1.2.2. Europe Market Share Analysis, By Solutions, By Value,2023-2030 (In %)
4.1.2.2.1. UK Market Share Analysis, By Solutions, By Value,2023-2030 (In %)
4.1.2.2.2. France Market Share Analysis, By Solutions, By Value,2023-2030 (In %)
4.1.2.2.3. Germany Market Share Analysis, By Solutions, By Value,2023-2030 (In %)
4.1.2.2.4. Italy Market Share Analysis, By Solutions, By Value,2023-2030 (In %)
4.1.2.2.5. Spain Market Share Analysis, By Solutions, By Value,2023-2030 (In %)
4.1.2.2.6. Sweden Market Share Analysis, By Solutions, By Value,2023-2030 (In %)
4.1.2.2.7. Austria Market Share Analysis, By Solutions, By Value,2023-2030 (In %)
4.1.2.2.8. Rest of Europe Market Share Analysis, By Solutions, By Value,2023-2030 (In %)
4.1.2.3. Asia Pacific Market Share Analysis, By Solutions, By Value,2023-2030 (In %)
4.1.2.3.1. China Market Share Analysis, By Solutions, By Value,2023-2030 (In %)
4.1.2.3.2. India Market Share Analysis, By Solutions, By Value,2023-2030 (In %)
4.1.2.3.3. Japan Market Share Analysis, By Solutions, By Value,2023-2030 (In %)
4.1.2.3.4. South Korea Market Share Analysis, By Solutions, By Value,2023-2030 (In %)
4.1.2.3.5. Australia Market Share Analysis, By Solutions, By Value,2023-2030 (In %)
4.1.2.3.6. ASEAN Market Share Analysis, By Solutions, By Value,2023-2030 (In %)
4.1.2.3.7. Rest of APAC Market Share Analysis, By Solutions, By Value,2023-2030 (In %)
4.1.2.4. South America Market Share Analysis, By Solutions, By Value,2023-2030 (In %)
4.1.2.4.1. Brazil Market Share Analysis, By Solutions, By Value,2023-2030 (In %)
4.1.2.4.2. Argentina Market Share Analysis, By Solutions, By Value,2023-2030 (In %)
4.1.2.4.3. Rest of South America Market Share Analysis, By Solutions, By Value,2023-2030 (In %)
4.1.2.5. Middle East and Africa Market Share Analysis, By Solutions, By Value,2023-2030 (In %)
4.1.2.5.1. South Africa Market Share Analysis, By Solutions, By Value,2023-2030 (In %)
4.1.2.5.2. GCC Market Share Analysis, By Solutions, By Value,2023-2030 (In %)
4.1.2.5.3. Egypt Market Share Analysis, By Solutions, By Value,2023-2030 (In %)
4.1.2.5.4. Nigeria Market Share Analysis, By Solutions, By Value,2023-2030 (In %)
4.1.2.5.5. Rest of Middle East and Africa Market Share Analysis, By Solutions, By Value,2023-2030 (In %)
4.1.3. Market Share Analysis, By Services, By Value,2023-2030 (In %)
4.1.4. North America Market Share Analysis, By Services, By Value,2023-2030 (In %)
4.1.4.1.1. USA Market Share Analysis, By Services, By Value,2023-2030 (In %)
4.1.4.1.2. Canada Market Share Analysis, By Services, By Value,2023-2030 (In %)
4.1.4.1.3. Mexico Market Share Analysis, By Services, By Value,2023-2030 (In %)
4.1.4.2. Europe Market Share Analysis, By Services, By Value,2023-2030 (In %)
4.1.4.2.1. UK Market Share Analysis, By Services, By Value,2023-2030 (In %)
4.1.4.2.2. France Market Share Analysis, By Services, By Value,2023-2030 (In %)
4.1.4.2.3. Germany Market Share Analysis, By Services, By Value,2023-2030 (In %)
4.1.4.2.4. Italy Market Share Analysis, By Services, By Value,2023-2030 (In %)
4.1.4.2.5. Spain Market Share Analysis, By Services, By Value,2023-2030 (In %)
4.1.4.2.6. Sweden Market Share Analysis, By Services, By Value,2023-2030 (In %)
4.1.4.2.7. Austria Market Share Analysis, By Services, By Value,2023-2030 (In %)
4.1.4.2.8. Rest of Europe Market Share Analysis, By Services, By Value,2023-2030 (In %)
4.1.4.3. Asia Pacific Market Share Analysis, By Services, By Value,2023-2030 (In %)
4.1.4.3.1. China Market Share Analysis, By Services, By Value,2023-2030 (In %)
4.1.4.3.2. India Market Share Analysis, By Services, By Value,2023-2030 (In %)
4.1.4.3.3. Japan Market Share Analysis, By Services, By Value,2023-2030 (In %)
4.1.4.3.4. South Korea Market Share Analysis, By Services, By Value,2023-2030 (In %)
4.1.4.3.5. Australia Market Share Analysis, By Services, By Value,2023-2030 (In %)
4.1.4.3.6. ASEAN Market Share Analysis, By Services, By Value,2023-2030 (In %)
4.1.4.3.7. Rest of APAC Market Share Analysis, By Services, By Value,2023-2030 (In %)
4.1.4.4. South America Market Share Analysis, By Services, By Value,2023-2030 (In %)
4.1.4.4.1. Brazil Market Share Analysis, By Services, By Value,2023-2030 (In %)
4.1.4.4.2. Argentina Market Share Analysis, By Services, By Value,2023-2030 (In %)
4.1.4.4.3. Rest of South America Market Share Analysis, By Services, By Value,2023-2030 (In %)
4.1.4.5. Middle East and Africa Market Share Analysis, By Services, By Value,2023-2030 (In %)
4.1.4.5.1. South Africa Market Share Analysis, By Services, By Value,2023-2030 (In %)
4.1.4.5.2. GCC Market Share Analysis, By Services, By Value,2023-2030 (In %)
4.1.4.5.3. Egypt Market Share Analysis, By Services, By Value,2023-2030 (In %)
4.1.4.5.4. Nigeria Market Share Analysis, By Services, By Value,2023-2030 (In %)
4.1.4.5.5. Rest of Middle East and Africa Market Share Analysis, By Services, By Value,2023-2030 (In %)
4.2. Stellar Competition matrix
4.2.1. Global Stellar Competition Matrix
4.2.2. North America Stellar Competition Matrix
4.2.3. Europe Stellar Competition Matrix
4.2.4. Asia Pacific Stellar Competition Matrix
4.2.5. South America Stellar Competition Matrix
4.2.6. Middle East and Africa Stellar Competition Matrix
4.3. Key Players Benchmarking
4.3.1. Key Players Benchmarking by Solutions, Pricing, Market Share, Investments, Expansion Plans, Physical Presence and Presence in the Market.
4.4. Mergers and Acquisitions in Industry
4.4.1. M&A by Region, Value and Strategic Intent
4.5. Market Dynamics
4.5.1. Market Drivers
4.5.2. Market Restraints
4.5.3. Market Opportunities
4.5.4. Market Challenges
4.5.5. PESTLE Analysis
4.5.6. PORTERS Five Force Analysis
4.5.7. Value Chain Analysis
Chapter 5 Global Smart Railways Market Segmentation: By Solutions
5.1. Global Smart Railways Market, By Solutions, Overview/Analysis,2023-2030
5.2. Global Smart Railways Market, By Solutions, By Value, Market Share (%),2023-2030 (USD Billion)
5.3. Global Smart Railways Market, By Solutions, By Value, -
5.3.1. Passenger Information System
5.3.2. Freight Management System
5.3.3. Smart Ticketing System
5.3.4. Security And Safety Solutions
5.3.5. Rail Communication And Networking System
5.3.6. Rail Analytics System
5.3.7. Rail Asset Management And Maintenance Solutions
5.3.8. Rail Operation And Control Solutions
Chapter 6 Global Smart Railways Market Segmentation: By Services
6.1. Global Smart Railways Market, By Services, Overview/Analysis,2023-2030
6.2. Global Smart Railways Market Size, By Services, By Value, Market Share (%),2023-2030 (USD Billion)
6.3. Global Smart Railways Market, By Services, By Value, -
6.3.1. Professional Services
6.3.2. Managed Services
Chapter 7 Global Smart Railways Market Segmentation: By Region
7.1. Global Smart Railways Market, By Region – North America
7.1.1. North America Smart Railways Market Size, By Solutions, By Value,2023-2030 (USD Billion)
7.1.2. North America Smart Railways Market Size, By Services, By Value,2023-2030 (USD Billion)
7.1.3. By Country – U.S.
7.1.3.1. U.S. Smart Railways Market Size, By Solutions, By Value,2023-2030 (USD Billion)
7.1.3.2. U.S. Smart Railways Market Size, By Services, By Value,2023-2030 (USD Billion)
7.1.3.3. Canada Smart Railways Market Size, By Value,2023-2030 (USD Billion)
7.1.3.4. Mexico Smart Railways Market Size, By Value,2023-2030 (USD Billion)
7.2. Europe Smart Railways Market Size, By Value,2023-2030 (USD Billion)
7.2.1. UK
7.2.2. France
7.2.3. Germany
7.2.4. Italy
7.2.5. Spain
7.2.6. Sweden
7.2.7. Austria
7.2.8. Rest of Europe
7.3. Asia Pacific Smart Railways Market Size, By Value,2023-2030 (USD Billion)
7.3.1. China
7.3.2. India
7.3.3. Japan
7.3.4. South Korea
7.3.5. Australia
7.3.6. ASEAN
7.3.7. Rest of APAC
7.4. Middle East and Africa Smart Railways Market Size, By Value,2023-2030 (USD Billion)
7.4.1. South Africa
7.4.2. GCC
7.4.3. Egypt
7.4.4. Nigeria
7.4.5. Rest of Middle East and Africa
7.5. South America Smart Railways Market Size, By Value,2023-2030 (USD Billion)
7.5.1. Brazil
7.5.2. Argentina
7.5.3. Rest of South America
Chapter 8 Company Profiles
8.1. Key Players
8.1.1. Alstom (France)
8.1.1.1. Company Overview
8.1.1.2. Solutions Portfolio
8.1.1.3. Financial Overview
8.1.1.4. Business Strategy
8.1.1.5. Key Developments
8.1.2. Cisco (United States)
8.1.3. Wabtec (United States)
8.1.4. ABB Ltd. (Switzerland)
8.1.5. IBM (United States)
8.1.6. Hitachi (Japan)
8.1.7. Huawei (China)
8.1.8. Indra Sistemas (Spain)
8.1.9. Siemens (Germany)
8.1.10. Honeywell (United States)
8.1.11. Thales (France)
8.1.12. Advantech (Taiwan)
8.1.13. Fujitsu (Japan)
8.1.14. Toshiba (Japan)
8.1.15. Alcatel Lucent Enterprise (France)
8.1.16. Moxa (United States)
8.1.17. Others
8.2. Key Findings
8.3. Recommendations
