Rail Asset Management Market by Solution (Condition Monitoring, Predictive Maintenance, Asset Planning & Scheduling, Analytics, Workforce Management & Security), Services, Application (Rolling Stock & Infrastructure), and Region - Global Forecast to 2024
Growing need for efficient rail operations to drive the adoption of rail asset management market
The global rail asset management market size is projected to grow from USD 9.0 billion in 2019 to USD 12.3 billion by 2024, at a Compound Annual Growth Rate (CAGR) of 6.4% from 2019 to 2024. The fast growth of rail infrastructure and rolling stock has given rise to an increased demand for efficient rail operations. Rail asset management solutions help in the timely monitoring and efficient scheduling of assets, which minimizes downtime. Condition-based and predictive maintenance work on real-time analytics helps reduces the dependence on manual diagnostics.
Services segment to grow a higher CAGR during the forecast period
Trains carry millions of tons of freight and tens of millions of passengers each year, and rail companies entirely rely on efficient and reliable asset operations and rail infrastructure to successfully meet the growing demand of enhanced rail operations. Information and Communication Technology (ICT) has played a major role in providing asset and operations management services for rail companies. To build a smarter railway system infrastructure, railway experts are demanding smart railway management system services.
Service providers help in implementing rail solutions. The benefits of employing railway management system services are improved rail operations performance, reduced complexities and operating expenses, standardized and improved rail infrastructure, improved engagement cash flow and profitability, maximized strategic value of rail solutions, simplified project planning and execution, streamlined project lifecycle, real-time decisions, security, and improved resource productivity.
The rolling stock segment to lead the rail asset management market in 2019
Rolling stock refers to powered and unpowered vehicles that move on rails. It also includes wheeled vehicles used for business on roadways (such as trams) and other light rail vehicles (LRVs). Rail transit offers the benefit of cost-effective and efficient transportation of passengers as well as freight.
Several countries are implementing new rail infrastructure projects to reduce road congestion and provide an affordable means of transportation at an intercity as well as intracity level. For instance, Germany has a goal to invest around USD 10.5 billion for railway infrastructure development. The plan further includes the improvement of 700 stations with a total investment of USD 1.4 billion. Increasing urbanization, growing demand for increased connectivity, and the comfort, reliability, and safety offered by rail transport have led to the development of rail transportation. Rolling stock plays a vital role in the infrastructure of a city or a country. Additionally, there is a rising demand for convenient, eco-friendly, and safe modes of transportation from commuters and governments.
APAC to grow at the highest CAGR during the forecast period
Asia Pacific (APAC) is estimated to be the fastest-growing region in terms of the growth of the rail asset management market, owing to the increase in the adoption of new technologies, higher investments for digital transformation, and the increasing Gross Domestic Product (GDP) in the APAC countries. A majority of the potential economies in this region include Australia, Singapore, China, Korea, Hong Kong, and India, which are said to be rapidly investing in technological transformation. According to data published on the website of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) in 2019, the length of the Trans-Asian Railway network comprises 117,500 km of railway lines serving 28 member countries.
The high population growth rate in the region has intensified the need for transformation and expansion of the existing rail infrastructure. With untapped potential markets, the high penetration of advanced technologies, the growing freight usage in various industries, and the economic developments and government regulations are expected to drive the rail asset management market growth at the highest rate in APAC during the forecast period.
In-depth interviews were conducted with Chief Executive Officers (CEOs), marketing directors, innovation and technology directors, and executives from various key organizations operating in the rail asset management market.
By Company Type: Tier 1 – 62%, Tier 2 – 23%, and Tier 3 – 15%
By Designation: C-level – 38%, Directors – 30%, and Others – 32%
By Region: North America – 40%, Europe – 15%, APAC – 35%, MEA – 5%, and Latin America– 5%
Major vendors in the rail asset management market include Siemens (Germany), IBM (US), Alstom (France), Hitachi (Japan), Wabtec (US), SAP (Germany), Trimble (US), Bentley Systems (US), Bombardier (Canada), Atkins (UK), Cisco (US), DXC Technology (US), Trapeze (Canada), Tego (US), Konux (Germany), L&T Technology Services Limited (India), Capgemini (France), Accenture (Ireland), Huawei Technologies (China), and Cyient (India). The study included an in-depth competitive analysis of these key players with their company profiles, recent developments, and key growth strategies adopted by them.
The market study covers the rail asset management market across different segments. It aims at estimating the market size and the growth potential of this market across different segments based on offerings, deployment mode, application, and region. The study also includes an in-depth competitive analysis of the key market players, along with their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.
Key benefits of buying the report
The report is expected to help the market leaders/new entrants in this market by providing them information on the closest approximations of the revenue numbers for the overall rail asset management market and its segments. This report is also expected to help stakeholders understand the competitive landscape and gain insights to improve the position of their businesses and to plan suitable go-to-market strategies. The report also aims at helping stakeholders understand the pulse of the rail asset management market and provide them with information on key market drivers, restraints, challenges, and opportunities.
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