Global Smart Railways Market - Segmented by Products and Services (Railway Communication & Networking System, Advance Security System, Freight Information System, Passenger Information System), and Region - Growth, Trends, and Forecast (2018 - 2023)
The global Smart Railways Market was worth USD 12.05 billion in 2017, and is projected to reach USD 27.62 billion by 2023, at a CAGR of 14.83%, during the forecast period of 2018-2023. The scope of the report is limited to products and services including railway communication & networking system, advance security system, freight information system, passenger information system, and others. The regions considered in the scope of the report include North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. The study also emphasizes the benefits of smart railways, in accordance with diverse industries and future prospect of the same.
The increase, in the number of passengers utilizing railway as their frequent mode of transportation, is likely to boost the automation in railways. The operators in this industry seek to understand the pattern of traveler, in order to take strategic decisions for generating profits. Furthermore, introduction of smart systems, such as big data analytics will also help in taking stringent actions against security of the railway. In addition, it will create an ability to anticipate any breakdown(s) in any part of the enterprise system, which is expected to propel the market growth. Growth in smart cities, and rapid adoption of internet of things (IoT), are likely to fuel the global smart railways market growth during the forecast period.
Rising Emergence of Internet of Things (IoT)
The growing approach, towards the enhancement of cargo management and autonomous vehicle, and the integration of internet of things (IoT) in railways is likely to gain high pace. Moreover, the operations for running train can be optimized with incorporating analytics, which may mitigate the cost involved, thereby ascending profit margins and providing seamless services to customers. Furthermore, integration of analytics helps in tracking the flow of passengers, including passengers in each train and people waiting at station. This helps the operator to augment the schedule of train and focus on overcrowded stations. Thus, the aforementioned factors are expected to propel the global smart railways market over the forecast period.
Rail Analytics System to Exhibit the Highest Growth
The train operators are rigorously trying to mitigate delays and increase mileage, in order to have efficient flow of rail operations, and ascend customer’s satisfaction. This opens new avenue for integration of analytics in railway. Furthermore, rail analytics help in timely maintenance and track any unforeseen event, which is likely to fuel the market growth over the projected period.
Asia- Pacific to Show the Highest Growth
In Asia-Pacific, there is a tremendous shift towards digitization from analog, particularly in railway industry. Investors such as BMCL, SRT, and OTP has confirmed an investment of USD 93 billion in Southeast Asia region for rail industry, which is likely to boost the smart railway in the region. In June 2017, the government of India announced the commencement of manufacturing smart locomotives. Furthermore, the minister of railway in India decided to install voice and video recording devices in engines to keep track, and mitigate the error of judgment by driver, thereby reducing chances of accidents. This is expected to fuel the market growth in the region, during the forecast period.
Key Developments in the market