The global Railway Telematics Market size is expected to reach USD 18.82 billion by 2028, expanding at a CAGR of 7.5%, from 2021 to 2028, as per the research conducted by Grand View Research, Inc. Increasing government initiatives aimed at introducing smart railways, rapid urbanization, and the evolution of smart cities globally are some of the key factors driving the market growth. Governments across the globe are emphasizing smart city initiatives to speed up operational activities in public transport services and offer better infrastructure for transportation.
Countries such as Germany, India, France, and Canada have recognized the benefits of expanding railway infrastructure and its positive impact on the economy. As a result, OEMs and numerous countries are investing in railway infrastructures. For instance, Digitaler Bedienplats of Germany and Commande Centralisee de Reseau of France have declared their plans of deploying digital interlocking technology across several systems by 2033 and 2035. In May 2021, Etihad Rail, UAE's national railway network, entered into a strategic agreement with Transportr, a digital freight service provider, to digitize the company’s railway fleet. Various developed and developing economies such as India, U.S., Germany, and Canada are putting increased focus on innovation and R&D and are adopting various technologies in their rail infrastructure to overcome mobility challenges.
Europe is home to some of the prominent players in the market for railway telematic, including OEMs such as Alstom, DB Cargo, Knorr-Bremse, and Siemens AG. These companies hold a majority share in the market. Several railway operators are replacing old technologies with progressive train-signaling and control systems. For instance, European Railway Traffic Management System (ERTMS) Level 2, designed and developed by Trans-European Rail Network, provides speed control systems and signaling solutions for interoperability across railways in Europe.
The COVID-19 pandemic lockdowns and travel restrictions imposed by various governments hampered freight and logistics activities globally during the first half of 2020, negatively impacting the market growth. This has led to a significant decline in the overall demand for telematics services. However, the gradual ease in lockdown restrictions and the revival of logistics, freight activities, and business activities are expected to help the market gain traction over the forecast period.
Some of the dominant players in the market are Hitachi Ltd., Siemens AG, Robert Bosch GmbH, Knorr-Bremse AG, and Alstom SA. These players majorly focus on strategic partnerships and mergers and acquisitions to enhance their business operations. In April 2021, Hitachi Rail acquired Perpetuum, a U.K.-based rail technology firm, to enhance Hitachi’s digital rail maintenance activities.
Related Press Release@ Railway Telematics Market Report
Railway Telematics Market Report Highlights
- In terms of solution, the fleet management segment is expected to dominate the market over the forecast period, due to increasing freight activities globally. The segment is expected to reach USD 6.17 billion by 2028
- In terms of railcar, the refrigerated boxcars segment is anticipated to expand at the highest CAGR of 8.4% over the forecast period
- In terms of component type, the telematics control unit segment is expected to dominate over the forecast period. The segment is anticipated to reach USD 9.96 billion by 2028
- Europe is projected to account for the majority share of the market over the forecast period. The regional market is anticipated to reach USD 7.25 billion by 2028. The rapid adoption of technological innovations and the presence of several prominent players in the region are some of the key factors expected to work favorably for the market’s future growth prospects
- Some of the prominent industry participants are Hitachi Ltd., Siemens AG, Robert Bosch GmbH, Knorr-Bremse AG, and Alstom SA.
