Global Railway System Market Grows Steadily at a CAGR of 5.2%

Introduction

The railway systems include various activities, including traffic planning, operation management, power supply and infrastructure management, maintenance and support, station control and communication network, and rail facility information management. In addition, rail traffic management systems, rail asset management systems, rail operation management systems, rail control systems, and rail maintenance management systems are used in railway management systems. The railway management system provides energy management, improved operation and control, data analytics, asset management, traffic planning, and staff and passenger information management. Modern railway systems also employ advanced digital communication and on-train processing to monitor the pace and location of trains.

Market Dynamics

Rising Demand for Safe, Secure, and Efficient Transport Systems Drives the Global Market

According to a fact sheet published by the World Health Organization (WHO), 1.25 million people die annually in traffic accidents, making road traffic injuries the leading cause of death for individuals between the ages of 15 and 29. Therefore, the rising demand for a dependable, secure, and efficient transportation system has significantly impacted the global railway system market's growth. This is due to the perception that rail transportation is the safest and most cost-effective mode of conveyance, thereby increasing the demand for railroads.

Modern trains have cameras, sensors, and communication devices onboard. These trains operate underground or on the ground level in most locations and are highly protected by fences or walls to prevent trespassing, thereby driving the market growth. In addition, the improved acceleration, propulsion, and braking system of modern advanced trains reduce energy consumption by around 30 percent, depending on the level of automation. Such advanced trains can provide a flexible method to coordinate in terms of frequency, improving system performance in all respects and stimulating market expansion.

Infrastructural Improvement of Railways in Developing Countries Creates Tremendous Opportunities

A nation's rolling stock infrastructure increases the speed and efficacy of its freight and passenger railway systems. The implementation of autonomous trains requires a substantial investment. Governments of developing nations are making substantial investments to satisfy the latest end-use requirements for autonomous trains. For instance, India invested USD 1.97 billion in 2018 toward its infrastructure development to meet the latest automation demand. It was also estimated to invest USD 777.73 billion by 2022 to cater to the required infrastructure demand, including railway infrastructure development. This will present numerous opportunities for train automation companies functioning in the country.

Regional Analysis

Europe held the most significant global railway system market shareholder and is anticipated to exhibit a CAGR of 3.8% during the forecast period. Due to an increase in the use of public transportation and demand for safe, secure, and efficient transportation, the market for railway systems in Europe is projected to expand at a remarkable rate over the forecast period. The United Kingdom, France, Germany, Russia, and several other countries are studied in Europe. These nations are highly advanced in train automation, and most nations, including France, Germany, and others, currently operate entirely automated trains. They service passengers and freight within their country, most of which are controlled automatically from the control station. These trains are outfitted with cutting-edge technology and are continually renovated to accommodate new developments.

Asia-Pacific is estimated to exhibit a CAGR of 6.7% over the forecast period. Due to the region's rapid adoption of new technologies and significant financial commitment to digital transformation, Asia-Pacific is anticipated to exhibit the quickest growth rate. The Asia-Pacific region's train automation industry is well-equipped with the latest technologies, such as communications-based train control (CBTC), European rail traffic management system (ERTMS), and automatic train control (ATC), in their railway tracks, making the system secure and efficient.

Additionally, the growth of the Asia-Pacific railway system market is anticipated to be fueled by a surge in population and an increase in spending on railway sector development. India, one of the fastest-growing economies, is actively investing in expanding its railway services. The Indian railway network received USD 22.4 billion from the nation's railway ministry for the 2020–21 fiscal year. India aims to accomplish this by installing online rolling stock monitoring systems, implementing an ERP system, constructing wireless corridors, utilizing heavy-duty freight-hauling trains, and establishing specialized R&D centers.

Key Highlights

• The global railway system market was valued at USD 30.26 billion in 2022. It is estimated to reach USD 47.75 billion by 2031, growing at a CAGR of 5.2% during the forecast period (2023–2031).
• Based on system type, the global railway system market is divided into auxiliary power, HVAC, propulsion, onboard vehicle control, train information, and train safety. The propulsion segment is the highest significant contributor to the market and is estimated to exhibit a CAGR of 4.71% over the forecast period.
• Based on type, the global railway system market is segmented into locomotives, metros, monorails, trams, freight wagons, passenger coaches, and others. The freight wagons segment owns the highest market share and is estimated to exhibit a CAGR of 3.8% during the forecast period.
• Based on end-user, the global railway system market is bifurcated into passenger transit and cargo train. The cargo train segment dominates the global market and is projected to exhibit a CAGR of 4.7% over the forecast period.
• Europe held the most significant global railway system market shareholder and is anticipated to exhibit a CAGR of 3.8% during the forecast period.

Competitive Players

Competitive Players

The key players in the global railway system market are ALSTOM, Bombardier, CRRC, General Electric, Siemens, Hitachi, Stadler Rail AG, The Greenbrier Companies, Transmashholding, Trinity Industries, Inc., and others.

Recent Developments

Market News

• In June 2023, Transmission tower manufacturer KEC International received two orders worth Rs 600 crore for the Kavach system, also known as the Train Collision Avoidance System (TCAS), its MD and CEO Vimal Kejriwal told CNBC-TV18.
• In June 2023, HFCL Limited, a manufacturer of telecommunications apparatus, announced that the Delhi Metro Rail Corporation had awarded it a contract worth Rs 809.2 million (DMRC). As per the press release, the company will establish the Fibre Optics Transmission System (FOTS) for the Delhi Metro Rail Project.

Segmentation

Global Railway System Market: Segmentation

By System Type

• Auxiliary Power
• HVAC
• Propulsion
• On-board Vehicle Control
• Train Information
• Train Safety

By Type

• Locomotives
• Metros
• Monorails
• Trams
• Freight Wagons
• Passenger Coaches
• Others

By End-User

• Passenger Transit
• Cargo Train

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA