IT revolution in railways in the form of digitization in asset management and network operations has not only improved safety, on-time performance, network throughput, and asset performance, but also enhanced the customer experience by empowering the organization to meet the market’s changing needs. With the changing social demands and shifting industry requirements, the way rail network works across the globe is changing every day. The digital revolution in railways is quickly becoming an established way of doing things. From signage to onboard communications, travel analysis, and maintenance, trains are restructuring the infrastructure to digital stations.
The IT spending in railways market is segmented by type, application, and region.
On the basis of type, the IT spending in railways market is segmented by service, software, and hardware. Software, hardware, and services are the fundamental elements of IT infrastructure that are rendered in the railway industry. Smart ticketing and other ‘at your fingertips’ service culture is revolutionizing commuters experience of rail transport with flexible and remote journey planning, purchase, and inquiry.
Based on application, the IT spending in railways market is segmented by train design, train inspection, track management, traffic management, and passenger management. New hardware installations to meet software requirements make modern trains more efficient and reliable. For instance, the requirement of hardware like fiber optic system will help OEMs to create complex software networks on trains.
Geographically, the global IT spending in railways market is segmented into North America, Asia Pacific, Europe, and Latin America, Middle East and Africa (LAMEA).
North America is expected to witness considerable growth in IT spending in Railways Market during the forecast period 2019–2026. Deep ingrain of automobiles in American culture is one of the major factors responsible for the sluggish growth of the U.S passenger-based railways systems. Additionally, investments of millions of dollars into the interstate highway also reinforces the major role of the automobile in American culture.
In Europe, rapid urbanization has increased traffic congestion in and around the cities and towns. This issue has directed the adoption of the railway system, provided with the focus on reducing carbon dioxide emissions and preserving natural resources without stifling economic conditions. With the focus of achieving clean and future-oriented mobility, the government has adopted several initiatives in the railway networks.
High-speed train network is progressively expected to increase over the past few years and is to experience impressive growth in terms of technological innovations in the region. For instance, Chinese companies are preparing to develop smart trains using intelligent technology to compete with established rivals in Europe, Japan, and Canada.
Countries in Africa and the Middle East still lack enough railway infrastructure, hence possess a potential for market growth during the forecast period. Passenger transport system is expected to observe an exponential growth owing to the incorporation of metro and light railway that propels the efficiency in transportation both in terms of cost and time.
Some of the major players in IT spending in railways market are Accenture (Ireland), Altran Technologies S.A. (France), ALTEN SA (France), IBM Corporation (U.S.), SAP SE (Germany), ABB Ltd (Switzerland), ALE International (France), ALSTOM Holdings (France), Ansaldo STS (Italy).
IT Spending in Railways Market Segmentation