Railway Telematics Market

Railway Telematics Market Statistics 2030 -

The global railway telematics market was valued at $4.98 billion in 2020, and is projected to reach $12.43 billion by 2030, registering a CAGR of 9.5% from 2021 to 2030.

Rapid spread of the disease has led to a significant impact on the global transportation industry, with a downturn in need for using public transports. Industry experts believe that post the pandemic, the need to commute from one place to another through railways will increase as this is considered as the cheapest mode of traveling across cities. By the end of 2020, the situation came in control in some countries due to which the demand & supply gap was fulfilled and there was significant growth in the product development which have a wider application in developed railway.

Telematics is the process of monitoring location and movement of a vehicle by combining global positioning system (GPS) and on-boards diagnostics systems. With the help of GPS and diagnostics system, it is possible to record the speed and internal behavior of vehicles. Telematics systems are mainly adopted by vehicle insurance companies, fleet management companies, and others to monitor location and behavior of a vehicle. Vehicle telematics solution consists of 3 fundamental parameters i.e. Telematics Control Unit (TCU), telematics cloud server, and the front end- web app and mobile App. Moreover, the installation of telematics in railways offers numerous advantages such as real-time information about the vehicle can be determined followed by the increased inclination toward safety & security of the vehicle. Moreover, the development in railways infrastructure across the globe followed by the introduction of autonomous & semi-autonomous trains supplements the growth of the global railway telematics market across the globe.

Factors such as increase in allocation of budget for development of railways, rise in demand for secure, safer & efficient transport system and reduction in pollution & accidents supplements the growth of the market across the globe. However, high possibilities of hacking the system and high cost incurred in train automation are the factors that are expected to hamper the growth of the market across the globe.

Moreover, factors such as improvement in railway infrastructure in developing countries and increase in freight transport through train are the factors that are expected to provide numerous opportunities for the growth of the railway telematics market across the globe.

The global railway telematics market is segmented into solution, mode of operation & train type. Based on solution, the global market is segmented into fleet management, collision detection & prevention, railway tracking & tracing and others. Based on mode of operation, the market is segmented into semi-autonomous and fully autonomous. Based on train type, the market has been segmented into passenger train and freight train. By region, the global railway telematics market report has been analyzed across North America, Europe, Asia-Pacific and LAMEA. 

The key players operating in the global railway telematics market include Alstom, Hitachi Ltd., Intermodal Telematics, Intrex Telematics, ORBCOMM, Railnova, Robert Bosch GmbH, Savvy Telematics, Siemens AG and Trinity Industries. 

Increase in allocation of budget for development of railways

Advanced trains are widely adopted by developing as well as developed countries. However, the deployment of autonomous trains requires upgradation of signaling technologies, monitoring systems, and others. Thus, the emerging countries such as India, China, and others are more focused toward developing their railway infrastructure by allocating higher budget. For instance, India allocated a budget of $18.8 billion to its railway sector in 2017 and $21.2 billion in 2018, which highlights an increase of 13% in the budget allocation. Similarly, various countries across the globe are continuously increasing their rail budget to develop the infrastructure. For instance, the Canadian National Railway (CN) planned an investment of $2.92 billion in the province of Saskatchewan to improve the railway infrastructure with the installation of advanced telematics devices. Thus, increase in budget allocation is a key factor that boosts the growth of railways, thereby leading to the growth of railway telematics market.

Rise in demand for secure, safer and efficient transport system

Advanced trains are less likely to experience rail fatalities, owing to deployment of upgraded telematics technologies such as communications-based train control (CBTC), European Rail Traffic Management System (ETRMS), and others. In 2018, 1,855 railway accidents were recorded in Europe, with a total of 977 fatalities and 763 persons injured seriously. This can be reduced by installing telematics such as on-board camera, sensors, and communication devices. Moreover, in most locations, trains run underground or are at the ground level and are highly secured by fences or walls to prevent trespassing. 

In addition, around 85% stations on the automated lines are protected with the platform screen doors to ensure safety of the passengers. With the implementation of automation in trains, the staff count can be reduced and extra space can be utilized to accumulate extra passengers on board. Furthermore, these trains consume less energy, due to their superior acceleration, traction, and breaking system, resulting in the reduction of energy consumption by around 30% based on the degree of automation. Moreover, with the deployment of autonomous trains, it is easy to add a new train in the system or to remove a new train from the system without affecting the system and without waiting for train or staff availability. Thus, availability of trains during off peak and night hours is possible due to increase in flexibility. For instance, the Copenhagen metro has enabled continuous operation. Thus, trains are more safe, secure, flexible, and efficient as compared to traditional manually operated trains, which drive the market growth. 

High possibilities of hacking the system

Trains equipped with advanced system requires active internet to regulate its operations by transmitting and receiving signals with the control station. Hence, it is easy to hack the system if the loophole is discovered by a hacker, making the network vulnerable to attack. For instance, in 2016, the Network Rail UK was attacked by hackers four times in a year. Although this attack caused less damage to the entire system, the prevalence of such cyberattacks are becoming increasingly common, which restricts the growth of the market.

Improvement in railway infrastructure in developing countries

Developed railway infrastructure increases the speed and efficiency of railway systems for freight and passenger transportation. In addition, deployment of autonomous train needs to be backed up by a large investment. Governments of developing countries are investing heavily to meet the requirements of latest technology setup required for efficient railway infrastructure. For instance, India invested $1.97 billion in 2018 toward its infrastructure development to meet the latest automation demand, and is estimated to invest $777.73 billion by 2022 to cater to the required infrastructure demand, which includes railway infrastructure development. All these factors are anticipated to offer numerous opportunities for train automation players operating in the country. Similarly, Paris allocated $28.2 billion to automate its old metro network with the construction of four new metro lines across the country and expand its existing lines. Hence, such improvements in developing countries are opportunistic for the market expansion. 

Covid-19 Impact Analysis

• COVID-19 has presented the world with an unprecedented economic, humanitarian, and healthcare challenge.
• Lockdown measures have helped contain the spread of coronavirus, but exacted an immense economic toll.
• Rapid spread of the disease has led to a significant impact on the global transportation industry, with a downturn in need for using public transports.
• Moreover, countries, such as China, Norway, the Netherlands, and others, which were the leaders in automated railways have registered a decrease in passenger commuting during the pandemic.
• Industry experts believe that post the pandemic, the need to commute from one place to another through railways will increase as this is considered as the cheapest mode of travelling across cities.
• By the end of 2020, the situation came in control in some countries due to which the demand & supply gap was fulfilled and there was significant growth in the product development which have a wider application in developed railway.

Key Benefits For Stakeholders

• This study presents the analytical depiction of the global railway telematics market analysis along with the current trends and future estimations to depict imminent investment pockets.
• The overall market opportunity is determined by understanding profitable trends to gain a stronger foothold.
• The report presents information related to the key drivers, restraints, and opportunities of the market with a detailed impact analysis.
• The current market is quantitatively analyzed from 2021 to 2030 to benchmark the financial competency.
• Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.

Key Market Segments

By Solution

• Fleet Management
• Collision Detection & Prevention
• Railway Tracking & Tracing
• Others

By Mode of Operation

• Semi-Autonomous 
• Fully Autonomous

By Train Type

• Passenger Train
• Freight Train

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany 
  • France 
  • UK
  • Italy
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan 
  • India
  • South Korea
  • Singapore
  • Rest of Asia-Pacific
• LAMEA
  • Latin America
  • Middle East
  • Africa

KEY PLAYERS

• Alstom
• Hitachi Ltd.
• Intermodal Telematics
• Intrex Telematics
• ORBCOMM
• Railnova
• Robert Bosch GmbH
• Savvy Telematics
• Siemens AG
• Trinity Industries

 Railway Telematics Market Report Highlights