Railway Signalling Systems Market By Technology (Automatic Train Protection (ATP) System, Automatic Train Operation (ATO) System, Communication Based Train Control (CBTC) System, European Train Control System (ETCS), Positive Train Control (PTO) System) By Technology (Automatic Train Protection (ATP) System, Automatic Train Operation (ATO) System, Communication-Based Train Control (CBTC) System, European Train Control System (ETCS), - Growth, Future Prospects & Competitive Analysis, 2016 – 2028

How has cloud computing technology fuelled the market's expansion for railway signaling systems?

The railway signaling system informs trains about the timings of other trains. It aids in the direction of rail traffic and the separation of railway lines. It assists in detecting train positions and in providing information about clear routes and stoppages. The railway signaling system improves train operations by delivering real-time information to train drivers. This technology aids in minimizing collisions between trains by informing them of their timetables, reducing the likelihood of an accident and providing travelers with safety. To keep the railway network in top shape, the signaling procedure must include components that enable data mining and analysis to be more accessible and faster. As a result, a distribution and data gathering system based on cloud computing technology is being proposed to collect information or data connected to the assets of railway signaling systems. Connectivity and digitization will improve the rail system by increasing transparency and interactivity, allowing passengers to manage and optimize their end-to-end mobility. Micro-sensors throughout the track and switching system allow information to be instantly evaluated using artificial intelligence and big data to predict maintenance needs, minimize accidents or delays, and improve safety and operating efficiency. For instance, in collaboration with Telecom PSU RailTel Corporation of India Limited, the Indian Railways has launched the RailCloud project, a virtual server with a built-in security system to improve server usage and connectivity. The Indian government is also working to modernize 8,000 railway stations across the country using the Building Information Modelling (BIM) technique to design and implement railway signaling systems. Furthermore, the government's new policy framework encourages public-private partnerships (PPP) to activate the country's faster development signal system.

What is the Market Size of Railway Signaling Systems in terms of value?

The global Railway Signaling Systems Market is projected to increase at a significant CAGR of 5.10% in the coming years. In 2021, the global Railway Signaling Systems market was valued at USD 7429.5 million and projected to reach USD 10013.27 million by 2028. The demand for Railway Signaling Systems is projected to increase substantially in the coming years and is presumed to generate revenue opportunities for the key industry players worth USD 2583.77 million during the forecast period of 2022 and 2028. 

What impact has COVID-19 had on the railway signaling market?

COVID-19 has rapidly impacted production and demand in a variety of industries, impeding the growth of the railway signaling system market. The transportation industry is the most vulnerable to the COVID-19 pandemic. Policies taken by various governments and other legal authorities to enforce social distance, sanitary rules, and lockdowns resulted in a temporary halt of production operations and the closure of enterprises and retail. Rail services have been suspended in some areas, and numerous other countries have restarted rail operations with a limited number of trains on track. In 2021, the market for railway signaling systems was predicted to recover. Continuous sensing and predictive maintenance solutions are required since the out-of-service rolling stock requires proper upkeep.

Interesting Facts about Railway Signaling Systems Industry

  • The increasing urbanization trend and the increased usage of new technology have resulted in the rapid growth of railway networks. However, introducing smart cities for railway management systems has a favorable impact on market growth.
  • North America region had a major share in volume and value in the global Railway Signaling Systems market in 2021 and is projected to dominate the market over the forecast period.
  • The railway signaling system is integrated with a real-time information system that controls and monitors train operations by elucidating the timing and routes of other trains to the loco-pilot, resulting in collision avoidance. 
  • Product launches, mergers and acquisitions, R&D, technical innovation, and supply chain management are key manufacturers' tactics to drive the worldwide battlefield management system market.

Who are the Top 10 Players/Companies in the Railway Signaling Systems market regarding value?

The key players in the global railway signaling systems market in terms of value are Siemens AG, Hitachi Ltd., Ansaldo STS, Thales, Alsthom SA, China Railway Signal and Communication Co., Ltd., Cisco Systems Inc., Bombardier Inc., and G.E., among others. These key players are concentrating on new product developments as well as technological innovation to enhance their products in railway signaling systems to gain a competitive market share at a global level. For instance, in January 2021, Alstom, an Indian company, received a €106 million contract from the National Capital Region Transport Corporation Ltd. (NCRTC) for developing advanced railway systems. This contract will supply, test, design, and install signaling on the Delhi-Ghaziabad-Meerut Regional Rapid Transit System (RRTS) Corridor. Furthermore, this newly constructed route will be the first to use a hybrid Level 3 signaling system based on the European Train Control System (ETCS). On the other hand, in November 2020, "Nippon Signal Co., Ltd." (a key player in railway signaling systems) plans to increase its presence in Taiwan by establishing an engineering base for commercial expansion.

Who are the Top 10 Countries in the Railway Signaling Systems Market?

The major global railway signaling systems market countries are the US, Canada, Mexico, China, Japan, Korea, India, Australia, Germany, and the U.K. The largest market share is in the United States. The markets in the United States have developed, and most of the countries in these regions have standardized rail control systems. The total market size of the rail transportation industry in the United States was more than 66 billion U.S. dollars in 2020. Since 2017, this market has fluctuated around 80 billion U.S. dollars, which has been dragged into an economic recession by the coronavirus (COVID-19) pandemic. This trend is predicted to reverse in 2021 when the market size is expected to reach 68.5 billion U.S. dollars. With the increased expansion of high-speed rail networks, the market for railway signaling systems is likely to rise significantly. The railway signaling system combines IoT and cloud computing technologies to improve train operations in the railway industry through digitization and transmission. As a result, it is supposed to drive the global railway signaling system market throughout the forecast period, favorably impacting market growth in this region.

Which is the Key Technology Segment in the Railway Signaling Systems Market?

Communication-based train control is projected to develop significantly soon. In recent years, railway operators in developed nations have transitioned from traditional signaling solutions to communication-based train control systems for mass transit operations. CBTC is a modern railway signaling technology predominantly employed in urban train networks. With over 100 CBTC systems implemented worldwide, it is quickly becoming the preferred solution for train operators. Increased investment in urban railway networks, notably in the Asia-Pacific and the Middle East, will fuel market expansion over the next five years. Countries worldwide are also investing heavily in European Train Control Systems (ETCS) to increase the safety and efficiency of railway traffic.

What are the Major Driving Factors for Railway Signaling Systems Market?

The railway signaling system market is growing due to increasing urbanization, high segment development, increasing railway commuters, the rising popularity of IoT, data analytics, cloud computing, and other trendsetting innovations. Advanced change provides traffic correspondence, control, and train activities. The rail route signaling framework's development is fueled by the enhancement of the rail network and other rail advancement projects. In addition, expanding rail routes, increasing metros, and other rapid trains are driving market development. The government has implemented several initiatives to control train traffic, reduce gridlock, and adopt trendsetting innovations in the railroad signaling system, thereby promoting the market growth.

What are the Major Restraints for Railway Signaling Systems Market?

High deployment expenses may impede market expansion for railway signaling systems. The coronavirus outbreak negatively influenced the transportation industry, which impeded the expansion of the railway signaling systems market. Furthermore, less investment in the railway sector in underdeveloped nations impedes market growth for railway signaling systems over the forecast period.

Which Region Dominated the World Railway Signaling Systems Market?

In 2021, North America will dominate the Railway Signaling Systems market over the forecast period because of the well-established high-speed railroads and already installed advanced signal regulating systems in all major cities and nations. It is predicted to increase and exhibit stable growth in the future. The gradual replacement of traditional systems with innovative, cost-effective, and dependable solutions to achieve greater efficiency and safety will likely drive market expansion in these established industries. Due to the completion of high-speed rail in all major countries and cities, North America is likely to have stable expansion in the worldwide railway signaling systems market. Furthermore, the gradual replacement of traditional systems with advanced, cost-effective, and dependable solutions to improve safety and efficiency will likely fuel market expansion in these established industries.

The Asia-Pacific region is expected to grow significantly over the forecast period. The expansion of railway network projects and enhanced signaling systems on new and current high-speed railway networks is linked to this disruptive growth. China is a significant contributor to this geographical market. Chinese firms such as CRCC, CRSC, and CREC have witnessed the quickest growth among the other world leaders, with a 20–25% market share in the global signaling, rail control, and electrification industries. This expansion is due to the expansion of the railway network, which has grown from 75,000 kilometers in length in 2005 to 150,000 kilometers in 2020. Asia-Pacific countries are rapidly investing in CBTC systems. NIPPON SIGNAL has launched a CBTC-based protection system called "SPARCS" for the Beijing Subway Line. China has spent significantly on its national high-speed railway projects, extending its high-speed railway network to 30,500 km to connect the country's 27 major provinces via 11 high-speed train lines.

Segmentation of Global Railway Signaling Systems Market-

Global Railway Signaling Systems Market – By Technology

  • Automatic Train Protection (ATP) System
  • Automatic Train Operation (ATO) System
  • Communication-Based Train Control (CBTC) System
  • European Train Control System (ETCS)
  • Positive Train Control (PTO) System

Global Railway Signaling Systems Market – By Application

  • Inside the Station
  • Outside the Station

Global Railway Signaling Systems Market – By Region

  •  North America

o   U.S.

o   Canada

  •   Europe

o   Germany

o   France

o   U.K.

o   Italy

o   Spain

o   Rest of Europe

  •   Asia Pacific

o   China

o   Japan

o   India

o   South Korea

o   South-east Asia

o   Rest of Asia Pacific

  •   Latin America

o   Brazil

o   Mexico

o   Rest of Latin America

  •   Middle East & Africa

o   GCC Countries

o   South Africa

o   Rest of Middle East and Africa

Frequently asked questions about the global Railway Signaling Systems industry

The global Railway Signaling Systems market is expected to be impacted significantly by COVID-19.

North America accounted for the highest share in the global Railway Signaling Systems market regarding value.

The rapid expansion of railway networks is a result of the urbanization trend's growth and the rise in the use of cutting-edge technology. However, the development of smart cities has a favorable impact on market expansion for the railway management system.

Communication-based train control (CBTC) system had a major share in 2021, with more than 40% of the market revenue share.

Inside the Station segment had a major share in 2021 with more than 60% of the market revenue share.

Railway Signaling Systems Market Scope

Report Attribute Details
Market Value in 2021 USD 7429.5 million
Market Value in 2028 USD 10013.27 million
CAGR 5.10%
Benchmarking Year 2021
Past data 2016 – 2021
Forecast period 2022 – 2028
Choose License Type
Budget Buying
Executive Summary - Brief Global Market Size - Current & Forecast
Regional Market Size - North America
Country Market Size - US
Company Profile – 1
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Published Date:  Aug 2022
Category:  Automotive & Transportation
Report ID:   59275
Report Format:   PDF
Pages:   140
Rating:    4.5 (60)
Delivery Time: 24 Hours to 48 Hours   
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