Railway Modernization Programs to Drive the Growth of the Smart Railways Market
The smart railways market was worth US$ 11.67 billion in 2017 and is expected to grow at a CAGR of 15.2% from 2018 to 2026. One of the most prominent factors contributing to market growth can be attributed to the increasing adoption of smart technologies in the railway sector. The incorporation of smart technologies has the potential to revolutionize the entire railway sector. The benefits range from ergonomic station design to ticketless travel. With technological advancements, smart ticketing will become more universal in the future, and paperless, integrated ticketing will become the new norm across major stations worldwide. Furthermore, technological advancements will help to reduce wait times and improve the overall travel experience. In addition, railway modernization programs across various countries are another prominent factor aiding the smart rail market's growth. Such modernization activities are taken seriously, and governments have been instrumental in funding them. Because of the benefits it provides, the rail industry is expected to increase its use of big data and IoT. It helps to improve safety, and at the same time, it is also beneficial to understand and develop insights about traveler behavior. These factors, taken together, are expected to complement the smart rail market's growth.
Market Synopsis
Increased emphasis on passenger safety will drive up demand for video surveillance cameras.
The video surveillance cameras segment led the global smart rail market in 2017. Video surveillance cameras are most commonly used for security purposes. In order to keep an eye on and reduce crime-related activities on trains, governments across various countries have been investing in improving the safety of passengers on trains. This factor has positively influenced the demand for video surveillance cameras in the railway sector. For instance, in its endeavor to provide a safe and secure travel experience to passengers, the Indian Railways recently announced its plan to procure about 12 lakh CCTV cameras for all trains and stations across the country. Moreover, recent terrorist attacks across various countries have further boosted the adoption of video surveillance cameras in trains and stations. Some of the recent terrorist attacks on railways include the 2016 Brussels bombings, the 2016 Würzburg train attack, and the 2017 Bhopal–Ujjain passenger train bombing, among others.
High initial costs offset market growth in developing countries.
The high initial cost of deployment is one of the most significant impediments to market growth. This factor often inhibits the large-scale deployment of smart railway technologies, especially in developing countries. Moreover, integration complexities over legacy systems and networks are another major restraint offsetting the smart rail market's growth.
In the coming years, Asia Pacific will emerge as a significant market.
The global smart rail market was dominated by North America, which accounted for more than X% of the overall market value in 2017. North America and Western European countries have always remained at the forefront in terms of the adoption of smart technologies. The railway sector in this context is no exception, and developed countries in these regions have already adopted these technologies on a large scale. However, in terms of growth, Asia-Pacific is expected to experience the fastest growth, owing to increased investments by governments in various countries such as India and China in railway modernization.
Historical & Forecast Period
This research report presents the analysis of each segment from 2016 to 2026, considering 2017 as the base year for the research. The compound annual growth rate (CAGR) for each of the respective segments is calculated for the forecast period from 2018 to 2026.
Report Scope by Segments
The report elucidates the detailed outline of the global smart railways market by categorizing the market in terms of solutions, components, and geography.
Key players profiled in the report include ABB Ltd., Alcatel-Lucent International, Ansaldo STS, Cisco Systems, Inc., Alstom SA, GE Transportation, Bombardier Transportation, Huawei Technologies Co. Ltd., CGI Group, Inc., Hitachi Ltd., Computer Sciences Corp., IBM Corporation, and ZTE Corporation, among others.
Key questions are answered in this report.
What was the global smart rail market size in 2017, and what is the forecast for 2026?
What are the current trends in the smart rail market?
What are the various valuable opportunities for the players in the market?
Which is the largest regional market for smart railways?
Which region is expected to have the fastest growth and why?
What are the future prospects for the smart rail market?
What are the major drivers and restraints influencing the market's growth?
What are the new products launched by the leading players?
What are the key strategies adopted by the leading players in the market?
Frequently Asked Questions:
The market for Smart Railways Market is expected to reach US$ 11.67 Bn by 2026.
The Smart Railways Market is expected to see significant CAGR growth over the coming years, at 15.2%.
The report is forecasted from 2018-2026.
The base year of this report is 2017.
ABB Ltd., Alcatel-Lucent International, Ansaldo STS, Cisco Systems, Inc., Alstom SA, GE Transportation, Bombardier Transportation, Huawei Technologies Co. Ltd., CGI Group, Inc., Hitachi Ltd., Computer Sciences Corp., IBM Corporation, and ZTE Corporationare some of the major players in the global market.
