In order to tackle the new challenges and meet the customer expectations in the railway system, governments along with financial firms are putting their effort to upgrade this system with smart technologies. With the smart railway system, several challenges such as customer safety, security, ticket booking issues & other problems in transportation sector can be resolved to the entirety across the globe. In a published report on the global smart railway market by Future Market Insights (FMI), it is predicted that the market is likely to rake in US$ 160 Bn revenues through 2025.
Global Market for Smart Railway: Trends
The report has focused on the new key trends of the global smart railway market that include integrated ticketing system, Big data & IoT and government assistance. In the present world, where the demand for paper-tickets are decreasing, the adoption of paperless integrated ticketing system is surging robustly. This is because smart ticketing system takes less time, is customer friendly and allows customers to book or buy tickets from any place and for any destination with a transparency in information. Besides, for purchasing any paperless ticket, hard cash is not required as anyone can buy it through online transactions. Henceforth, customers can experience a suitable journey according to their requirements.
Coming to the second trend, which is about the adoption of Big data and Internet of things (IoT), the report projects that this trend is the most effective feature for smart railway safety and security system. The smart railway system is shifting from analog to digital, which is witnessed by the transformation of computer-based point machines and positive train control (PTC).
On the basis of government’s assistance and funding, the railway system is updating rapidly by smart technologies. In some countries, such as China, the government is actively taking up some regulations for improving railway infrastructure to make it faster and safer. Even more, several banks in China are collaborating to fund over US$ 28 Bn in PPP projects for the smart railway system.
Additional key trends that are leading the global market for smart railway system are digital payment methods, cloud computing, GSM-R systems and fibre optic technology especially for safety purpose.
Segmentation & Regional Forecast
The global market for smart railway has two major segments which include, offering type and region. Based on offering type segment, the market has further three more sub-segments that include, devices & components, services and solutions. Devices & components includes several tools, such as VSC, smart cards, devices for networking & connectivity, rail sensors and others. In 2015, US$ 2.1 Bn revenues were raked from networking and connectivity solutions in global smart railways market. During the forecast period, the revenues accounted by this segment are estimated to expand robustly at a CAGR of 20.1%.
Based on the service offerings segment, the market for smart railways has cloud services, professional services and integration & implementation services. Furthermore, solution sub-segment has rail communication & networking systems (RCNS), advanced security management system (ASMS), smart ticketing system (STS), railway traffic management system (RTMS), rail operations management system (ROMS), passenger information system (PIS), and others, which include rail analytics system (RAS) and freight information system (FIS). The report has anticipated that the solution segment will be procuring the highest revenue during the forecast period, leaving behind devices & component and services segments. Besides, the service segment is expected to expand the market at the highest CAGR in the years to come. More detailed information is given in the report on the segments.
As per the FMI report, the global smart railway market has been segmented majorly into Asia-Pacific excluding Japan (APEJ), Western Europe and North America. It is estimated through 2025 that after Western Europe and North America, Asia-Pacific excluding Japan will be the leading region in the global market for smart railways. As China and India in APEJ are adopting the smart technologies vigorously, this region is likely to bring in an approximate US$ 50 Bn revenues by 2025. Furthermore, U.S will be the leading country in North America’s smart railway market in the coming future. In Europe, EU5 countries are expected to showcase an increasing growth in the assessment period.
The global smart railway market has profiled some key players, which include Ansaldo STS, S.A., Alstom S.A., Bombardier Inc., IBM Corporation, ABB Group, Indra Sistemas, Hitachi, Ltd., General Electric Co., Cisco Systems, Inc., Alcatel-Lucent S.A., Huawei Technologies Co. Ltd. and Siemens AG, among others.
This post was originally published on Commerce Gazette