Smart Railways Market Report

Railways have been an important means of transportation for people all across the world for ages. They were crucial to the industrial revolution and helped to create vibrant and inventive communities. However, in recent years, urbanization has experienced a substantial rise as a significant portion of the population is relocating to cities due to increased job opportunities and rapid industrialization. Every individual needs a convenient daily commute between work and home in this era of urbanisation.
 
Furthermore, urban travellers prefer train travel since it is a more time-efficient way to avoid excessive road congestion. Thus, an increase in the dependability of urban railway passengers for everyday commutes contributes considerably to the expansion of the smart railway industry. However, the majority of urban passengers deal with issues such as real-time mode information, total commute duration, and safety while travelling by traditional trains, which reduces the working efficiency of the passengers. Smart Railway allows real-time railway information, streamlines train operations and simplifies fare payment. Thus, an increase in the adoption of railways for everyday commutes in metropolitan areas, as well as changes in passengers' digital orientation, are anticipated to drive demand for Smart Railways during the forecast period.

Major industry players are focusing their efforts on research and development in order to develop unique products that will complement their existing product offerings. They are also strengthening their market position through a variety of market strategies such as product launches, mergers, collaborations, and acquisitions. For instance, in January 2023, Cellnex UK and Three UK entered into a partnership to substantially enhance the connection on the London-Brighton train line. Three will host its mobile voice and data equipment on newly deployed Cellnex UK infrastructure throughout the length of the London to Brighton railway line as part of the agreement.

Before this year, in December 2021, Alstom and Hitachi Rail announced that their 50/50 joint venture, Hitachi-Alstom High Speed (HAH-S), had signed contracts with High Speed Two (HS2) to design, build, and maintain the next generation of very high-speed trains for HS2 Phase 1 as part of the £1.97 billion contract, which included an initial 12-year train maintenance contract. Due to the lower train mass per passenger, aerodynamic design, regenerative power, and newest energy-efficient traction technology, the fleet will be 100% electric, making it one of the world's most energy-efficient extremely high-speed trains.

Furthermore, in May 2021, Siemens Mobility announced the acquisition of Padam Mobility, a technology firm that develops artificial intelligence-powered platforms and apps for on-demand and paratransit services. This acquisition was made in order to enhance Siemens Mobility's multimodal transportation-focused digital infrastructure portfolio. It aided transportation operators in their efforts to integrate and coordinate various types of transportation to enable smooth travel from the first mile to the last.

The expenses of funding a smart railway system might be a significant impediment to industry growth as smart railway technologies demand a considerable upfront investment to set up field-level devices, replace aging equipment, organize transmission networks between end users, and manage the integration of new and current systems within railway premises. As a result, high capital expenditure (CAPEX) and increased upfront installation costs are impeding the adoption of smart railways across regions. Additionally, railway budget restrictions are also anticipated to be a barrier to governments and private companies using new railway technology and solutions.

Furthermore, due to protocol issues, legacy systems are usually unable to connect with new-generation smart devices, posing further integration obstacles. These outdated systems are frequently unable to interact efficiently with newer technologically advanced systems, impeding the seamless integration of smart railway systems. As a result, integration issues are anticipated to impede the expansion of the smart railway business in emerging nations in cthe oming years, as the majority of these economies continue to rely on legacy infrastructure.

Alcatel-Lucent, IBM, Siemens, Hitachi Ltd., Alstom S.A., Huawei Technologies Co. Ltd., Ansaldo STS, General Electric, Cisco Systems Inc., Bombardier Inc., Indra Sistemas S.A. ABB are some of the prominent market players operating in the global smart railways market.

Europe is anticipated to hold a significant share in the smart railways market owing to the presence of well-developed railway infrastructure in countries like United Kingdom, France, and Germany. Additionally, a number of railway business are deploying some of the most modern smart rail systems. The current rail infrastructure is being modernised and enhanced with major investment from European nations. In addition to this, social and commercial agreements among European Union (EU) member states have facilitated large-scale, cross-border trade and passenger mobility throughout Europe in order to enhance the existing railway infrastructure. Furthermore, Asia Pacific is also anticipated to witness a substantial growth in the smart railways market during the forecast period. This growth can be attributed to the development of rail projects and the industry shift towards digitalization. Countries like India and China are expected to account for majority of the smart railways market owing to the increasing investments made for the enhancement of the railway infrastructure in the region.