The global railway telematics market size is expected to be worth 5.89 Billion USD in 2023. It is expected to grow at a CAGR of 7.50% during the forecast period and reach a value of 8.46 Billion USD by 2028.
Smart digital transportation systems that integrate technology across larger railcar networks will undoubtedly be vital to the freight rail industry's long-term viability. New technologies such as integrated service management, asset management, and predictive analytics, as well as shock detection and automatic stock control, are expected to help rail management companies manage optimal routes, schedules, capacities, and idle railcars in real time.
The application of informatics and telecommunications in trains is referred to as railway telematics, and it includes services that enable data transfer and communication across great distances. Railcar owners can capture data such as whether a railcar is loaded fully or partially, the temperature of onboard bearings, whether the doors or hatches are open or closed, the impact of wheel detection data, and other required solutions due to the advancement of telematics technologies and the increasing incorporation of the Internet of Things (IoT). It's also used to manage data generated by technology, make improvements to idle rail cars during repair, shorten turnaround times, and manage stock, among other things.
Global Railway Telematics Market Drivers:
Smart cities are evolving as a result of increased urbanization around the world. Smart city initiatives are being implemented by governments all over the world to improve transportation infrastructure and speed up operational activities in public transportation systems. The adoption of smart railway systems necessitates collaboration among a variety of stakeholders, including telecommunications companies, infrastructure providers, service providers, manufacturers, government agencies, and user organizations. Governments are implementing Public-Private Partnership (PPP) models, which allow private-sector enterprises to engage in transportation project deployment and funding.
Global Railway Telematics Market Restraints:
The high installation cost is one of the major constraints in railway telematics. The telematics system also necessitates a lot of maintenance and data-gathering platforms, which adds to the cost. Expenses are reimbursed in the old approach by tax payments on fuel or rubber or by budget allocations from national income. An Automated Fare Collection (AFC) system consists of advanced technology-based equipment and products, making the system complex and costly. The method provides a solution for traffic congestion difficulties, but it also raises the expense of the tolling procedure, resulting in a higher toll payment. Furthermore, the AFC system necessitates the co-location of transportation managers, system operators, dispatchers, and response agencies in a massive, centralized Traffic Management Center (TMC). All of these reasons necessitate large initial investments.
The initial cost of implementing smart railway solutions is considerable, and it necessitates significant investments to set up field-level devices, replace aging infrastructure, set up transmission networks between end-users, and manage new and existing systems within premises. Railway authorities are also concerned about high operational and maintenance costs after deployment. Furthermore, the restricted cash provided to railways is a stumbling block to governments and commercial actors deploying new railway technologies and solutions. As a result, the market expansion is likely to be hampered by the high initial cost of adopting smart railway solutions and components.
Impact of COVID-19 on the railway telematics market:
Manufacturers must adapt production to avoid bottlenecks and schedule production based on demand from OEMs and franchised service centers. Due to the severity of the pandemic, notably in the United States and major European countries, the resumption of railway production plants, associated R&D centers, and railway maintenance centers is not envisaged soon. The loss in demand is primarily due to government reductions in budget allocations for the railway industry as a result of the spread of COVID-19, as well as a drop in demand for public transportation in the Americas and Europe.
Companies are adopting a variety of steps to mitigate the harmful consequences of the COVID-19 epidemic. The epidemic is causing stock market uncertainty, drastically delaying the supply chain, lowering corporate confidence, and raising panic among customer segments. The demand-supply outlook is being further hampered by trade obstacles. Overall production processes have been badly affected as governments in several places issued entire lockdowns and temporary shutdowns of industry, hampering the worldwide railway telematics market.
REPORT COVERAGE:
REPORT METRIC |
DETAILS |
Market Size Available |
2022 to 2028 |
Base Year |
2022 |
Forecast Period |
2023 to 2028 |
CAGR |
7.5% |
Segments Covered |
By Solution, Component, Railcar & Region |
Various Analyses Covered |
Global, Regional, and Country Level Analysis; Segment-Level Analysis; DROC, PESTLE Analysis; Porter’s Five Forces Analysis, Competitive Landscape; Analyst Overview of Investment Opportunities |
Regions Covered |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
This research report on the global railway telematics market has been segmented and sub-segmented into the following categories.
Railway Telematics Market – By Solution:
In 2020, the fleet management segment dominated the market, accounting for about 32.0 percent of total revenue. The segment's growth is expected to be fueled by the rapid increase in demand for telematics solutions in industries such as BFSI and healthcare.
Over the projected period, the railcar tracking and tracing category is expected to grow at the fastest rate of 8.2 percent. The increase can be attributable to a surge in demand for freight wagon predictive maintenance to identify operational faults. Railcar operators must monitor the progress of transportation utilizing various intermodal systems while adhering to maintenance and safety rules and ensuring that wagons are dependable and capable of meeting personnel costs. Industries such as healthcare and logistics are adopting railcar tracking and tracing systems to make procedures more cost-effective, boosting the segment's development prospects.
Railway Telematics Market – By Component:
In 2020, the telematics control unit sector will account for 56.48 percent of the total market. Railcars can be controlled and tracked in two directions using a telematics control device. It also offers integrated and comprehensive fleet monitoring solutions for logistics and transportation, enabling real-time observation and control of transport assets as they move through the supply chain. The use of improved TCUs in railcars has resulted in increased profitability, safety, and upkeep.
Over the projection period, the sensors segment is expected to rise at a CAGR of 8.6%. The significant increase in government initiatives and investment in the construction of smart railway infrastructure can be ascribed to the expansion. Data collection and monitoring, signaling, and train tracking and tracing are all aided by sensors.
Railway Telematics Market – By Railcar:
In 2020, the hoppers category dominated the market, accounting for more than 23.3 percent of total sales. Over the projected period, the segment is expected to acquire significant traction and maintain its dominance. Hopper railcars are used in freight and bulk commodity transportation, such as grain, coal, and ore. The demand for hopper railcars is predicted to rise as the demand for transporting and tracking consignments grows across various logistics and freight transportation firms.
From 2022 - 2027, the refrigerated boxcars market is expected to grow at the fastest pace of 8.4%. The growing demand for refrigerated boxcars to transport commodities in several sectors, such as healthcare, chemicals, and food and beverage, is helping the segment's rise. Refrigerated boxcars were created to transport perishable goods at a certain temperature.
Railway Telematics Market – By Region:
From 2022 - 2027, the railway telematics market in the Asia Pacific is expected to grow at the fastest rate, with a CAGR of 9.4%. The rising GDPs of countries, rising penetration of new technologies, consistent growth, and the existence of multiple emerging economies in the region all contribute to the region's growth. Furthermore, rising public awareness about accident prevention and driver safety, the promising expansion of the logistics and freight transportation industries, and the arrival of numerous leading OEMs into the region are projected to support the railway telematics market in the region.
In 2020, Europe dominated the market, accounting for about 36.0 percent of worldwide sales. Siemens AG, Knorr-Bremse AG, and Alstom SA are among the major players in the region. These companies are primarily interested in forming partnerships and collaborations with rail companies in various nations.
During the predicted period, the North American market is expected to increase significantly. The market is predicted to develop as a consequence of factors such as the growing transportation needs of the freight and logistics industries, as well as improved awareness of safety and accident prevention.
KEY MARKET PLAYERS:
Siemens Mobility, Alstom (France), Hitachi (Japan), Robert Bosch (Germany), Knorr-Bremse (Germany), Intermodal Telematics (Netherlands), INTREX Telematics (South Africa), ORBCOMM (US), Trinity Industries (US), Railnova (Belgium), SAVVY Telematics (Switzerland) are some of the leading players in the global railway telematics market.
RECENT HAPPENINGS IN THE MARKET:
Frequently Asked Questions
Railway telematics integrates technology elements, such as hardware, software, and network elements.
The global railway telematics market size is expected to be worth 5.89 Billion USD in 2023. It is expected to grow at a CAGR of 7.50% during the forecast period and reach a value of 8.46 Billion USD by 2028.
Siemens Mobility is the leading railway telematics company in the market.
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