Railway Telematics Market Size, Share & Trends Analysis Report By Solution (Fleet Management, Automatic Stock Control, Remote Data Access), By Railcar, By Component, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global railway telematics market size was valued at USD 11.26 billion in 2022 and is estimated to register a compound annual growth rate (CAGR) of 6.7% from 2023 to 2030. The surge in demand for a safe, secure, and efficient transport system is anticipated to support the market growth. Advanced transport systems are less likely to witness fatalities owing to upgraded telematics technologies, thereby contributing to the growth. However, the spread of the COVID-19 globally during the first half of 2020 hampered the market growth as the majority of the countries were into lockdown, due to which transportation and freight activities witnessed a temporary slowdown.

Growing demand for the digitalization of railcar tracking and increasing rail freight transportation are the significant factors that are anticipated to drive demand for the railway telematics market. For instance, in November 2022, Alstom SA signed a Long-Term Services Support (LTSS) agreement with SBS TRANSIT LTD, a North East Line (NEL) bus operator company in Singapore's Urbalis signaling system. This new contract reflects Alstom's expanding reach and continuous dedication to localizing critical competencies within Singapore while maintaining train reliability. NEL is the first completely automated underground heavy metro system in the world. Alstom will provide technical expertise and on-site maintenance services for the NEL fleet as part of the LTSS, starting in 2023.

Railway telematics systems are primarily implemented by rail corporations, rail management companies, insurance companies, and others to monitor the location and behavior of railcars. For instance, in April 2022, The Indian Ministry of Railways agreed to modernize communications infrastructure related to operations and safety with the Centre for Development of Telematics (C-DOT). The agreement aims to create a cooperative working relationship between the ministry and C-DOT for resource sharing and coordination. Using LTE-R, a next-generation communications network specifically designed for railway services, C-DOT, and the ministry collaborated to modernize telecommunication in the national transporter for safety and security services.

The rise in the budget allocation for the development of railways and the increase in demand for safer, secure, and efficient transport systems complement the market's growth globally. The growing worldwide urbanization is paving the way for the evolution of smart cities. Government authorities globally are taking into consideration various smart city projects to deliver improved transportation infrastructure, further accelerating operational activities in public transportation services.

In the first half of 2020, the market witnessed a significant negative impact due to the spread of the COVID-19 virus. The logistics and freight activities were temporarily closed due to the lockdown restrictions imposed by the various governments globally during the first half of 2020. Trade restrictions imposed across the globe due to the rising covid-19 cases hampered market growth. However, the demand for railway telematics solutions to effectively manage transportation and freight is anticipated to increase during the forecast period.

Solution Insights

Based on the solution, the market is categorized into fleet management, automatic stock control, remote data access, railway tracking & tracing, and others. The fleet management segment dominated the market and accounted for more than 30.0% market share in 2022. The rapid increase in the demand for telematics solutions in various industries, including BFSI, and healthcare, among others, is anticipated to fuel the segment's growth.

The railcar tracking and tracing segment is anticipated to register the highest compounded annual growth rate of 7.5% during the forecast period. The growth can be attributed to the surge in demand for freight wagon maintenance and operations. For instance, in July 2022, Wabtec Corporation acquired ARINC rail solutions, a business unit of Collins Aerospace, a supplier of intelligence-based rail dispatch and back-office systems. Both companies will combine their technologies to enhance the rail network and provide increased safety, efficiency, and productivity.

Railcar Insights

Based on railcars, the market is categorized into hoppers, tank cars, well cars, boxcars, refrigerated boxcars, and others. The hoppers railcar segment registered a considerable market share and accounted for more than 20.0% in 2022. The hoppers railcar segment is anticipated to gain significant traction and register the highest growth during the forecasted period. Hopper railcar helps in freight activities and transportation of bulk commodities, including grain, coal, and ore. The growing demand from various logistics and freight transportation organizations to transport and track consignments is expected to drive the demand for hopper railcars.

The refrigerated boxcars segment is anticipated to register a significant growth rate throughout the forecast period. The increasing demand for refrigerated boxcars in various verticals, including healthcare, chemicals, and food & beverage, to transport goods is contributing to the segment growth. Refrigerated boxcars are designed and developed to carry perishable products at a specific temperature.

Component Insights

Based on components, the market is further segmented into telematics control units and sensors. The railway telematics control unit segment accounted for more than 55.0% share of the overall market in 2022. The telematics control unit offers solutions for two-way control and tracking of railcars. It also provides integrated and complete fleet monitoring solutions for logistics and transportation, allowing the real-time control and visibility of transport assets as they move through the supply chain. The introduction of advanced TCUs in railcars assists in offering increased profitability, safety, and maintenance.

The sensors segment is anticipated to register a significant growth rate during the forecast period. The growth can be attributed to the increasing government initiatives and spending toward smart railway infrastructure. Sensors assists in data gathering and monitoring, signaling, rail tracking, and tracing, thereby supporting the market growth during the forecast timeframe.

Regional Insights

North America region holds the largest market share of over 35% of the overall revenue share in 2022. Europe registered a considerable market size and accounted for above 25.0% share of the global revenue in 2022. The region is a hub for prominent players such as Siemens AG, Rail nova SA, Knorr-Bremse AG, and Alstom SA. These players focus majorly on partnering with Rail Corporation in various countries to enhance their geographic presence. For instance, in April 2022, Rail nova SA updated its product portfolio by introducing live monitoring, data inspector, and component management services.

The railway telematics market in the Asia Pacific region is anticipated to register the highest growth rate throughout the forecast period. The growth can be attributed to the increasing GDPs of the countries, rising penetration of advanced technologies, steady growth, and emerging economies in the region. For instance, in May 2022, Hitachi Rail launched new PTC digital railcar telematics and an onboard system, along with enhancements to its existing communications and signaling product line. The technological platform leverages decades of internal train control expertise from previous Hitachi Rail platforms and runs both critical (SIL-4) and non-vital applications on a modern, multiprocessor architecture.

Key Companies & Market Share Insights

The companies focus on acquisition, partnership, and collaboration to enhance their presence in the market and gain a competitive edge. For instance, in August 2022, Siemens AG announced a signaling and telecommunications contract for the Kolkata Metro project. Kolkata Metro's lines 3 and 6 will be equipped with modern rail automation systems from Siemens.

The market players focus on several initiatives, such as partnerships, new product launches, and joint ventures, to enhance their position in the market. For instance, in July 2022, A1 Digital partnered with OBB Rail Cargo Group (RCG), the freight transport division of the Austrian Federal Railway, under the Smart Cargo project. It introduced about 11,000 freight wagons that used telematics devices, IoT, and GSM, for providing impact detection, real-time position, and motion sensing. some of the prominent players in the global railway telematics market include:

• A1 Digital

• Alstom SA

• Amsted Industries

• Hitachi Ltd.

• Knorr-Bremse AG

• Orbcomm

• Rail nova SA

• Robert Bosch GmbH

• SAVVY Telematics Systems AG

• Siemens AG

• Wabtec Corporation

Railway Telematics Market Report Scope

Global Railway Telematics Market Segmentation

This report forecasts revenue growth at global, regional, and country levels in addition to providing an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global Railway Telematics Market report based on the solution, railcar, component, and region:

• Solution Outlook (Revenue, USD Million; 2018 - 2030)

  • Fleet Management

  • Automatic Stock Control

  • Remote Data Access

  • Railcar Tracking And Tracing

  • Others

• Railcar Outlook (Revenue, USD Million; 2018 - 2030)

  • Hoppers

  • Tank Cars

  • Well Cars

  • Boxcars

  • Refrigerated Boxcars

  • Others

• Component Type Outlook (Revenue, USD Million; 2018 - 2030)

  • Telematics Control Unit

  • Sensors

• Regional Outlook (Revenue, USD Million; 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa