Railway Telematics Market Poised to Expand at a Robust Pace of $18.37 Billion Over 2030: Grand View Research Inc.

Railway Telematics Market Growth & Trends

The global railway telematics market is expected to reach USD 18.37 billion by 2030, registering a CAGR of 6.7% from 2023 to 2030, according to Grand View Research, Inc. Increase in government initiatives for smart railways owing to rapid urbanization and evolution of smart cities, globally, is driving the market growth. Governments across the globe are laying emphasis on undertaking several smart city initiatives to speed up operational activities in public transport services and offer better infrastructure for transportation.

Several countries such as Germany, India, France, and Canada have recognized that the expansion of the railway infrastructure is a significant factor supporting economic development. As a result, OEMs and numerous countries are investing considerably in railway infrastructure. For instance, in September 2022, Siemens mobility announced a contract with NS Groep N.V., a transportation company, to upgrade 176 ViRM trains with the most up-to-date ETCS European Train Control System (ETCS) Level 2 technology.

With the ETCS Level 2 update, the fleet will be able to function more effectively to balance its useful life while also satisfying the most recent European criteria for rail safety compatibility. Equipment for the ETCS onboard unit, installation assistance, and seven years of system maintenance services will all be supplied by Siemens Mobility.

The majority of the prominent players in the railway telematics market belong to European region. OEMs including Alstom, DB Cargo, Knorr-Bremse, and Siemens AG hold a majority of the share in the railway telematics market. Several railway operators are replacing old technologies with progressive train signaling and control systems. For instance, in May 2022, Rail Pulse announced a partnership with Railinc, a rail data services provider company.

Under this partnership, Railinc and Rail Pulse will provide sensor and telematics technology to the North American freight rail sector. Under a 10-year agreement, Railinc will create, maintain, and run the technology platform for Rail Pulse to track the current location, and condition of railcars.

The outbreak of COVID-19 has negatively impacted the market. The lockdown restrictions imposed by the various governments have hampered freight and logistics activities, globally, during the first half of 2020. This has led to a significant decline in the adoption of telematics services. However, with the ease in the lockdown restrictions imposed by various governments, globally, and the revival of logistics and freight activities along with the business resumption, the market is expected to witness significant growth during the forecast period.

The prominent players that dominated the railway telematics market globally in 2020 include Hitachi Ltd., Siemens AG, Robert Bosch GmbH, Knorr-Bremse AG, and Alstom SA. These players majorly focus on strategic partnerships and mergers & acquisitions to enhance their business operations. For instance, in January 2022, Hitachi Rail Limited partnered with Intermodal Telematics BV (IMT), a software services provider for the intermodal transport industry, to improve its rail freight market offerings.

As part of this partnership, IMT's monitoring sensors that provide real-time monitoring will be integrated into Hitachi's present digital freight service. These sensors support the accurate verification of railcar locations, loading status, door and hatch open/close conditions, cargo temperature and pressure, along with the condition of bogies and wheelsets.

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Railway Telematics Market Report Highlights

• The fleet management segment is expected to dominate the railway telematics market due to the increasing freight activities, globally. The segment growth can be attributed to the rising need to manage the performance and the condition of rail assets
• The telematics control unit segment is expected to dominate the component segment and the trend is expected to continue during the forecast period. The growth can be attributed to the increased profitability, safety, and maintenance provided by the advanced telematics control unit in railcars
• North America is estimated to account for the majority share of the market during the forecast period. Growing transportation requirements of freight and logistics industries and increasing awareness about safety and accident prevention are some of the major drivers of the market growth in this region

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Railway Telematics Market Segmentation

Grand View Research has segmented the global railway telematics market based on solution, railcar, component, and region:

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

• Fleet Management
• Automatic Stock Control
• Remote Data Access
• Railcar Tracking And Tracing
• Others

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

• Hoppers
• Tank Cars
• Well Cars
• Boxcars
• Refrigerated Boxcars
• Others

Railway Telematics Component Outlook (Revenue, USD Million; 2018 - 2030)

• Telematics Control Unit
• Sensors

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

• North America
  • US.
  • Canada
• Europe
  • UK.
  • Germany
  • France
• Asia Pacific
  • China
  • Japan
  • India
• Latin America
  • Brazil
  • Mexico
• Middle East & Africa

List of key players in the Railway Telematics Market

• Siemens AG
• Hitachi Ltd.
• Alstom SA
• Knorr-Bremse AG
• Robert Bosch GmbH
• A1 Digital
• Rail nova SA
• SAVVY Telematics Systems AG
• Wabtec Corporation
• Amsted Industries
• Orbcomm

About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.