SAN FRANCISCO, Sept. 16, 2021 /PRNewswire/ -- The global railway telematics market size is expected to reach USD 18.82 billion by 2028, expanding at a CAGR of 7.5%, from 2021 to 2028, as per the research conducted by Grand View Research, Inc. Increasing government initiatives aimed at introducing smart railways, rapid urbanization, and the evolution of smart cities globally are some of the key factors driving the market growth. Governments across the globe are emphasizing smart city initiatives to speed up operational activities in public transport services and offer better infrastructure for transportation.
Key Insights & Findings:
In terms of solution, the fleet management segment is expected to dominate the market over the forecast period, due to increasing freight activities globally. The segment is expected to reach USD 6.17 billion by 2028
In terms of railcar, the refrigerated boxcars segment is anticipated to expand at the highest CAGR of 8.4% over the forecast period
In terms of component type, the telematics control unit segment is expected to dominate over the forecast period. The segment is anticipated to reach USD 9.96 billion by 2028
Europe is projected to account for the majority share of the market over the forecast period. The regional market is anticipated to reach USD 7.25 billion by 2028. The rapid adoption of technological innovations and the presence of several prominent players in the region are some of the key factors expected to work favorably for the market's future growth prospects
Some of the prominent industry participants are Hitachi Ltd., Siemens AG, Robert Bosch GmbH, Knorr-Bremse AG, and Alstom SA.
Countries such as Germany, India, France, and Canada have recognized the benefits of expanding railway infrastructure and its positive impact on the economy. As a result, OEMs and numerous countries are investing in railway infrastructures. For instance, Digitaler Bedienplats of Germany and Commande Centralisee de Reseau of France have declared their plans of deploying digital interlocking technology across several systems by 2033 and 2035. In May 2021, Etihad Rail, UAE's national railway network, entered into a strategic agreement with Transportr, a digital freight service provider, to digitize the company's railway fleet. Various developed and developing economies such as India, U.S., Germany, and Canada are putting increased focus on innovation and R&D and are adopting various technologies in their rail infrastructure to overcome mobility challenges.
Europe is home to some of the prominent players in the market for railway telematic, including OEMs such as Alstom, DB Cargo, Knorr-Bremse, and Siemens AG. These companies hold a majority share in the market. Several railway operators are replacing old technologies with progressive train-signaling and control systems. For instance, European Railway Traffic Management System (ERTMS) Level 2, designed and developed by Trans-European Rail Network, provides speed control systems and signaling solutions for interoperability across railways in Europe.
The COVID-19 pandemic lockdowns and travel restrictions imposed by various governments hampered freight and logistics activities globally during the first half of 2020, negatively impacting the market growth. This has led to a significant decline in the overall demand for telematics services. However, the gradual ease in lockdown restrictions and the revival of logistics, freight activities, and business activities are expected to help the market gain traction over the forecast period.
Some of the dominant players in the market are Hitachi Ltd., Siemens AG, Robert Bosch GmbH, Knorr-Bremse AG, and Alstom SA. These players majorly focus on strategic partnerships and mergers and acquisitions to enhance their business operations. In April 2021, Hitachi Rail acquired Perpetuum, a U.K.-based rail technology firm, to enhance Hitachi's digital rail maintenance activities.
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 - 2028)
Automatic Stock Control
Remote Data Access
Railcar Tracking and Tracing
Railway Telematics Railcar Outlook (Revenue, USD Million, 2018 - 2028)
Railway Telematics Component Type Outlook (Revenue, USD Million, 2018 - 2028)
Telematics Control Unit
Railway Telematics Regional Outlook (Revenue, USD Million, 2018 - 2028)
Middle East & Africa
List of Key Players of the Railway Telematics Market
Robert Bosch GmbH
Check out more studies related to automotive & telematics, conducted by Grand View Research:
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Material Handling Equipment Telematics Market– The global material handling equipment telematics market size is expected to reach USD 7.6 billion by 2025, according to a study conducted by Grand View Research, Inc., exhibiting a CAGR of 11.7% during the forecast period.
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.