Connected Rail Market

General Electric (U.S.) and Siemens AG (Germany) are the Global Players in the Connected Rail Market

The global connected rail market is estimated to be USD 77.27 Billion in 2017 and is projected to reach USD 105.44 Billion by 2022, growing at a CAGR of 6.42% from 2017 to 2022. Europe and Asia- Pacific are major contributors to the connected rail market growth.

The key strategy adopted by players to gain traction in the connected rail market is an inorganic strategy (contracts, mergers and acquisitions, joint ventures, partnerships etc.) from 2014­ to 2017 to meet the demands and continuous innovations. For instance, in 2017, Siemens bagged a contract to supply 52-kilometer line with the traingaurd MT automatic train protection system (with LTE support) for Nanjing-GaoChun LuGao section in China. This technology helps in tracking the location of the vehicle, condition monitoring, and performance analysis of the train. These systems increase the safety and security of rail operation.

Companies operating in the connected rail market also followed the organic strategy growth, which inclusive of new product launch and expansion of facility. This strategy was practiced by almost 45% of players in the global connected rail market. For instance, IBM Corp, added new cloud centers in Europe, Asia, and the Americas to support enterprise clients who are looking to move to hybrid cloud computing for railway and other transport industries. This strategy is going to help the company to precisely focus on upcoming emerging markets technology in various regions.

The connected rail market is dominated by global players such as Bombardier Inc. (Canada), Alstom SA (France), Siemens AG (Germany), Hitachi Limited (Japan), Robert Bosch GmbH (Germany), Huawei (China), Cisco Systems Inc. (U.S.), Wabtec Corporation (U.S.), Nokia Corp. (Finland) etc. These companies are adopting various strategy and innovations in order to fit into the global completion for connected rail technology. Few companies’ partner with their competitors in order to provide combined solution for the industry. For Instance, Alstom and Bombardier partnered together in order to design and supply the new generation of two-tier equipment for lines D and E of the Île-de-France network, which is operated by SNCF Transilien. The contract worth of USD 4.21 Billion which is inclusive of providing 255 trains.

General Electric (U.S.) is majorly focusing on product launch, and contracts which would help increase its geographical presence and diversifying product portfolio. In 2016, General Electric introduced a “superbrain” platform solution for locomotives that transforms them into mobile data headquarters – helping make trains smarter and faster through its collaboration with Intel Corp. The company is also receiving several contracts from various countries, for instance in 2015, General Electric received a contract worth USD 2.6 billion from Indian government in order to supply 1000 locomotives over a decade. However, in order to achieve this 1000 locomotives, the company has planned to open new facility in India with initial investment of USD 200 Million for local manufacturing and service facilities.

Siemens AG (Germany) is the second largest company in the connected rail market. The companies railway solution includes mobility service, infotainment system, monitoring and tracking solution, video surveillance, Computer Based Train Control (CBTC) and Automatic Train Control (ATC). The company majorly focused on contracts and product developments. For instance, Siemens has delivered 67 Inspiro type metro vehicles along with electrification system and signaling and communication equipment as a part of contract to the High Commission for Urban Development (Arriyadh Development Authority). However, the company in 2016, has revealed its new Inspiro type metro vehicle for the world’s biggest mass transit project.

Related Reports:

Connected Rail Market by Service (Passenger Mobility, PIS, Train Tracking & Monitoring, Automated Fare Collection System, Predictive maintenance), Rail signaling system (PTC, CBTC & ATC), Rolling Stock, and Region - Global forecast to 2022

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