The railway telematics market is estimated to be USD 5.1 billion in 2021 and is projected to grow at a CAGR of 7.5% during the forecast period, to reach USD 7.3 billion by 2026. The highest number of players in the railway telematics market belong to European OEMs. OEMs such as Siemens AG, Alstom, Knorr-Bremse, and DB Cargo account for a major share of the railway telematics market. Rail operators are now replacing legacy technologies with advanced train-control and signaling systems. The European Railway Traffic Management System (ERTMS) level 2 developed by the Trans-European Rail Network is used for providing signaling solutions and speed control systems for interoperability between the railways across Europe.
The railway telematics market, by value, is estimated to be 5.1 billion in 2021 and is projected to reach 7.3 billion by 2026, at a CAGR of 7.5% from 2021 to 2026. North America accounted for the largest share of the market in 2021. The presence of OEMs such as Siemens (Germany), Bosch (Germany), Knorr-Bremse (Germany), Amsted Digital (US) and their investments in rail telematics is one of the major factors fueling the growth of this market in North America and Europe regions. For instance, in 2020, major US rail companies such as GATX corporation, Norfolk Southern, Genesee & Wyoming, Watco, and Trinity Rail announced a joint venture Rail Pulse, which is expected to accelerate the adoption of GPS and other telematics technologies in the near future across the North American railcar fleet. This is expected to enable competitiveness in the rail sector between freight transportation companies due to improvements in the location monitoring and condition monitoring of railcars. As technology evolves, the safety of railcars and other solutions are expected to be adopted by railcar fleet owners. Due to the new telematics technologies, railcar owners are expected to be able to capture data such as whether a railcar is partially or fully loaded, its onboard bearing temperature, whether doors or hatches are closed or open, wheel impact detection data, and other possible solutions to enable running railcar fleets efficiently, manage data generated through the use of technology and improvise on idle rail cars, maintenance, reduce turnaround time of railcars, control stock, and others. The rising adoption of telematics solutions by rail car leasing operators is expected to drive the rail telematics market in future.
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Siemens is a German engineering conglomerate focusing on core business activities in the fields of energy, healthcare, industry, and infrastructure. The company was established in 1847 and is headquartered in Munich, Germany. It operates through six business segments, namely, digital industries, smart infrastructure, mobility, Siemens healthineers, Siemens financial services, and portfolio companies. It invested USD 5.1 billion in R&D in 2020. The company’s products include high-speed trains, commuter trains, passenger coaches, metros, people movers, LRVs, locomotives, bogies, traction systems, and rail-related services. Product offerings such as geo-fencing, customizable sensors, adjustable parameters, multi-tenant web applications, and shock detection make Siemens the major player in the railway telematics market. The CT sensor offered by the company is an efficient solution for the constant monitoring of cars and freight for the purpose of positioning and customizing sensory data. Siemens and its subsidiaries employ approximately 293,000 people across nearly 200 countries. In November 2019, the company won a supply contract from the Norwegian rail network for the European Train Control Systems (ETCS). The commissioning of the rollout of these trains is scheduled to be completed by 2034.
Hitachi Ltd. operates through the following business segments: IT, energy, industry, mobility, smart life, Hitachi high-tech, Hitachi Construction Machinery, Hitachi Metals. Under the mobility segment, the company built a robust building foundation in the global market including Japan, Europe, and North America with rolling stocks, signaling systems, and turnkey solutions as core businesses. The company has product offerings in digital mobility solutions such as services related to signaling and traffic management. These solutions are applicable for high-speed rails, conventional lines, and heavy-duty transportation. The company faced setbacks in terms of less production facilities operational in 2020 due to the impact of COVID-19. The company is expected to recover by undertaking organic and inorganic developments. For instance, in April 2020, Hitachi Rail announced the acquisition of Perpetuum (UK) to enhance the company’s digital rail maintenance activity. The company is expected to handle maintenance for all rail original equipment manufacturers and operators across the global rail market. It has also invested significantly at USD 2.7 billion towards the development and broadening of its entire product portfolio and business operations.
Alstom is a French multinational company operating in the global rail transport market and is active in the fields of passenger transportation, signaling, and locomotives. The company operates in the power generation, power transmission, and rail infrastructure markets through four business units, namely, rolling stock, systems, services, and signaling. The company manufactures rail transport equipment, systems, services, and signaling for urban, suburban, regional, and main line passenger transportation, as well as freight transportation through its transport business segment. The company’s railcars are equipped with telematics solutions for passenger and freight transportation. As of 31st March 2020, the company had 38,879 employees. Its major customers include the Swiss Federal Railway, Transport of Mexico, Delhi Metro, Chennai Metro, and Mumbai Metro (in India).In September 2020, Alstom entered into an agreement for the acquisition of Bombardier Transportation along with Bombardier Inc. and Caisse de depot et placement du Québec (CDPQ). This acquisition is worth between USD 6.7 billion to USD 7.2 billion and was completed in January 2021. It is expected to strengthen Alstom’s strategic leadership and further accelerate its roadmap in a dynamic market.
Railway Telematics Market by Solution (Fleet Management, Automatic Stock Control, Shock Detection, Reefer Wagon Management, ETA), Railcar (Hoppers, Tank Cars, Well Cars, Boxcars, Reefer Cars), Component & Region - Global Forecast to 2026
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