HOME Research Insight Some of the Major Factors that are Driving the Growth of the Smart Railways Market

Some of the Major Factors that are Driving the Growth of the Smart Railways Market

The smart railways market size is estimated to be USD 10.50 Billion in 2016 and is projected to reach USD 20.58 Billion by 2021, at a CAGR of 14.4% during the forecast period. Some of the major factors that are driving the growth of the smart railways market include the demographic growth & hyper-urbanization, telecom-based technological growth, government initiatives & partnerships model, emerging trend of smart cities, and emergence of IoT technology. The adoption of smart railways solutions is propelled by the increasing demand for improved service quality in railways. Moreover, cloud-based deployment of solutions has enhanced the efficiency as well as consumer satisfaction. The applications of IoT have also made the solutions more robust as well as revenue generating.

Technological giants such as Alstom SA (Saint-Quen, France), Cisco Systems, Inc. (San Jose, U.S.), General Electric (Connecticut, U.S.), ABB Ltd (Zurich, Switzerland), IBM Corporation (New York, U.S.), Hitachi Limited (Tokyo, Japan), Bombardier, Inc. (Quebec, Canada), Huawei Technologies Co. Ltd. (Shenzhen, China), Indra Sistemas SA (Alcobendas, Spain), Siemens AG (Munich, Germany), Alcatel-Lucent (Paris, France), and Ansaldo STS (Genoa, Italy) offer leading smart railways solutions, components, and services, to cater to the needs and demands of the market. These players have adopted various growth strategies, such as expansions, acquisitions, and mergers with partnerships, and new product launches being the key strategy. Partnerships and mergers & acquisitions, have been the major strategical trends, accounting for more than half of the market share of all the growth strategies adopted by the major market players. 

Bombardier has adopted a strategic mix of organic and inorganic growth strategies, such as new product developments, partnerships, acquisitions, and business expansions. In 2016, Bombardier and China Railway Rolling Stock Corporation (CRRC), a Chinese rolling stock manufacturer signed a strategic agreement for serving the growing global rail transportation equipment market by leveraging their complementary strengths for selected projects and support mutual long-term growth objectives.

Similarly, General Electric, in September 2016, announced the acquisition of Meridium, Inc., a provider of Asset Performance Management (APM) software and services, aimed at accelerating its comprehensive APM offering and providing a solution to customers that unifies real-time analytics with reliability-centered maintenance best practices, delivering a complete APM solution.

Related Reports:

Smart Railways Market by Solution (Passenger Information, Freight Information, Rail Communication, Advanced Security Monitoring, Rail Analytics), Component, Service (Professional, Managed), and Region - Global Forecast to 2021

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