Global Autonomous Train Technology Market (by Train Type & Region): Insights & Forecast with Potential Impact of COVID-19 (2022-2026)

Global Autonomous Train Technology Market (by Train Type & Region): Insights & Forecast with Potential Impact of COVID-19 (2022-2026)

Market Insight:

Railways are seen as a more efficient and reliable mode of transportation for passengers and freight across longer distances, with fewer delays and breakdowns, resulting in shorter travel times. As a result, governments have increased funding for modernizing and updating the railway ecosystem in order to improve the railway network and reduce dependency on other means of transportation.

Autonomous trains are a form of automated train that incorporates an automated train driving system that manages train arrival, departure, movement between stations, precise and automatic train pausing, and door opening and shutting on time. The global autonomous train technology market is expected to reach US$8.39 billion in 2023, progressing at a CAGR of 6.41%, during the forecast period.

Segment Covered:

• By Train Type: According to the report, the global autonomous train technology market is segmented into three segments based on the train type: Metro/Monorail, High Speed Rail and Light Rail. Metro/monorail segment acquired majority of share in the market. The demand for metro/monorail has increased in recent years owing to the advantages such as safer, efficient, dependable, and cost effective means of transportation. The advantages of high capacity and quick travel time are driving the adoption of metro rails in developing economies.

Geographic Coverage:

• The report provides insight into the autonomous train technology market based on the geographical operations, namely North America, Asia Pacific, Europe, Latin America, Middle East & Africa. The countries covered in North America region include the U.S., Canada and Mexico, while Asia Pacific includes China, Japan, India, South Korea, Australia, and Singapore among others. Moreover, Germany, UK, France, Italy, Russia, Spain, Netherlands, Switzerland, and Rest of Europe are included in the European region.

North America autonomous train technology market enjoyed the highest market share, primarily owing to reasons such as rapid urbanization, necessitating the development of innovative intra-city and inter-city transportation strategies. North America remains the largest single regional market of autonomous train technology. Asia Pacific is predicted to experience the fastest growth in the coming years, due to presence of good railway network, and is likely dominate the global autonomous train technology market during the forecasted period.

Top Impacting Factors:

Growth Drivers

• Rising Investments in Smart Cities
• Increasing Adoption of Metros and High Speed Trains
• Increased Budget Allocation For Railway Development
• Decarbonized and Sustainable Form Of Transportation

Challenges

• High Cost of Implementation
• Constraints in Processing

Trends

• Adoption of Internet of Things (IoT) Devices
• Integration of Artificial Intelligence (AI)
• Technological Advancements in Automotive Sensors
• Integration of Augmented Reality & Virtual Reality
• Driver: Rising Investments in Smart Cities

The concept of a smart city is sometimes related with that of an eco-city or a sustainable city, both of which strive to increase the quality of urban services while lowering their costs. Smart management, lifestyle, mobility, housing, and a smart economy are the primary features. Smart cities' fundamental goal is to balance technological innovation with the economic, social, and environmental difficulties that tomorrow's cities will face. It must give for an overall improvement in quality of life while also being environmentally conscious. By making smart mobility an intrinsic element of the smart city agenda, smart cities promote a sustainable and livable urban future. In terms of safety and traffic management, urban mobility is one concept where smart city implementation can provide substantial benefits. As autonomous trains are safer, efficient, more sustainable and decarbonized form of transportation, the development of smart cities has always necessitated autonomous technological advancements in trains, thus driving the growth of the market.

• Challenge: High Cost of Implementation

Train automation can be done only by integrating the multi cameras and sensors. The multi-camera system consists of several cameras and sensors with a variety of components that can display real-time images in conjunction with the interior display system. As a result, the multi-camera system has more complicated connections and wiring with electronics systems. The installation of multi-camera systems necessitates the installation of additional components, which raises the overall cost. Manufacturers are more likely to offer cost-effective and innovative safety features. The increased overall cost of autonomous trains as a result of the installation of modern safety systems may stifle the autonomous train technology market's growth. Furthermore, if the system's cameras are destroyed, the entire multi-camera system needs to be replaced, which will be very costly. Thus, high cost of implementation has hampered the growth of autonomous train technology market.

• Trend: Adoption of Internet of Things (IoT) Devices

The internet of trains has a significant impact on railway infrastructure dependability and safety. Condition-based monitoring eliminates delays caused by track and train component failures, improving maintenance efficiency and costs while also increasing passenger satisfaction. Railway operators can also use IoT-enabled advanced analytics to develop data-driven solutions to improve fleet control and rail operations efficiency. For example, HUM Industrial Technology provides railroad shippers and railcar owners with predictive monitoring solutions. Wireless IoT sensors are used by the startup for automatic safety monitoring and prediction of wheel and bearing failure, as well as the detection of oil and gas leaks. Additionally, the company offers a real-time global positioning system (GPS) tracking solution that gives users a complete picture of their fleet's location and history. Thus, the adoption of IoT devices in railways is expected to drive the growth the market in coming years.



The COVID-19 Analysis:

The COVID-19 pandemic has wreaked havoc on global autonomous train technology market as major railway projects were halted, and posed a challenge to the autonomous train technology market. People were seeking more personal vehicles as a result of their fear of shared spaces, decreasing the demand of train, thus hampering the market.

However, the post-COVID environment appears to be fortunate for the autonomous train technology market, as people are now more transilient for electric and safe vehicles. Moreover, increased safety norms are also expected to support the market growth. Connectivity is going beyond 5G and vehicle data access. More connected experiences would open up more possibilities for displaying information across dashboards and interfaces.

Analysis of Key Players:

The global autonomous train technology market is highly concentrated. Market players have implemented sustainable growth techniques in the market. The key players of the global autonomous train technology market are:

• Hitachi Ltd (Hitachi Rail Ltd.)
• Thales Group
• Alstom SA
• CalAmp Corp.
• CRRC Corporation Ltd.
• Siemens AG (Siemens Mobility)
• Belden Inc.
• Mitsubishi Heavy Industries Ltd
• CAF SA
• Kawasaki Heavy Industries
• Warehouse Airbrake Technologies Corporation (GE Transportation)
• Deutsche Bahn AG
• ABB Group

Major players are constantly investing in R&D of the equipment to meet international standards. New product launches, collaborations with governments and expansion in the emerging countries are among the strategic activities that the corporations are pursuing in order to increase their market positions. For example, in September 2021, Mitsubishi Heavy Industries Engineering formed a joint partnership with Keolis to build the Dubai Metro and Dubai tram. The Dubai metro, a fully automated driverless rail system, has successfully begun operations.