Railway Cyber Security Market Forecasts to 2028 – Global Analysis By Type (On-Board and Infrastructural), Security Type (System Administration, End Point Security, Application Security, Network Security and Data Protection), Offering (Services and Solutions), Rail Type (Urban Transit, High-Speed Rail and Conventional Passenger Trains), Application and By Geography
According to Stratistics MRC, the Global Railway Cyber Security Market is accounted for $6.90 billion in 2022 and is expected to reach $13.20 billion by 2028 growing at a CAGR of 11.4% during the forecast period. Railway cybersecurity is a set of solutions or services used to secure railway networks, systems, and programmes from digital threats. Cyber attacks are typically concentrated on altering, obtaining, or erasing railway-related information for illegal use. Railway infrastructure and related solutions have been integrated with digital smart technologies in recent years to improve operational efficiency.
According to Deutsche Bahn, the use of long-distance and local trains has been reduced to 15% of average demand during the corona virus restriction period.
Market Dynamics:
Driver:
Government initiatives for smart railways
Global urbanization is driving the evolution of smart cities. Governments all around the world are implementing a variety of smart city programmes to improve the infrastructure for transportation and speed up the operation of public transportation services. For instance, the Indian government pledged to build 100 smart cities during the following several years in March 2020. To realize its vision of a ""Smart Nation,"" the Singaporean government is integrating digital technology into the transportation sector. These smart city projects are anticipated to drive market expansion as transportation is one of the most crucial pillars of a nation's economic development.
Restraint:
High initial cost
The initial cost of adopting cybersecurity solutions is expensive, requiring large initial investments to set up field-level devices, replace aged infrastructure, implement sophisticated technologies such as predictive maintenance, artificial intelligence, big data, and cloud computing in urban rail, arrange for transmission networks between end users, and manage new and existing systems within premises. For railway authorities, high operational and maintenance expenses after deployment are a major worry. The deployment of cutting-edge railway technologies and solutions by governments and corporate entities is further constrained by the restricted funding for railways. As a result, in the upcoming years, the growth of the railway cybersecurity market is anticipated to be constrained by the high initial cost of adopting cybersecurity solutions.
Opportunity:
Increasing demand for cloud based services
The effective IT administration and dependable security environment of cloud-based services, analytics, and mobile internet technologies are driving up demand for these products. Given the exploding data pool, cutting-edge technologies, and ongoing need to reduce costs, it is projected that as big data applications proliferate, so will their complexity. These elements should have an impact on the development of new analytics platforms and data storage. The railway cybersecurity business would expand if the risk of a cyber attack on crucial and non-critical data could be reduced.
Threat:
Lack of cybersecurity expertise and strategic planning
The shortage of expertise among security experts is a major concern shared by all major security firms. To defend against cyber attacks, security experts need the most recent knowledge, cutting-edge abilities in analytics, forensics, and cloud computing security. The lack of personnel with the necessary IT security expertise has arisen as a result of the growing cybersecurity risks. To lessen the gap caused by a lack of cybersecurity capabilities, railroad cybersecurity providers and service providers must take extra measures.
Covid-19 Impact
The development of the COVID-19 pandemic has had a severe influence on the worldwide railway cybersecurity market, owing to commuting limits and market participants' predicted poor financial performance. The supply chain execution, regulatory and legislative changes, reliance on labor, working capital management, and liquidity and solvency management are the main risk concerns for market participants in railway cybersecurity. In February 2021, the second wave of COVID-19 hit harder than the first strain and is anticipated to have a more severe overall impact on the economic outlook. Following the COVID-19 health crisis, the outlook for companies around the world has significantly changed.
The network security segment is expected to be the largest during the forecast period
The network security segment is estimated to have a lucrative growth. Railway network security regulates and automates all traffic by employing real-time data and high-speed communication linkages between rail networks, trains, and other rail facilities, enabling centralized rail network oversight. This system performs a number of tasks, including operation management, maintenance support, and traffic planning. Additionally, the network security system handles cyber-attacks and catastrophe management.
The passenger trains segment is expected to have the highest CAGR during the forecast period
The passenger trains segment is anticipated to witness the fastest CAGR growth during the forecast period. Since the passenger rail network has an open architecture, numerous access points, and a large user base, its security is more complicated than that of the freight segment. Recent passenger rail intrusions in cities like London and New York have brought attention to the significance of rail cybersecurity. Governments all across the world are promoting cybersecurity solutions for passenger railways.
Region with highest share:
Asia Pacific is projected to hold the largest market share during the forecast period owing to Rapid urbanization and the growing population. Significant players in the Asia Pacific region include Tech Mahindra Ltd., Huawei, Hitachi Ltd., and Toshiba. The main influencing factors for the region include expanding country GDPs steady growth, more sophisticated technology penetration, and developing economies
Region with highest CAGR:
Europe is projected to have the highest CAGR over the forecast period, owing to the increase in research and development (R&D) in railway cybersecurity and the high demand for such products and services to defend the vital rail infrastructure from cyber threats. The development and renovation of rail infrastructures and systems are major priorities for the European Union and other private firms. Trade agreements have also promoted international trade and cross-border freight movement, which has boosted the cyber security industry.
Key players in the market
Some of the key players profiled in the Railway Cyber Security Market include Webtec Corporation, ABB, International Business Machine Corporation, Siemens AG, Nokia Corporation, Cisco Systems, Alstom, BAE Systems, Bombardier, General Electric, Huawei Technologies Co., Ltd., Thales Group, Hitachi Ltd., Cylus Ltd., Raytheon Technologies Corporation, Cervello
Key Developments:
In May 2021, Wabtec was awarded a supply contract worth USD 15 million by Delhi-Meerut Regional Rapid Transport Systems (RRTS). The company will be supplying advanced technology brake systems, pantographs, roof disconnector switches, and fully integrated passenger information systems to RRTS for building coaches for this project.
In May 2021, Siemens announced the acquisition of RailTerm, a Canada-based rail service provider. This acquisition will help the company expand its product portfolio with on-ground track and signaling, electrification, and communication systems.
In March 2021, Wabtec announced the acquisition of Nordco, a North American supplier of new, rebuilt, and used maintenance of way equipment having products such as mobile railcars movers and ultrasonic rail flaw detection technologies. Through this acquisition, the company aims to expand its product portfolio and widen its global presence.
In March 2021, Thales developed the DIVA (Distributed Intelligent Video Analytics) solution for passenger railways. This solution will be useful for leveraging existing CCTV networks on stations and onboard trains to provide real-time information and passenger density.
In February 2020, Thales signed a supply contract with L&T Metro Rail Limited, Hyderabad (India), to supply advanced signaling and train control technology solutions. In January 2021, Nokia signed a supply contract with WESTbahn fleet, Austria. Nokia will be supplying train-to-ground solutions to the operator to enhance the user experience of the onboard passengers.
In December 2020, Alstom and ASELSAN entered into a collaboration agreement to establish a framework of cooperation and coordination in the field of ETCS Signaling Onboard. The main objective of this collaboration is the establishment of a long-term partnership to enable the two leading companies to cooperate in the field of rail systems.
In September 2020, Thales secured a supply contract in Vancouver’s Broadway Subway Project for the supply of Communications Based Train Control (CBTC) systems. The trains will be equipped with Thales’s SelTrac solutions.
Types Covered:
• On-Board
• Infrastructural
Security Types Covered:
• System Administration
• End Point Security
• Application Security
• Network Security
• Data Protection
Offerings Covered:
• Services
• Solutions
Rail Types Covered:
• Urban Transit
• High-Speed Rail
• Conventional Passenger Trains
Applications Covered:
• Freight Trains
• Passenger Trains
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
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