Railway System Market Forecasts to 2028 – Global Analysis By Types (Freight wagons, Passenger coaches, Locomotive, Monorails, Trams, Metros and Other Types), System Type, End User and By Geography

Railway System Market Forecasts to 2028 – Global Analysis By Types (Freight wagons, Passenger coaches, Locomotive, Monorails, Trams, Metros and Other Types), System Type, End User and By Geography

According to Stratistics MRC, the Global Railway System Market is accounted for $45.82 billion in 2022 and is expected to reach $68.45 billion by 2028 growing at a CAGR of 6.91% during the forecast period. With trains being quick and less influenced by bad weather, like rain or fog, than other forms of transportation, rail transit, or the railway system, has developed as a very reliable mode of transportation in terms of safety. Compared to other forms of transportation, rail transit is well-organized with set routes and schedules, making its services more dependable, uniform, and regular. By making it possible for people and things to move around, it plays a significant part in aiding economic progress.

According to the fact sheet of the World Health Organization (WHO), road traffic injuries are the leading cause of fatality among people aged between 15 and 29 years, thus accounting for 1.25 million deaths every year due to road accidents.

Market Dynamics

Driver

High preference for rail transportation

Due to trains' speed and resistance to inclement weather like rain or fog, compared to other forms of transportation, the rail system has emerged as a highly dependable mode of transit in terms of safety. Because rail transportation is well-organized with set routes and schedules, its services are more consistent, predictable, and reliable than those of other modes of transportation. By enabling the movement of people and things, it plays a significant part in promoting economic advancement.

Restraint

Capital-intensive and high development complexities

Insufficient infrastructure and declining air quality are pressing concerns in major cities, along with challenges such as soaring gasoline prices, traffic congestion, and greenhouse gas (GHG) emissions, which impact urban dwellers. However, the high cost of new rail vehicles could discourage investments and capital-intensive natures of rolling stock are the factors expected to obstruct the railway system market growth.

Opportunity

Government support for alternative fuel-powered railway operations

There may be a chance to build more hybrid trains that are compliant with emission requirements as a result of the increased focus of governmental organisations throughout the world on the adoption of emission-free public transportation modes, including railway operations for passenger and freight transit. Hybrid trains also have reduced running costs, which will help governments save money. These factors are therefore accelerating market expansion.

Threat

High overhaul and maintenance costs

The effectiveness of maintenance on the railway system has a significant impact on the security and comfort of passengers. Leading businesses have created cutting-edge safety and comfort technologies for automobiles. To maintain the reliability of the railway system, routine maintenance is required. The railway system requires costly routine upkeep and repairs. Therefore, the increased ongoing cost of overhauls and maintenance may limit the market expansion for railway systems.

Covid-19 Impact

The COVID-19 pandemic outbreak had a major effect on the railway system industry and presented previously unheard-of difficulties for several nations. Many infrastructure projects were halted or delayed as a result of the pandemic, which had an impact on the sector. Suppliers and contractors experienced delays and increased prices as a result of supply chain interruptions. Railway firms introduced new safety procedures in response to the pandemic to protect personnel and passengers. To reduce physical interaction, some businesses also used contactless payment systems and boarding protocols. Systems for remote monitoring and upkeep were put in place, which decreased the need for on-site workers and increased productivity.

The passenger coaches segment is expected to be the largest during the forecast period

The passenger coaches segment is estimated to have a lucrative growth. It is a part of the state program that ensures the public transportation required to satisfy work needs, daily leisure, and tourism communication. A properly designed passenger transport system promotes accessibility for locals, enables businesses to distribute their manufacturing divisions logically, and promotes the expansion of regional economies, specialisation, etc.

The freight transportation segment is expected to have the highest CAGR during the forecast period

The freight transportation segment is anticipated to witness the fastest CAGR growth during the forecast period, due to increasing economic imports and exports. Officials and transportation specialists are concerned about the railroads' ability to keep up with the demand growth. As a major mode of transportation for many fundamental sectors and, increasingly, for exports and imports that travel by rail to and from the country's ports, the freight railway sector is significant to the economy of the country.

Region with Largest share

Asia Pacific is projected to hold the largest market share during the forecast period owing to increased government focus on building modern railway infrastructure with technological innovations. The Indian government is also implementing cutting-edge innovations in both freight and passenger transportation, including traffic management systems, asset management systems, and passenger and freight information systems.

Region with highest CAGR

North America is projected to have the highest CAGR over the forecast period, owing to the presence of many companies in the region providing railway management systems. Due to rising consumer demand for comfort and safety, OEMs based in the US have concentrated on producing locomotives for all types of trains, including light rail, tramways, metros, and conventional trains. In the region, a number of new players are providing cutting-edge railway systems.

Key players in the market

Some of the key players profiled in the Railway System Market include Cisco Systems, Inc., IBM Corporation, ABB Limited, Huawei Technologies Co., Ltd., Alstom SA, Honeywell International, Inc., Accenture PLC, Hitachi Ltd., DXC Technology Services LLC, Bombardier Inc., Wabtec Corporation, Thermo King, Toshiba, Hyundai Heavy Industries, CRRC Corporation Limited, Knorr Bremse, Skoda Transportation and Fuji Electric.

Key Developments

In February 2022, The CRRC-developed 3000 hp permanent magnet hybrid shunting locomotive recently passed 2,000 kilometers of safe operation. The locomotive received significant appreciation from consumers for its exceptionally low energy consumption and environmental protection when compared to the conventional shunting diesel locomotive.

In May 2022, Hitachi Rail launched several new innovations in the areas of automation and digitalization, which include PTC (Positive Train Control), railcar telematics, and dispatching systems.

Types Covered
• Freight wagons
• Passenger coaches
• Locomotive
• Monorails
• Trams
• Metros
• Other Types

System Types Covered
• Propulsion System
• Train information System
• On board vehicle control
• Train safety
• Auxiliary Power
• Train Safety System
• HVAC System
• Other System Types

End Users Covered
• Freight Transportation
• Passenger Transportation
• Other End Users

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