Railway Telematics Market Forecasts to 2028 – Global Analysis By Solution (Railcar Tracking and Tracing, Remote Data Access, Shock Detection, Automatic Stock Control, Fleet Management and Other Solutions), Component Type (Sensors, Telematics Control Unit

Railway Telematics Market Forecasts to 2028 – Global Analysis By Solution (Railcar Tracking and Tracing, Remote Data Access, Shock Detection, Automatic Stock Control, Fleet Management and Other Solutions), Component Type (Sensors, Telematics Control Unit and Other Component Types), Railcar and By Geography

According to Stratistics MRC, the Global Railway Telematics Market is accounted for $5.5 billion in 2022 and is expected to reach $9.6 billion by 2028 growing at a CAGR of 9.7% during the forecast period. Telematics is the procedure of using a global positioning system (GPS) and on-board diagnostics devices to track a vehicle's location and movement. It is possible to record the speed and internal behaviour of automobiles using GPS and diagnostics systems. Railway telematics refer to the use of telematics systems in railways by train operator companies, insurance companies, and other service providers. By using communication-enabled devices, telematics systems can store, receive, and send information, which can be used to control remote objects and manage resources.

Market Dynamics:

Driver:

Improved safety and efficiency in railway operations

The need for telematics in shipment and cargo transportation by rail has increased. The rail industry is undergoing continuous changes in terms of technology for higher efficiency and safety. Moreover, with the deployment of autonomous trains, it is easy to add a new train in the system or to remove a new train from the system without affecting the system and without waiting for train or staff availability. Thus, availability of trains during off peak and night hours is possible due to increase in flexibility. Thus, trains are more safe, secure, flexible, and efficient as compared to traditional manually operated trains, which drive the market growth.

Restraint:

High development cost

The telematics system also requires high maintenance and data collection platforms, which increases the expenditure. In the traditional method, the expenses are compensated either through tax payments in fuel or rubber or by budget allocations from the national income. High operational and maintenance costs post deployment are also significant concern for railway authorities. Moreover, the limited budget allocated for the railways are a restraining factor in the deployment of advanced railway technologies.

Opportunity:

Government initiatives for smart railways

Increasing urbanization across the globe is resulting in the evolution of smart cities. Governments around the world are undertaking various smart city initiatives to provide better transportation infrastructure and speeding-up operational activities in public transportation services. Transportation is considered one of the most important pillars of a country's economic development, and hence, these smart city initiatives are expected to drive market growth.

Threat:

High possibilities of hacking the system

Trains equipped with advanced system requires active internet to regulate its operations by transmitting and receiving signals with the control station. Hence, it is easy to hack the system if the loophole is discovered by a hacker, making the network vulnerable to attack. Although these attacks caused less damage to the entire system, the prevalence of such cyberattacks are becoming increasingly common, this restricts the growth of the market.

Covid-19 Impact

COVID-19 has presented the world with an unprecedented economic, humanitarian, and healthcare challenge. Rapid spread of the disease has led to a significant impact on the global transportation industry, with a downturn in need for using public transports. Moreover, the leaders in automated railways have registered a decrease in passenger commuting during the pandemic. Industry experts believe that post the pandemic, the need to commute from one place to another through railways will increase as this is considered as the cheapest mode of travelling across cities.

The sensors segment is expected to be the largest during the forecast period

The sensors segment is estimated to have a lucrative growth, due to the rapid increase in the demand for telematics solutions in industries such as BFSI and healthcare. A telematics control unit offers solution for two way control and following railcars. It additionally permits ongoing control and permeability of transport resources. The development can be credited to the eminent ascent in government drive and interest in the advancement of savvy rail route framework. Sensors assist in information assembling and observing, flagging, and rail following. The presentation of cutting edge control unit in railcars is estimated to benefit the segment growth.

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

The hopper segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the adoption of telematics technologies in freight logistics. Solutions such as motion detectors, GPS sensors, and shock detectors are also installed for such hoppers in order to facilitate the transportation of goods at their optimal quality. Additionally, based on the analysis of user requirements, the development of a reliable load sensing technology for freight cars has been launched. These advanced solutions are expected to support the growth of the railway telematics market.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to increased awareness about the driver safety and accident prevention. The development can be attributed to the expanding Gross Domestic Products of nations, the rising entrance of trend-setting innovations, consistent development, and the presence of a few arising economies in the region. Moreover, expanding mindfulness about driver security and the promising development of the coordination and cargo transportation businesses are stimulating the regional market growth.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, due to the availability of embedded OEM telematics solutions, advent of the 4G LTE technology and the adoption of the smart railcars. Robust economic growth and technology improvements have led to significant developments. The enhanced railway infrastructure and implementation of technologically advanced sensors in railway telematics are expected to improve the growth of the market.

Key players in the market

Some of the key players profiled in the Railway Telematics Market include Hitachi Ltd., Alstom, Siemens AG, Cando Rail and Terminals, Robert Bosch, Orbcomm, Intrex Telematics, Intermodal Telematics, Railnova, Trinity Industries, Savvy Telematics, Norfolk Southern, Ermewa SA, Tech Mahindra Ltd, IBM Corporation, Cisco, Wabtec, J.M. Voith, Atos Corporation and Trimble.

Key Developments:

In January 2022, Italy-based Hitachi Rail made a strategic partnership with Netherlands-based Intermodal Telematics (IMT) to embed the company’s monitoring sensors into Hitachi Rail’s digital freight service.

In April 2021, Hitachi Rail announced the acquisition of the UK’s Perpetuum for enhancing the company’s digital rail maintenance activity. The company is expected to handle the maintenance for all rail original equipment manufacturers and operators across the rail market.

Solutions Covered:
• Railcar Tracking and Tracing
• Remote Data Access
• Shock Detection
• Automatic Stock Control
• Fleet Management
• Other Solutions

Component Types Covered:
• Sensors
• Telematics Control Unit
• Other Component Types

Railcars Covered:
• Well Cars
• Boxcars
• Hoppers
• Refrigerated Boxcars
• Tank Cars
• Other Railcars

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