Railway Signalling System Market Size, Share & COVID-19 Impact Analysis, By Technology (Automatic Train Protection System (ATP), Positive Train Control System (PTC), Communication-Based Train Control System (CBTC), Automatic Train Operation System (ATO), and Others), By Application (Inside the Station and Outside the Station) and Regional Forecast, 2023-2030

The global railway signalling system market size was USD 20.23 billion in 2022. The market is projected to grow from USD 21.20 billion in 2023 to USD 31.02 billion by 2030, exhibiting a CAGR of 5.6% during the forecast period.

The railway signalling systems are a crucial part of the infrastructure that ensures trains' safe and efficient operation on rail networks. These systems use various signals, signs, and technologies to convey information to train operators, allowing them to understand the status of the track ahead and take appropriate actions. The primary objectives of a railway signalling system are to prevent collisions, maintain safe distances between trains, control train movements, and facilitate the smooth flow of traffic. Modern railway signalling often incorporates communication systems to facilitate the exchange of information between trains, control centers, and trackside equipment. This allows for more precise control and coordination and provides real-time updates to train operators about the status of the track ahead.

The Railway Signalling system market growth is anticipated owing to the increasing demand for advanced Signalling with high-end safety features. Many countries invest in modernizing and upgrading their rail infrastructure, including Signalling systems. Older systems are being replaced with more advanced and automated Signalling technologies to enhance safety, capacity, and operational efficiency. High-speed trains operate signalling systems to ensure safe operations at high velocities. Expanding high-speed railway projects in various regions worldwide is anticipated to create opportunities for the global market.

COVID 19 IMPACT

Pandemic Impacted the Market Negatively Due to Supply Chain Disruptions

The COVID-19 pandemic significantly impacted industries worldwide, including the Railway Signalling market. Many rail infrastructure projects, including those involving signalling systems, experienced delays and disruptions due to the pandemic. Construction activities were halted in many regions, leading to delays and extended project timelines. The economic impact, including reduced revenue and budget constraints, affected investments in rail infrastructure. Some projects faced financial challenges, leading to potential budget cuts or postponements. High-speed rail projects, which often involve significant investments and long-term planning, have faced challenges during the pandemic. For instance, the U.K.'s High-Speed 2 (HS2) project experienced delays and cost increases due to the pandemic, with the government undertaking reviews and potential budget reassessments.

Despite the challenges, the pandemic may have reinforced the importance of robust and reliable railway signalling systems. Governments and rail operators could recognize the need for investments in modernizing and upgrading signalling infrastructure to enhance safety, efficiency, and resilience in the face of future disruptions.

LATEST TRENDS

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High Demand Due to the Development of Computer-Based Interlocking Systems, Internet of Things (IoT), and Big Data Analytics Platforms

The increasing demand for computer-based interlocking systems is one of the most popular ongoing trends in the market. Computer-based interlocking systems are replacing traditional mechanical interlocking systems. These systems utilize advanced software algorithms and digital communication networks to manage and control train movements. Digital interlocking offers enhanced flexibility and diagnostic capabilities compared to their mechanical counterparts. Communications-Based Train Control (CBTC) is an advanced technology that relies on continuous train-to-wayside communication. It enables real-time monitoring of train positions, precise speed control, and automated train operation. CBTC systems enhance capacity, safety, and operational efficiency by allowing trains to operate at closer intervals and reducing the reliance on fixed block signalling.

Railway signalling systems are integrated with Internet of Things (IoT)and big data analytics platforms. This integration enables collecting and analyzing vast amounts of data from signalling equipment, train operations, and other relevant sources. Leveraging IoT and big data technologies provides insights for optimizing signalling performance, predictive maintenance, and overall system efficiency.

DRIVING FACTORS

Increase in Demand for Safer Rail Transportation is the Significant Factor for Driving Market Growth

The demand for rail transportation is on the rise due to factors such as urbanization, population growth, and increasing freight volumes. Railways offer an efficient and sustainable mode of transportation. As the demand for rail services increases, the need for reliable and efficient signalling systems also grows to ensure smooth operations and optimize capacity. Safety is a paramount concern in the railway industry. Governments and rail operators increasingly invest in advanced signalling systems to enhance safety measures and prevent accidents. Modern signalling technologies, such as computer-based interlocking systems, Automatic Train Protection (ATP) systems, and advanced train detection methods, help ensure safe train operations and minimize the risk of collisions. The increasing demand for advanced safety features is anticipated to boost market growth.

RESTRAINING FACTORS

High Initial Investments and System Complexity May Restrain the Adoption of Railway Signalling System Market

Implementing and upgrading railway signalling systems can involve significant costs. The expenses include the installation of new equipment, integration with existing infrastructure, and maintenance and operation expenses. Limited budgets or financial constraints can challenge rail operators and governments in implementing signalling system upgrades or expanding signalling infrastructure. Railway signalling systems are highly complex and require specialized knowledge and expertise for installation, operation, and maintenance. Finding and retaining skilled personnel can be challenging, particularly as the demand for railway professionals with signalling expertise increases. Complex systems also entail a learning curve for operators and maintenance teams, potentially impacting implementation timelines and operational efficiency.

SEGMENTATION

By Technology Analysis

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The CBTC Segment Dominates Owing to the Growing Need for Improved Communication across the Railway Transportation System

Based on technology type, the market is segmented into Automatic Train Protection System (ATP), Positive Train Control (PTC) system, Communication-Based Train Control (CBTC) system, Automatic Train Operation (ATO) system, and others.

 The Communication-Based Train Control (CBTC) system segment held the leading global Railway signalling system market share in 2022. CBTC is a railway signalling system that uses telecommunications between trains and track devices for infrastructure control and traffic management. The communication system used in railway signals has unique requirements largely dependent on the railway system's characteristics and performance. Therefore, it is necessary to understand the transportation system's factors and performance in detail and provide appropriate requirements for the communication system. Using the CBTC systems, the train's exact location can be obtained more precisely. Thus, railway traffic can be managed more effectively and safely.

Increasing investments in urban transportation, especially in the railway network, fuels the global demand for CBTC systems for effective railway traffic management. The increased number of passengers, the increasingly fierce competition among the operators, and higher expectations for safety and comfort are driving railway operators to replace or upgrade their rolling stock. Because of the high utilization rate of existing infrastructure, a modern signalling system is essential to improve network security and capacity.

For instance, Alstom seized a Mumbai Metro Railway Company Limited (MMRCL) contract to provide the CBTC Signalling system for Mumbai Metro Line 3. The contract is based on the rolling stock and power supply contract won for the same metro line earlier this year and is worth more than 100 million euros. Line 3 will be equipped with Urbalis 400, the latest generation of Communication-Based Train Control (CBTC) signalling technology. The contract includes platform screen doors, computer-based interlocking, centralized train supervision, unmanned train operation (UTO), mechanical and electrical supervisory control, and a data acquisition system (E&M SCADA).

By Application Analysis

Increasing Demand for Signalling Systems Inside the Station to Improve Rail Passenger Service will Boost the Market Growth

Based on the application, the market is segmented into inside-the-station and outside-the-station.

The inside-the-station segment accounts for the largest share of the global market. The signalling system is widely utilized inside the station as the station is the place where every train halts and departs. The trains' arrival and departure schedules depend entirely on the railway signalling system that sends accurate location of the other trains and occupancy of the railway tracks. In railways, the railway station and train operation's communication system is realized by the signal sent out by the wired media. After the train departed from the station, there was no communication between the running train and the station or the controller.

Nowadays, railways worldwide are installing optical fiber cables for communications between stations to send signals to the trains. Using fiber optic cables is not as easy to provide trackside communications as copper cables. Therefore, when communicating with drivers, guards, maintenance gangs, guards, etc., outside of the station limits, another transmission medium is required. This communication medium is wireless. With the increasing number of high-speed rail networks and the adoption of automated management systems, the demand for wireless sensor network-based systems will accelerate. Therefore, boosting the expansion of advanced technologies outside the station.

REGIONAL ANALYSIS

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North America Holds The Highest Market Share As It Has The Largest Rail Network Across The Globe

North America is anticipated to dominate the global market, growing at a CAGR of 5.2%. The North American market has witnessed significant demand in recent years and is expected to continue growing. North America has been investing in developing and modernizing its railway infrastructure. Upgrades in the signalling systems are a crucial part of these initiatives, as they enhance safety, improve efficiency, and allow for increased capacity on existing rail networks. Government regulations and safety mandates have been driving the adoption of advanced signalling systems in North America. For example, Positive Train Control (PTC) has been mandated on certain rail lines in the U.S.  These regulations create a demand for Signalling equipment and solutions. Railway operators in North America are increasingly focused on improving safety and operational efficiency. Advanced Signalling systems, such as Automatic Train Control (ATC) and Centralized Traffic Control (CTC), enable better monitoring and control of train movements, reducing the risk of accidents and optimizing operations.

Europe is amongst the most developed markets for various railway technologies and with well-established rail networks. Various prominent players, including Bombardier, Alstom, Siemens, Hitachi, and Thales, are present in this region or hold a significant share of the European market. These OEMs are the global leaders in signalling innovation, such as moving block technology, which enables trains to travel in the order of braking distance, increasing capacity on multiple lines by more than 20%, and operating in fully automated operations which have further improved the safety as well as capacity. European OEMs have developed these systems with railways and put them into commercial operation, although on a small scale.

KEY INDUSTRY PLAYERS

Continuous Innovation in Rail Transportation System By Alstom Helped Company to Maintain Dominating Position in the Market

In the digital era, Alstom is a global leader in the transportation sector. The company thrives on more innovative and greener mobility worldwide by developing integrated systems that offer sustainable solutions for future transportation. The company provides a complete range of equipment and services from metros, high-speed trains, and trams to integrated systems, signalling, infrastructure, digital mobility solutions, and customized services. Alstom takes a transformational step by completing the acquisition of Bombardier Transportation. This agreement will allow Alstom to strengthen its global position in the rapidly growing digital mobility market.

LIST OF KEY COMPANIES PROFILED:

• Alstom (France)


• Hitachi Rail Limited (Japan)


• Siemens Mobility (Germany)


• Thales Group (France)


• Cisco Systems, Inc. (U.S.)


• Huawei Technologies Co., Ltd (China)


• Belden Inc. (U.S.)


• Wabtec Corporation (U.S.)


• Nokia (Finland)


• Angelo Holding Srl (Italy)

KEY INDUSTRY DEVELOPMENTS

• May 2023, Hitachi Ltd and Toshiba Corporation got the contract to build 12 new-generation high-speed trains from Taiwan High-speed Rail Corporation. This has created a massive opportunity for the providers and manufacturers of rail signalling systems.


• June 2023, Hitachi signed an agreement with SNCF worth around USD 83 million to provide onboard digital Signalling equipment for the latest generation trains that operate across European and French rail networks.


• January 2021, India’s Alstom Company received around USD 115 million from the NCRTC (National Capital Region Transport Corporation Ltd.) contract that will be further utilized for the supply, testing design, installation of Signalling at Delhi – Ghaziabad – Meerut Regional Rapid Transit System (RRTS) Corridor. Moreover, this developed line will be the first to adopt European Train Control System (ETCS) hybrid Level 3 Signalling system.


• August 2021, Hitachi Rail entered into the acquisition of Thale’s Ground Transportation Systems” business with a value of USD 1.8 billion. Moreover, this strategy will help Hitachi's rail business to reach USD 9.2 billion in revenue by 2026 by accelerating its mobility as a service (MAAS) offering.


• November 2020, one of the leading players in railways Signalling systems “Nippon Signal Co., Ltd.” has planned to expand its presence in Taiwan by establishing an engineering base for business development, aiming to further business expansion in Taiwan.

REPORT COVERAGE

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The market report provides detailed market analysis and focuses on key aspects such as leading companies, services, and product applications. Besides this, the report offers insights into the market trends and highlights vital industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market's growth over recent years.

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