Smart Railway Market Size, Share & COVID-19 Impact Analysis, By Application Type (Passenger Transportation and Freight Transportation), By Solution (Passenger Information System, Freight Management System, Security and Safety, Rail Communication and Networking System, Smart Ticketing System, Rail Analytics System, and Rail Asset Management and Maintenance Solutions), and By Region, 2025-2032

The smart railway is a technologically advanced approach to efficiently manage railway operations by sharing rail data across rail infrastructure components, such as passengers, control centers, ticketing departments, and freight carriers. Smart Railways are integrated with various latest technologies, including the Internet of Things (IoT), big data, cloud, analytics, Artificial Intelligence (AI), Global Positioning System (GPS), and Machine Learning (ML) to make rail operations more efficient and accurate.

The growing digitalization is significantly impacting the conventional railroad industry. Adopting various technologies is helping the rail industry offer better passenger and freight transportation services. Cloud computing, Artificial Intelligence (AI), and 5G Networks are the three crucial technologies modernizing the railway industry. The penetration of digital infrastructure and the requirement for automated & autonomous rail operations drives the growth of the global smart railway market.

Government authorities operate the majority of railways, and through winning contracts and agreements, the key players procure and install smart technologies. The high initial implementation cost and operational & maintenance costs are a significant barriers to smart railway technology. As technologies such as AI, IoT, GPS, and ML are introduced, a cybersecurity threat may hamper the market growth in years to come.

Impact of COVID-19 on the Smart Railway Market

During COVID-19, the Smart railway market has faced several challenges. The COVID-19 restrictions significantly affected passenger and freight transportation, export and import of capital, and consumer goods. Major ports and terminals across the globe declared a temporary shutdown. Many railway network construction sites were shut down due to labor and raw materials shortages. Due to these restrictions, railway infrastructure project sites have reported increased overall project costs. Due to a lack of funds and a liquidity crisis, many governments and privately owned projects have been temporarily shut down. As a result, the smart railway industry was severely impacted due to inadequate funds during the pandemic.

After the relaxation of the COVID-19 restrictions, the smart railway market is growing steadily. There is a rise in demand for biometric, integrated, contactless & mobile payment adoption, sensor-based technology, and ticketing technologies throughout public transit in the post-COVID-19 scenario. Moreover, there is expected to be a boost in demand for smart railways due to the innovations such as smart ticketing, contactless payment, and biometric systems offered by key companies to enhance public transportation.

Key Insights

The report will cover the following key insights:

• Recent Developments.


• Porter's Five Forces Analysis.


• Technological Developments.


• Impact of COVID-19 on the Smart Railways Market.

Segmentation

Analysis by Application Type

Railway passenger transport has seen significant growth when compared to other public transit. This is due to the fare frequency and overall commute time. Several countries like China, India, and Japan have witnessed a steady increase in demand for passenger transportation. Railway has witnessed a rise in passengers and is expected to continue in the upcoming years, further fueling the market growth. Moreover, demand for cost-effective and operationally efficient rail solutions increases ridership. Smart railways are anticipated to deliver transportation services for passengers and freight with reduced commute time and enhanced transportation experience, and others are likely to accelerate the segment growth.

Analysis by Solution

Passenger information system allows smart rail operators to provide updated and reliable information for passengers and rail operators by amalgamating live data from multiple data sources. They are widely used for metro to high-speed rail applications. Passenger data can be accessed through ground and cloud servers. The data can be accessed from the mobile, website, and live display boards. It is required for smart railway data management. All of the factors mentioned above are driving the segment's revenue growth.

The freight management system includes freight operation management and freight tracking, which plays a crucial role in smart railways and, thus, fueling market growth. Moreover, other operations, such as smart ticketing, security & safety, railway communication, and networking systems, are also crucial factors for the efficient and safe working of smart railways along with convenience for the passengers. Therefore, increasing demand for enhanced transportation and convenience to the customers in rail transport is likely to fuel the segment growth during the forecast period.

Analysis by Region

Western Europe, including UK, Germany, and France, has well-established railway infrastructure. Social and trade agreements across these countries promote large-scale passenger traffic and cross-border trade in Europe. The railway companies in the region apply some of the most advanced smart rail systems, further accelerating the adoption of smart railways in the region.

North America is also anticipated to witness a significant growth rate during the forecast period. The increasing R&D investments in developing autonomous trains, rising consumer preference and government spending to implement high-performance trains, and increasing smart city projects are fueling the market growth in the region.

Asia-Pacific will witness considerable growth over the forecast period. Governments' focus on deploying advanced railway technologies for smooth traffic flow and commute operations has generated significant business opportunities in the region. Moreover, the rapidly growing population in the Asia Pacific, coupled with traffic congestion, is fueling the demand for smart railways for efficient public transportation operations.

Key Players Covered

Hitachi Rail (Japan), BOMBARDIER (Germany), ABB Ltd (Switzerland), Siemens AG (Germany), Cisco Connected Rail (U.S.), Huawei Technologies Co., Ltd. (China), IBM (U.S.), and Aitek S.P.A (Italy).

Key Industry Developments

• January 2023: the U.K. government signed an agreement with Cellnex UK that improves connectivity on the London to Brighton railway route. It is a 25-year contract to provide better network connectivity for passengers on the Brighton Mainline route.


• November 2022: Hitachi Rail introduced a travel app and platform in Trentino, the 360Pass. The app is to plan trips and use any public transportation in Trentino without having to buy a standard ticket. From any app store, this software can be downloaded for free. The app facilitates longer, multi-modal journeys by allowing to pay for "blue stripe" parking spots across the city.


• September 2022: leading companies in bearing, related products, and condition monitoring systems and services, Televic GSP, and the SKF Group collaborated to develop and innovate advanced condition-based maintenance capabilities for rolling stock operators.