The global railway control stand is valued at USD 1537.3 million in 2023. It is projected to grow at a moderate CAGR of 3.6% during the forecast period, reaching a value of USD 2189.6 million by 2033.
Railway control stands can be defined as a train-borne distributed control system, which comprises software, computer devices, human-machine interface, digital and analog input/output (I/O) capability, and data networks that are connected in a secure and fault-resistant manner.
In addition to providing communication interfaces with other train systems, the control system also provides telecommunications with other supporting systems. In addition, for safety reasons, railway systems are physically separated from the Wi-Fi networks available for passengers. On top of that, railway control stands to serve as a communication, control, and train management system for all types of vehicles, including metros, trams, and passenger coaches.
Key Takeaways:
| Attribute | Details |
|---|---|
| Railway Control Stands Size Value in 2023 | USD 1537.3 million |
| Railway Control Stands Forecast Value in 2033 | USD 2189.6 million |
| Railway Control Stands CAGR Global Growth Rate (2023 to 2033) | 3.6% |
In addition to increased budget allocations for railway development, there is a surge in demand for a secure, safe, and efficient transport system, which drives the growth of the global railway control stands market.
Moreover, the increasing use of public transport services as a solution to minimize traffic congestion is also expected to contribute to the growth of the market in the coming years. Despite this, high capital requirements hinder the market's growth. Rapid improvement in railway infrastructure in developing countries is expected to provide players in the market with significant growth opportunities.
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By 2033, the railway control stands are predicted by FMI to reach over USD 2189.6 million. It is estimated that the global railway control stands market share increased by 3.6% in the first half of 2023, which is a market share valued at USD 1537.3 million. Though not equally distributed throughout all regions, this growth is stronger in developing markets. From 2018 to 2022, the railway control stands market was predicted to expand at a sluggish CAGR of 1.9%.
There is an increasing trend among governments across the world to invest in the improvement of railway infrastructure through the integration of new technologies. These efforts are aimed at improving operational efficiency. In addition, governments are developing technologically advanced trains and train monitoring systems.
However, installation and maintenance costs associated with railway control stands are expected to constrain market growth. The complexity of railway control and management solutions is also expected to slow adoption in the coming years.
Railway Control Stands Market:
| Attributes | Railway Control Stands Market |
|---|---|
| CAGR (2023 to 2033) | 3.6% |
| Market Value (2033) | USD 1834.67 million |
| Growth Factor | Increasing investments in railway infrastructure development to boost sales of railway control stands. |
| Opportunity | The demand and preference for safe, secure, and efficient transportation are creating opportunities for the railway control stands market. |
Train Control and Management Systems Market:
| Attributes | Train Control and Management Systems Market |
|---|---|
| CAGR (2023 to 2033) | 2.1% |
| Market Value (2033) | USD 5460 million |
| Growth Factor | Increasing investments & supportive government initiatives to boost growth. |
| Opportunity | Increasing investments in emerging regions to showcase productive future opportunities for key players. |
Railway Telematics Market:
| Attributes | Railway Telematics Market |
|---|---|
| CAGR (2023 to 2033) | 7.5% |
| Market Value (2033) | USD 18900 million |
| Growth Factor | The growing demand for the digitalization of railcar tracking and increasing rail freight transportation to boost sales. |
| Opportunity | Government authorities globally are investing in various smart city projects to improve transportation infrastructure, further creating opportunities. |
Principal Consultant
Increase in the Allocation of Budget for the Development of Railways
In emerging economies such as India and China, increased budgets are allocated to the development of their railway infrastructure. Accordingly, India allocated USD 21.2 billion for its railway sector in 2018 compared to USD 18.8 billion in 2017, an increase of 13%. Similarly, several countries around the world are continuously investing in their rail infrastructure and deploying the latest technologies.
For instance, in Saskatchewan, Canadian National Railways (CN) plans to invest USD 2.92 billion to enhance railway infrastructure. As a result, budget allocation is a major factor propelling the growth of the railway sector, which, in turn, is boosting the market for railway control stands.
Technological Advancement
The advent of technological advancements has resulted in the incorporation of high-speed rails and metro systems throughout the world. Some rails run at much higher speeds than traditional rails, with some of them being capable of reaching speeds of 200 km/hr. These rails operate at much higher speeds than traditional rails.
Owing to these mass rapid transit systems that can operate at high speeds, there seems to be an increasing concern about human safety and security. This has created a need for efficient control stands in these rail systems, resulting in a growing market for railway control stands.
Rapid Urbanization
It is a fact that rapid urbanization has improved the quality of living in many countries around the globe, especially those in developing countries. As urbanization grows in number and importance, the need for fast and efficient modes of transportation has increased. For this reason, governments around the world have been adopting high-speed trains and metros to provide mass transit services that are both time-efficient and cost-effective.
The railway control stand is an integral component of these railway systems. The government's initiatives to either embrace railway control solutions for their new rapid transit systems or to upgrade their current control systems to include these solutions have a beneficial impact on the market growth for railway control stands.
High Capital Expenditures, High Infrastructure, and Maintenance Costs
Installation of railway control stands is a complex process, as it requires the integration of several hardware components according to their technological compatibility. This installation or integration also requires adequate infrastructure. In addition to the infrastructure cost, maintenance costs are quite high for these systems. As a result, the high infrastructure and maintenance costs of these systems limit their adoption to some extent, limiting their market growth.
As an example, Indian railways announced in April 2018 that it was ready to launch the country's first 12,000 horsepower (HP) electric locomotive. The total cost of rolling out 800 high-horsepower locomotives over 11 years is expected to be around USD 200 billion, with the average locomotive costing USD 250 million. As a result, the railway control stands market is hindered by the high capital requirements associated with building and maintaining the train network.
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An Increase in Demand for a Secure, Safe, and Efficient Transport System
In addition to being secure and cost-effective, railway transportation is the fastest-growing mode of transportation. The newest trains have cameras, sensors, and communication devices on board. Additionally, underground or ground-level trains are highly secured by fences and walls to prevent trespassing in most locations, promoting the growth of this market.
In addition, today's trains consume less energy due to their advanced acceleration, traction, and braking systems. This results in the reduction of energy consumption by around 30% based on the degree of automation. Additionally, these trains offer a flexible way to coordinate in terms of frequency, which raises the performance of the system overall and supports the expansion of the railway sector. As a result, the demand and preference for safe, secure, and efficient transportation are creating opportunities for the railway control stands market.
Based on rail type, the market is categorized into passenger coaches, trams, locomotives, metros & freight wagons. The freight wagons segment is expected to account for the largest market share of 35.6% during the forecast period.
Governments around the world are promoting public transportation, which is expected to have a significant impact on freight wagon growth. A variety of factors are supporting the growth of the global freight wagons market, from increasing government initiatives to increased preference for public transportation.
North American railway control stands accounted for the largest share. Increasing customer demands for comfort and safety have led OEMs based in North America to produce locomotives for a wide range of trains, including light rail, tramways, metros, and conventional trains. Many emerging players offer advanced railway control stations in the region. Thermo King, a railway system manufacturer based in the USA, delivers HVAC systems that can remove viruses from the air in driver cabins.
Due to the huge area of these countries and the long distance traveled for goods and passengers, diesel locomotives are mostly used in the USA and Canada. As a result, electric locomotives would incur significantly higher infrastructure costs. In the United States, rolling stock is mostly used for freight transportation, while airlines are primarily used for passenger transportation.
Asia Pacific region is projected to emerge as a promising market for railway control stands across the forecast period. This region is experiencing a high level of demand due to increased investments in railway infrastructure by economies such as India, China, and Japan. Increasing railway budgets in these economies may also favor shipments of railway control stands. Increasing urbanization in the aforementioned regions is also expected to positively influence sales of railway control stands.
Governments in developing countries are making significant investments to meet the latest end-use requirements for autonomous trains. As an example, India invested USD 1.97 billion in 2018 toward infrastructure development to meet the latest automation demand and is expected to invest a further USD 777.73 billion by 2022 to fulfill the required infrastructure requirements, which include railway infrastructure development. This is anticipated to offer numerous opportunities for railway control stands in the country.
| Countries | Statistics |
|---|---|
| United States | The railway control stands in the USA holds the maximum number of shares and has registered a market share of 18.4%. Recent years have seen the development, expansion, and modernization of existing transportation modes undertaken by the USA government. USA railways are being improved with enhanced safety systems and funding is being allocated to complete pending projects to promote rail passenger transportation. The railway system may be redesigned with the help of USD 80 billion in federal funding as part of the USA President’s USD 2.3 trillion infrastructure modernization plan. |
| Germany | Europe is identified to hold a significant market share of 4.8% in the railway control stands. In Germany, urban planners and local governments are merging rapid transit and tramway infrastructure with existing infrastructure. Additionally, commuters are seeking eco-friendly, reliable, and cost-effective transportation options. Germany, for example, is actively promoting the use of rapid transit systems to reduce traffic congestion. |
| China | China is projected to advance at a moderate pace, registering a CAGR of 4.2%. China has witnessed the strongest growth among the other world leaders, with CRCC, CRSC, and CREC capturing 20-25% of the global signaling, rail control, and electrification market. A major reason for this expansion is the expansion of the railway network, which has grown from 75,000 km in 2005 to 150,000 km by 2020. |
Numerous Opportunities for Emerging Players in Railway Control Stands Dynamics
A significant growth opportunity exists for the emerging players operating in the global market due to the improvement in infrastructure in developing nations and the growth in mining and industrial activities. Moreover, through the introduction of enhanced products, new entrants to railway control stands are gaining a competitive advantage and leveraging advancements in technology.
To remain competitive, these firms invest continually in research and development activities to keep up with consumer preferences and end-use industry requirements. Efforts are being made to strengthen their foothold in the industry. In addition to increasing their visibility within the forum, this will also enhance the further development of the railway control stands.
Key players operating the global railway control stand market include
Key Developments for Railway Control Stands Market
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD billion for Value and MT for Volume |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; Oceania; and the Middle East & Africa |
| Key Countries Covered | USA, Canada, Brazil, Mexico, Chile, Peru, Germany, United Kingdom, Spain, Italy, France, Russia, Poland, China, India, Japan, Australia, New Zealand, GCC Countries, North Africa, South Africa, and Turkey |
| Key Segments Covered | Rail Type, System Type, Region |
| Key Companies Profiled | Asea Brown Boveri (ABB); General Electric; Hitachi Ltd.; Mitsubishi Electric Corporation; Alstom SA; Bombardier Inc.; MEN Mikro Elektronik GmbH; Siemens AG; DEUTA-WERKE GmbH; EKE Group; Strukton Rail; Toshiba Corporation; Thales Group |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
North America dominates the market for railway control stands.
The global railway control stands market is highly fragmented with the presence of various leading and emerging players including EKE Group, ABB, General Electric, etc.
The railway control stand is expected to reach a value of USD 2189.6 million by 2033.
The railway control stand is expected to increase at a CAGR of around 3.6% over the forecast period.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Train Type 5.1. Passenger Train 5.2. Freight Train 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By System Type 6.1. Engine Functional Control System 6.2. Brake Functional Control System 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Europe 7.4. Asia Pacific 7.5. Middle East and Africa (MEA) 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Key Countries Market Analysis 14. Market Structure Analysis 15. Competition Analysis 15.1. CRRC Corporation Limited 15.2. Siemens AG 15.3. Alstom SA 15.4. Bombardier Inc. 15.5. Hitachi Ltd 15.6. Mitsubishi Electric 15.7. Strukton Rail 15.8. Wabtec Corporation 15.9. Toshiba 15.10. Thales Group 16. Assumptions & Acronyms Used 17. Research Methodology
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Railway Control Stands Market
