The size of the railway telematics market in terms of value was estimated at approximately US$ 6,234.5 Million in 2022. As per the market analysis report released by FMI, it is anticipated to register a CAGR of 7.1% from 2023 to 2033. This promising growth rate is expected to take the overall value of the market from US$ 6,708.3 Million in 2023 to US$ 13,320.1 Million by 2033.
The growing demand for railway telematics is expected to be aided by the spike in demand for a reliable, secure, and economical transportation system. Because of improved telematics technology, advanced transportation systems have become less likely to encounter any trouble, attracting government attention around the world.
Railway telematics services have also become important for modern fleet owners as they relate to railcar safety and other issues with much priority. For instance, Trinsight is a digital unified platform or app for real-time solutions including location finding, condition recognition, as well as status detection of the railcars and components. It was introduced by Trinity Rail Group in February 2021 to improve fleet operations' safety, effectiveness, and management.
In light of the many recent advances made in the field of location tracking and predictive maintenance of railcars, the adoption of railway telematics is expected to increase. Moreover, with the growing volume of cargo deliveries across emerging economies, the demand for railway telematics by the logistics industry for freight transportation is expected to increase exponentially in the coming days.
Unfortunately, global trade limitations along with the pandemic shutdown also impeded market expansion for a brief period of time in the recent past. These impediments dropped the railway telematics market growth significantly from 4.6% recorded during the years following 2018. However, the market has revived again after the realization of the product's utility during lockdown time.
| Attributes | Details |
|---|---|
| Railway Telematics Market Share (2022) | US$ 6,234.5Million |
| Railway Telematics Market Size Value (2023) | US$ 6,708.3Million |
| Railway Telematics Market Size Value (2033) | US$ 13,320.1Million |
| Railway Telematics Market Growth Rate (2023 to 2033) | 7.1% |
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The market is benefiting from increased budgetary support for the construction of railroads and the growing need for safer, more secure, and more effective transportation networks in emerging economies. Worldwide urbanization is also progressing at a promising rate, which is enabling smart cities to adopt all types of modern technology for the up gradation of the transport system. A few of the other major reasons projected to propel the development of railway telematics are the rising need for the digitization of railcar monitoring and the expansion of telecommunication network connectivity in 3rd world economies.
In contemporary times, the market is dominated by the fleet management sector, which represented even more than 30% of the profit share generated globally. Further again, the railcar tracking and tracing market segment are predicted to grow at a higher rate of 8.2% from 2023 to 2033. This surge in demand for the segment can be correlated with a rise in demand for freight wagon preventive analytics to spot operational problems.
According to the previous records, more than 50% of the total market was accounted for by the telematics control unit category. Solutions for both railcar two-way management and surveillance are provided by telematics control units. Advanced TCUs are already being used in railcars, resulting in improvements in upkeep, safety, and economics.
However, over the projection period, the sensors component segment is expected to register the highest CAGR of 8.5% than its counterparts. The increase in government efforts and funding for the creation of smart railway networks could be credited to the growth of this sector in the last few years.
Until the year 2022, the hoppers railcar category dominated with a revenue share of more than 23%. Further, during Over through the projected period, it is expected that this category would acquire a lot of traction and maintain its position. The trend for hopper railcars is anticipated to be driven by the increasing need for containers to be transported and tracked across numerous logistics and freight service companies.
Contrarily, from 2023 to 2033, the refrigerated boxcars market segment is anticipated to grow at the highest Growth rate of 8.5%. This category is expanding as a result of the rising need for an efficient transportation system for perishable goods. refrigerated boxcars are also now used in a number of other industries, including chemicals and pharmaceuticals.
Principal Consultant
In 2022 and the preceding years, the highest market share belonged to the USA which contributes an average of 18.5% revenue every year, In the present year, 2023 it is estimated to generate a revenue of nearly US$ 1,241 Million as per available statistics.
Undoubtedly one of the key reasons for the leading position of the USA is the existence of many original equipment manufacturers in the country. Manufacturers like Robert Bosch, Amsted Digital, and others particularly are driving the growth of the railway telematics industry in the US.
Robert Bosch confirmed the conclusion of a supply agreement with Lineas Company in October 2020 in order to digitalize the latter's fleet of wagons. Bosch's famous Nexeed Track and Trace solution software is anticipated to be placed on 2,600 wagons as part of supply and inventory tracking for Linea's fleet optimization.
As Germany is the leading economy compared to all other European countries, it has a higher requirement for freight train management software and solutions. Consequently, it uses railway telematics services amounting to almost US$ 315 Million every year.
On the other hand, sensing the huge gap in the adoption of this some key players have come together to bridge it in the near past. Aiming for the development of an automated rail coupling, DB Cargo led cooperation with five European firms in July 2020. Six businesses from Switzerland, Germany, Austria, and France received this project's grant from the German Federal Transport and Digital Facilities Department.
As per the Asia Pacific market survey figures, Japan contributes almost 5.2% of the overall market. In the present year 2023, it is estimated to generate a revenue of almost US$ 349 Million by adoption as well as outsourcing of telematics services. Some of the regional players such as Hitachi are now competing at the global level with their quality services and better products.
Hitachi Company stated in April 2021 that it will purchase Perpetuum Company of the UK in order to improve its digital railcar maintenance operations. In the worldwide railway telematics business, this organization is anticipated to introduce maintenance services for all OEMs and operators soon.
Meanwhile, China remains the major competing market for Japan which is growing at a faster rate than recorded before. As per the numbers obtained from the recent report, China is projected to witness a year-on-year growth rate of 4.3% over the forecast years.
A life-size mock-up of the train set model for the Metro Line in Mumbai city, the commercial capital of India, was presented in November 2019 by Alstom and Mumbai Metro Rail Corporation (MMRC). The brand-new, recognizable, and original design for Mumbai Metro complies with all industrial and technological requirements including telematics services.
Such developments and ventures are anticipated to hasten the implementation of the Global Positioning System (GPS) and other telematics technologies for the Indian railway fleet during the forecast years. Accordingly, this market report pegs the annual average growth in demand for railway telematics at 5.4% for 2023 to 2033.
Smart and digital transportation solutions that make use of technology over expanding railcar networks are anticipated to be crucial to the success of the railway sector in the coming years. Many railway telematics service providers are now benefitting from new technologies like integrated services, asset management solutions, and predictive analytics algorithms.
Integration of autonomous stock control to assign ideal routes, timetables, and capacities, and procuring idle railcars in almost real-time is also at the development stage. Furthermore, shock detection and satellite communication are some of the futuristic endeavors that have attracted many new players into the market recently.
In recent years, many instances of multiple companies collaborating for expanding their services and acquiring a new customer base can be witnessed frequently in this sector. For illustration, important railway companies in the US like Norfolk Southern, GATX corporation, Trinity Rail, and Genesee & Wyoming, Watco announced in the year 2020 of entering into a joint venture called Rail Pulse.
Recent Developments By the Railway Telematics Industry Players
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The global railway telematics market is to grow at 7.1% during the forecast period.
The global railway telematics market is predicted to be valued at US$ 13,320.1 Million by 2033.
The global railway telematics market was valued at US$ 6,234.5 Million in 2022.
The USA accounts for the largest revenue share of US$ 1,241 Million in the year 2023.
India is predicted to witness the highest CAGR of 5.4% in the railway telematics market.
1. Executive Summary | Railway Telematics Market
1.1. Global Market Outlook
1.2. Demand-side Trends
1.3. Supply-side Trends
1.4. Technology Roadmap Analysis
1.5. Analysis and Recommendations
2. Market Overview
2.1. Market Coverage / Taxonomy
2.2. Market Definition / Scope / Limitations
3. Market Background
3.1. Market Dynamics
3.1.1. Drivers
3.1.2. Restraints
3.1.3. Opportunity
3.1.4. Trends
3.2. Scenario Forecast
3.2.1. Demand in Optimistic Scenario
3.2.2. Demand in Likely Scenario
3.2.3. Demand in Conservative Scenario
3.3. Opportunity Map Analysis
3.4. Investment Feasibility Matrix
3.5. PESTLE and Porter’s Analysis
3.6. Regulatory Landscape
3.6.1. By Key Regions
3.6.2. By Key Countries
3.7. Regional Parent Market Outlook
4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033
4.1. Historical Market Size Value (US$ Million) Analysis, 2018 to 2022
4.2. Current and Future Market Size Value (US$ Million) Projections, 2023 to 2033
4.2.1. Y-o-Y Growth Trend Analysis
4.2.2. Absolute $ Opportunity Analysis
5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Solution
5.1. Introduction / Key Findings
5.2. Historical Market Size Value (US$ Million) Analysis By Solution, 2018 to 2022
5.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Solution, 2023 to 2033
5.3.1. Fleet Management
5.3.2. Automatic Stock Control
5.3.3. Remote Data Access
5.3.4. Railcar Tracking and Tracing
5.3.5. Others
5.4. Y-o-Y Growth Trend Analysis By Solution, 2018 to 2022
5.5. Absolute $ Opportunity Analysis By Solution, 2023 to 2033
6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Railcar
6.1. Introduction / Key Findings
6.2. Historical Market Size Value (US$ Million) Analysis By Railcar, 2018 to 2022
6.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Railcar, 2023 to 2033
6.3.1. Hoppers
6.3.2. Tank Cars
6.3.3. Well Cars
6.3.4. Boxcars
6.3.5. Refrigerated Boxcars
6.3.6. Others
6.4. Y-o-Y Growth Trend Analysis By Railcar, 2018 to 2022
6.5. Absolute $ Opportunity Analysis By Railcar, 2023 to 2033
7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Component Type
7.1. Introduction / Key Findings
7.2. Historical Market Size Value (US$ Million) Analysis By Component Type, 2018 to 2022
7.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Component Type, 2023 to 2033
7.3.1. Telematics Control Unit
7.3.2. Sensors
7.4. Y-o-Y Growth Trend Analysis By Component Type, 2018 to 2022
7.5. Absolute $ Opportunity Analysis By Component Type, 2023 to 2033
8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region
8.1. Introduction
8.2. Historical Market Size Value (US$ Million) Analysis By Region, 2018 to 2022
8.3. Current Market Size Value (US$ Million) Analysis and Forecast By Region, 2023 to 2033
8.3.1. North America
8.3.2. Latin America
8.3.3. Europe
8.3.4. Asia Pacific
8.3.5. Middle East and Africa (MEA)
8.4. Market Attractiveness Analysis By Region
9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
9.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022
9.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033
9.2.1. By Country
9.2.1.1. United States of America
9.2.1.2. Canada
9.2.2. By Solution
9.2.3. By Railcar
9.2.4. By Component Type
9.3. Market Attractiveness Analysis
9.3.1. By Country
9.3.2. By Solution
9.3.3. By Railcar
9.3.4. By Component Type
9.4. Key Takeaways
10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
10.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022
10.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033
10.2.1. By Country
10.2.1.1. Brazil
10.2.1.2. Mexico
10.2.1.3. Rest of Latin America
10.2.2. By Solution
10.2.3. By Railcar
10.2.4. By Component Type
10.3. Market Attractiveness Analysis
10.3.1. By Country
10.3.2. By Solution
10.3.3. By Railcar
10.3.4. By Component Type
10.4. Key Takeaways
11. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
11.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022
11.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033
11.2.1. By Country
11.2.1.1. Germany
11.2.1.2. United Kingdom
11.2.1.3. France
11.2.1.4. Spain
11.2.1.5. Italy
11.2.1.6. Rest of Europe
11.2.2. By Solution
11.2.3. By Railcar
11.2.4. By Component Type
11.3. Market Attractiveness Analysis
11.3.1. By Country
11.3.2. By Solution
11.3.3. By Railcar
11.3.4. By Component Type
11.4. Key Takeaways
12. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
12.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022
12.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033
12.2.1. By Country
12.2.1.1. China
12.2.1.2. Japan
12.2.1.3. South Korea
12.2.1.4. Singapore
12.2.1.5. Thailand
12.2.1.6. Indonesia
12.2.1.7. Australia
12.2.1.8. New Zealand
12.2.1.9. Rest of Asia Pacific
12.2.2. By Solution
12.2.3. By Railcar
12.2.4. By Component Type
12.3. Market Attractiveness Analysis
12.3.1. By Country
12.3.2. By Solution
12.3.3. By Railcar
12.3.4. By Component Type
12.4. Key Takeaways
13. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
13.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022
13.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033
13.2.1. By Country
13.2.1.1. GCC Countries
13.2.1.2. South Africa
13.2.1.3. Israel
13.2.1.4. Rest of MEA
13.2.2. By Solution
13.2.3. By Railcar
13.2.4. By Component Type
13.3. Market Attractiveness Analysis
13.3.1. By Country
13.3.2. By Solution
13.3.3. By Railcar
13.3.4. By Component Type
13.4. Key Takeaways
14. Key Countries Market Analysis
14.1. United States of America
14.1.1. Pricing Analysis
14.1.2. Market Share Analysis, 2022
14.1.2.1. By Solution
14.1.2.2. By Railcar
14.1.2.3. By Component Type
14.2. Canada
14.2.1. Pricing Analysis
14.2.2. Market Share Analysis, 2022
14.2.2.1. By Solution
14.2.2.2. By Railcar
14.2.2.3. By Component Type
14.3. Brazil
14.3.1. Pricing Analysis
14.3.2. Market Share Analysis, 2022
14.3.2.1. By Solution
14.3.2.2. By Railcar
14.3.2.3. By Component Type
14.4. Mexico
14.4.1. Pricing Analysis
14.4.2. Market Share Analysis, 2022
14.4.2.1. By Solution
14.4.2.2. By Railcar
14.4.2.3. By Component Type
14.5. Germany
14.5.1. Pricing Analysis
14.5.2. Market Share Analysis, 2022
14.5.2.1. By Solution
14.5.2.2. By Railcar
14.5.2.3. By Component Type
14.6. United Kingdom
14.6.1. Pricing Analysis
14.6.2. Market Share Analysis, 2022
14.6.2.1. By Solution
14.6.2.2. By Railcar
14.6.2.3. By Component Type
14.7. France
14.7.1. Pricing Analysis
14.7.2. Market Share Analysis, 2022
14.7.2.1. By Solution
14.7.2.2. By Railcar
14.7.2.3. By Component Type
14.8. Spain
14.8.1. Pricing Analysis
14.8.2. Market Share Analysis, 2022
14.8.2.1. By Solution
14.8.2.2. By Railcar
14.8.2.3. By Component Type
14.9. Italy
14.9.1. Pricing Analysis
14.9.2. Market Share Analysis, 2022
14.9.2.1. By Solution
14.9.2.2. By Railcar
14.9.2.3. By Component Type
14.10. China
14.10.1. Pricing Analysis
14.10.2. Market Share Analysis, 2022
14.10.2.1. By Solution
14.10.2.2. By Railcar
14.10.2.3. By Component Type
14.11. Japan
14.11.1. Pricing Analysis
14.11.2. Market Share Analysis, 2022
14.11.2.1. By Solution
14.11.2.2. By Railcar
14.11.2.3. By Component Type
14.12. South Korea
14.12.1. Pricing Analysis
14.12.2. Market Share Analysis, 2022
14.12.2.1. By Solution
14.12.2.2. By Railcar
14.12.2.3. By Component Type
14.13. Singapore
14.13.1. Pricing Analysis
14.13.2. Market Share Analysis, 2022
14.13.2.1. By Solution
14.13.2.2. By Railcar
14.13.2.3. By Component Type
14.14. Thailand
14.14.1. Pricing Analysis
14.14.2. Market Share Analysis, 2022
14.14.2.1. By Solution
14.14.2.2. By Railcar
14.14.2.3. By Component Type
14.15. Indonesia
14.15.1. Pricing Analysis
14.15.2. Market Share Analysis, 2022
14.15.2.1. By Solution
14.15.2.2. By Railcar
14.15.2.3. By Component Type
14.16. Australia
14.16.1. Pricing Analysis
14.16.2. Market Share Analysis, 2022
14.16.2.1. By Solution
14.16.2.2. By Railcar
14.16.2.3. By Component Type
14.17. New Zealand
14.17.1. Pricing Analysis
14.17.2. Market Share Analysis, 2022
14.17.2.1. By Solution
14.17.2.2. By Railcar
14.17.2.3. By Component Type
14.18. GCC Countries
14.18.1. Pricing Analysis
14.18.2. Market Share Analysis, 2022
14.18.2.1. By Solution
14.18.2.2. By Railcar
14.18.2.3. By Component Type
14.19. South Africa
14.19.1. Pricing Analysis
14.19.2. Market Share Analysis, 2022
14.19.2.1. By Solution
14.19.2.2. By Railcar
14.19.2.3. By Component Type
14.20. Israel
14.20.1. Pricing Analysis
14.20.2. Market Share Analysis, 2022
14.20.2.1. By Solution
14.20.2.2. By Railcar
14.20.2.3. By Component Type
15. Market Structure Analysis
15.1. Competition Dashboard
15.2. Competition Benchmarking
15.3. Market Share Analysis of Top Players
15.3.1. By Regional
15.3.2. By Solution
15.3.3. By Railcar
15.3.4. By Component Type
16. Competition Analysis
16.1. Competition Deep Dive
16.1.1. Siemens AG
16.1.1.1. Overview
16.1.1.2. Product Portfolio
16.1.1.3. Profitability by Market Segments
16.1.1.4. Sales Footprint
16.1.1.5. Strategy Overview
16.1.1.5.1. Marketing Strategy
16.1.2. Hitachi Ltd.
16.1.2.1. Overview
16.1.2.2. Product Portfolio
16.1.2.3. Profitability by Market Segments
16.1.2.4. Sales Footprint
16.1.2.5. Strategy Overview
16.1.2.5.1. Marketing Strategy
16.1.3. Alstom SA
16.1.3.1. Overview
16.1.3.2. Product Portfolio
16.1.3.3. Profitability by Market Segments
16.1.3.4. Sales Footprint
16.1.3.5. Strategy Overview
16.1.3.5.1. Marketing Strategy
16.1.4. Knorr-Bremse AG
16.1.4.1. Overview
16.1.4.2. Product Portfolio
16.1.4.3. Profitability by Market Segments
16.1.4.4. Sales Footprint
16.1.4.5. Strategy Overview
16.1.4.5.1. Marketing Strategy
16.1.5. Robert Bosch GmbH
16.1.5.1. Overview
16.1.5.2. Product Portfolio
16.1.5.3. Profitability by Market Segments
16.1.5.4. Sales Footprint
16.1.5.5. Strategy Overview
16.1.5.5.1. Marketing Strategy
16.1.6. Intermodal Telematics BV
16.1.6.1. Overview
16.1.6.2. Product Portfolio
16.1.6.3. Profitability by Market Segments
16.1.6.4. Sales Footprint
16.1.6.5. Strategy Overview
16.1.6.5.1. Marketing Strategy
16.1.7. Orbcomm
16.1.7.1. Overview
16.1.7.2. Product Portfolio
16.1.7.3. Profitability by Market Segments
16.1.7.4. Sales Footprint
16.1.7.5. Strategy Overview
16.1.7.5.1. Marketing Strategy
16.1.8. Railnova
16.1.8.1. Overview
16.1.8.2. Product Portfolio
16.1.8.3. Profitability by Market Segments
16.1.8.4. Sales Footprint
16.1.8.5. Strategy Overview
16.1.8.5.1. Marketing Strategy
16.1.9. TrinityRail
16.1.9.1. Overview
16.1.9.2. Product Portfolio
16.1.9.3. Profitability by Market Segments
16.1.9.4. Sales Footprint
16.1.9.5. Strategy Overview
16.1.9.5.1. Marketing Strategy
16.1.10. Savvy Telematic Systems AG
16.1.10.1. Overview
16.1.10.2. Product Portfolio
16.1.10.3. Profitability by Market Segments
16.1.10.4. Sales Footprint
16.1.10.5. Strategy Overview
16.1.10.5.1. Marketing Strategy
17. Assumptions & Acronyms Used
18. Research Methodology
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