Rail Asset Management Market by Offering (Solution and Services), Deployment Mode (On-premise and Cloud), Application (Rolling Stock and Infrastructure): Global Market Size Estimates and Forecast (2022-2030)
The rail asset management market crossed US$ 10.56 billion mark in 2022 and is expected to hit US$ 14.55 billion by 2030, recording a CAGR of 4.1% during the forecast period.
Rapid digitalization with the high adoption of cloud-based deployment in the market.
As rail assets must be properly monitored, scheduled, and maintained for an efficient rail operation, demand for cloud-based services, analytics, and internet technologies continue to rise in the market. In addition, with the rapid digitalization, there is a significant shift across all the rail management organisations, allowing them to improve rail infrastructure and operations by changing data structure in the existing operations. Furthermore, rail authorities across several countries are heavily investing in predictive maintenance & condition-based technologies in order to increase efficiency and further decrease time consumption. Also, cloud-based deployment helps with efficient asset scheduling and timely asset monitoring, which reduces downtime. These factors, as a result propelling the rail asset management market growth.
Within the report, the market is segmented into offering, deployment mode, application, and geography. By offering, the market is bifurcated into solution and services. On the bases of deployment market, it is divided into on-premise and cloud. Based on application, the market is segmented into rolling stock and infrastructure. Geographically, the market is subsegmented into North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa.
Growing need for efficient rail operations propels the growth of rail asset management market.
With rapid expansion of 5G technologies and other emerging developments, demand for efficient rail operations continue to rise among rail industry. In addition, the industry is largely adopting & implementing rail management offering which will further enhance high performance & reliability through efficient connectivity. Moreover, the railway sectors are increasingly implementing low-latency communications & modern mobile communication systems in order to foster inter-partner connectivity across the operations. Furthermore, factors such as GPS sensors & detectors and IoT technology which has enabled the presence of Radio Frequency Identification (RFID) in rail assets and infrastructures further helps improve the maintenance cycle of rail assets. These factors, as a result becoming major factors driving the rail asset management market growth.
AI and big data in rail asset management.
Due to the expansion of railway sector, investment in new technologies has become a crucial factor in terms of monitoring a thousand of miles of tracks for avoiding human intervention. AI and big data mainly help in focusing & creating insights that can enhance services and reduce operational costs. For instance, in US, the Department of Transportation has developed the Automated Vehicles Comprehensive Plan for revolutionizing the regulatory environment, advancing rail safety, promoting collaboration & transparency, and preparing the transportation system for various disruptions. Moreover, artificial intelligence has emerged tremendously and is largely implemented across several railway operations globally. For instance, The Train Brain which is a startup in Sweden has helped stakeholders in the industry incorporate AI models such as deep learning algorithms, neural networks, and GPS data to minimize delays & further enhance train scheduling operations. As a result, this growing dependency & investment in AI & big data across railway sectors is becoming major trends in the market.
Recent strategic developments in rail asset management market
The rail asset management market has undergone several significant developments, and a few of these have been mentioned below:
- In June 2022, Siemens Smart Infrastructure (S.I.) which is a major provider of digital buildings, has announced an acquisition with Brightly Software based in US & a leading software-as-a-service (SaaS) provider of rail asset management solutions.
- In March 2022, Hitachi Rail has declared that its state-of-the-art US$ 70 million factories in Washington County, which will be the site of the new fleet of 8000-series railcars for the Washington Metropolitan Area Transit Authority (Metro). In addition, this new factory aims at building a modern railcar for the Washington DC, representing a significant expansion of Hitachi Rail's presence in the US.
- In September 2021, Siemens Mobility has announced a partnership with Orascom Construction and The Arab Contractors. In addition, it has signed a contract with the Egyptian National Authority for Tunnels (NAT), which is a governmental authority under Egypt's Ministry of Transport in order to create the world's sixth-largest high-speed rail system.
The rail asset management market is driven by several players by implementing strategic activities such as investments, new launches, mergers & acquisitions, and partnerships. Siemens, Hitachi, Alstom, Cisco, Capgemini, Huawei, IBM, SAP, and others, are among the prominent players operating in the market.
Target audience for the report:
- National funders and local funding bodies
- Local government agencies and authorities
- Passenger representative bodies
- Rail asset management solution providers
- Technology-related associations, organizations, forums, and alliances
- Government bodies, such as regulating authorities and policy makers
- Venture capitalists, private equity firms, and start-up companies
- International union of railways
- End users of Rail asset management
- Research institutes, organizations, and consulting companies
Scope of the report:
In this report, the market has been segmented on the basis of:
- Deployment Mode
- Rolling Stock
- North America
- Asia Pacific (APAC)
- South & Central America
- Middle East & Africa
- Companies profiled
The List of Companies