The global Rail Asset Management Market size was valued at $10.1 billion in 2021 and it is projected to reach $13.2 billion by the end of 2026 at a CAGR of 5.6% during the forecast period.
An industry trend analysis of the market is part of the latest research report. The latest research study includes market buying trends, pricing analysis, patent analysis, conference and webinar materials, and important stakeholders. The rail industry plays a vital role in shaping the economic and financial position of a country. It carries billions of passengers and freights daily and generates huge revenues. Due to the ease and comfort in transportation, the dependence on railways for both passengers and goods is rising at a rapid pace. A majority of countries are investing heavily in rail infrastructure to provide a seamless experience to their citizens through railways. Railways also help governments minimize the cost of transfer of passengers as well as goods, considering the huge carrying capacity it offers in a single run. The growing dependence on railways is increasing the pressure on the existing rail infrastructure. This leads to several uncalled and unscheduled maintenance for both rolling stock and infrastructure, owing to wear and tear of systems, breakdowns, damages, and repair needs.
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An efficient rail operation needs proper scheduling, monitoring, and maintenance of rail assets. Maintenance schedules reduce asset productivity due to downtime. This downtime is further elongated as a result of manual diagnostics having a low success rate. To enhance efficiency and reduce time consumption, rail authorities are heavily focusing on condition-based and predictive maintenance solutions. These solutions help in timely monitoring and efficient scheduling of assets, thus minimizing downtime. Condition-based and predictive maintenance work on real-time analytics minimizes the dependence on manual diagnostics. IoT technology also has enabled the ubiquitous presence of Radio Frequency Identification (RFID), and GPS sensors and detectors in rail assets and infrastructures. This, in turn, enables the collection, transmission, and analysis of multiple attributes, such as temperature, heat, pressure, condition, and location. This further helps improve the maintenance cycle of rail assets. However, the data from rail assets can be used to optimize rail asset utilization. It also enables scheduled maintenance of assets, and resource intensities and costs.
One of the major challenges for the growth of the rail asset management market is project funding for huge initial capital expenditure. It has become the national/local government’s prime responsibility to heavily invest in the transformation process of the rail infrastructure. It is easy to understand that even while governments possess the need, vision, and clarity for such transformations, the lack of budgetary allocations for any large-scale implementations hinders the pace of the transformation process, either directly or indirectly. Such heavy investments could also add to the economic burden of debt-ridden governments or local municipal authorities, which adversely affects future general budgets. Government regulatory authorities are forced to monetize these systems and ensure significant RoI before considering new technology deployments, such as IoT. Hence, the cost incurred in transforming the existing infrastructure acts as a deterrent for governments to continue large-scale investments. Though smarter infrastructure helps reduce the operating costs and increase efficiency, the initial costs required pose a major barrier.
The demand for cloud-based services, analytics, and internet technologies is increasing due to their efficient IT management and reliable security environment. The big data cloud model is unarguably the biggest opportunity until now for rail transportation to embrace the changing structure of data and maximize its use. It offers the potential for a vast shift for all rail management companies, empowering them to enhance both the rail infrastructure and operations. With the rapid increase in big data applications, the level of complexity is also expected to increase due to the increasing data, emerging technologies, and growing need to optimize cost-efficiency. These factors are expected to influence the growth of new analytics platforms and data storage.
Railway technology systems are an integration of different technology elements, such as hardware, software, and network, which can sometimes be complex to configure. The integration of different hardware devices, along with the rail asset management software, over the legacy system infrastructure may become complex. Without a strong preexisting IT ecosystem and skilled personnel, the implementation of the digital infrastructure is difficult. Railway operators can do a complete overhaul of the IT system; however, costs incurred in such an overhaul would take a significant amount of time to realize.
Legacy systems are often unable to integrate with new generation smart devices due to protocol issues. These systems are not capable enough to communicate efficiently with technologically advanced systems. As most of the developing countries are still relying on their legacy infrastructure, these integration complexities are expected to hinder the market growth in developing regions in the coming years. IT and network security restrictions to reduce privacy intrusion and data breaches are projected to be some of the major challenges to the growth of the rail asset management market.
Under the deployment mode segment, the cloud is expected to grow at a higher growth rate during the forecast period due to its scalability and flexibility. Cloud solutions enable railway companies to avoid costs related to hardware, software, storage, and technical staff. Cloud-based platforms offer a unified way in the form of SaaS-based security services to secure business applications. These platforms are beneficial for organizations that have budget constraints for investment purposes. The cloud deployment mode is growing in the railway industry, as cloud-based asset management solutions are easy to maintain and upgrade. Moreover, the market for cloud deployment mode is expected to grow at a higher CAGR as cloud-based rail asset management solutions can process sensitive data of an enterprise in a cost-effective manner.
Under the solutions segment, the asset performance management solution is expected to hold a larger market size during the forecast period. APM is a software solution that helps optimize railway industry processes, minimizes costs, and maximizes productivity by reducing the downtime of assets and operating them to attain their peak performance. APM integrates data from financial databases and operational control systems to gain more insights about the rail assets. This solution provides accurate information to all stakeholders at the right time, which helps them make timely decisions to improve the efficiency of plant operations. With in-built software dashboards and advanced analytics , one can continuously monitor performance, schedule maintenance and operations, conduct “what-if” scenarios, assign resources to various activities, take actions directly, or raise alarms in case of asset failures or accidents, and analyze historical data. APM offers various benefits, such as improved capacity and utilization, operational visibility and analysis, proactive solutions for asset failure situations, safety assurance, management of all assets from a single platform, the extension of assets’ life, as well as improved returns on assets.
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Countries from Western Europe, such as the UK, France, and Germany, have well-established railway infrastructure, and various railway operators in this region use some advanced rail asset management solutions. European countries have been investing majorly in the modernization and upgradation of their existing rail infrastructure. Social and trade agreements among the EU countries have promoted large-scale, cross-border trade, and passenger traffic in Europe. The high growth of the adoption of rail asset management solutions is expected in the region, especially in communication technology, as the European Telecommunications Standards Institute (ETSI) has formed a separate committee to focus on the Machine-to-Machine (M2M) communication privacy standardization and high trading standard.
The report includes the study of key players offering rail asset management solutions and services. It profiles major vendors in the global rail asset Management market. The major vendors include Siemens (Germany), Alstom (France), Hitachi (Japan), Wabtec (US), IBM (US), SAP (Germany), Capgemini (France), Cisco (US), Huawei (China), Accenture (Ireland), Trimble (US), Bentley Systems (US), Atkins (UK), DXC (US), Trapeze Group (Canada), Tego (US), KONUX (Germany), L&T Technology Services (India), Cyient (India), Assetic (Australia), Machines With Vision (UK), Uptake (US), Delphisonic (US), ZEDAS (Germany), OXplus (Netherlands), and WSP (Canada). These players have adopted various strategies to grow in the global rail asset management market.
The study includes an in-depth competitive analysis of these key players in the rail asset management market with their company profiles, recent developments, and key market strategies.
Report Metrics
Details
Market size available for years
2016 – 2026
Base year considered
2020
Forecast period
2021-2026
Forecast units
Value (USD Billion)
Segments covered
Offering (Solutions and Services), Solutions (Asset performance management (Condition monitoring and predictive maintenance), analytics, asset planning and scheduling, security, workforce management, network management, others), Services (managed services, professional services ( consulting, system integration and deployment, support and maintenence)), Deployment mode (Cloud and On-Premises), Application (Rolling stock and Infrastructure), and Region
Regions covered
North America, Europe, APAC, MEA, and Latin America
Companies covered
Siemens (Germany), Alstom (France), Hitachi (Japan), Wabtec (US), IBM (US), SAP (Germany), Capgemini (France), Cisco (US), Huawei (China), Accenture (Ireland), Trimble (US), Bentley Systems (US), Atkins (UK), DXC (US), Trapeze Group (Canada), Tego (US), KONUX (Germany), L&T Technology Services (India), Cyient (India), Assetic (Australia), Machines With Vision (UK), Uptake (US), Delphisonic (US), ZEDAS (Germany), OXplus (Netherlands), and WSP (Canada)
This research report categorizes the rail asset management market to forecast revenue and analyze trends in each of the following submarkets:
The global market of rail asset management is projected to reach $13.2 billion.
The global rail asset management market is projected to grow at a Compound Annual Growth Rate (CAGR) of 5.6% from 2021 to 2026.
European countries have been investing majorly in the modernization and upgradation of their existing rail infrastructure. Social and trade agreements among the EU countries have promoted large-scale, cross-border trade, and passenger traffic in Europe. The high growth of the adoption of rail asset management solutions is expected in the region, especially in communication technology, as the European Telecommunications Standards Institute (ETSI) has formed a separate committee to focus on the Machine-to-Machine (M2M) communication privacy standardization and high trading standard.
Major vendors in the rail asset management market are Siemens (Germany), Alstom (France), Hitachi (Japan), Wabtec (US), IBM (US), SAP (Germany), Capgemini (France), Cisco (US), Huawei (China), Accenture (Ireland), Trimble (US), Bentley Systems (US), Atkins (UK), DXC Technology (US), Trapeze Group (Canada), L&T Technology Services (India), and Cyient (India). .
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