Automatic Train Control Market Size

Automatic Train Control Market Analysis

The Automatic Train Control Market is expected to grow at a CAGR of 10.7% over the forecast period 2020 to 2025. Developing government assistance through providing funds for the building of technologically advanced trains pushes the automatic train control market globally. Furthermore, the increasing demand for pollution mitigation & rising demand for safety, hyper-urbanization, high demographic growth, technological advancements for improving passenger convenience, and increasing trend of smart cities are other fundamental factors propelling the global automatic train control market over the forecast period.

• Support and maintenance segment to expand at a higher growth rate during the forecast period. The support and maintenance services support the installed ATC system within the firm's infrastructure. The support and maintenance services include troubleshooting assistance, problem-solving, repairing, replacing old components, upgradation of the existing ATC solution, and testing scenario management, including facility inspection and training and round-the-clock support for ATC solutions.
• Growing standardization of rail signaling solutions is one of the most significant trends affecting the market today. Standardization enables suppliers to improve core, standards-based global architectures that both allow the interoperability required to meet local safety obligations and give a common, reliable platform for creating local solutions.
• Furthermore, the U.S. Department of Transportation (USDOT) is focusing on expanding rail lines in the Sonoma-Marin Area. For this project, FTA (Freight Transport Association) provided a USD 22.5 Mn fund to the rail ministry. China is projected to create a lucrative opportunity for the ATC market due to a Chinese company signing two rail projects with Brazil, to build two big-ticket railway-related infrastructure projects in eastern Brazil's Bahia state.
• For instance, countries like India, where Metro rail is going to be more than 70% of the railway market according to IBEF, have allowed 100% foreign direct investment in new rail sectors such as suburban corridors, high-speed train systems, and the freight line projects implemented through a public-private partnership.
• The US-based company SIL4 Systems develops onboard embedded control systems for enabling automatic train protection (ATP) and automatic train control (ATC). They offer a dual-purpose platform that houses an event recorder as well as allows for ATP and ATC. Further, they provide a range of vehicle communications such as dual WiFi, GPS, 3G, and dual Gigabit Ethernet (GbE) ports.
• Chinese suppliers are getting projects outside of China, while a group of smaller competitors is competing for pieces of each rail transport project, making for a crowded and competitive field. There is enormous potential for systems that meet the European Rail Traffic Management System (ERTMS) and Communication Based Traffic Control (CBTC) requirements.
• Nevertheless, the high initial investments and the necessity for regular maintenance may restrain the growth of the global automatic train control market in the coming years. However, the rising uptake of autonomous trains in densely populated Asian economies, like China and India, is expected to keep the automatic train control market running smoothly in the forthcoming years.