Rail Asset Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Rail Asset Management Market is segmented By Deployment (On-Premises, Cloud), By Application (Rolling Stock, Infrastructure), and By Geography.

Market Snapshot

rail asset management market size
Study Period: 2020-2027
Base Year: 2021
Fastest Growing Market: Asia-Pacific
Largest Market: North America
CAGR: 6.2 %
rail asset management market share

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Market Overview

The rail asset management market is anticipated to reach a CAGR of 6.2% during the forecast period (2022-2027). Global trends such as automation technologies to improve optimization, government initiatives, connectivity, sustainability, energy-saving, and rapid urbanization in developing & underdeveloped countries are expected to be the main drivers of market growth.

  • The world population is predicted to reach 9.8 billion by 2050, with cities accommodating 75% of the people. As a result, it has become critical for public institutions to ensure that the transportation sector, particularly the rail network, is prepared to fulfill expanding connectivity requirements. Furthermore, the growing trend of smart cities is propelling the growth of the rail asset management system market.
  • The railway sector significantly impacts a country's economic and financial status. It provides transport service to billions of passengers, freights daily, and earns enormous income. Because of the simplicity and comfort of transportation, the reliance on trains for passengers and products is rapidly increasing, which requires a Rail Asset management system to maintain rail infrastructure, resulting in market growth.
  • Governments across the globe are investing in Rail projects to expand their connectivity and improve the infrastructre facilities expected to drive demand for the rail asset management market. For example, According to the International Railway Journal (IRJ), the Norwegian government has set aside USD 3.51 billion for railway infrastructure development, operations, and maintenance in 2021, a 20% increase over the previous year.
  • Moreover, The Indian government has proposed two significant measures to attract private investment: running passenger trains on the Indian Railways network by private operators and rebuilding railway stations around the country. According to Indian Railways, these projects have the potential to generate approximately USD 7.5 billion in investment over the next five years. Furthermore, the Federation of Indian Industry (FII) reports that Indian Railways intends to invest USD 4 billion in world-class private passenger trains.
  • Due to the ongoing COVID-19 pandemic, the automotive and transportation industries are among the hardest afflicted vertical industries, suffering massive losses due to global lockdowns, resulting in low growth until the industry recovers.

Scope of the Report

The rail asset management system includes solutions for enhanced rail system management. It has operations such as operation management, traffic planning, maintenance and support, power supply and infrastructure management, rail-facility information management, station control, and communication network. Furthermore, these systems offer efficient asset scheduling and timely asset monitoring, which reduces downtime.

Rail Asset Management Market is segmented By Deployment (On-Premises, Cloud), By Application (Rolling Stock, Infrastructure), and By Geography.

By Deployment
On-Premises
Cloud
By Application
Rolling Stock
Infrastuctre
By Geography
North America
U.S.
Canada
Europe
UK
France
Germany
Asia-Pacific
China
India
Japan
Latin America
Middle East and Africa

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Key Market Trends

Increase in Government Initiatives and Public-Private Partnership Model

  • Most countries invest in rail infrastructure to give their citizens a seamless experience via railways. Railways also assist governments in lowering the cost of transferring passengers and goods due to the massive carrying capacity they provide in a single run. The expanding dependence on trains puts further strain on the current rail system. As a result of system wear and tear, breakdowns, damages, and repair demands, this causes a slew of unplanned and unscheduled maintenance for both rolling stock and infrastructure.
  • Rising government investments in rail infrastructure and digitization initiatives worldwide are expected to drive the rail asset management market demand. The growth of rail services demands the optimization of existing passenger and freight schedules to achieve higher output.
  • The Asian Infrastructure Investment Bank (AIIB) assists the Turkish government in financing infrastructure for Tomorrow (i4t) projects that aim to improve rail transport safety, passenger and freight capacity, and speed between Turkey and the European Union. The AIIB has approved a EUR 300 million loan for the Ispartakule-Cerkezkoy Railway Project to support rail transport construction.
  • Additionally, in 2021, Deutsche Bahn, the federal and state governments announced that they would invest EUR 12.7 billion in Germany's rail network, which covers 1,900km of track, more than 2,000 points, around 140 bridges, and roughly 670 stations.
  • Moreover, in January 2021, OBB planned to invest EUR 2.13 billion in infrastructure rail projects in the Vienna region, Burgenland, Lower Austria, Styria, Carinthia, Salzburg, and Upper Austria.
rail asset management market trends

Asia-Pacific is Expected to Witness Strong Growth in the Rail Asset Management Market

  • As a result of growing urbanization in countries such as India, Asia Pacific is predicted to be the dominating region in the global rail asset management market, contributing significantly to the area's growth.
  • The Asia-Pacific region is expected to account for the highest growth due to the growing adoption of new technologies and increased investment in digital transformation. Furthermore, GDP growth in Australia, Singapore, China, Korea, Hong Kong, and India stimulates market expansion.
  • According to Railway Technology, Eight of the top 10 most expensive rail construction projects for 2021 are in Asia, demonstrating the continent's appetite for rail megaprojects. High-speed rail is included in half of the top 10 most expensive rail megaprojects in 2021, all situated in Asia.
  • Some of the mega projects taking place in Asia include the Chengdu-Chongqing Railway Passenger Dedicated Line Co., which is constructing a 292km railway line with a designed speed of 350kmph, an investment of USD 10.7 billion, and the Mumbai-Ahmedabad High-Speed Corridor project, India, which accounts for USD 17 billion, the China-Nepal Railway, China, which accounts for USD 29 billion, and the Chennai Metro Rail Phase II, India, which accounts for USD 8.4 billion.
  • Moreover, Chongqing Rail Transit Co. is building a 71.53km metro rail line from Cengjia Station West to Liangjiang Film and Television City Station in Chongqing, China, with a USD 7.6 billion investment. The project intends to expand the region's existing urban rail systems and reduce travel time. The Chongqing Metro Line 15 development project entails building 25 stations, control rooms, and parking facilities. Safety and lighting systems, as well as electrical equipment, will be installed.
rail asset management market forecast

Competitive Landscape

The global rail asset management market is moderately competitive and consists of many major players. In terms of market share, a few major players dominate the market. However, with the advancement in network connectivity, strategic partnerships, mergers & acquisitions, and advanced technological growth, most companies are expanding their market presence across emerging markets.

  • March 2022 - Hitachi Rail has announced that its state-of-the-art USD 70 million factories in Washington County, Maryland, will be the site of the new fleet of 8000-series railcars for the Washington Metropolitan Area Transit Authority (Metro). The new factory will build modern railcars for the Washington DC region and will have the capacity to serve the larger North American railway market, representing a significant expansion of Hitachi Rail's presence in the US.
  • September 2021 - Siemens Mobility, along with consortium partners Orascom Construction and The Arab Contractors, has signed a contract with the Egyptian National Authority for Tunnels (NAT), a governmental authority under Egypt's Ministry of Transport, to create the world's sixth-largest high-speed rail system. The Siemens Mobility portion of the combined contract is 8.1 billion EUR, including the 2.7 billion EUR initial contract.

Recent Development

  • March 2022 - Alstom announced the establishment of a new green rail mobility innovation center at its Americas headquarters in St-Bruno-de-Montarville, Quebec, Canada. The major aim of the innovation center will be to develop future platforms for green hybrid, battery, or hydrogen propulsion technologies specifically targeted at the North American rail freight and passenger market, thereby meeting the sector's decarbonization needs.
  • June 2022 - Siemens Smart Infrastructure (SI), the significant provider of digital buildings, has agreed to purchase Brightly Software, a prominent software-as-a-service (SaaS) supplier of asset and maintenance management solutions based in the United States. The acquisition propels SI to the forefront of the software market for buildings and built infrastructure. The purchasing price is USD 1.57 billion.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definitions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHT

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness-Porter's Five Force Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers/Consumers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Assessment of COVID-19 Impact on the market - By Major Countries

    4. 4.4 Technology Outlook

      1. 4.4.1 Increasing Demand for Advanced transportation infrastructure

      2. 4.4.2 Smart Cities are Gaining Traction

    5. 4.5 Rail Infrastructure Investment Outlook (Provides coverage on major countries' spending on Railway infrastructure)

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Growing Demand for Effective Rail Operations

      2. 5.1.2 Increase in Government Initiatives and Public-Private Partnership Model

      3. 5.1.3 Rapid Urbanization in Developing and Underdeveloped Countries

    2. 5.2 Market Challenges

      1. 5.2.1 High Initial Deployment Costs

      2. 5.2.2 Difficulties with Legacy Infrastructure Integration

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Deployment

      1. 6.1.1 On-Premises

      2. 6.1.2 Cloud

    2. 6.2 By Application

      1. 6.2.1 Rolling Stock

      2. 6.2.2 Infrastuctre

    3. 6.3 By Geography

      1. 6.3.1 North America

        1. 6.3.1.1 U.S.

        2. 6.3.1.2 Canada

      2. 6.3.2 Europe

        1. 6.3.2.1 UK

        2. 6.3.2.2 France

        3. 6.3.2.3 Germany

      3. 6.3.3 Asia-Pacific

        1. 6.3.3.1 China

        2. 6.3.3.2 India

        3. 6.3.3.3 Japan

      4. 6.3.4 Latin America

      5. 6.3.5 Middle East and Africa

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Siemens

      2. 7.1.2 Hitachi, Ltd.

      3. 7.1.3 Alstom

      4. 7.1.4 IBM Corporation

      5. 7.1.5 Wabtec Corporation

      6. 7.1.6 SAP SE

      7. 7.1.7 Capgemini SE

      8. 7.1.8 Cisco Systems, Inc.

      9. 7.1.9 Huawei Technologies Co.

      10. 7.1.10 Accenture plc

      11. 7.1.11 Trimble Inc.

      12. 7.1.12 Bentley Systems

      13. 7.1.13 Atkins

      14. 7.1.14 DXC Technology

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OUTLOOK OF THE MARKET

**Subject to Availability

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Frequently Asked Questions

The Rail Asset Management Market market is studied from 2020 - 2027.

The Rail Asset Management Market is growing at a CAGR of 6.2% over the next 5 years.

Asia-Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2021.

Siemens, Hitachi, Ltd., Alstom , IBM Corporation, Wabtec Corporation are the major companies operating in Rail Asset Management Market .

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