Railway Telematics Market Growth and Business Opportunities 2028

Railway Telematics Industry Overview

The global railway telematics market size is expected to reach USD 18.82 billion by 2028, expanding at a CAGR of 7.5%, from 2021 to 2028, as per the research conducted by Grand View Research, Inc. Increasing government initiatives aimed at introducing smart railways, rapid urbanization, and the evolution of smart cities globally are some of the key factors driving the market growth. Governments across the globe are emphasizing smart city initiatives to speed up operational activities in public transport services and offer better infrastructure for transportation.

U.S. railway telematics market size, by solution, 2018 - 2028 (USD Billion)

Railway Telematics Market Segmentation

Grand View Research has segmented the global railway telematics market based on solution, railcar, component, and region:

Based on the Solution Insights, the market is segmented into Fleet Management, Automatic Stock Control, Remote Data Access, Railcar Tracking and Tracing, Others.

  • The fleet management segment dominated the market in 2020 and accounted for more than 32.0% of the revenue share. The rapid increase in the demand for telematics solutions in industries such as BFSI and healthcare is anticipated to fuel the segment’s growth.
  • The railcar tracking and tracing segment is anticipated to expand at the highest CAGR of 8.2% over the forecast period. The growth can be attributed to the surge in demand for predictive maintenance of freight wagons to identify operational issues. Railcar operators need to observe the progress of transport using different intermodal systems that comply with maintenance and safety regulations and ensure that wagons are reliable and can meet personnel costs. To make processes more economical, industries such as healthcare and logistics adopt railcar tracking and tracing solutions, thereby favoring the growth prospects of the segment.

Based on the Railcar Insights, the market is segmented into Hoppers, Tank Cars, Well Cars, Boxcars, Refrigerated Boxcars, Others.

  • The hoppers segment dominated the market in 2020 and accounted for more than 23.3% revenue share. The segment is anticipated to gain significant traction and retain dominance over the forecast period. Hopper railcars help in freight activities and transportation of bulk commodities, including grain, coal, and ore. The growing demand for transporting and tracking consignments across various logistics and freight transportation organizations is expected to drive the demand for hopper railcars.
  • The refrigerated boxcars segment is projected to expand at the highest CAGR of 8.4% from 2021 to 2028. The increasing demand for refrigerated boxcars in various verticals, including healthcare, chemicals, and food and beverage, to transport goods is contributing to the growth of the segment. Refrigerated boxcars are designed and developed to carry perishable products at a specific temperature.

Based on the Component Type Insights, the market is segmented into Telematics Control Unit and Sensors.

  • The telematics control unit segment accounted for 56.48% of the overall market in 2020. A telematics control unit offers solutions for two-way control and tracking of railcars. It also provides integrated and complete fleet monitoring solutions for logistics and transportation, allowing the real-time control and visibility of transport assets as they move through the supply chain. The introduction of advanced TCUs in railcars is allowing for increased profitability, safety, and maintenance.
  • The sensors segment is anticipated to grow at a CAGR of 8.6% over the forecast period. The growth can be attributed to the notable rise in government initiatives and investment in the development of smart railway infrastructure. Sensors assist in data gathering and monitoring, signaling, and rail tracking and tracing.

Railway Telematics Regional Outlook

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

Key Companies Profile & Market Share Insights

Market players also focus on initiatives such as new product launches and joint ventures, to enhance their position in the market.

Some of the prominent players operating in the global railway telematics market include,

  • Siemens AG
  • Hitachi Ltd.
  • Alstom SA
  • Knorr-Bremse AG
  • Robert Bosch GmbH

Order a free sample PDF of the Railway Telematics Market Intelligence Study, published by Grand View Research.

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