ResearchAndMarkets.com’s "Global Smart Railways Market Size, Market Share, Application Analysis, Regional Outlook, Growth Trends, Key Players, Competitive Strategies and Forecasts, 2018 To 2026" estimates the smart railways market at $11.67 billion in 2017.
Asia Pacific will be one of the most important markets for investments in coming years with governments playing an instrumental role in funding these projects.
The smart railways market is expected to grow at a compounded annual growth rate (CAGR) of 15.2% during the forecast period from 2018 to 2026, with railway modernization programs driving much of this growth.
According to the report, governments across several countries, in order to provide a premium travel experience and increase the safety and security of the passengers are investing on smart railway solutions. Another factor is the rise in terrorist attacks on smart railways.
Technological advancements have further enabled railways to take advantage of Big Data and IoT in order to understand and develop insights pertaining to traveller behaviour. These factors expected to create positive demand for smart railway components and solutions in the years to come.
However, high initial cost of deployment remains a major restraint for the market to flourish. This factor prevents large scale adoption of these technologies particularly in developing countries. Problems related to theft of multimedia devices on trains in these countries remains another major challenge for the smart railways market.
For instance, focusing on the lack of security in trains, Indian Railways has now started accelerating the process of installing CCTV surveillance cameras in trains. The plan includes installation of 12 lakh surveillance cameras in all trains and stations across the country. This factor is creating positive growth opportunities for the smart railways market to flourish in the region.