The global connected railway market is set to increase 6.1% from $88.82bn in 2023 to an estimated $94.25bn this year, according to Research & Markets.

The growth can be largely attributed to a surge in the adoption of IoT technologies, a push for enhanced last-kilometre trade connectivity, the pursuit of operational efficiencies within the rail sector, and the prioritisation of smart railway systems.

Looking ahead to 2028, forecasts remain optimistic with the connected rail market expected to reach a value of $120.05bn at a CAGR of 6.2%. The forthcoming years will see a continued growth trend fuelled by smart transportation initiatives, advancements in automation within the automotive sector, and a growing integration of embedded systems in electric and hybrid vehicles.

Rail electrification advancements, continuous product innovations and technological breakthroughs, alongside mergers and acquisitions, are anticipated to propel the market forward.

Government initiatives across the globe are playing a significant role in the connected rail market’s expansion, contributing to the overarching goal of developing more efficient, safe and sustainable transportation systems. For example, significant investments such as the UK government’s November 2023 allocation of funds to rail infrastructure spotlight the importance of these initiatives in driving market growth.

Leading market players are focusing on technological advancements to maintain their competitive edge, with fully autonomous railway systems emerging as a key area of innovation. Recent developments include autonomous urban railway systems, exemplified by Hitachi’s launch of the Honolulu Skyline, which showcases safety features and aims to alleviate urban traffic issues.

In corporate developments, notable acquisitions such as that of Bombardier by Alstom demonstrate the ongoing efforts by major companies to strengthen their positions in the connected rail market by expanding product offerings and enhancing research and development potential.

The connected rail market is characterised by a global spread of corporations operating across key regions, with North America capturing the largest market share in 2023. Yet, it is the Asia-Pacific region that is projected to experience the most rapid growth over the forecast period.

The report covers diverse geographic regions, illustrating the worldwide impact of the connected rail market. The market’s scope includes an array of services and technologies such as data management, cyber security and tracking sensors.

In summation, the connected rail market’s prospects point to a dynamic industry landscape marked by growth, innovation and government-supported advancements, which are collectively moving the sector towards a more connected and efficient future.

Companies mentioned in the report include Russian Railways, Huawei, Hitachi, General Electric, Siemens, IBM, Cisco, Deutsche Bahn, ABB, Toshiba, Nokia, Union Pacific Railroad, BNSF Railway, Thales, CSX, Network Rail, Canadian National Railway, Norfolk Southern, Central Japan Railway, Alstom, Wabtec, Bombardier, Trimble, Ansaldo STS and Australian Rail Track.

For more information about this report visit www.researchandmarkets.com/reports/5991093/connected-rail-global-market-report.