The installed base of tracking devices for rail freight wagons is by the end of 2029, forecasted to reach 1.3 million units, a CAGR of 11.2 per cent, according to Berg Insight.

The market for real-time tracking for locomotives, multiple units and rail wagons is forecasted to grow substantially during the coming years. The installed base of tracking devices on rail freight wagons reached 775,000 units worldwide at the end of 2024.

Annual shipments are estimated to grow from 150,000 units in 2024 to around 360,000 units in 2029. The penetration of tracking devices within the rail freight wagon segment reached 14.5 per cent worldwide at the end of 2024. This figure is estimated to reach 23.3 percent at the end of 2029.

Tracking for rail freight wagons is provided mainly by specialist telematics providers offering aftermarket products. Leading providers in this space include European companies Nexxiot (Switzerland), Dot Telematik and Systemtechnik (Austria), Siemens Mobility (Germany), Savvy Telematic Systems (Switzerland), Intermodal Telematics (Belgium), Level Systems (Czech Republic) and Cargomon Systems (Austria) as well as the North American companies Amsted Rail (USA) and Blackberry (Canada).

Modern locomotives and passenger trains typically include some type of tracking and monitoring technology as standard. The large OEMs, such as Alstom, Siemens Mobility, CAF, Hitachi Rail and Stadler Rail, develop connected technology for their trains. Several specialist telematics and on-board train technology companies provide aftermarket products, offering hardware and software that enable remote monitoring of the location and health of locomotives and multiple units.

Companies in this category include the European firms EKE-Electronics (Finland), HaslerRail (Switzerland), Nomad Digital (UK) and Railnova (Belgium), and North American companies Railhead (USA), Wi-Tronix (USA), Quester Tangent (Canada) and ZTR Control Systems (Canada).

“Digitalisation is critical for the railway industry to better compete with road and other transport modes,” said Martin Apelgren, principal analyst at Berg Insight.

Equipping locomotives, multiple units and wagons with telematics devices and sensors enables not only reduced operational costs for rolling stock operators and owners but also more reliable and safer transport. It also enables rail operators to provide better services to shippers, such as more accurate ETAs and instant notifications in case of delays or disruptions during transport.

“Stakeholders in the rail transport industry are increasingly aware of the benefits of real-time data on rolling stock location and condition, and the adoption of telematics will grow rapidly in the coming years,” said Apelgren.

Download the report brochure at media.berginsight.com/2025/05/21171007/bi-railway1-ps.pdf.