The Digital Railway: Revolutionizing the Future of
Transportation
In the past decade, there has been a significant shift
towards digitalization and automation in various industries. Transportation is
no exception, as the railway sector is now embracing digital technologies to
improve operations, enhance safety, and provide passengers with a more
convenient travel experience. This transformation is commonly known as the
Digital Railway.
The Digital Railway is an integrated system of digital
technologies and infrastructure that aims to make railway operations more
efficient and reliable. It involves the use of data analytics, sensors,
artificial intelligence, and other advanced technologies to monitor and manage
railway assets, such as tracks, trains, and stations, in real-time. With the
Digital Railway, rail companies can optimize their operations, reduce
maintenance costs, and improve safety, which ultimately benefits both
passengers and the environment.
One of the main benefits of the Digital Railway is increased
efficiency. By using real-time data, rail companies can optimize train
schedules, reduce waiting times, and improve the overall performance of their
operations. This means that passengers can travel faster, with fewer delays,
and have a more enjoyable experience. Additionally, the Digital Railway can
help rail companies save on maintenance costs, as it enables them to detect and
fix issues before they become major problems.
Another significant advantage of the Digital Railway is
enhanced safety. With the use of sensors and AI, rail companies can monitor
trains and tracks in real-time, and identify potential safety hazards before
they cause accidents. This technology also enables companies to improve their
response times in case of emergencies, such as derailments or collisions.
Ultimately, the Digital Railway is expected to reduce the number of accidents
on the railways and make rail travel safer for everyone.
In addition to these benefits, the Digital Railway also has
a positive impact on the environment. By optimizing operations and reducing
delays, rail companies can reduce their carbon emissions and make rail travel
more sustainable. This is particularly important, given the growing concern
over climate change and the need for more eco-friendly transportation options.
However, the implementation of the Digital Railway is not
without its challenges. One of the main issues is the cost of implementing such
technology, which can be significant. Additionally, there may be concerns over
privacy and security, as the Digital Railway involves the collection and
analysis of large amounts of data. Finally, there may be resistance from
workers in the railway industry, who may fear that digital technologies will
replace their jobs.
Despite these challenges, the Digital Railway is an
important step towards the future of transportation. By embracing digital
technologies, rail companies can improve their operations, enhance safety, and
provide passengers with a better travel experience. As such, it is crucial that
the industry continues to invest in and develop the Digital Railway, while
addressing the challenges that come with it. In doing so, we can create a more
efficient, sustainable, and safe railway system for the future.
Digital Railway Market Dynamics
Drivers in Digital
Railway Market
The global digital railway market is being driven by a surge
in passenger numbers across various countries in recent years. For instance,
Germany and France have reported significant increases in railway passengers in
Q3 2021 compared to the same period in 2020. To efficiently manage this
increased passenger traffic, railway operators are seeking digital railway
solutions like traffic management, passenger information systems, and passenger
analytics. These solutions enhance railway operations' efficiency and provide
customers with an improved travel experience. The demand for effective
transportation options due to the increase in passenger numbers is compelling
countries to develop their digital railway infrastructure. Governments are making
growing investments to increase the infrastructure of digital railways, driving
the market growth rate.
Restraints in Digital
Railway Market
However, underdeveloped countries, including Albania,
Uruguay, Nigeria, Colombia, and Uganda, still lack a strong railway
infrastructure, and investing in this infrastructure remains a priority for
them. Advanced digital technologies require strong rail and communication
infrastructure, making it challenging for countries lacking such infrastructure
to adopt digital railway solutions. Furthermore, some digital solutions, such
as traffic management and passenger analytics, are only efficient when applied
on a certain scale. As such, underdeveloped countries lacking strong railway
and communication infrastructure are unlikely to adopt digital railway
solutions in the near future.
To construct a smarter and digital railway infrastructure,
railway experts require efficient and advanced digital railway solutions. The
'remote monitoring' segment is the fastest-growing solution segment, as these
systems can monitor rail system health, temperature, rail tension, and engine
health. Rapid industrialization, growing population, and the rising need for
transporting heavy goods across distant locations are increasing the demand for
digital railway transportation worldwide. Nonetheless, the high cost associated
with advanced technology used in digital railway can limit the market's growth,
as railway operators face the challenge of balancing cost-cutting measures and
technological advancements.
Opportunity: Meeting
the Growing Demand for Advanced Transportation Infrastructure
The effects of globalization have had a significant impact
on all forms of railway transportation, leading to an increasing demand for
faster, safer, and more reliable services. As a result, the future of railway
transportation must provide solutions that cater to the needs of customers,
from their point of origin to their destination, with a high level of service
regardless of the distance traveled or the number of steps required to reach
their final destination. The demands of customers are continuously evolving,
and as such, there is a need for more accessible travel solutions. Intelligent
solutions, such as asset management and advanced control systems, offer
real-time information that can be used to monitor schedule adherence and
identify the condition of engines, wagons, and railway infrastructure. With
proactive scheduling, downtime can be reduced, and efficiency increased. The
increasing demand for faster, more reliable, and secure railway transportation
as a result of globalization offers significant opportunities for market
growth, and the upcoming railway transportation ecosystem must provide
solutions that meet these demands. Several European countries have invested
heavily in the modernization and upgradation of their rail infrastructure. The
social and trade agreements between European Union (EU) countries have promoted
cross-border trade and passenger traffic, leading to significant development in
the region, especially in communication technology. The European
Telecommunications Standards Institute (ETSI) has established a dedicated
committee focused on standardizing the privacy of Machine-to-Machine (M2M)
communication and high trading standards. With the introduction of new freight
and passenger management systems, the dynamics of the rail industry in Europe
are changing. Many European countries are expected to adopt new digital railway
solutions to enhance the efficiency of their existing infrastructure. In
November 2021, the UK government announced a USD 126 billion investment in rail
infrastructure to provide faster and better journeys to more people across the
country. This investment represents a significant opportunity for companies
developing advanced connected rail solutions.
Challenge:
Cybersecurity Risks in an Increasingly Digital Railway System0
0As railway systems have become more digitized, a
significant amount of train and passenger data is transmitted to the operating
center. Data stored on servers or in transit is vulnerable to cyberattacks from
hackers looking to gain access to sensitive information. One example of this
occurred in August 2019 when Transport for London's (TfL) site was temporarily
suspended to protect customer data after identifying malicious activity that
affected the accounts of 1,200 customers. With the increased use of digital
systems in train operations, cyber attackers have greater access to train
functionalities, which can result in significant damages. Cybersecurity risks
in highly digitalized railway operations can be more severe than those in train
operations with fewer digital components. As such, it is critical to implement
robust cybersecurity measures to prevent cyberattacks and protect sensitive
information.
Ecosystem of Digital Railway Market
During the forecast period, the predictive maintenance segment
is expected to experience the highest CAGR among solutions. Predictive
maintenance techniques are designed to assess the state of in-service equipment
and estimate when maintenance should be performed. This strategy offers cost
savings over routine or time-based preventive maintenance because maintenance
is performed only when necessary. It is known as condition-based maintenance
and is performed based on estimates of the degradation of an item. The railway
industry is increasingly using predictive maintenance solutions to extend the
life of assets and improve rail operations and safety. Predictive maintenance
solutions can access multiple data sources in real-time and are capable of
predicting asset failure and quality issues. This helps reduce unplanned
downtime and maintenance costs. A machine failure and the associated time and
repair costs significantly hamper the operational chain of asset-intensive
industries. Predictive maintenance plays a critical role in the railway
industry by alerting operating engineers in advance of machine failures or
performance degradation.
During the forecast period, the managed services segment is
expected to experience the highest CAGR among services. Managed services are
when certain IT operations are outsourced to a service provider who remotely
maintains the customer's IT infrastructure. The need to optimize resource
utilization is one of the main factors driving the growth of the digital
railway market. Managed services provide continuous upgrades and customized features
to meet customers' ever-growing demands. As a result, businesses are rapidly
outsourcing their tasks to managed service providers. Managed service providers
include vendors from various backgrounds, ranging from specialized managed
service providers to SIs and VARs.
The Passenger Information Systems segment is projected to
experience the highest compound annual growth rate (CAGR) during the forecast
period. Passenger Information Systems are essential communication tools for
transportation operators and passengers. They include real-time train tracking,
travel planning, route information and scheduling, online connectivity
solutions, passenger infotainment, and fixed installations such as stations and
depots. PIS architecture spans across three different environments - rails,
fixed installations, and a centralized control center - and is mutually shared
with security, control and monitoring, and network functionalities. The system
is scalable to accommodate a growing rail network and plays a critical role in
enhancing passenger satisfaction by providing reliable, safe, and accurate
information on arrival and departure times.
The Asia Pacific region is expected to be the
fastest-growing region in the digital railway market due to the adoption of new
technologies, increased investments in digital transformation, and growth in
GDP in Asia Pacific countries. The region includes economies such as Australia,
Singapore, China, Korea, Hong Kong, and India, which are investing heavily in
technological transformation. The high population growth rate in the region has
driven the need for transformation and expansion of the existing rail
infrastructure. Additionally, the region offers untapped potential markets,
high penetration of advanced technologies, growing freight usage in various
industries, and economic developments and government regulations that are
expected to drive the digital railway market growth at the highest rate in Asia
Pacific during the forecast period.
Key Players in Digital Railway Market
- ABB
- ALSTOM
- ASSETIC
- ATKINS
- BOMBARDIER
- CISCO
- DELPHISONIC
- DXC
- FUJITSU
- HITACHI
- HUAWEI
- IBM
- INDRA
- KONUX
- MACHINES WITH VISION
- NOKIA
- OXPLUS
- PASSIO TECHNOLOGIES
- R2P
- SIEMENS
- SIMPLEWAY
- TEGO
- THALES
- TOSHIBA
- UPTAKE
- WABTEC
- ZEDAS
Recent Developments in the Digital Railway Market
Several developments in the digital railway market have
taken place recently. In December 2021, Siemens collaborated with VGF in
Germany to develop a Digital Train Control System that is expected to replace
conventional train control systems used in metro and tram networks. The system
aims to increase capacity and efficiency in train routes, particularly in
underground sections.
In November 2021, ABB Ability OneBox - Marine Signals
Monitoring was launched to provide ship owners with data about ship performance,
helping them improve efficiency, reduce fuel consumption, and cut emissions.
OneBox also helps owners meet the International Maritime Organization's
decarbonization requirements for existing ships.
In October 2021, Deutsche Bahn and Siemens Mobility developed
the world's first fully automated and digitally-controlled train as part of the
Digital S-Bahn Hamburg project. This train requires no human interference,
making it a significant development in the field.
In March 2021, Thales launched new digital rail solutions
aimed at improving operational efficiency and passenger experience for greener
mobility. The solution helps transport passengers safely, reduce up to 15% of
CO2 emissions from metro and stations, and optimize transport service
efficiency.
Also in March 2021, Thales launched SelTracTM Generation 8
(G8), a CBTC solution for urban, metro, and light rail networks. The solution's
features include a new digital architecture with enhanced services and autonomy
capabilities, providing flexibility and evolution capabilities while
maintaining passenger safety and reducing installation and lifecycle costs
through the latest technologies.
The digital railway market has undergone significant
developments in recent years. The increasing adoption of smart technologies and
the need to modernize railway infrastructure to enhance operational efficiency
and passenger safety have been the key drivers of growth in this market.
One of the recent developments in the digital railway market
is the adoption of predictive maintenance solutions. These solutions are
designed to analyze the real-time data collected from trains, tracks, and other
critical components of the railway system, to detect anomalies and predict
potential failures. Predictive maintenance helps reduce unplanned downtime and
maintenance costs while extending the life of assets. Many railway operators
have already deployed predictive maintenance solutions and are reaping the
benefits of improved operational efficiency and reduced maintenance costs.
Another significant development in the digital railway
market is the adoption of advanced signaling and control systems. These systems
use advanced communication technologies to optimize train movement and enhance
passenger safety. Advanced signaling and control systems can detect trains'
position and speed, automatically adjust train speed, and detect potential
collisions. Railway operators can use these systems to improve the capacity and
reliability of their networks while reducing the risk of accidents.
The digital railway market has also seen significant
developments in the field of passenger information systems. These systems use
real-time data and analytics to provide passengers with accurate and up-to-date
information about train schedules, delays, and disruptions. Railway operators
can use these systems to improve customer satisfaction and loyalty, reduce
passenger complaints, and enhance the overall passenger experience.
Finally, the adoption of smart ticketing solutions is
another recent development in the digital railway market. Smart ticketing
solutions use contactless smart cards or mobile apps to allow passengers to
purchase and validate tickets. These solutions can reduce ticketing fraud,
improve revenue collection, and provide railway operators with valuable data on
passenger behavior and preferences.
In conclusion, the digital railway market has undergone
significant developments in recent years, with the adoption of predictive
maintenance solutions, advanced signaling and control systems, passenger
information systems, and smart ticketing solutions. The continued adoption of
smart technologies and the modernization of railway infrastructure are expected
to drive further growth in this market in the coming years.