Smart technology is proving revolutionary for many industries including automotive and transportation segments. Growth in the global population and rising dependency on various transportation systems like railways, roads and airlines have put pressure on the efficiency and contribution of the existing systems. Hence manufacturers in various transportation industries have started adopting smart technology, which helps in automation, management and development of the existing transport channels and seeks betterment with use of modern infrastructure. Railway is one of the most feasible transport systems of the world, which is gaining popularity with rising demand and use on global level. The global market of smart railways is gaining immense popularity with its influence in the emerging regions of the world.
Drivers for Smart Railway Market
Conventional infrastructure of the railways puts limitations on reliability, efficiency, and security of goods and manpower. Hence, industry players and governments from across the world are looking to adopt modern, simplified, and advanced technologies to leapfrog the current practices within the market. Advanced technologies that are currently used in the market are too complex, which again limits the basic function – data sharing. Apart from that, increasing pressure on the existing systems is also straining the systems already existing in the industry. All these factors are working a trigger for increasing adoption of smart railways technology.
Global smart railways market is also driven by emerging markets such as Asia Pacific, Latin America, Middle East and Africa. Asia Pacific is significantly emerging as the dominating region for the industry for the next few years to come. Explosive growth in population and increasing strain on the existing transport infrastructure is encouraging the developing countries like India and China to adopt smart railways for better control, management and efficient transportation of the goods and manpower. Thanks to various drivers, the future of rail industry is expected to be highly dependent on advanced technologies.
According to the market research reports, the global market of smart railways is estimated to grow at an impressive CAGR of over 26% from 2013 to 2018. At the projected compound annual growth rate, the market will grow past $12.30 billion in 2013 to become worth $39.20 billion by the end of 2018. Rising expenses on overall rail spending, boom across regional economies like Asia Pacific, Europe, and Middle East and Africa will also create strong upsurge in demand and innovation within the global market. Mature markets of North America on the other hand will look to upgrade the existing infrastructures and promote sustainability and environmental awareness.