Increasing use of railway transportation as a time-saving, low-cost, and safe transportation option is anticipated to drive the global communication-based train control (CBTC) system market is slated to increase at 11.5% CAGR during 2021-2031.
According to Fact.MR, the market is poised to surpass $ 3.2 billion in 2020 and will reach $ 10.4 billion by 2031.
The research company said that there a significant rise in rail accidents during the last few years. According to the National Crime Records Bureau report, around 70 fatalities were reported across India every day due to train-related accidents in 2019.
The adoption of advanced technologies such as CBTC systems has surged to improve the efficiency of railway transportation and make it safer. Driven by this, sales of CBTC systems are estimated to more than triple through 2031.
Governments of various countries are investing extensively in the expansion of railway infrastructure, Fact.MR said. According to the India Brand Equity Foundation, the government of India allocated $ 15.19 billion to the Ministry of Railways to develop advanced railway infrastructure. Government funding towards integrating the latest technologies in railway infrastructure will aid the overall expansion of the market.
Some of the leading players in the market include Thales Group, Siemens Mobility, ABB, Lockheed Martin, Alstom, Hitachi, Kyosan, Tech Mahindra, Toshiba, Argenia Railway Technologies, Critical Software, Wabtec, WAGO, WSP Global and Meteorcomm.
Metro Trains
The metro trains segment is projected to exhibit the highest growth in terms of train type, expanding at an impressive CAGR of 11.2% through 2031.
According to Fact.MR analyst, the government's emphasis on integrating advanced sensor-based technologies such as CBTC systems to enhance operational efficiency, safeguard cargos from theft, and reduce the number of train accidents, is expected to bode well for the market.
Key Takeaways
The US is projected to hold an absolute dollar opportunity of $ 868.6 billion, exhibiting growth at a CAGR of 12.7% through 2031. China and Japan are estimated to cumulatively account for more than 75% of the revenue share in the East Asia market by 2031. India is expected to witness the fastest growth in South Asia & Oceania, expanding at a CAGR of 12% during the coming decade. Europe is forecast to emerge as the second-largest market for CBTC systems, accounting for nearly 1/3rd of the global sales over the forecast period. GoA2 is anticipated to hold a dominant share in the segment in terms of grade of automation, accounting for more than 1/4th of the overall demand through 2031.
According to Fact.MR, the key drivers for the market growth include the expansion of railway infrastructure to support metro trains across emerging countries such as India, China, France, and others, driving the CBTC systems sales.
Besides, rapid industrialisation and urbanisation are propelling the demand for new subway engines and building new railway lines to enhance transportation infrastructure, propelling the demand for CBTC systems.
However, the high initial cost and cost of maintenances of CBTC systems are hampering the market's growth. In addition, increasing shift towards high-speed trains to decrease the travel time across the US, Japan, the UK, Germany, and others is expected to hinder the sales of CBTC systems across metro trains segment, the research firm observed.
According to Fact.MR, the top five companies in the global communication-based train control system market, is estimated to account for more than 50% of the overall share by 2031.
Leading companies are focusing on adopting inorganic strategies such as agreement, collaboration, merger, and acquisition to enhance their product portfolio and increase their market share, the research firm added.
Courtesy: Fact.MR. NB: Photo is representational; courtesy: Wabtec & Siemens.