Rail Asset Management Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)
The rail asset management market is anticipated to reach a CAGR of 6.2% during the forecast period (2022-2027). Global trends such as automation technologies to improve optimization, government initiatives, connectivity, sustainability, energy-saving, and rapid urbanization in developing & underdeveloped countries are expected to be the main drivers of market growth.
New York, June 20, 2023 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Rail Asset Management Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)" - https://www.reportlinker.com/p06469596/?utm_source=GNW*Key Highlights*
The world population is predicted to reach 9.8 billion by 2050, with cities accommodating 75% of the people. As a result, it has become critical for public institutions to ensure that the transportation sector, particularly the rail network, is prepared to fulfill expanding connectivity requirements. Furthermore, the growing trend of smart cities is propelling the growth of the rail asset management system market.
The railway sector significantly impacts a country’s economic and financial status. It provides transport service to billions of passengers, freights daily, and earns enormous income. Because of the simplicity and comfort of transportation, the reliance on trains for passengers and products is rapidly increasing, which requires a Rail Asset management system to maintain rail infrastructure, resulting in market growth.
Governments across the globe are investing in Rail projects to expand their connectivity and improve the infrastructre facilities expected to drive demand for the rail asset management market. For example, According to the International Railway Journal (IRJ), the Norwegian government has set aside USD 3.51 billion for railway infrastructure development, operations, and maintenance in 2021, a 20% increase over the previous year.
Moreover, The Indian government has proposed two significant measures to attract private investment: running passenger trains on the Indian Railways network by private operators and rebuilding railway stations around the country. According to Indian Railways, these projects have the potential to generate approximately USD 7.5 billion in investment over the next five years. Furthermore, the Federation of Indian Industry (FII) reports that Indian Railways intends to invest USD 4 billion in world-class private passenger trains.
Due to the ongoing COVID-19 pandemic, the automotive and transportation industries are among the hardest afflicted vertical industries, suffering massive losses due to global lockdowns, resulting in low growth until the industry recovers.
Rail Asset Management Market Trends
Increase in Government Initiatives and Public-Private Partnership Model
Most countries invest in rail infrastructure to give their citizens a seamless experience via railways. Railways also assist governments in lowering the cost of transferring passengers and goods due to the massive carrying capacity they provide in a single run. The expanding dependence on trains puts further strain on the current rail system. As a result of system wear and tear, breakdowns, damages, and repair demands, this causes a slew of unplanned and unscheduled maintenance for both rolling stock and infrastructure.
Rising government investments in rail infrastructure and digitization initiatives worldwide are expected to drive the rail asset management market demand. The growth of rail services demands the optimization of existing passenger and freight schedules to achieve higher output.
The Asian Infrastructure Investment Bank (AIIB) assists the Turkish government in financing infrastructure for Tomorrow (i4t) projects that aim to improve rail transport safety, passenger and freight capacity, and speed between Turkey and the European Union. The AIIB has approved a EUR 300 million loan for the Ispartakule-Cerkezkoy Railway Project to support rail transport construction.
Additionally, in 2021, Deutsche Bahn, the federal and state governments announced that they would invest EUR 12.7 billion in Germany’s rail network, which covers 1,900km of track, more than 2,000 points, around 140 bridges, and roughly 670 stations.
Moreover, in January 2021, OBB planned to invest EUR 2.13 billion in infrastructure rail projects in the Vienna region, Burgenland, Lower Austria, Styria, Carinthia, Salzburg, and Upper Austria.
Asia-Pacific is Expected to Witness Strong Growth in the Rail Asset Management Market
As a result of growing urbanization in countries such as India, Asia Pacific is predicted to be the dominating region in the global rail asset management market, contributing significantly to the area’s growth.
The Asia-Pacific region is expected to account for the highest growth due to the growing adoption of new technologies and increased investment in digital transformation. Furthermore, GDP growth in Australia, Singapore, China, Korea, Hong Kong, and India stimulates market expansion.
According to Railway Technology, Eight of the top 10 most expensive rail construction projects for 2021 are in Asia, demonstrating the continent’s appetite for rail megaprojects. High-speed rail is included in half of the top 10 most expensive rail megaprojects in 2021, all situated in Asia.
Some of the mega projects taking place in Asia include the Chengdu-Chongqing Railway Passenger Dedicated Line Co., which is constructing a 292km railway line with a designed speed of 350kmph, an investment of USD 10.7 billion, and the Mumbai-Ahmedabad High-Speed Corridor project, India, which accounts for USD 17 billion, the China-Nepal Railway, China, which accounts for USD 29 billion, and the Chennai Metro Rail Phase II, India, which accounts for USD 8.4 billion.
Moreover, Chongqing Rail Transit Co. is building a 71.53km metro rail line from Cengjia Station West to Liangjiang Film and Television City Station in Chongqing, China, with a USD 7.6 billion investment. The project intends to expand the region’s existing urban rail systems and reduce travel time. The Chongqing Metro Line 15 development project entails building 25 stations, control rooms, and parking facilities. Safety and lighting systems, as well as electrical equipment, will be installed.
Rail Asset Management Industry Overview
The global rail asset management market is moderately competitive and consists of many major players. In terms of market share, a few major players dominate the market. However, with the advancement in network connectivity, strategic partnerships, mergers & acquisitions, and advanced technological growth, most companies are expanding their market presence across emerging markets.
March 2022 - Hitachi Rail has announced that its state-of-the-art USD 70 million factories in Washington County, Maryland, will be the site of the new fleet of 8000-series railcars for the Washington Metropolitan Area Transit Authority (Metro). The new factory will build modern railcars for the Washington DC region and will have the capacity to serve the larger North American railway market, representing a significant expansion of Hitachi Rail’s presence in the US.
September 2021 - Siemens Mobility, along with consortium partners Orascom Construction and The Arab Contractors, has signed a contract with the Egyptian National Authority for Tunnels (NAT), a governmental authority under Egypt’s Ministry of Transport, to create the world’s sixth-largest high-speed rail system. The Siemens Mobility portion of the combined contract is 8.1 billion EUR, including the 2.7 billion EUR initial contract.
*Additional Benefits:*
The market estimate (ME) sheet in Excel format
3 months of analyst support
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