Autonomous Trains Market to Grow at an Estimated CAGR of 5.5% During the Forecast Period 2023-2031

25 Jan 2023

During the period between 2024 and 2032, the market for autonomous trains is anticipated to expand at a CAGR of 5.5%. Asia-Pacific is anticipated to lead the market for autonomous trains during the forecast period, followed by Europe. There is an urgent need to construct faster, more efficient, and more dependable transportation systems due to the increase in traffic congestion in urban areas around the world. It is anticipated that technological breakthroughs and their integration with transportation systems, such as artificial intelligence and machine learning, will contribute to market growth in the coming years. Modern digital technologies such as 5G, big data, the Internet of Things, automation, artificial intelligence, and blockchain are driving a similar shift inside the railway industry.

Due to the enormous number of commuters who travel by train, commuter safety plays a key part in rail transit. As the global number of railtravelers rises, rail operators must emphasize safety in order to continue operations without suffering penalties from regulators. Real-time monitoring and video surveillance in railway stations and on trains can play a crucial role in strengthening situational awareness and enabling a speedier, more proactive incident reaction time, hence improving passenger safety. In addition to station and train safety, rail safety is of paramount importance. Software businesses have developed communication systems that utilize wireless technologies to transmit data between vehicles and infrastructure, such as railway traffic signals, crossroads & stop signs, warning gates, etc., for a smarter and safer transportation network. In addition, technologies are being developed to warn drivers of impending collisions. Consequently, solutions that can further streamline operational requirements such as signaling, control, electrification, voice communication, video, and bulk data transfer will unquestionably play an essential part in enhancing rail safety. Through communication between integrated systems and applications, such as real-time traffic alerts, collision avoidance systems, and crash notification systems, these technologies offer substantial safety advantages. Multiple technological characteristics, including data transmission, tracking, mobility, and sensors, are required for the effective implementation of railway projects. Rapid breakthroughs in these domains in recent years have facilitated improved object communication, resulting in the emergence of smarter ecosystems. IP version 6 (IPv6) allowed practically all physical objects to connect to the internet. As communication technology has advanced over time, so have the benefits of implementing digital solutions in the railway business.

Globalization and urbanization have contributed to an increase in the need for freight and cargo transportation. Moreover, it has boosted the demand for enhanced mobility solutions. A more compact and linked world has boosted the demand for autonomous train transit. Consequently, a driver shortage is predicted to emerge in the near future. It is anticipated that this will add to the market need for autonomous trains for the foreseeable future. In addition, growing tailpipe emissions and the developing trend of electrification are anticipated to fuel the global growth of the market for autonomous trains.

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In undeveloped nations, the weak telecommunications infrastructure and restricted access to smart devices hinder the market for autonomous trains. Internet access which is expensive is another barrier to the development of autonomous trains. In an effort to decrease complications and costs, standardization across data standards, wireless protocols, and technologies have become increasingly diverse as organizations implement IoT technologies, explore ambient computing technology, and provide a variety of IoT solutions. This is a result of the increasing number of newly developed connected devices that run on diverse platforms and technologies. Autonomous Trains are challenging to operate concurrently, providing obstacles to interoperability. Networks connect several systems and solutions, including asset management systems, operations management systems, traffic management systems, and control systems. These solutions adhere to the same defined standards and methodology. Thus, it is projected that the lack of standards and protocols will be a substantial market hurdle for autonomous trains.

Increasing urbanization is the driving force behind the creation of intelligent cities. Governments in numerous regions have launched smart city initiatives to enhance infrastructure and services and streamline public transportation (including rail and road) for the benefit of end-users. Japan possesses one of the world's most extensive high-speed rail networks, with nine high-speed train lines serving 22 of its major cities. The nation's high-speed train service is the busiest in the world, transporting more than 420 thousand passengers per workday on average. Its trains can reach speeds of up to 320 kilometers per hour (200 miles per hour), yet the railway claims that no passengers have been killed or wounded in over 50 years of operation. China's high-speed rail development has surged during the past 15 years. China began planning its current high-speed rail network in the early 1990s, in imitation of Japan's Shinkansen system. In 2008, the Chinese high-speed rail service commenced operation, moving between 250 km/h and 350 km/h (217 mph) between Beijing and Tianjin (117 km or 73 miles). China's HSR network is expected to exceed 38,000 kilometers by 2025, and eventually 45,000 kilometers.

High automation capital costs, a lack of key infrastructure, and the threat of cyberattacks are obstacles associated with deploying autonomous trains and achieving full automation. It is projected that achieving the level of full automation for autonomous trains will be more difficult in countries where several passenger and freight operators must share the same rail tracks, where trains have varying weights and types, and where there are numerous yards and connections. Therefore, the operation of autonomous trains is dependent on the availability of a solid safety infrastructure.

During the forecast period, the metro/monorail train segment is anticipated to grow at the largest CAGR, 7.5%. Due to increased passenger and train safety concerns, the metro/monorail railway segment is expected to be the fastest-growing industry. Due to the train's high-speed relative to conventional trains, safety considerations are increased. The rise of the autonomous high-speed rail/bullet train sector is predicted to be encouraged by lower operating expenses. During the time of projection, it is predicted that the light rail line will expand significantly. It is projected that this category's demand will rise due to a growth in demand for various urban transit alternatives, including tram systems.

The GoA4 sector is expected to grow at a CAGR of 7% throughout the period forecast, holding the largest market share. Because autonomous trains equipped with GoA4 are totally automatic, this market segment is predicted to grow at the quickest rate. Shift2Rail is one of the companies developing automated railway operations. Shift2Rail focuses on automated train operations (ATO) in light of the European Rail Traffic Management System (ERTMS), which will expand and improve rail transportation throughout Europe. GoA4 train testing is anticipated to commence in 2023 as the GoA4 implementation program nears completion.

The Passenger segment is expected to grow at a CAGR of 6.5% between 2024 and 2032, making it the market leader. As passenger trains are the most common form of public transportation, there is a large global demand for them. Currently, rail is one of the most energy-efficient forms of transportation, moving 7% of all freight and 8% of all motorized passengers while consuming only 2% of the required energy for transportation. Conducting experiments of driverless passenger trains on a global scale. Deutsche Bahn and Siemens introduced the nation's first driverless train in October 2021. The train will pass through the city of Hamburg. It is anticipated that this train will provide dependable service without requiring costly infrastructure modifications.

Due to the need to monitor trains for safety considerations, it is predicted that the camera segment would account for the largest proportion of the autonomous train market by component during the forecast period. Moreover, cameras can be installed externally on a train to assist train operators in checking that doorways are clear, so preventing accidents. Monitoring the pantograph, which is crucial for the functioning of a train that draws power from an overhead line, is also facilitated by cameras. When train operators have access to clear footage of the pantograph, it is easy to determine the reason and time for the pantograph failure. From an estimated 386 thousand units in 2023, this market is projected to reach 650 thousand units by 2030.

The CBTC sector is anticipated to grow at a CAGR of 6% over the forecast period, making it the dominant segment in the market. Communication-based train control (CBTC) is the use of telecommunications between track equipment and trains to manage infrastructure and traffic. CBTC systems provide a more precise awareness of the position of a train than conventional signaling systems. The administration of rail traffic is made more secure and efficient. Metros and other rail systems are able to increase headways while preserving or enhancing safety. In contemporary CBTC systems, trains continuously compute and broadcast status updates via radio to roadside infrastructure along the route. This status takes into account, among other factors, the precise position, speed, direction of movement, and stopping distance. This information enables the estimation of the possible track space occupied by the train.

In the Asia-Pacific region, the metro building is accelerating. Due to increased infrastructure developments, rising government expenditure in the transportation sector, and ongoing/upcoming projects in a number of countries, the Asia-Pacific region is the largest and fastest-growing region for the global autonomous train industry. Increasing levels of automation and the need for efficient and safe transportation are expected to be the key factors driving the market for autonomous trains. Multiple categories of trains with varying degrees of automation have been introduced by market leaders who have realized the potential of autonomous trains. In November 2021, Alstom unveiled its Innovia monorail trains on Wuhu Rail Transit's Line 1 in Anhui Province, China. The new monorail will be elevated and equipped with automatic train operation (ATO) grade of operation 4 (GoA4), allowing it to operate without a driver or attendant.

Europe holds the second-largest market share and is anticipated to reach $4000 million by 2030, expanding at a CAGR of 6.2%. Europe boasts one of the world's largest rail networks. The growth of the European market for autonomous trains is fueled by future railway projects and technologies. Train travel is prevalent in various nations, including Germany. The predominance of train stations in the country's major cities and towns is indicative of the popularity of train travel. There is a preference for train travel over other types of transportation, such as buses. Federal law in Germany limits peak bus speeds to 100 km/h (62 mph), although "low-speed" trains can reach 160 km/h (100 mph) (99 mph). These factors increase the demand for railroads in Europe, hence enhancing the autonomous train market in that region.

Alstom (France), Siemens (Germany), Hitachi (Japan), Wabtec Corporation (United States), and Thales Group (France) control the majority of the global market for autonomous trains (France). These firms have global distribution networks that are robust. In addition, these companies provide an extensive range of items in this industry. To preserve their market position, these firms have utilized innovative product development and strategic collaborations. Autonomous train industry leaders are implementing new technologies and concentrating on mergers, acquisitions, and product portfolio expansion. ABB, Alstom, American Equipment Company, Beijing Traffic Control Technology, Belden, Bharat Forge, Bombardier, CAF, Calamp, CRRC, Deuta, Deutsche Bahn, General Electric, Hitachi, Hollysys, Ingeteam, Intesens, Kawasaki Heavy Industries, Mitsubishi Heavy Industries, Siemens, Tech Mahindra Ltd., Thales Group, Transmashholding, Tvema, and Wabtec Corporation are among the leading companies in the

Key advancements in the global industry for autonomous trains include the following:

  • In January 2023, Hitachi was awarded a contract for an autonomous metro system in Saudi Arabia. Hitachi Rail would operate and maintain the trains and infrastructure of the entire autonomous metro system. The 22 two-carriage automated metro trains with a passenger capacity of 110 may reach speeds of up to 60 kilometers per hour.
  • Siemens AG and Deutsche Bahn began investigating the sensor integration function and how it performs as a driver assistance system to prevent collisions in varying weather conditions in August 2021.
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