Train Control and Management Systems Market

Train Control and Management Systems Market Outlook (2022-2031)

The global train control and management systems market stands at US$ 4.82 billion in 2022, and is projected to reach US$ 5.78 billion by the end of 2031.

Report Attributes	Details
Train Control and Management Systems Market Size (2022)	US$ 4.82 Bn
Projected Year Value (2031F)	US$ 5.78 Bn
Global Market Growth Rate (2022-2031)	2.1% CAGR
Key Companies Profiled	ABB General Electric Hitachi Ltd. Mitsubishi Electric Corporation Alstom SA Bombardier Inc. MEN Mikro Elektronik GmbH Siemens AG DEUTA-WERKE GmbH EKE Group Strukton Rail Toshiba Corporation Thales Group

Increasing focus on safety and optimization of transportation systems will majorly influence train control and management systems (TCMS) market potential over the coming years, with demand for train control and management systems set to increase at a CAGR of 2.1% from 2022 to 2031.

Train Control and Management System Demand Analysis (2017-2021) in Comparison to Market Growth Forecasts (2022-2031)

Trains have been an effective means of transport for quite a while and are still extensively used in multiple parts of the world. The majority of railway infrastructure in the world is based on old technologies, and hence, in need of an upgrade to meet modern-day safety and efficiency standards.

Train communication networks of the modern-day comprise multifunction vehicle buses and wired train buses to ensure connection to other vehicles and communicate effectively. Sales of vehicle control units, computer control units, and other train-borne systems are projected to rise as the focus on maximizing efficiency increases.

Innovations in technology and increasing digitization will also propel the demand for TCMS software as train control management systems see a hike in the integration of advanced digital technologies.

Governments across the world are investing in improving railway infrastructure by integration of new technologies. These efforts are also aimed at improving operational efficiency as well. Governments are also announcing new plans to develop technologically advanced trains and train monitoring systems.

• For instance, in December 2021, the National Railway Administration (NRA) of China unveiled a proposal of developing new maglev trains and vacuum tube trains that will be capable of running at speeds, as high as 600 km/h. China is aiming to advance its railway technology, and this proposal is anticipated to be realized in China’s 14th Five-Year Plan (2021-25).

However, high costs associated with the installation and maintenance of TCMS systems are expected to have a hampering effect on market growth potential. The complexity of train control and management solutions is also anticipated to slow down adoption over the years to come.

From 2022 to 2031, train control and management system consumption is predicted to expand at a sluggish CAGR of 2.1%.

What Factors are Adversely Influencing TCMS Market Growth Potential?

“High Costs of Installation & Maintenance Restraining TCMS Sales”

Train control and management systems are made up of multiple elements and an increased number of components increases the cost of the complete system.

This high cost acts as a restraining factor for the train control and management systems market growth and is expected to slow down the growth curve over the coming years.

High maintenance costs of these systems is also a factor that will constrain TCMS market growth through 2031.

“Complexity of TCMS Deployment & Installation”

Train control management systems are highly complex due to the presence of multiple components such as vehicle control units, computer control units, wired train buses, mobile communication gateways, etc.

These are advanced components and have a complex chain of working that makes it difficult to deploy, install, and maintain as well. This factor is expected to slow down TCMS market growth over the forecast period.

How Will the TCMS Market Perform across the European Region?

“Europe Projected to Account for Dominant Market Share”

Increasing adoption of communication-based train control (CBTC) systems and positive train control (PTC) systems in the region of Europe is projected to provide a lucrative setting for train control and management system market players in the years to come.

Supportive government initiatives and favorable policies are also anticipated to propel sales of train management systems across the forecast period. Germany, the United Kingdom, and France are expected to be leading markets in this region throughout the forecast period.

What is the Outlook Train Control and Management System Manufacturers in Asia?

“Increasing Investments in Railway Infrastructure Development to Boost Sales of TCMS Systems”

East Asia and South Asia are projected to emerge as rewarding markets for train control and management systems across the forecast period. The rising demand in these regions can be attributed to increasing investments in railways infrastructure development by economies such as India, China, and Japan. Increasing railways budgets in these economies will also favor shipments of train control and management devices throughout the forecast period.

Increasing urbanization in the aforementioned regions is also expected to positively influence sales of train control and management equipment such as multifunction vehicle buses, wired train buses, vehicle control units, etc.

Country-wise Insights

Should Train Control Management System Manufacturers Invest in China?

“Increasing Investments & Supportive Government Initiatives to Boost Growth”

China has made some huge strides in railway technology over the past years with notable advances such as super-fast Maglev trains leading the growth. Railway infrastructure development in China has been led by favorable government initiatives and increasing investments as well.

Efforts taken by the National Railway Administration (NRA) of China are also expected to boost shipments of TCMS systems in the nation. Train monitoring system manufacturers will see bright opportunities in China throughout the forecast period as these factors create a demand for TCMS software and train control management equipment.

Category-wise Insights

Which Train Type Will Account for High TCMS Demand through 2031?

“Metros & High-Speed Trains to See Lucrative Increase in Demand”

Technological advancements in transport have given birth to high-speed trains and the need for faster transport services has also substantially increased over the past years.

Increasing investments in the development of high-speed rail infrastructure on a global scale are expected to drive demand for high-speed trains and metros over the forecast period.

What Impact Did COVID-19 Have on TCMS Demand Growth?

The unprecedented outbreak of coronavirus infections in 2020 led to major changes in the world. Nationwide lockdowns were imposed to curb the spread of coronavirus infections and this led to the restricted activity which had an adverse impact on multiple businesses.

These restrictions also led to a downfall in the global train control and management systems market growth trend.

Closed borders and restrictions on travelling rendered train services useless which led to a substantial drop in utilization of train communication networks.

The TCMS market is anticipated to see a slow recovery in the post-pandemic era and train management system manufacturers are expected to adopt various strategies to boost growth and recover losses that were incurred in 2020.

Competitive Landscape :

TCMS suppliers are adopting new strategies to expand their business scope and focus on providing better products and services across the global landscape.

• In May 2021, Railinc, a raid data and messaging provider for North American freight railway, announced the rebranding of its new business unit as TransmetriQ.

Key Segments of Train Control and Management Systems Industry Research

• TCMS Market by Train Type :

  • Metros & High Speed Trains
  • Electric Multiple Units
  • Diesel Multiple Units

• TCMS Market by Component :

  • Computer Control Units
  • Modular Input/output Devices
  • Mobile Communication Gateways
  • Human Machine Interfaces
  • Others

• TCMS Market by Connectivity :

  • GSM-R
  • Wi-Fi
  • TETRA
  • Others

• TCMS Market by Solution Type :

  • PTC (Positive Train Control) Systems
  • Communication-based Train Control (CBTC)
  • Integrated Train Control

• TCMS Market by Region :

  • North America Train Control and Management Systems Market
  • Latin America Train Control and Management Systems Market
  • Europe Train Control and Management Systems Market
  • East Asia Train Control and Management Systems Market
  • South Asia & Oceania Train Control and Management Systems Market
  • MEA Train Control and Management Systems Market