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Digitalisation of Railways to Drive Sharp Increase in Adoption of Connected Trains and Fleet Telematics
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On-board connectivity and access to online services to improve passenger rail traffic and optimise freight management, predicts Frost & Sullivan

LONDON, Sept. 12, 2019 /PRNewswire/ -- áThe demand for digitalisation of rail systems to enhance customer convenience is rapidly increasing across both freight and passenger operations. Widespread usage of telematics, predictive analysis, sensor technology, and IoT integration has the potential to increase passenger traffic and freight movement, and lead to additional infrastructure construction and rolling stock builds. A recent analysis by Frost & Sullivan predicts that digitalisation will be one of the major factors driving a 15.2% increase in global passenger traffic and a 19% increase in global freight traffic by 2025.

"European freight operators are retrofitting their large fleets of freight locomotives and wagons with advanced sensor technology and telemetry to track the movement of freight cargo, and also monitor its temperature, humidity, and other factors to help optimise the transport and distribution process," said Guruguhan Nataraj, Senior Industry Analyst, Mobility, at Frost & Sullivan. "Digitalisation is set to improve the passenger experience through connectivity solutions such as on-board Wi-Fi, entertainment portals, and mobile networks. These aspects and future potential for upgrades are becoming an integral part of rolling stock production and railway infrastructural projects."

Frost & Sullivan's latest research, Global Rail Outlook, 2019, offers comprehensive insights into the rail industry's current trends and potential outcomes of recent developments, and provides strategic observations and region-specific growth information for stakeholders in this sector.

For further information on this analysis, please click here.

Electrification of railways is witnessing a global upswing, triggered by the move towards greener rail systems and air quality improvement. Replacement of diesel-powered locomotives with electric or alternative powertrains such as liquefied natural gas (LNG) and hydrogen power is growing in popularity, following the successful operations of hydrogen-powered rail vehicles in Germany. Europe and Asia are leaning towards complete electrification of passenger rail systems.

"Emerging countries in Asia, Africa, and Latin America should form public-private partnerships with major rolling stock manufacturers to further their plans of electrification," noted Nataraj. "For instance, India has partnered with Alstom, Siemens, and Bombardier to realise its plan of total electrification of passenger railways."

In North America, sales of high-powered Tier 4 locomotives are projected to improve as a significant number of units are nearing retirement. The European Union, on the other hand, is promoting electrification and greener rail systems, such as hybrid locomotives and hydrogen-powered trains. The Asia-Pacific and Latin American regions are slated to see higher uptake of multiple units, as well as witness growth in rail infrastructure.

Companies operating in this sector should leverage the growth opportunities in:

  • Entering public-private partnerships with governments for rail electrification projects.
  • Digitalising trains and railway infrastructure to improve passenger comfort and freight transportation.
  • Manufacturing locally to achieve significant cost savings in infrastructure, procurement of raw materials, labour, and operations.
  • Developing alternative sources of power for propulsion of rail vehicles, such as hydrogen fuel cell and LNG, to fill non-electrified railway routes which are impractical to electrify.

Global Rail Outlook, 2019, is part of Frost & Sullivan's Automotive & Transportation research and analyses available through the Frost & Sullivan Leadership Council, which helps organisations identify a continuous flow of growth opportunities to succeed in an unpredictable future.

About Frost & Sullivan

For over five decades, Frost & Sullivan has become world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success. Contact us: Start the discussion.

Global Rail Outlook, 2019
ME58-13

Contact:

Kristina Menzefricke
T: +44 (0) 208 996 8589
E: ákristina.menzefricke@frost.com
http://ww2.frost.com

á

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