Wayside Control Market: Overview
The market size for Wayside Control was USD 982.5 billion in 2021, and it is projected to grow at a CAGR of 7.9 percent during the forecast period. The development of the train-to-wayside communication system, the launch of new rail services, and the rising need for improving current railway routes are anticipated to drive the worldwide wayside control market during the forecast period. The numerous benefits of side sophisticated technology systems have a favorable influence on the world economy. Additionally, intelligent communication solutions in various railway management applications help with issues related to rapid decision-making, such as asset deployment, utilization, and maintenance. To secure and guarantee safety, and uninterrupted services, contemporary railway operations depend on accurate and timely communication networks between stations. The global wayside control market is also anticipated to be further stimulated by increased consumer preference for public transportation services based on railroads to lessen traffic congestion. With more funding, developing nations like China and India are digitizing their train systems. For instance, the India Brand Equity Foundation estimates that India will spend US$124.13 billion on its railway sector from 2018 to 2022, up from US$18.8 billion in 2017. Several nations worldwide are working to increase their rail budgets to implement cutting-edge technologies, including rolling stock, wayside control systems, etc. For instance, the Canadian National Railway (CN) department reportedly invested over US$320 million in Ontario to improve the railway infrastructure. The market for wayside control systems is driven by rising budgets or investments in railroad construction. Due to a lack of coordinated planning, limited funding, and a significant knowledge gap, many developing nations worldwide suffer from inadequate rail infrastructure. As a result, countries like South Africa have a low rate of adopting cutting-edge technologies or digitalization in the railway industry. With the increase in sales of private vehicles, such as bikes and passenger automobiles, road traffic is becoming increasingly congested and may even become blocked. As a result of the extra time and money that roadblocks cause, direct costs associated with them are predicted to amount to about 2% of GDP.
Wayside Control Market: COVID-19 Impact
The COVID-19 outbreak has severely hit the railway industry. The COVID-19 epidemic has had a huge negative influence on the digital railway because of the boundary closures and social distancing laws. Compared to public transportation, there has been a change in mobility behavior, with a rise in the usage of private vehicles. The main reason for the decline in rail transportation usage is the growing number of people working from home. Regional, long-distance and urban rail ridership is expected to fall by 35% in 2020 due to global partial and total lockout orders.
Wayside Control Market: Drivers
Budget Increase for Railway Development to Drive Market Growth
Modernizing a nation's infrastructure and bolstering its supply chains need significant investment. It makes transportation of people and commodities more time and cost-effective and reduces congestion. Governments from all around the world have announced plans to expand the technological capabilities and infrastructure of the railways. Investments in new technology and safety breakthroughs also improve and expand passenger rail and high-speed rail. These aspects are advantageous to the rail sector, which drives the demand for wayside controllers.
Developing nations with larger budgets, like India, are motivated to digitalize their railway infrastructure. For instance, according to information gathered, the Indian Railways' financial allotment for the year 2022–23 was US$ 18,247.7 Mn, which is 27.5% more than the US$ 14,307.1 Mn allotted for the year 2021–22. To support small enterprises and the supply chain, the Indian government is also investing in the rail sector to promote the "One Station-One Product" concept. Governments in industrialized nations, including the U.S., are spending money to restore the nation's rail infrastructure, strengthen the supply chain, increase manufacturing capacity, and reduce traffic and air pollution on the roads, all supporting economic growth.
Emerging Nations' Inclination Toward High-Speed Rail Driving Market Growth
The need for rail transportation is expanding quickly. If we consider the current developments in the rail business, passenger and freight activity is predicted to quadruple over the next few years. The wayside monitoring and diagnostic system may benefit from the resulting social and economic advancement and the possible possibility. Future demand for quick and efficient mobility is predicted to diversify, increasing the role of rail in global transportation. For instance, China intends to increase its high-speed rail network to 50,000 km by 2025, equivalent to the length of the world's top countries by network size (Spain, Japan, France, Germany, and Finland). High-speed rail is a good substitute for flying since it helps cities with air pollution and traffic problems. China has a substantial penetration of high-speed rail and has surpassed all other nations in terms of network size. High-speed rail in developing economies has great potential due to rising government efforts, increased demand for high-speed trains due to their capacity to travel longer distances more quickly, and expansion of the tourism industry.
Wayside Control Market: Restraints
Expensive Installation and Additional Costs to Hamper Market Growth
With the high cost of their components, such as compressors, condensers, and evaporators, Wayside Control often has a high installation cost. The pricey control systems employed in modern refrigeration systems also increase the installation cost. In addition, certain hydrocarbons and ammonia are caustic and flammable refrigerants. Similarly, breathing in excessive ammonia levels is poisonous and potentially fatal. Therefore, when dealing with ammonia-based refrigeration systems, safety equipment is needed. Along with the installation cost, additional expenses like routine maintenance, staff training, and the high energy cost further raise overall operating costs, limiting market expansion.
Wayside Control Market: Segment Overview
Railway to Dominate Market due to Secure and Safer Rail System
The demand for a secure and safer rail system, the surge in demand for such a system, and a large increase in government spending on rail expansion is anticipated to propel the global wayside control system market during the forecast period. Companies that provide traffic management systems may also profit from wayside control systems. Market participants are also concentrating on enhancing the rail infrastructure. Players in the wayside control industry should have plenty of opportunities as the use of metros and high-speed trains increases, as does the need for autonomous train technologies.
With Increased Ongoing Improvements and Customised Features, Services Category Dominated Market
In the forecast period, the services segment held the largest market share, and it is anticipated that it will continue to rule the market during the forecast period. Coordinated services a service provider that remotely maintains the customer's IT infrastructure receives some IT activities from doing. One of the key aspects that will drive the expansion of the digital railway industry is organizations' need to maximize resource usage. Managed services offer ongoing improvements and customized features to satisfy clients' increasing demands. Because of this, businesses are quickly outsourcing their work to managed service providers. The vendors that make up the managed service providers come from various industries, including SIs and VARs, as well as specialist managed service providers.
Wayside Control Market: Regional Landscape
Europe to Dominate Market due to Increase in Government Measures to Update Rail Infrastructure
During the forecast period, Europe is expected to lead the global market for wayside controls. The region's market is driven by increased government measures to update rail infrastructure by installing a wayside train monitoring system and signaling system. The market in the region is anticipated to be stimulated by rising awareness among government regulatory authorities to incorporate autonomous train technology. The United Kingdom and Germany are anticipated to hold a significant portion of the global market. This results from the lucrative presence of major market participants who concentrate on creating eco-friendly and sustainable mobility solutions in these nations. A noticeable growth rate in the wayside control market in the Asia Pacific is anticipated throughout the projected period. The area will hold a larger part of the global market for wayside control systems in the coming years due to governmental organizations' increased attention to the rail network's operation and the adoption of emission-free forms of public transportation and freight transport.
Due to the rising need for energy-efficient transportation, which suggests potential growth for the wayside control systems market, North America is expected to have a significant part of the global wayside control systems market during the forecast period. The region's market for wayside control systems is probably driven by rising investments in the expansion of railway networks, particularly in the U.K. and Germany. Due to increased government investment in the electrification of railway lines, which is anticipated to promote the adoption of wayside control systems in the region, North America is projected to be a quickly expanding region of the global wayside control systems market during the forecast period.
Global Wayside Control Market: Competitive Landscape
In August 2022, ABB joined forces with the American software company Red Hat. The goal of this agreement was to give businesses using ABB's process automation and industrial software the flexibility and speed to scale that they need to use Red Hat's leading enterprise platforms and application services built on Red Hat Enterprise Linux. Additionally, the agreement enables Red Hat OpenShift to give expanded flexibility in hardware deployment, optimized for application requirements, through containerization and virtualization of automation software. Moreover, in January 2021, Alstom SA acquired Bombardier Transportation to bolster its position in the rapidly growing mobility business and provide integrated solutions to clients worldwide. Alstom SA focuses on the acquisition and seeks to create cutting-edge, environmentally friendly mobility solutions to suit the transportation industry's demands and enhance trains' performance.
Some of the Wayside Control Market players include Advantech Co., Ltd, Bombardier, and Kyosan Electric Mfg. Co., Ltd, LILEE Systems, Alstom, Siemens Ag, MEN Mikro Elektronik GmbH,Wabtec Corporation.
Regional Classification of the Global Wayside Control Market is Described Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability
Key Elements Included In The Study: Global Wayside Control Market
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