Train Control Management System (TCMS) Market by Component (Vehicle Control Unit, Mobile Communication Gateway, Human–Machine Interface), by Train Type (Metro & High-Speed Train, EMU, DMU), by Solution (CBTC, PTC, ITC), by Network (MVB, ECN, WTB), by Geography (U.S., Canada, Mexico, Germany, U.K., France, Italy, Spain, Netherlands, China, Japan, India, South Korea, Brazil, South Africa, Russia, U.A.E.) – Global Market Size, Share, Development, Growth, and Demand Forecast, 2013–2023

Train Control Management System Market Overview

The global train control management system market is expected to reach $4.9 billion by 2023, registering a CAGR of 8.8% during the forecast period. The market has witnessed significant growth in the recent past, much of which can be attributed to the rise in demand for safety and security in railway systems, rapidly increasing urban population, advancements in the rail technology, and infrastructural growth.

GLOBAL TRAIN CONTROL MANAGEMENT SYSTEM MARKET, BY TRAIN TYPE, $M (2013–2023)

Based on component, the train control management system market has been categorized into vehicle control unit, mobile communication gateway, human–machine interface (HMI), and others. Of these, the vehicle control unit category contributed the largest revenue to the market in 2017. It is expected to continue holding the largest market share in the coming years as well; however, it is the mobile communication gateway category that is expected to witness faster market growth, as compared to other categories, during the forecast period. This can be attributed to the benefits offered by mobile communication gateway, such as better operational efficiency, enhanced safety and security, and on-board video surveillance feature, which will continue contributing to the market growth of this category in the near future.

On the basis of train type, the train control management system market has been classified into metro and high-speed train, electric multiple unit (EMU), and diesel multiple unit (DMU). The category of metros and high-speed trains led the market in 2017, accounting for a market share of over 50% in terms of revenue. The category is expected to continue dominating the market during the forecast period as well, owing to the increasing demand for rapid transit systems with enhanced comfort, speed, and safety features.

By solution, the train control management system market has been categorized into communication-based train control (CBTC), positive train control (PTC), and integrated train control (ITC). CBTC solutions held the largest share in the market in 2017. However, of all three categories, the fastest market growth during the forecast period is expected from PTC solutions. This can be mainly attributed to the benefits offered by PTC solutions, such as line capacity enhancement, improved service, and higher fuel savings.

Europe contributed the largest revenue to the global train control management system market during the historical period, accounting for over 45% share in 2017. However, during the forecast period, the market is expected to witness the fastest growth in the Rest of the World (RoW) region. The market growth in the RoW region can be mainly attributed to the rapid urbanization in the developing countries of the region and the growing demand for train control management system in countries such as Russia and the U.A.E.

Train Control Management System Market Dynamics

Drivers

The growth of the train control management system market is primarily driven by the increasing demand for safety and security in railway systems, rapid urbanization, advancements in the rail technology, and infrastructural development. With advancements in technology, the incorporation of high-speed rails and metros has been on the rise across the globe. These rails operate at relatively higher speeds as compared to traditional rails, with some capable of running at a speed of more than 200 kilometers per hour. In light of the high-speed feature offered by these mass rapid transit systems, the concern for human safety and security seems natural. This has generated the need for having efficient control and management systems in these rails, thus driving the growth of the train control management system market.

Also, rapid urbanization has significantly improved the standard of living around the world, especially in developing countries. With urbanization on the rise, the need for fast and efficient means of transportation has grown more than ever. It is due to this reason that the governments around the world are inclined toward deploying high-speed trains and metros to fulfil the need for mass transit transportation that is both time-saving and cost-effective. Train control management system is an integral component of these railway systems. With the governments either adopting train management solutions for their new rapid transit systems or upgrading their existing train systems to incorporate these solutions, the growth of the train control management system market is being positively affected.

Restraint

The major factor hindering the growth of the train control management system market is the high infrastructure and maintenance costs. The installation of the train control management system is complex, as it requires integration of several hardware components as per their technological compatibility. This installation or integration further requires adequate infrastructure. This makes the adoption of this system in conventional train systems difficult. Besides, the projects for metros and high-speed trains are very costly. Apart from the infrastructure, the maintenance cost of these systems is quite high. Thus, the high infrastructure and maintenance costs of these systems limit their adoption to some extent, thereby affecting their market growth.

Train Control Management System Market Competitive Landscape

The train control management system market is dominated by a few established players. In order to expand their operations to new markets, these companies are taking strategic measures in the form of mergers and acquisitions, partnerships, and business expansions through product additions in their portfolios. Besides, to gain a competitive edge over others, companies in the market are focusing on improving their existing product framework and also working in collaboration with other market players. Some of the major players operating in the train control management system market are Alstom S.A., Bombardier Inc., Toshiba Corporation, Siemens AG, Construcciones y Auxiliar de Ferrocarriles S.A., China Railway Signal & Communication Corporation Limited, and Knorr-Bremse AG.