According to the communication-based train control (CBTC) system market analysis by a market research and competitive intelligence provider, the overall automatic train controller market is likely to be valued at US$25 Bn (€21.60 Bn) by 2031, with CBTC holding more than 40% market share.
Further, metro trains are anticipated to create US$4.1 Bn (€3.54 Bn) absolute dollar opportunity during the forecast period of 2021 to 2031.
Trains are the most energy-efficient mode of transportation and consume the least energy, which is around 3% as compared to motorised vehicles, and account for 9% and freight for 7% of global transport energy. Moreover, increasing rail passengers has created immense demand for low-cost, time-saving, and safe transportation.
Communication-based train control systems are widely used in modern trains such as metros, high-speed trains, etc., owing to which, demand has increased substantially in the past half-decade, at 5.3% CAGR.
Continuous capital investments in railway infrastructure development and building rail networks across developing countries are likely to drive demand for communication-based train control systems. South Asia & Oceania and the Middle East and Africa have higher spending on developing metro and fast train infrastructure, and will witness high market growth over the coming years.
Key Takeaways from market study
- The communication-based train control system market is anticipated to add 3.2X more value by 2031.
- Metro trains hold more than half of the global market share, and are set to create an absolute $ opportunity of around US$4.1 Bn (€3.54 Bn) by 2031.
- Among the grade of automation, GOA4 has been the fastest-growing segment and has captured around one-third market share.
- The East Asia market set to dominate revenue in 2021, where China and Japan are set to acquire more than 75% market share.
- The market of India and Malaysia is expected to dominate the South Asia region with more than two-fifth market share collectively.
- The market in North America is projected to grow 3.7X by 2031.
“High R&D on communication-based train control (CBTC) system technology is set to fill the gaps between technology and real-time data processing, aiding market growth,” says a senior research analyst.
Winning strategy
Market leaders are spending huge amounts on research & development to reduce installation cost and improve quality. These improvements will drive demand for communication-based train control systems during the medium- to long-term forecast period.
Also, long-term collaborations with government and rail service providers are expected to felicitate stability in revenue generation and increase the market share of operating players.
These insights are based on a report on Communication-based Train Control System Market by Fact.MR.
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