What are Smart Railways?
Smart railway systems comprise a set of new-generation solutions and services that are powered by information and communication technology. They combine different software products to enable the intelligent usage of railway assets, from tracks to trains, so that railway companies can meet the increasing consumer demand for more efficient and safer services.
The Global Smart Railways System Market is expected to witness significant growth during the period 2014-2019, posting a CAGR of 26.76 percent.
Why are Smart Railways Vital for Updating Transportation Infrastructure?
Railways are considered the fastest mode of transportation in most regions (after air services). The Railway industry also plays a major role in the economic growth of a country. Most of the countries are now investing more in their railway systems as people prefer to travel by train rather than taking road, air, or sea transport.
For instance, countries in the Middle East are spending a lot of funds on making their railway systems better and more advanced. Initially, most of the railway lines in the Middle East were built for economic or strategic reasons.
By the end of 2015, the GCC will launch its first high-speed railway, connecting 280 miles. As railways are emerging as the preferred mode of transportation among customers, they will drive the market for smart railway systems during the forecast period.
How is Transportation Being Shaped by Demographics?
The increase in demographics and urbanization calls for a better transportation system. As railways are one of the largest transportation systems in the world, they need to be faster and up to date to cater to the growing needs of commuters.
The rise in economic growth in many countries and the increase in spending power of the people are also driving the market for railway management systems. People do not mind paying more for better and efficient railway services. Hence, railway operators across the globe are switching to advanced railway management systems to enable faster travel and better convenience to commuters.
What’s the Biggest Problem Area for Smart Railways?
The high cost of installation of a new railway system and services as well as its operation and maintenance poses a major challenge for the Global Smart Railways System market. When a new system is adopted, the management needs to train the employees to operate the system, which adds to the overall costs. The maintenance and software upgrades for the systems are also an additional burden for railway companies.
Moreover, if the system fails at any point, it can cause huge losses to the end-users of the services, the passengers. Hence, the system needs to be checked at regular intervals and properly maintained, thereby lowering the adoption of such systems by railways across the globe.
How Can Smart Railways Improve Commuter Experience?
Recently, many railways have been using cloud computing and big data analysis as part of their operations to gain better knowledge of customer needs. Slovenian Railways has adopted IBM’s cloud solution to improve business operations and customer services.
Adopting a new cloud-based system will give the railways a broader view across freight, passenger, and logistics operations so they can more effectively maintain and manage the railway traffic across their networks.
Hitachi is also another big vendor that provides cloud computing and big data services to many railways. Railway operators are also installing these services to make their railway systems better.
