Railway IT spending: Key market research findings
- Increased spending in new technologies like iBeacon, cloud, and video analytics
- Rise in adoption of mobile solutions for railways operations
Technavio has released a new market research report on the global IT spending in railways, which is expected to grow at a CAGR of 16% between 2016 and 2020. IT solutions have become a core component of almost all railway operations — from ticketing to logistics handling to catering. New technologies, such as Internet protocol (IP)-based networks and high bandwidth systems, are used to strengthen security and safety in railways. EMEA dominate the global IT spending in railways, accounting for 40% of the total market share. Much of this region’s growth comes from Europe, which has the most advanced railway systems in the region. The development of intelligent infrastructure and increased use of telematics have boosted the market growth in Europe.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“Railways operators across the globe are investing in emerging technologies such as iBeacon, cloud, and video analytics to enhance passenger experience and improve railway operations. The iBeacon technology provides information about train timings and delays, and helps advertisers deliver targeted advertisement and contents, Cloud helps centralize railway operations to effectively manage railway traffic at low costs. Railways are opting for intelligent video analytics to automate their operational and surveillance needs,” says Amit Sharma, Lead Analyst, ICT, Technavio Research
The increased penetration and adoption of mobile devices are driving the global IT spending in railway market. Passengers use mobile devices, smartphones, and tablets to check services such as booking and cancelation of trains, train arrival and departure information, and station guides. Also, the use of mobile apps reduces paper use, thus increasing the profit, customer satisfaction levels, and reducing errors. Hence, a number of IT vendors are launching mobile applications that provide users with high-quality service on the move. For instance, Indian Railway Catering and Tourism Corporation (IRCTC) has launched IRCTC Connect, an Android app, which enables users to book tickets anywhere anytime, check existing reservation and cancelation, and receive upcoming journey alerts.
The key vendors in the global IT spending in railways market include Accenture, ALTEN, Altran Technologies, IBM, and SAP. The market is highly concentrated and dominated by a few large key vendors. The market has high growth potential which has intensified competition among vendors. Moreover, the existing players are witnessing tough challenge from new players in the form of innovations in technology and partnerships.
A more detailed analysis is available in the Technavio report, Global IT Spending in Railways 2016-2020.
We can customize reports by other regions and specific segments upon request.
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