Connected Rail Market Report 2026

The connected rail market size has grown strongly in recent years. It will grow from $98.99 billion in 2025 to $104.69 billion in 2026 at a compound annual growth rate (CAGR) of 5.8%. The growth in the historic period can be attributed to urban rail electrification, government rail modernization programs, deployment of signaling systems, passenger traffic growth, infrastructure digitization.

The connected rail market size is expected to see strong growth in the next few years. It will grow to $131.4 billion in 2030 at a compound annual growth rate (CAGR) of 5.8%. The growth in the forecast period can be attributed to smart city investments, AI-driven rail analytics, demand for operational efficiency, connected mobility expansion, sustainability-driven public transport. Major trends in the forecast period include expansion of real-time rail monitoring, adoption of predictive maintenance platforms, growth of automated fare collection, integration of advanced rail signaling, focus on passenger experience enhancement.

Governmental efforts aimed at expanding rail connectivity are expected to drive growth in the connected rail market. These initiatives are gaining momentum due to increasing recognition of the economic, environmental, and social benefits of efficient and sustainable transportation systems. Governments play a pivotal role in promoting and financing the adoption of connected rail technologies, which enhance transportation efficiency, safety, and infrastructure modernization. For example, in November 2023, the UK government allocated $10.42 billion (£9.7 billion) to rail infrastructure and rolling stock, with a significant portion earmarked for the High Speed 2 (HS2) project. Thus, governmental initiatives to enhance rail connectivity are fueling the growth of the connected rail market.

Key players in the connected rail market are concentrating on technological advancements such as fully autonomous railway systems to maintain competitive advantage. Fully autonomous railway systems operate without human intervention, leveraging AI, sensors, and communication networks for navigation and control. For instance, Hitachi Ltd. introduced the Honolulu Skyline in June 2023, the first fully autonomous urban railway system in the US. This 10.75-mile elevated rail line features nine stations connecting East Kapolei to Aloha Stadium, aiming to alleviate traffic congestion and reduce pollution in Honolulu. The system, powered by electricity, boasts advanced safety measures including over 1,500 cameras linked to a central control center for rapid emergency response.

In June 2024, Hitachi Rail, a UK-based provider of rail solutions, acquired the Ground Transportation Systems (GTS) arm of Thales for $1.66 billion. This acquisition allows Hitachi to strengthen its focus on sustainable mobility solutions and digital transformation, positioning the company as a leader in the evolving rail sector. Thales GTS, based in France, is a provider of connected rail solutions.

Major companies operating in the connected rail market report include Russian Railways, Huawei Technologies Co. Ltd., Hitachi Ltd., General Electric Company, Siemens AG, International Business Machines Corporation, Cisco Systems Inc., Deutsche Bahn AG, ABB Ltd., Toshiba Corporation, Nokia Corporation, Union Pacific Railroad, BNSF Railway, Thales Group, CSX Corporation, Network Rail, Canadian National Railway Company, Norfolk Southern Corporation, Central Japan Railway Company, Alstom SA, Wabtec Corporation, Bombardier Inc., Trimble Inc., Ansaldo STS, Australian Rail Track Corporation.

North America was the largest region in the connected rail market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the connected rail market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the connected rail market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The connected rail market consists of revenues earned by entities by providing services such as data analytics and management, consulting and system integration, and cybersecurity services. The market value includes the value of related goods sold by the service provider or included within the service offering. The connected rail market also includes sales of trackside sensors, onboard sensors, and digital signage. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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