The Railway Telematics Market: 1st Edition

Since the mid-19th century, railways have played a crucial role in driving economic growth across the Western world. However, in recent decades, the proportion of goods transported by rail has declined in North America and several European countries. During the same period, road transport has gained a larger share, offering greater flexibility and shorter delivery times. Transporting goods and passengers by rail offers other advantages, which are becoming increasingly valued. For instance, per ton-kilometre, rail produces up to six times fewer greenhouse gas emissions than road transport. Transitioning passenger and freight transport from roads to rails is essential for achieving sustainability goals. To compete more effectively with road and other transport modes, the rail industry must adopt solutions that enhance efficiency and reliability.

Digitalisation is widely regarded as a critical step in achieving this goal. A key digitalisation initiative in the rail freight sector involves equipping wagons and locomotives with telematics devices and sensors. Using GPS and cellular or satellite communication technologies, these devices collect and transmit data on the location and condition of the rolling stock to backend servers and cloud-based systems in real-time. Accessing this data through an intuitive user interface enables rolling stock operators and fleet owners to increase operational efficiency, reduce maintenance and service costs, and improve service levels.

This report covers telematics and monitoring solutions for vehicles and assets transported on railways, i.e. locomotives, multiple units, passenger cars and freight cars. The main focus is on conventional railways, i.e. freight, commuter, regional, intercity and high-speed rail, and not on metro, light rail, monorail and trams. The scope does not cover solutions for rail infrastructure such as signalling systems, switches and other trackside solutions. Passenger ticketing, infotainment and on-board Wi-Fi connectivity solutions are also excluded.

There is a fundamental difference between solutions developed for powered assets (e.g. locomotives and multiple units) and unpowered assets (e.g. freight wagons). Telematics devices for unpowered assets require a long-lasting battery and are often complemented by solar panels to operate for an extended period of time. Devices for powered assets can draw power from the existing electrical system of the train and are thus not as power-constrained. There are also differences between safety regulations and operation goals of the freight and passenger traffic industries, which influence the railway telematics market. The market is therefore largely divided into companies offering solutions for rail freight wagons and companies providing solutions for locomotives and multiple units. Modern locomotives and passenger trains typically include some type of tracking and monitoring technology as standard. The large OEMs, such as Alstom, Siemens Mobility, CAF, Hitachi Rail and Stadler Rail, develop connected solutions for their trains.

Several specialist telematics and on-board train technology companies provide aftermarket solutions, offering hardware and software solutions that enable remote monitoring of the location and health of locomotives and multiple units. Companies in this category include the European companies EKE-Electronics (Finland), HaslerRail (Switzerland), Nomad Digital (the UK) and Railnova (Belgium), and the North American companies Railhead (USA), Wi-Tronix (USA), Quester Tangent (Canada) and ZTR Control Systems (Canada). Tracking solutions for rail freight wagons are provided mainly by specialist telematics providers offering aftermarket solutions. Leading providers in this space include the European companies Nexxiot (Switzerland), DOT Telematik and Systemtechnik (Austria), Siemens Mobility (Germany), SAVVY Telematic Systems (Switzerland), Intermodal Telematics (Belgium), Level Systems (Czech Republic) and Cargomon Systems (Austria) as well as the North American companies Amsted Rail (USA) and Blackberry (Canada).

The market for real-time tracking solutions for locomotives, multiple units and rail wagons is forecasted to grow substantially during the coming years. There is a general sentiment of optimism in the railway telematics industry, underpinned by increasing awareness of the benefits associated with remote monitoring solutions among stakeholders in the railway industry. The installed base of tracking devices on rail freight wagons reached 775,000 units worldwide at the end of 2024. By the end of 2029, the installed base is forecasted to reach 1.3 million units. Annual shipments are estimated to grow from 150,000 units in 2024 to around 360,000 units in 2029. Globally, the penetration of tracking devices within the rail freight wagon segment reached 14.5 percent at the end of 2024. This figure is estimated to reach 23.3 percent at the end of 2029.

Highlights from the report

• Insights from 30 executive interviews with market leading companies.
• Comprehensive overview of the railway telematics value chain and key applications.
• In-depth analysis of market trends and key developments.
• Summary of 15 leading rolling stock OEM and OE supplier telematics strategies.
• Profiles of 29 aftermarket telematics solution providers.
• Detailed forecasts on rail freight wagon device shipments, installed base, penetration rate and market value lasting until 2029

This report answers the following questions

• Which are the leading providers of rolling stock telematics solutions?
• What offerings are available from device vendors and service providers?
• Who are the main customers of rolling stock telematics solutions?
• What are the main barriers to widespread adoption of rolling stock telematics solutions?
• What impact will RailPulse have on the North American rail freight industry?
• What are the key drivers behind the digitalisation of the railway industry?
• How will the railway telematics industry evolve?
• What are the future trends in this market?