Metro Rail Infrastructure Market Size, Share & COVID-19 Impact Analysis, By Structure (Underground, Elevated, and At-grade), By Infrastructure (Alignment & Trackwork, Station Building, Signaling & Telecommunication, Rolling Stock, and Others), and Regional Forecast, 2024 – 2032

The global metro rail infrastructure market size was valued at USD 41.51 billion in 2023. The market is projected to grow from USD 43.39 billion in 2024 to USD 77.56 billion by 2032, exhibiting a CAGR of 7.5% during the forecast period.

Metro rail infrastructure refers to the physical and organizational components that make up a metropolitan railway system. This type of transportation system typically involves the use of trains or other rail vehicles to transport passengers within a city or urban area. Metro rail infrastructure plays a vital role in addressing urban transportation challenges by providing a fast, efficient, and sustainable mode of mass transit, reducing traffic congestion, and promoting environmental sustainability.

Several cities worldwide have been investing in the expansion and modernization of existing metro rail networks. This includes adding new lines, extending existing ones, and upgrading technology to enhance efficiency and capacity. However, developing and building metro infrastructure involves significant upfront costs, which may hamper market growth. As urban areas grow, the demand for efficient and sustainable mass transit solutions such as metro rail is anticipated to elevate the metro rail infrastructure market growth.

The COVID-19 pandemic significantly impacted the market, leading to disruptions and challenges. A notable effect was a sharp decline in ridership due to lockdowns, social distancing, and remote work. Fear of virus transmission further reduced metro rail passengers, with LA Metro experiencing a 55% decline in 2020. Governments, facing economic strains, reallocated funds from metro rail projects to address immediate health and financial needs. In 2020, the budget for metro rail projects decreased by 52.4% compared to 2019.

Metro Rail Infrastructure Market Trends

Increasing Technology Integration and Digitalization within Metro Systems to Propel Market Growth

The key ongoing trend fueling the growth of the metro rail infrastructure is the increasing focus on technology integration and digitalization within metro systems. This trend involves the adoption of advanced technologies to enhance the efficiency, safety, and overall passenger experience in metro rail networks. For instance, in July 2023, Houston METRO allocated USD 26 million for the implementation of real-time LED signs, aiming to provide passengers with timely updates.

Metro rail systems are increasingly incorporating automation and driverless train technologies. Automated train control systems and driverless operations contribute to increased efficiency, better system management, and enhanced safety. Moreover, Internet of Things (IoT) technologies are being integrated into metro rail infrastructure systems to enable connectivity between various components. This connectivity allows for real-time monitoring, predictive maintenance, and improved system performance. In April 2022, Delhi Metro deployed IoT for its Phase IV.

Metro Rail Infrastructure Market Growth Factors

Increasing Urbanization Generating Need for Metro Systems to Fuel Market Growth

The key driving factor fueling the growth of the metro rail infrastructure industry is the increasing urbanization growth rate and the resulting need for efficient and sustainable urban transportation solutions. For instance, according to the data showcased by the (UNCTAD) United Nations Conference on Trade and Development in 2022, the world population surpassed 8 billion, whereas 57% of the population lived in urban areas in 2022.

As cities around the world continue to grow in population and density, the demand for reliable and high-capacity mass transit systems such as metro rail becomes crucial. Metro rail systems offer a solution to the rising issue of traffic congestion in urban areas. By providing a fast and dependable alternative to private vehicle transportation, metro rail helps alleviate traffic congestion and reduce travel times.

RESTRAINING FACTORS

High Upfront Cost Associated with Metro Rail Project Deployment May Hinder Market Growth

The key factor that hampers the metro rail infrastructure market growth is the high upfront cost associated with the planning, construction, and implementation of metro rail projects. The significant investment required for developing metro rail systems includes costs related to land acquisition, tunneling, station construction, signaling systems, rolling stock, and other associated infrastructure.

Furthermore, securing funding for projects may be challenging. Government budgets may be constrained, and raising funds through other channels, such as public-private partnerships, may face hurdles in terms of financial viability and investor interest. For instance, the (WMATA) Washington Metropolitan Area Transit Authority witnessed a USD 750 million funding gap resulting from reduced ridership revenue still recuperating from the pandemic, the exhaustion of federal pandemic relief funds, a subsidy credit extended to jurisdictions in 2020, and historical inflation.

Metro Rail Infrastructure Market Segmentation Analysis

By Structure Analysis

Limited On-Ground Space for Metro Rail Expansion to Fuel the Elevated Segment Growth

Based on structure, the market is classified into underground, elevated, and at-grade.

The elevated segment held the largest metro rail infrastructure market share in 2023 and is also estimated to grow at the fastest-growing CAGR during the forecast period. The growth is attributed to factors including limited space for on-ground expansion in densely populated areas. Elevated structures allow metro systems to navigate through crowded urban environments without the need for extensive land acquisition.

The underground segment held the second-largest market share in 2023. Underground metro systems provide the opportunity for expansion without the requirement of acquiring additional surface space. Thus, where population growth necessitates the scalability of the transportation infrastructure and where surface area is not adequately available, these types of structures are viable for the metro operation. In December 2023, the Delhi Metro Rail Corporation (DMRC) initiated the official bidding process for two underground tunneling contracts, namely PC05 and PC06, pertaining to the construction of Line-1 of the Patna Metro, which connects Danapur Cantonment to Khemni Chak.

By Infrastructure Analysis

Station Building Segment Claims Pinnacle Market Share, Fueled by Passenger-Centric Modernization

Based on infrastructure, the market is categorized into alignment & trackwork, station building, signaling & telecommunication, rolling stock, and others.

The station building segment held the largest market share in 2023. The construction of modern and efficient station building to enhance the overall passenger experience, making metro systems more appealing and convenient, propels the segment growth.

The signaling & telecommunication segment is expected to grow with the fastest-growing CAGR throughout the projected timeframe. Technological advancement in signaling systems incorporating automation technologies and allowing centralized control of train operation is poised to fuel the segment growth during the forecast period. In October 2023, The Victoria State Government equipped a high-capacity signaling (HCS) system along the Cranbourne/Pakenham line within Melbourne's metro tunnel.

REGIONAL INSIGHTS

Increasing Traffic Congestion in Urban Areas to Augment the Asia Pacific Market Growth

By region, the market is analyzed across North America, Europe, the Asia Pacific, and the rest of the world.

Asia Pacific market for metro rail infrastructure held a dominant share in 2023. Several nations in the region are experiencing rapid urbanization and population growth. As cities become more densely inhabited, the demand for efficient and mass transit systems such as metro rail increases to address congestion and transportation challenges. According to World Bank data, the metropolitan (urban) population consists of 36% of India's total population. Over the decade, the country witnessed a rise of 4% in the urban population share.

Europe market for metro rail infrastructure held a significant share in 2023. Some European cities have a long history of metro systems, and these systems have become iconic elements of the urban landscape. The cultural and historical significance of metro rail can contribute to the continued investment and expansion of these systems. In September 2021, the London Underground railway system inaugurated two new stations, marking the network's initial expansion since the 1990s.

North America held a decent share of the market in 2023. Government support and investment play a crucial role in the expansion and development of metro infrastructure. Funding from federal, state, and local governments is often essential for planning, constructing, and maintaining metro systems. For instance, in November 2023, The Biden Administration granted USD 1.64 billion to facilitate the expansion of Metro-North Railroad's Penn Station access, incorporating the addition of four new stations in the Bronx.

The rest of the world, which encompasses Latin America and the Middle East & Africa, held a substantial share of the global markets in 2023. Countries in the rest of the world are experiencing economic growth and development, leading to increased mobility needs. Investments in metro projects support economic activities, enhance connectivity and contribute to overall urban development. Traffic congestion is a common issue in many urban areas around the world. In this regard, metro rail systems offer an effective solution to reduce congestion, lower commuting times, and improve overall traffic management.

List of Key Companies in Metro Rail Infrastructure Market

Technological Innovations and Public-Private Partnerships Enrich the Competitive Edge in the Market

The competitive landscape of this market is shaped by an assorted range of global and regional players. Regional players and emerging companies contribute, with a focus on technological innovation, project execution capabilities, and market presence. Collaborations, public-private partnerships, and government-backed entities further influence the competitive dynamics in the market.

Key market players include Siemens AG, Alstom SA, and CRRC Corporation Limited. Alstom is a leading multinational company with a strong presence in the rail transportation sector. It offers a comprehensive portfolio of metro systems, high-speed trains, and signaling solutions.

List of Key Companies Profiled:

• Siemens AG (Germany)


• Alstom SA (France)


• CRRC Corporation Limited (China)


• Thales Group (France)


• Hitachi Rail STS (Italy)


• CAF Group (Spain)


• Hyundai Rotem Company (South Korea)


• Stadler Rail AG (Switzerland)


• Toshiba Infrastructure Systems & Solutions Corporation (Japan)


• Kawasaki Heavy Industries, Ltd. (Japan)

KEY INDUSTRY DEVELOPMENTS:

• December 2023 – Alstom, in partnership with Electra and Dan Public Transportation, signed a contract with Metropolitan Mass Transit System Ltd for the design, construction and maintenance of the USD 2.8 billion Tel Aviv Metropolitan LRT (Light Rail Transit) Green Line.


• July 2023 – CAF entered into an agreement with the Naples Metro System authorities to supply six rolling stock units, including depot components and a maintenance agreement spanning three years.


• June 2023 – Alstom indigenously designed, manufactured, and commissioned 31 lightweight, fully furnished modern passenger train sets of 8 cars each for the Mumbai Metro Line 3(Colaba-Bandra-SEEPZ). These metro trains are assessed to reduce 35% of general traffic, meanwhile reducing air and noise pollution.


• April 2023 – Siemens Mobility secured two distinct contracts from the (GMRCL) Gujarat Metro Rail Corporation Limited for the Ahmedabad Metro Phase 2 and the Surat Metro Phase 1.


• March 2023 – Hitachi Rail was granted a contract by Chennai Metro Rail worth USD 200 million to provide digital signaling for Phase 2 of the Metro Rail Project. Under this agreement, Hitachi Rail is supposed to implement its communication-based train control (CBTC) system along with Automatic Train Operation (ATO), facilitating driverless operation of metro rails.

REPORT COVERAGE

The metro rail infrastructure market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation