Communication-Based Train Control Market Size, Share, Industry, and COVID-19 Impact Analysis, By Train Type (Metro, Monorail, Commuter Rail, and Freight Rail System), By Type (Basic CBTC and I-CBTC), By Automation Grade (GoA1, GoA2, GoA3, and GoA4), and Regional Forecast, 2023-2030

Communication-based Train Control (CBTC) is a modern communication-based system that uses radio communications to transmit accurate and timely train control information. CBTC is the choice of mass transit operators currently, with over a 100 systems installed worldwide. CBTC systems include Automated Train Supervision (ATS), Automated Train Operation (ATO), and Automated Train Protection (ATP) technologies, which combine to make a train wholly automated and driverless.

Several of the industry's key companies use different growth strategies such as mergers, acquisitions, partnerships, and agreements to enhance their market position.

• For instance, in August 2021, Hitachi Rail STS (Ansaldo) entered into a deal with the Thales Group to buy the Thales Group's Ground Transportation System division. Hitachi Rail expects to achieve development due to this arrangement by extending the scope of its rail signaling systems business and developing its rail automation systems business internationally.


• In March 2021, Mitsubishi Heavy Industries Engineering Ltd (MHI-ENG) and KEOLIS SA announced the formation of a consortium ("the Consortium") and the signing of a 15-year contract with the Roads & Transport Authority of Dubai (RTA) to operate and maintain Dubai's world-class driverless metro and tram networks.

Rail accidents are the primary motivation for implementing CBTC systems. According to the International Union of Railways, Europe leads the way in rail accidents, accounting for 58% during the last two decades, followed by Africa with 29%. Rail collisions accounted for over 60% of all rail incidents in Norway in 2019. Train control systems based on communication are intelligent enough to prevent accidents by nearly 99.9% and boost efficiency. These factors will positively impact the approval of CBTC systems.

A rapidly growing population, growing need for fast and safe commutes, and requirement for accident-free rail transit, among other factors are surging the demand for communication-based train control systems for metros and trains. Subway CBTC systems are in high order due to high adoption across developed countries to reduce human error, protect cargo and goods from theft, and make their rail lines safe.

Rail infrastructure consumes major capital and maintenance costs for a track, engineering structures such as tunnels and bridges, train signaling, communication systems, power supply in electrified sections, and terminal infrastructure. These infrastructural costs, coupled with the associated costs, equipment, land acquisition, and financing, act as a restraint for the market. The train control and management system's interoperability facilitates communication between trains from different regions. The variable technical specifications increase the cost of running train communication systems.

Impact of COVID-19 on the Communication-based Train Control Market 

The COVID-19 pandemic has delayed the operations of the railway sector. Due to the pandemic, major railway projects have been halted. Personal mobility increased dramatically as a result of the pandemic. The railway industry witnessed a major drop in demand for new trains as people shunned public transportation, preferring private vehicles to avoid crowds. Furthermore, component manufacturing has been halted, and tiny Tier II and Tier III firms have suffered financial losses. The railway sector is very capital-intensive & requires constant funding to stay in business. As a result, production halt and decreasing demand following the pandemic had an extraordinary impact on rail manufacturers & service providers.

• For example, Bombardier proclaimed the suspension of its factories in March 2020, while Alstom suffered a significant impact on its financial performance like other European companies. According to Alstom, the company's sales declined by 27% in the first quarter of 2020-21 (April-June). However, CAF began gradually restarting operations after April 2020, with all necessary safety safeguards.

GoA1- Train Operator controls train manually

GoA2- Semi-automatic

GoA3- Driverless Train Operation (DTO)

GoA4- Unattended Train Operation (UTO)

Key Insights

The report will cover the following key insights:

• Key Industry Developments – Mergers, Acquisitions, and Partnerships


• Porter’s Five Forces Analysis


• PEST Analysis


• Technological Developments


• Impact of COVID-19 on the Communication-based Train Control Market

Analysis by Automation Grade

GoA1, GoA2, GoA3, and GoA4 are the four levels of automation in communication-based train control systems. GoA4 is the highest level, providing a driverless service with fewer attendants. It necessitates a high-end rail infrastructure as well as a hefty implementation cost. The majority of countries, however, are confined to GoA3. GoA2 is used in practically every country, making it the largest market shareholder, with more than a quarter of the market.

Regional Analysis

To gain extensive insights into the market, Request for Customization

The CBTC market is segmented into four regions, North America, Europe, Asia Pacific, and the rest of the world. APAC held the largest stake in the market. South Korea has more than 170 km of automatic new metro lines and prolonged its present metro traces with the aid of using almost 20 km within the final 10 years.

Moreover, Singapore, Kuala Lumpur, Dubai, and Vancouver have automatic metro traces of more than 130 km, 97 km, 80 km, and 79 km, respectively. South Korea and France are projected to go the 250 km and 200 km goals, accompanied by the aid of Malaysia and the UAE with 150 km and 130 km, respectively.

• For example, in February 2022, the Hangzhou metro launched two additional lines and an extension adding more than 59 route kilometers to the network.

Industrialized and emerging economies, such as Singapore, Malaysia, Indonesia, and Bangladesh, characterize Asia Pacific. Major companies are investing in rail projects in Asia Pacific, owing to considerable potential in this region's rapidly growing urban population.

• For example, CRCC signed an agreement with the government of Maharashtra, India, to establish a manufacturing plant at the Multimodal International Cargo Hub and Airport in Nagpur (MIHAN). With these companies expanding into the nation, developing autonomous trains using CBCT is expected to accelerate in the coming years.

Europe is the second-largest market, accounting for approximately one-third of the global market for communication-based train control systems, and is expected to witness promising growth by the next decade. In France, communication-based railway operation systems are gaining traction, with cities, such as Paris, Lyon, and Marseille, leading the implementation of these systems.

Key Players Covered

• Alstom (France)


• Thales Group (France)


• Wabtec Corporation (U.S.)


• Mitsubishi Electric (Japan)


• Hitachi (Japan)


• Siemens Mobility, Inc (Germany)


• ABB (Sweden)


• Argenia Railway Technologies Inc.(Canada)


• Toshiba (Japan)


• WAGO Corporation (U.S.)

Segmentation

Key Industry Developments

• In August 2021, Siemens Mobility agreed to acquire Sqills, a Dutch company and a leading provider of cloud-based inventory management. This acquisition enables Siemens to offer software and digital offerings in the transport segment of Siemens Mobility worldwide.


• In August 2021, Siemens Mobility was granted a contract to develop, implement, and commission the first Communication-Based Train Control system for Malaysia and Singapore cross-border connection trains. The business has announced intentions to provide the CBTC technology for the Brazilian metro line in May 2022.


• In July 2021, Alstom invested USD 115,788 in Campus Cyber SAS, a European company, to support the "Campus Cyber" initiative. This will reinforce the company's goal of leading the way toward smarter and greener mobility worldwide.


• In May 2022, the Japanese Patent Office granted a new Japanese patent to "Rail Vision", a development stage technology business hoping to transform railway safety and the data-related industry. The company has created cutting-edge, artificial intelligence-based, industry-leading technology for the railways.