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Railway Cybersecurity Market Size 2021, Forecast Report 2026

Railway Cybersecurity Market Size 2021, Forecast Report 2026

According to the new market research report "Railway Cybersecurity Market by Type (Infrastructural & Onboard), Offering, Security Type (Network, Application, Endpoint, System Administration and Data Protection), Application (Passenger & Freight), Rail Type and Region - Global Forecast to 2027", published by MarketsandMarkets™, The Railway Cybersecurity Market is estimated to be USD 6.2 billion in 2021 and it is projected to grow at a CAGR of 9.4% during the forecast period and is expected to reach USD 10.6 billion by 2027.

The FDL Advantage developed by Wabtec is a fuel-saving engine upgrade package for its FDL locomotive platform. Modular Control Architecture - Fleet Migration (MCA FM) is another offering which is a next-generation control system replacement that is applicable throughout Wabtec’s locomotive-installed base. Both these solutions have software and next-generation data capabilities. Many Countries have adopted a few technologies in their transportation infrastructure and are oriented towards R&D and innovations in railway infrastructure technology to tackle future mobility challenges.

Nowadays, most of the countries have perceived that one of the most important elements which will drive their economic development is the development of their railway infrastructure. Consequently, many countries and OEMs have significantly invested in railway cybersecurity infrastructure. For instance, in 2019, two new offerings are launched by Wabtec which were designed to modernize its 23,000 globally installed locomotives. The European region has the highest number of players in the Railway Cybersecurity Market. Companies such as Thales Group (France), Siemens AG (Germany), Alstom (France), and Nokia Networks (Finland) have the major share in the Railway Cybersecurity Market. The legacy technologies are being replaced by advanced train-control and signalling systems by rail operators.

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The connected and digitalized infrastructure will drive this segment during the forecast period

The railway is a collaborative business, and data is shared among different stakeholders. The lack of a proper mechanism in dealing with multiple partners and defining the requirements create opportunities for cyberattacks. Railways are moving toward more advanced and connected systems, which makes it vulnerable to attacks from cybercriminals. The growing IP communication-based operation among train control systems and rail infrastructure exposes OT systems to the same cyber threats faced by IT systems. Nation-state attacks and denial-of-service hacks can affect rail operations through OT systems, significantly disrupting and even damaging critical rail infrastructure and possibly causing loss of life. Therefore, cybersecurity infrastructure plays a significant role in maintaining railway systems' security and ensuring their smooth functioning.

Infrastructural cybersecurity comprises railway infrastructures such as signalling systems, train systems, and communication systems. It also includes station building management systems such as smart building management systems, CCTV, and infrastructure systems such as HVAC, oil repositories, mechanical systems, and SCADA systems. These systems pose a serious challenge to the railway networks and the data stored in them. Hence, many operators are focusing on adopting cybersecurity solutions to safeguard them. 

Europe is expected to be the largest market for railway infrastructural cybersecurity. The market growth in the region can be attributed to the ongoing developments in the railway sector. The increasing focus on comfort and safety has led to the development of advanced technologies and thereby increasing the comfort levels of passengers and reducing intercity travel time. For example, a new tool called Open Capacity has been developed in the UK to let passengers know the level of crowding in train carriages. This tool was created by combining the real-time sensing technology in trains with analysis drawn from historical data. Cubic Transportation Systems released a gateless entry system to help passengers pay through software using facial recognition and Bluetooth and board trains quickly. Swedish SJ railways also started using microchips to quickly validate tickets. The adoption of advanced technologies for ticketing systems is expected to enhance efficiency and provide comfort to commuters. Such applications have the potential to improve the overall travelling experience and fuel the growth of the rail industry.

The passenger train segment is estimated to be the largest and the fastest growing segment during the forecast period.

The passenger trains segment is expected to lead the market for railway cybersecurity during the forecast period. The security of the passenger rail network is more complex than the freight segment as there is an open infrastructure, multiple access points, and a vast user base. In recent times, cities such as London and New York have been prone to passenger railway cyberattacks, and this highlighted the importance of railway cybersecurity. Governments across the globe are encouraging cybersecurity solutions for their passenger and freight railways. For example, in April 2020, the US Government Accountability Office released a report containing the assessment of the passenger railway cyberattacks in the US and European region and passed guidelines to limit them. These initiatives by the government are expected to fuel the growth of the Railway Cybersecurity Market during the forecast period.

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The Asia Pacific is projected to be the fastest growing in the Railway Cybersecurity Market

Rapid urbanization and the growing population are major factors driving the development of rail networks and thereby urban rail and mainline infrastructure construction in the Asia Pacific. The growth of this infrastructural construction will drive the Railway Cybersecurity Market in the region. Cybersecurity is dependent on railway management systems, which can be hacked for data breaches. China and Japan have the most sophisticated rail infrastructure in the region. China has the largest rail network and is undergoing rapid improvement and expansion of the existing infrastructure. China has nearly 35,000 km of high-speed rail network as of 2020, making it the largest in the world. The country is also aggressive in expanding its urban transit network. In 2020, Guangzhou Metro Corp opened an extension of Line 8 from Cultural Park on the west side of the city centre to Jiaoxin in Baiyun District to the north on November 26, adding 16·3 km and 11 stations. These projects are expected to drive the market for railway cybersecurity in the region.

China is expected to be the fastest growing and the largest market for railway cybersecurity in the Asia Pacific due to its strong rail network, increasing investments, and economic development. In China, the China Railway Construction Corporation (CRCC) handles the entire railway operations and develops various strategic rail projects to improve the rail infrastructure. The 2020 budget report submitted to the National People’s Congress on May 22 showed that the central government injected over USD 7.7 billion into the China National Railway Group. New development projects are on track for the Beijing-Shanghai HSR corridor, which is estimated to cost more than USD 32 billion. In 2021, the Baku-Tbilisi-Kars (BTK) project is expected to connect East and West China and open rail access to Central Asia and Europe. China continues to exhibit strong growth in the transportation sector. The growing digitalized infrastructure and increase in urban transport such as metros and high-speed trains are expected to be driving the Railway Cybersecurity Market in the region.

India is also expected to emerge as the next promising market for railway cybersecurity. This can be attributed to the ongoing projects related to urban transit and high-speed rail. In 2021, the European Investment Bank (EIB) signed a finance contract worth USD 182 million with the Indian government for the Pune Metro Rail project’s second portion in Maharashtra through a virtual signing ceremony. This project is expected to offer urban mobility to a large population, including the working class. The Maharashtra Metro Rail Corporation will work on this project as the implementing agency. This has created a business opportunity for the Railway Cybersecurity Market. India also plans to invest USD 142 million in the next five years toward the improvement of suburban rails, metro rails, locomotives, railway cybersecurity, manufacturing, and maintenance, signalling and electric works, and dedicated freight lines in the country. These developments and investments are expected to drive the Railway Cybersecurity Market in the Asia Pacific.

The report analyzes all major players in the Railway Cybersecurity Market including Thales Group (France), Siemens AG (Germany), Alstom (France), Wabtec (US), and Nokia Networks (Finland).

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