Railway Cybersecurity Market Forecasts to 2030 - Global Analysis By Type (Infrastructural and On-board), Security Type, Offering, Rail Type, Application and By Geography

According to Stratistics MRC, the Global Railway Cybersecurity Market is accounted for $7.6 billion in 2023 and is expected to reach $16.3 billion by 2030 growing at a CAGR of 11.4% during the forecast period. In order to guarantee the security, dependability, and integrity of contemporary rail systems, railway cybersecurity is a crucial component. A greater need to defend these systems from cyberthreats and vulnerabilities has arisen as digital technologies and the Internet of Things (IoT) are being integrated into railway infrastructure at a faster rate. Railway cybersecurity is a developing field that needs continual care and effort to keep up with emerging dangers and technologies. Railway operators, technology suppliers, governmental organizations, and cybersecurity professionals all have a part to play in ensuring the security and safety of railroad systems in the modern era.

According to the Organization for Economic Co-operation and Development (OECD), passenger transport by rail for million passenger-kilometers has witnessed steady growth over the past decade.

Market Dynamics:

Driver:

Increasing digitalization

Since railroads are regarded as important infrastructure, their disruption may have an impact on national security. To protect their interests, governments are spending money on train security. With the use of technology like train control systems, signaling systems, and passenger information systems, modern railway systems are becoming more digital. Because of this digitization, cybersecurity solutions are more necessary as the attack surface for online threats grows. The general public and passengers expect safe and dependable railroad services. Moreover, railway operators may decide to invest in cybersecurity in order to protect their brand after a cybersecurity compromise damages public trust thus propelling the growth of the market.

Restraint:

Existing system vulnerabilities

System vulnerabilities are flaws that can be exploited by a threat source in control systems, information systems, system procedures, controls, or implementations. Many factors, including policy procedure, architecture design, configuration maintenance, physical infiltration, software development, communication networking, and lack of training awareness, can lead to such vulnerabilities. The strict mission-critical and safety requirements, the mapping of networked technology across large-scale rail transportation systems, the interdependencies among various subsystems, and access to enormous amounts of real-time data are just a few examples of vulnerabilities unique to rail transportation systems. Hence all the above factors hamper the growth of the market.

Opportunity:

Growing infrastructure expansion and cross-border operations

Cross-border and international operations are conducted by a large number of railroad operators. For businesses providing cross-border solutions and expertise, ensuring cybersecurity across borders provides particular difficulties and opportunities. Moreover, high-speed rail networks and urban transit systems are examples of new railway infrastructure projects that present opportunity to build-in cybersecurity safeguards from the beginning, making them more secure.

Threat:

High cost of cyber security services installation

One of the key obstacles in the rail cyber security sector is the high deployment cost. Deploying multiple solutions and services is difficult in Brazil, South Africa, and India due to insufficient infrastructure. Land purchase for railway transportation projects is expensive, subject to PPP (public-private partnership) agreements, and requires government permission. In a similar vein, every sector of business is implementing IoT, even the highly network-dependent rail systems. Delays in infrastructure construction thereby restrict the use of contemporary technologies and solutions; creating a barrier to deploying a cyber-security solution has a hefty upfront cost. Utilizing cutting-edge technologies for end-user transmission network setup, field-level equipment setup, aging infrastructure replacement, predictive maintenance, artificial intelligence, big data, cloud computing for light rail cars further increases the over all cost which impedes the market.

COVID-19 Impact:

Because of the pandemic, cybercriminals increased their cyberattacks, preying on gaps created by remote work and the haste to adjust to shifting circumstances. These attacks did not spare railway systems. The epidemic prompted many railway employees to work remotely, as it did in other sectors. As remote access to crucial systems became necessary as a result of this transition, the attack surface rose and trains became more susceptible to cyber assaults which has increased the need to protect the data through the railway cybersecurity operations

The infrastructural segment is expected to be the largest during the forecast period

The infrastructural segment is estimated to have a lucrative growth, as these infrastructure section includes a vast amount of interconnected infrastructure, including railway flagging, passenger data frameworks, platform management frameworks, ticketing frameworks, and numerous other frameworks. These functionalities are included on the majority of platforms for earlier railroad frameworks, which increases the need for cyber security in the infrastructure sector.

The network security segment is expected to have the highest CAGR during the forecast period

The network security segment is anticipated to witness the highest CAGR growth during the forecast period, because by employing real-time data and fast communication linkages between rail networks, trains, and other rail facilities, railway network security controls and automates all traffic and enables centralized rail network management. This system performs a number of tasks, including operation management, maintenance support, and traffic planning. Additionally, the network security system handles cyber-attacks and catastrophe management thereby enhancing the market for network security.

Region with largest share:

North America is projected to hold the largest market share during the forecast period as cyberattacks multiply and become more complicated, regional cyber railway security also rises. Additionally, in an effort to force compliance in the aftermath of high-profile cyberattacks on important sectors, the Transportation Security Administration (TSA) will impose new cyber security rules on the train and airline businesses, along with reporting requirements. Therefore, implementing cutting-edge railway and governmental regulation technologies will aid in the expansion of the market in this area.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period, owing to the extension of rail networks and, as a result, the construction of mainline and urban rail infrastructure in the Asia Pacific are being driven in large part by the region's rapid urbanization and population increase. Significant players in the Asia Pacific region include Hitachi Ltd., Huawei, Toshiba, and Tech Mahindra Ltd. The main influencing factors for the region include expanding country GDPs steady growth, more sophisticated technology penetration, and developing economies.

Key players in the market:

Some of the key players profiled in the Railway Cybersecurity Market include: Thales Group, Siemens AG, Nokia Networks, Wabtec, Alstom, Cisco Systems, Inc., Hitachi Ltd., Huawei Technologies Co., Ltd., International Business Machine Corporation (IBM), Bombardier, Raytheon Technologies Corporation, General Electric, United Technologies, ABB, BAE Systems, Cervello and Toshiba Corporation.

Key Developments:

In September 2023, Thales and Intel Collaborate to enhance trust in confidential computing, this collaboration enables customers in highly regulated industries to secure workloads and protect data in use on-premises and in the cloud.

In September 2023, Nokia launches AVA Data Suite to run on Google Cloud to facilitate AI/ML development. Designed to run on Google Cloud, to help communication service providers (CSPs) standardize data and facilitate the development of AI/ML software applications.

In July 2023, Wabtec Partners with Vale on Alternative Fuels Study and Orders Three FLXdrive Battery-Electric Locomotives. The deal includes an order for three of Wabtec's FLXdrive battery locomotives and a collaboration to test ammonia as a potential clean, alternative fuel to replace diesel.

Types Covered:

• Infrastructural
• On-board

Security Types Covered:

• Application Security
• Network Security
• Data Protection
• End Point Security
• System Administration

Offerings Covered:

• Solutions
• Services

Rail Types Covered:

• Conventional Passenger Trains
• Urban Transit
• High-Speed Rail

Applications Covered:

• Conventional
• Passenger Trains
• Freight Trains
• Metro Trains

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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