TCMS Market Size, Share, Growth Report 2032

Industry Prospective:

The global TCMS (Train Control and Management System) market size was worth around USD 3.4 Billion in 2022 and is predicted to grow to around USD 6.5 Billion by 2030 with a compound annual growth rate (CAGR) of roughly 8.5% between 2023 and 2030.

The report analyzes the global TCMS market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the TCMS industry.

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TCMS Market: Overview

TCMS stands for train control and management system which is nothing but a train-borne distributed control system. It provides the provision of data communication between other telecommunications and train-borne systems so that the systems are supported that are operating remotely. Owing to its functionality it is also known as the brain of the train as it manages and monitors different systems and coordinates their control. The TCMS provides the prime functionality of delivering integrated diagnostic and prognostic capabilities on the train and offers visualization of the problematic areas, the performance of the system, and suggests corrective actions that can assist the driver or the maintenance personnel.

Key Insights

• As per the analysis shared by our research analyst, the global TCMS market is estimated to grow annually at a CAGR of around 8.5% over the forecast period (2023-2030).
• In terms of revenue, the global TCMS market size was valued at around USD 3.4 billion in 2022 and is projected to reach USD 6.5 billion, by 2030.
• The TCMS market growth can be attributed to the factors such as the increased trend in the utilization of automated metros and high-speed trains, strict protocols regarding the emission of diesel, and urbanization.
• Based on the train type, metros & high-speed trains are expected to dominate the market over the forecast period.
• Based on the component, the vehicle control unit segment is expected to capture the largest market share during the forecast period.
• Based on region, Europe is expected to dominate the market during the forecast period.

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TCMS Market: Growth Drivers

Digitalization and automation technologies drive the market growth

Technology advancements in automation and digitization are helping the TCMS industry expand. Due to the involvement of a wide range of organizations, individuals, and technology solutions, the railway system is complicated to operate. As a result, to enhance safety and accelerate train movement in the congested railway network, computerized solutions are needed to monitor and control such complex situations. For instance, the Delhi Metro deployed the nation's first automatic train supervisory signaling system for metro tracks in September 2020. Therefore, it is anticipated that automation and digitalization technologies will fuel the global TCMS market's expansion.

TCMS Market: Restraints

High infrastructural and maintenance cost

Track and engineering buildings like bridges and tunnels, train signaling, communication systems, power supply in electrified portions, and terminal facilities all have significant construction and maintenance costs. These infrastructure expenditures, along with the price of the equipment, the cost of acquiring land, and the cost of financing, pose significant obstacles.

TCMS Market: Opportunities

Growing collaboration among the key players provides a lucrative opportunity for the market growth

In the TCMS market, strategic partnerships and collaborations have become a major trend. To expand their business into new sectors, major players in the TCMS sector are concentrating on partnerships and cooperation. For instance, in October 2020, the US-based company Hitachi Rail STS announced a partnership with BART (Bay Area Rapid Transit) for the design of Communications-Based Train Control (CBTC), the most recent technology for digitally controlling trains with increased capacity and improved service, for a $798 million contract.

Additionally, in January 2020, the German automation company Siemens announced a collaboration with the US railroad company Advanced Rail Management Corporation (Arm) to assist the automotive supply chain with design, advanced driver assistance, in-vehicle infotainment, and verification challenges. Thus, the growing collaboration among the key players is expected to provide a lucrative opportunity for market growth over the forecast period.

TCMS Market: Challenges

Lack of interoperability poses a major challenge

The train control and management system's interoperability makes it easier for trains from various locations to communicate with one another. Different technical requirements for rail infrastructure have been set forth by each national rail network. Depending on the nation, there are variations in gauge width, electrification regulations, and safety & signaling systems. The expense of running trains between nations is increased by the various technical specifications.

TCMS Market: Segmentation

The global TCMS industry is segmented based on train type, component, connectivity, control solutions, and region.

Based on the train type, the global market is bifurcated into metros & high-speed trains, electric multiple units, and diesel multiple units. The metros & high-speed trains are expected to dominate the market over the forecast period owing to the need for fast transit systems with improved comfort, speed, and safety features. Moreover, the growing government initiatives to enhance high-speed rail networks and fulfill the transportation gaps in the countries like India, China, the UK, France, and Others.

Based on the component, the global TCMS industry is bifurcated into vehicle control units, mobile communication gateway, human–machine interface, and others. The vehicle control unit segment is expected to capture the largest market share during the forecast period.

Train automation uses the powerful Vehicle Control Unit (VCU). The VCU is capable of performing sophisticated control and diagnostic tasks. Any train component, including the doors and brakes, can be managed by VCU. It can be utilized for both physical control (such as opening, closing, and locking doors, turning on heating, cooling, and ventilation, etc.) and diagnostics (such as verifying that a door is properly closed, measuring the temperature of the brakes, etc.) of train sub-systems. Thus, these applications are expected to drive the segment growth.

Based on the connectivity, the market is divided into GSM-R, Wi-Fi, TETRA, and others. The GSM-R segment is expected to grow rapidly over the forecast period.

Based on the control solutions, the market is divided into positive train control, communication-based train control, and integrated train control.

Recent Developments:

• In January 2021, The Hyderabad location of the engineering and lifecycle services company QuEST Global opened a train control and management system (TCMS) lab. QuEST is a strategic partner of Bombardier Transportation and offers engineering solutions to the rail sector. The new building, which is 5,800 square feet in size, will assist the Canadian train manufacturer in enabling verification and validation of TCMS software, which is essential to numerous functionalities inside trains and is frequently referred to as the "brain" of one.
• In June 2020, the Spanish train manufacturer Talgo has given a large Train Communication and Management System (TCMS) contract to EKE-Electronics. Deutsche Bahn, one of the most reputable railroad companies in the world, is the project's final user. The initial award, which has possibilities for up to 100 additional train sets, is worth several million euros overall and involves 23 ECx trains. Each train comprises a locomotive, 17 carriages, and one. With possibilities for up to 6000 more units, the first order includes 1500 Vehicle Control Units (VCU) and Remote IO Modules (RIOM).

TCMS Market: Report Scope

TCMS Market: Regional Analysis

Europe is expected to dominate the market during the forecast period

Europe is expected to dominate the global TCMS market over the projected period. The regional growth is attributed to the growing railway infrastructure investment in the countries like France, Denmark, Spain, Germany, and Italy. For instance, in December 2021, through a connectivity initiative that intends to boost rail transport safety, passenger and freight capacity, and speed between Türkiye and the European Union, the Asian Infrastructure Investment Bank (AIIB) is assisting the Government of Turkey in financing Infrastructure for Tomorrow (i4t). The Ispartakule-Cerkezkoy Railway Project entails the building of a new double-track, electrified high-speed railway between Ispartakule and Cerkezkoy, and the Board of Directors of AIIB approved a loan for USD 330 million for it.

The project has a USD 165 million loan from the European Bank for Reconstruction and Development (EBRD). Thus, these types of investments positively boost the market growth over the forecast period.

The Asia Pacific is expected to grow at the fastest rate in the TCMS industry during the forecast period. The regional growth is attributed to the growing railway infrastructural investment along with government support particularly in the countries like India and China is expected to drive the market growth during the forecast period. For instance, India, one of the economies with the quickest rate of expansion, is actively investing in the expansion of its railway services. For the 2020–21 fiscal year, the country's railway ministry allotted $22.4 billion in funding to expand the Indian railway network. In addition, China intended to establish a 15-year plan in 2021 for the development of transportation infrastructure. By 2035, the nation hopes to have doubled the size of its high-speed rail system.

Beijing also plans to boost the length of the nation's high-speed rail network by more than 84% from 2020 to 70,000 km (43,500 miles) by 2035. A 460,000 km network of national expressways and regular highways as well as a 25,000 km system of high-quality inland waterways are also part of the plan. However, the operating length of China's railroad network increased by 2.5% in 2021 to 150,000 km. As a result, national initiatives fuel the development of the railway network, which in turn fuels the expansion of the TCMS market.

TCMS Market: Competitive Analysis

The global TCMS market is dominated by players like

• ABB
• Alstom S.A
• Aselsan A.S
• Bombardier Inc
• CAF
• Construcciones y Auxiliar de Ferrocarriles
• S.A.
• China Railway Signal & Communication Corporation Limited
• DEUTA-WERKE GmbH
• EKE-Electronics Ltd
• Hitachi Ltd
• Knorr-Bremse AG
• Mitsubishi Electric Corporation
• Siemens AG
• Strukton Rail AB
• Thales Group
• Toshiba Corporation
• Among Others.

The global TCMS market is segmented as follows:

By Train Type

• Metros & High-Speed Trains
• Electric Multiple Units
• Diesel Multiple Units

By Component

• Vehicle Control Unit
• Mobile Communication Gateway
• Human Machine Interface
• Others

By Connectivity

• GSM-R
• Wi-Fi
• TETRA
• Others

By Control Solutions

• Positive Train Control
• Communication-Based Train Control
• Integrated Train Control

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa