The railway industry is expected to boost IT spending in the coming years, investing in areas such as the cloud, mobile technology and video analytics, according to Technavio Research.
Technology spending in the global railway sector will see a compound annual growth rate (CAGR) of 16% between 2016 and 2020, the firm says. IT solutions have become a core component of almost all railway operations—from ticketing to logistics handling to catering.
New technologies, such as Internet protocol (IP)-based networks and high bandwidth systems, are used to bolster security and safety in railways.
The Europe, Middle East and Asia region dominates the global IT spending in railways, accounting for 40% of the total market share, the report says. Much of this region’s growth comes from Europe, which has the most advanced railway systems in the region.
The development of intelligent infrastructure and increased use of telematics have boosted the market growth in Europe, Technavio says.
“Railways operators across the globe are investing in emerging technologies such as iBeacon, cloud and video analytics to enhance passenger experience and improve railway operations,” said Amit Sharma, lead analyst, ICT at Technavio.
“The iBeacon technology provides information about train timings and delays, and helps advertisers deliver targeted advertisement and contents,” Sharma said. “Cloud helps centralize railway operations to effectively manage railway traffic at low costs. Railways are opting for intelligent video analytics to automate their operational and surveillance needs.”
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