Control Command and Signalling in Rail Business: Modern Systems Improve Safety and Efficiency Worldwide

Aug. 1, 2016
The current market volume for control command and signalling of EUR 16.5 billion is determined by the markets in Europe and Asia, in particular.

The current market volume for control command and signalling of EUR 16.5 billion is determined by the markets in Europe and Asia, in particular. More and more lines in Europe are being equipped with ECTS, the standardized train control system. After initial difficulties, ETCS introduction has been decided in most countries and will be implemented soon. In the course of construction and extension of urban transport and the introduction of driverless systems, control command and signalling is gaining in importance. CBTC, the communication-based control system for urban transport, for instance, considerably contributes to world market dynamics. In its study “Control Command and Signalling – Worldwide Market Trends“ SCI Verkehr analyses worldwide, regional, as well as country-specific developments.

The market for control command and signalling is determined significantly by new development and maintenance of electric interlockings which approximately account for 33% of total sales. However, current and mid-term market growth is caused by standardization processes concerning train control which are implemented in order to improve both railway traffic safety and efficiency. New development as well as maintenance of train control systems in urban transport increasingly involves the installment of CBTC systems which, inter alia, allow automated train operation. The market for control command and signalling also benefits from the positive development of the urban rail sector on a global scale. This sector will increase by 4.5 % p.a. until 2020.

After long delays, the standardized train control system ETCS will be installed on all European networks. Nowadays, ETCS is already the complementary, or even the only system installed on new and upgraded lines – in high speed rail and on the big freight corridors. Most European infrastructure providers are planning to have finalized equipping the whole network by 2030.

Dynamics of the Asian market are primarily influenced by the development of Chinese high speed rail. After significant growth in the past, this market will develop on a stable level in the mid-term. Growth will be significantly higher with regards to maintenance than in terms of new development and upgrade. The urban transport market in China in particular shows clear potentials and will grow by ~4.3% p.a. until 2020.  Primarily, this is due to new development and upgrade of lines equipped with CBTC which are often operated without a driver.

In the USA, the introduction of the standardized train control system Positive Train Control (PTC) was decided by Congress in 2015. Its implementation will lead to growing revenues for control command and signalling on the North American market.

The German manufacturer Siemens is the biggest market player regarding control command and signalling. Siemens, followed by Chinese state-owned enterprise CRSC, makes up one fourth of the market.

Significant parts of the Italian signalling technology manufacturer Ansaldo STS were taken over by the Hitachi group. Therefore, a new player will appear among the top ten manufacturers in coming years. Alstom’s takeover of the GE group’s signalling business affects the North American market, in particular.

SCI Verkehr
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