The global market for control command and signaling, the enabling technology for railway safety, is forecast to experience significant growth, fueled by the advent of digitalization. According to SCI Verkehr the market, valued at EUR 19.3 billion, is expected to grow at an annual rate of 4.6% from 2023 to 2028. This growth will be driven primarily by demand for new developments and upgrades in the sector. SCI Verkehr's comprehensive study "Control Command and Signalling - Worldwide Market Trends 2023", available in English from February 2024, examines these trends.
Digitalization is transforming control command and signaling systems beyond their traditional role in operational safety. These advances not only increase rail capacity and interoperability but also improve passenger comfort and environmental sustainability. This shift allows significant improvements to be made without the need for major physical infrastructure upgrades.
Globally, infrastructure managers are recognizing the benefits of investing in modern control command and signaling technologies. However, the pace and focus of investment varies from region to region. In China, after years of heavy investment in rail infrastructure, including advanced signaling, the market is expected to grow at a relatively modest rate of 1.6% per year from 2023 to 2028. This growth will come mainly from renewal and maintenance activities, with a slight decline in new development and upgrade projects.
Conversely, Europe, and Germany in particular, face the challenge of modernizing their largely outdated and diverse signaling systems. This need is expected to drive the European market's growth above the global average, with an anticipated annual growth rate of 5.3% between 2023 and 2028. The focus in this region will be on new development and upgrade projects, highlighting the critical need for investment in this technology.