Railway Cybersecurity Market: Current Analysis and Forecast (2024-2032)

Global Railway Cybersecurity Market Size & Forecast

The global railway cybersecurity market was valued at USD 7.42 billion in 2023 and is expected to grow at a strong CAGR of around 8.62% during the forecast period (2024-2032), owing to rising demand for cybersecurity in the railway industry across the globe.

Global Railway Cybersecurity Market Analysis

Railway cybersecurity refers to the protection of railway infrastructure, railway network, and systems from external unauthorized digital threats. Railways across the globe have been extensively invested in digitalization for signaling, maintenance, and various types of passenger services. These services include not only internet services but financial services such as ticket services, reservation services, etc., which contain customers’ personal and financial data, which is sensitive. Considering the theft of this data, railways across the globe are looking to opt for robust cybersecurity measures to reduce the chances of any eventuality.

The Global railway cybersecurity market was valued at USD 7.42 billion in 2023 and is expected to grow at a strong CAGR of around 8.62% during the forecast period (2024-2032). With the digitalization of railway technologies, many of the railways across the globe have aligned their efforts with establishing a security mechanism against cyber threats. Some of the major objectives of railway cybersecurity for the railway are protecting sensitive data, ensuring the integrity and availability of railway services and systems, and reducing the risks posed by cyber threats. Considering these challenges, many of the cybersecurity providers, along with government agencies, are collaborating to pave the way to secure the railway network as well as ease the establishment of cybersecurity mechanisms within the railway upgradation needs. For instance, in 2024, the European Union announced the European Cyber Resilience Act, which describes the cybersecurity requirements for digital technologies in Europe. These solutions also included mobility solutions such as railways.

Any disruption to the energy supply or network connectivity of trains can have cascading effects on transportation. The railway sector is a lucrative target for cybercriminals, who can profit from stealing sensitive information or disrupting operations for financial gain.

Governments play a crucial role in ensuring the security of railway systems by implementing regulations and policies that require railways to adopt robust cybersecurity measures, conducting audits and inspections to monitor compliance, and investing in research and development to improve the resilience of railway systems to cyber threats. Overall, effective government action is essential to safeguarding railway infrastructure and ensuring a reliable and secure mobility of citizens and goods.

Global Railway Cybersecurity Market Trends

This section discusses the key market trends that are influencing the various segments of the Global Railway Cybersecurity Market as identified by our team of research experts.

Rising Government Support to Enhance Cybersecurity Measures

Railway cybersecurity has emerged as one of the pivotal concerns for the government and the railway sector. As the railway network, infrastructure, and systems produce a vast amount of data, including the personal and financial information of the customers and railway employees, there is a rising threat of hacking/phishing for the data. These cyber-threats could be diverse and require a dedicated effort to thwart any possibility of data loss by railways. In line with this, various governments across the globe are aligning their efforts toward the integration of cybersecurity services in railways. For instance, in 2022, the government of India announced a National Cybersecurity Strategy for IT security policy for railways. This included mandatory awareness programs for railways for cybersecurity measures and mechanisms to thwart any security threats.

In another instance, in March 2022, the US government implemented the Cyber Incident Reporting for Critical Infrastructure Act of 2022. This act targeted various industries, including railways, where the impact of cybercrime could lead to severe public health and safety and economic stability.

Considering the rising focus of governments across the globe, the integration and implementation of cybersecurity measures for railways is further anticipated to rise in the forthcoming years, i.e., 2024-2032.

With the growing need for predictive security systems in the railway industry, the demand for railway cybersecurity in this category is anticipated to experience rapid growth, subsequently improving its market in the coming years.

Railway Cybersecurity Industry Segmentation

This section provides an analysis of the key trends in each segment of the global railway cybersecurity market report, along with forecasts at the global, regional, and country levels for 2024-2032.

The Solutions Segment Dominates the Railway Cybersecurity Market.

Based on offering, the global railway cybersecurity market is bifurcated into solutions and services. These solutions have held the major market share owing to the rising need for the hardware and software-based solutions required by the railways. These solutions require infrastructure upgrades as well as constant investment, which has led to higher expenditure on the solutions segment, further contributing to its higher share. These services include risk and compliance management, encryption, firewall, antivirus/antimalware, intrusion detection system/prevention systems, etc. There is a need to install hardware systems such as firewalls, routers, secure communication modules, etc., to protect railway networks, endpoints, and critical infrastructure; the solutions segment is further anticipated to hold a sizeable market share during 2024-2032.

The Network Security Segment Dominates the Railway Cybersecurity Market.

Based on the security type, the global railway cybersecurity market has been segmented into application security, network security, data protection, endpoint security, system, and administration. Of these, network security has held the major market share due to its prevalence in protection against unauthorized access, securing communication channels, detection and response to intrusions, ensuring availability and reliability, and adherence to cybersecurity regulations such as European Rail Traffic Management (ERTM) and Positive Train Control (PTC).

Asia Pacific is Expected to Hold Major Market Share During the Forecast Period

The Asia Pacific railway cybersecurity market holds the major market share across the globe. Some of the key factors that have contributed to the growth are the presence of the vast railway lines and infrastructure in the Asia Pacific region. The expanding railway infrastructure in the leading countries of the region, such as China, India, Japan, South Korea, etc., has also led to the need to digitalize the old-age railway technology to improve the customer experience. Many of the high-speed rail projects have recently been completed in the region, which has further promoted the rise of railway cybersecurity solutions and services.  For instance, in 2023, China Railway opened the Jinxing Railways 101 km railway line between Tianjin and Beijing Airport, consisting of 4 stations. The line has a maximum speed of 250 km/hr, and 8 trains are operating on the line.

Considering the vast railway infrastructure in the Asia Pacific region, as well as the further need to electrify and upgrade the existing network, the region is anticipated to dominate the global market in Railway cybersecurity in the coming years, i.e., 2024-2032.

China Dominates the APAC Railway Cybersecurity Market

Rising demand in China for railway cybersecurity has been propelled by its extensive high-speed rail network and expanding railway digitalization initiatives. Smart rail systems, together with IoT integration and AI-powered automation, require cybersecurity protection for critical infrastructure against cyber threats. The China National Railway Group acts as an implementer of strict cybersecurity rules while investing in state-of-the-art security technologies for the nation. Leading Chinese technology companies, Huawei, along with China Railway Signal & Communication (CRSC) create strong cybersecurity tools which incorporate artificial intelligence detection systems and protected communication frameworks. BRI expansion of railway connectivity will trigger an increasing need for total cybersecurity measures, which will ensure railway systems remain resilient and safe.

Global Railway Cybersecurity Industry Overview

The global railway cybersecurity market is competitive and fragmented, with the presence of several global and international market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some of the major players operating in the market are Alstom; BAE Systems; Cervello (Kearney); Cisco Systems Inc.; Cylus Ltd.; General Vernova; Hitachi Ltd.; Huawei Technologies Co., Ltd.; Thales; Nokia

Global Railway Cybersecurity Market News

• For instance, in 2023, Indian Railways announced that it would update its SCADA security on its electric trains. The plan was initiated after an Indian cybersecurity agency reported the vulnerabilities in the Indian Railway systems.

• In 2024, the government of India approved six multi-tracking projects worth USD 1.5 billion for the transportation of commodities such as food grains, food commodities, fertilizers, coal, cement, iron, steel, fly-ash, clinker, limestone, POL, and containers.

Global Railway Cybersecurity Market Report Coverage

Reasons to Buy Global Railway Cybersecurity Market Report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.

• The report presents a quick review of overall industry performance at a glance.

• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.

• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.

• The study comprehensively covers the market across different segments.

• Deep dive regional-level analysis of the industry.

Customization Options:

The global railway cybersecurity market can further be customized as per the requirements or any other market segment. Besides this, UnivDatos understands that you may have your own business needs; hence, feel free to contact us to get a report that completely suits your requirements.