
Revenues for railcar Internet of Things (IoT) in freight rail will surpass $20 billion by 2032, according to ABI Research.
“The global railcar telematics market is driven by the increasing demand for efficient, safe, and cost-effective transportation systems. This expansion can be attributed to advancements in digitalization and the integration of IoT technologies due to heightened emphasis on real-time data analytics enabling preventive maintenance,” says Adhish Luitel, principal analyst at ABI Research.
Key takeaways:
- Unlike Europe, the North American market is notoriously underpenetrated when it comes to IoT-based visibility. North America presents a large Total Addressable Market (TAM) of nearly 2 million railcars. So far, machine vision and sensor-based inspection devices mounted on the side of the tracks, usually at rail-grade crossings, have been at the forefront.
“Rail braking inspections are critical to ensure safety and compliance in the industry. These checks verify that the air brake system is functioning properly across the entire train, which can span over a mile in length. However, the process can be time-consuming as manual inspection for each car requires constant coordination between the train crew and the control center. This is when IoT technologies can provide efficiency gains,” says Luitel.