Railway Cybersecurity Market Research Report—Global Forecast till 2030

Railway Cybersecurity Market Size, Share & Industry Analysis, By Component (Solution (Risk and Compliance Management, Intrusion Detection System, Encryption, Firewall, Antivirus), Services (Design and Implementation, Risk and Threat Assessment, Support and Maintenance)), By Type (Infrastructural, On-Board), By Security Type (Network Security, Application Security, Data Protection, End Point Security, System Administration), By Application ( Passenger Trains and Freight Trains) and Region -Forecast to 2030

ID: MRFR/ICT/9223-HCR | October 2021 | Region: Global | 100 pages

Railway Cybersecurity Market Insights


The global Railway Cybersecurity Market size is estimated to be 6.60 Billion in 2021 and is projected to grow 13.90 billion by 2030, at a CAGR of 8.6% from 2021 to 2030.


Advancement in technologies across industries continues to drive the need for more robustcybersecurity solutions. A cyber attackon a company can damage the company's profits, reputation, brand image, operational ability, and competitive position. Companies must understand the impact of cyberattacks and deploy robust systems to prevent them and minimize the risk to their business.


Similarly, digitalization brought significant benefits to the railway industry,especially in rail safety, operational efficiency, reliability, and enhanced passenger experience. In recent years, railways across many countries have developed digital strategies to cope with the growing number of passengers and the Internet of Things (IoT) in the management and control systems of trains, metros, and track signaling systems.


The growing digitalization in the railways has allowed a large amount of data to flow across digital and physical networks. As more devices and systems are connected to the internet, more vulnerabilities will appear that potentially disrupt the physical assets. Thesedigital advancements also attract new cyber threatsincreasing the demand for railway cybersecurity solutions.


COVID-19 IMPACT


The railway industry is not immune from the outbreak of the COVID-19, and it witnessed the downfall of production and sales of rail vehicles in 2020. The coronavirus pandemic negatively impacted the global railway cybersecurity market due to declining passenger service and goods freight transportation demand. The business lockdowns, travel & transportation restrictions across countries and supply chain disruptions in across industries have also affected cybersecurity solutions' growth. A decline in the railways R&D expenditure followed by delays in implementation of the railway cybersecurity projects is expected to affect the market significantly.


The implementation of railway cybersecurity solutions is mostly based on the government budgets and rail operators' demand. There is a gradual recovery of the railway operations in most of the countries. In the last 18 months, the behaviors of passengers have changed significantly. To respond to these changes, railway operators started to focus on improving safety, supporting infrastructure improvements, and ensuring a sustainable business.


Market Dynamics


DRIVERS



  • Rising number of cyberattacks in railways


The railway IT systems have been a frequent target of cyberattacks, considerably increasing the number of incidents in recent years. Railways are essential to all nations to improve economic performance, meet the needs of diverse customers, facilitate trade and commerce, make mobility accessible, and contribute to tourism development.


Cyber ​attacks on railway networks threaten the continued ability of nations to engage in economic and commercial activities. For countries without solid cyber defenses, the consequences could be devastating. For Instance, in 2016, Network Rail UK was hacked four times in the same year. However, this attack has a minor impact on the railway system. Such kinds of cyberattacks are increasingly becoming common.


Therefore, railway companies are looking to leverage cybersecurity solutions to stay ahead of the attack vectors and detect any suspicious activity before any damage.



  • Upgrade of Legacy systems


Achieving Railway cyber Resilience is an important goal because it allows train operators to keep running their business at all times. The railway is a vulnerable target for cyberattacks, and Cybercriminals have looked to take advantage of the legacy systems and older equipment.


Keeping railway systems secure is challenging. The breach and leak of the potential railway's data might cause a safety concern since it has a variety of vulnerabilities. Therefore, railway organizations are looking to adopt data-driven approaches for maintenance planning and future investments in railway cybersecurity solutions.


Restraint:



  • Need of large capital


Implementation of cybersecurity involves high installation costs. Deploying cybersecurity solutions means investments in field-level devices, upgrade of IT infrastructure. The need for efficient infrastructure and high initial capital for effective implementation limits growth possibilities.


Challenge:



  • Testing and Training


Successful implementation of cybersecurity solutions needs to ensure awareness and training among the workforce and employees in the deployed organization, without which the risk remains unattended. Companieswill need to make schemes and initiatives to create continued awareness ofcyber security challenges, practices, and protocols. This will ensure ROI on the invested solutions and will provide effective solutions.


Regulatory Framework


Below is the list of cybersecurity standards used in the railway sector across countries.



  • General


62443-1-1: The standard defines technical specification about terminology, concepts, and models used in Industrial Automation and Control Systems (IACS) security.



  • Policies and procedures


62443-2-1: The standard describes the elements necessary to establish a cyber security management system (CSMS) and offers guidance to develop them. The standard used to establish an industrial automation and control system security program.


62443-2-3: Defines the requirements of asset owners and product suppliers' industrial automation and control system (IACS) that establish and maintain the industrial automation and control system (IACS) patch management program.


62443-2-4: Describes requirements of security capabilities for IACS service providers during integration and maintenance of an Automation Solution.



  • System


62443-3-1: It describes the various categories of control system-centric cybersecurity technologies and the product's availability in the relevant categories pros and cons of using them in the automated IACS environments.


62443-3-2: It describes the system under consideration (SUC) for an industrial automation and control system (IACS), which includes partition of SUC into zones and conduits, assesses the risk, and establishes target security level (SL-T) for each zone and conduit and document the security requirements.


62443-33: It defines technical control system requirements (SRs) related to the seven foundational requirements (FRs) that are described in IEC 62443-1-1.


Market Segmentation



  • By Type Analysis


Based on the Type, the railway cybersecurity market is bifurcated into Infrastructural and On-Board segments.


The on-board railway cybersecurity market is expected to grow faster during the forecast period. Digital technology has become necessary, and passengers are looking for newer ways to do things during their commute, including work, watch videos on their smartphones, and read the news on their tablets. Trains are now equipped with the latest technology to improve security and deliver fast, seamless connectivity. The rapid proliferation of railway on-board operational systems is pushing for more robust implementation of on-board railway cybersecurity solutions.



  • By Security Type Analysis


Based on security, the railway cybersecurity market is bifurcated into Network Security, Application Security, Data Protection, End Point Security, and System Administration.


Among the segments by Security, Network Security is likely to dominate the market. Manyplayers are offering comprehensive network security solutions to railways. More robust railway communications network security will need to be put in place for the railway's infrastructure to remain secure. Although cyberattacks are becoming more sophisticated, the potential damage from those attacks continues to grow to causeeven physical damage to critical railway infrastructure. Network security solutions protect railway systems, networks, and services from unauthorized modifications, destruction, and disclosure.



  • By Region


Asia-Pacific is projected to grow the fastest in the global railway cybersecurity market by 2030. In Asia, public transportation is a core element in many economies as a large share of the population relies on it for work and leisure as afast and inexpensive way to travel. As Asia's larger nations become more connected, their large domestic passenger rail networks will become critical. Singapore, Hong Kong SAR, Taiwan, Japan, South Korea, and China currently host the most advanced mass transit rail networks.


In recent years, the Chinese railways have undergone rapid developments, including the addition of 35,000 kilometers to its existing high-speed rail (HSR) network and the maximum train speed limits rose from 250km/hr to 350km/hr.


Asia-Pacific also hosts some of the key OEMssuch as Thales Group (France), Siemens AG (Germany), Alstom (France), Wabtec (US), and Nokia Networks (Finland). Therefore, the growth investments made by these large giants in railway cybersecurity and new technology partnerships continue to fuelthe railway cybersecurity market in the region.


Competitive Landscape


The Railway Cybersecurity market study is distributed between many prominent players with extensive Railway Cybersecurity products/service offerings and strong distribution networks. These companies invest heavily in their R&D and continue to launch and upgrade their offerings. Key companies profiled in the study include


October 2021- Deutsche Bahn AG, a German railway company, partnered with Siemens Mobility to develop a fully automated world's first train that operates by itself controlled by digital technology.


October 2021- Siemens Mobility acquired Sqills, a Netherlands-based leading Software as a Service (SaaS) provider for inventory management, reservation, and ticketing software. This acquisition is likely to enable Siemens Mobility to strengthen its position and offer innovative, smart, and comprehensive mobility solutions.


September 2021- Alstom, a prominent global leader in sustainable mobility, has entered into an agreement with Airbus CyberSecurity to help rail operators to secure industrial information systems by leveraging Alstom's and Airbus CyberSecurity solutions and services capabilities.


A few of the key companies profiled in the study include



  • Thales Group (France)

  • Siemens AG (Germany)

  • Alstom (France)

  • Wabtec Corporation (US)

  • Hitachi, Ltd. (Japan)

  • Nokia Networks (Finland)

  • IBM (US)

  • Cisco Systems, Inc. (US)

  • Raytheon Technologies Corporation (US)

  • Huawei Technologies Co., Ltd. (China)

  • Toshiba Corporation (Japan)


Report Overview:


The Railway Cybersecurity market study in the report has been segmented into all possible segments. Qualitative and quantitative market insights have been provided across all the segments of the global railway cybersecurity market study.


The railway cybersecurity market is segmented by component, by type, by security type, by application, and by region. By component, the railway cybersecurity market is further segmented into solutions and services. Based on the type, the market is bifurcated as infrastructural and on-board. By security type, the retail cybersecurity market is segmented into network security, application security, data protection, endpoint security, and system administration. By apllication, the market is segmented into passenger trains and freight trains. Further, the global railway cybersecurity market has been analyzed over five major regions, including North America, Europe, APAC, Middle East and Africa, and Latin America.


The report also provides details about market drivers, restraints, challenges, and key trends with respect to growth. A detailed study about the key market players and company profiles has been provided in the report. Further, the report includes recent industry developments in the global retail analytics market, macro and microeconomic factors, SWOT analysis, and value chain analysis.


Objectives of the Study



  • To understand and assess the global current size of the Railway Cybersecurity market

  • To understand the key players controlling a major share in the Railway Cybersecurity market

  • How the Covid-19 has impacted the Railway cybersecurity solution providers

  • To understand the key recent market trends in the Railway Cybersecurity market?

  • To assess the key geographies with higher market share and gaining markets globally



Report Scope:
Report Attribute/Metric Details
  Market Size   13.90 billion
  CAGR   8.6%
  Base Year   2020
  Forecast Period   2021-2030
  Historical Data   2019
  Forecast Units   Value (USD Billion)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Component, Type, Security, Application
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Thales Group (France),Siemens AG (Germany), Alstom (France),Wabtec Corporation (US), Hitachi, Ltd. (Japan), Nokia Networks (Finland), IBM (US), Cisco Systems, Inc. (US), Raytheon Technologies Corporation (US), Huawei Technologies Co., Ltd. (China), Toshiba Corporation (Japan)
  Key Market Opportunities   Railways across many countries have developed digital strategies to cope with the growing number of passengers and the Internet of Things (IoT) in the management and control systems.
  Key Market Drivers

  • Advancement in technologies across industries continues to drive the need for more robustcybersecurity solutions.
  • Increased need for smart mobility solutions and services fueling the growth of the railway cybersecurity market.


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    Frequently Asked Questions (FAQ) :


    The global railway cybersecurity market is predicted to grow at an 8.6% CAGR between 2021- 2030.

    Asia Pacific will lead the global railway cybersecurity market.

    Increase in cyberattacks in railways and upgrade of legacy systems are the key factors driving the global railway cybersecurity market growth.

    Need for large capital may limit the global railway cybersecurity market growth.

    Key contenders profiled in the global railway cybersecurity market include Thales Group, Siemens AG, Alstom, Wabtec Corporation, Hitachi, Ltd, Nokia Networks, IBM, Cisco Systems, Inc, Raytheon Technologies Corporation, Huawei Technologies Co., Ltd, and Toshiba Corporation.