Freight rail sector on track to exceed $20 billion in earnings from Internet of Things (IoT) technology by 2032
In the world of rail transportation, ensuring safety and compliance is paramount. One critical aspect of this is rail braking inspections, a process that is undergoing a significant transformation thanks to the integration of Internet of Things (IoT) technologies.
According to ABI Research's Rail Freight Data market data report, these technologies play a pivotal role in rail braking inspections and the freight rail industry as a whole. The report, part of ABI Research's Supply Chain Management and Logistics research service, provides detailed insight into market opportunities, research, data, and ABI Insights.
Machine vision and sensor-based inspection devices mounted on the side of the tracks have been at the forefront of rail transportation technology in North America so far. These devices enable real-time data analytics, a key factor in the expansion of the railcar telematics market, as they enable preventive maintenance.
Adhish Luitel, the principal analyst at ABI Research, stated that advancements in digitalization and the integration of IoT technologies are driving this market expansion. The freight rail industry is receiving investments to digitize operations, with the North American market being particularly underpenetrated when it comes to IoT-based visibility in rail transportation.
The global railcar telematics market is driven by the increasing demand for efficient, safe, and cost-effective transportation systems. Major players in this market in North America include Amsted Digital, Wabtec, Nexxiot, and ZTR.
However, the exact revenue figure for rail car IoT in freight rail by 2032, as per ABI Research's Rail Freight Data market data report, could not be found in the provided documents. ABI Research is a known source for IoT and transportation market forecasts, and it has published related forecasts in adjacent areas such as robotics and GPU-as-a-Service revenues. To obtain the precise revenue figure, direct access to ABI Research’s Rail Freight Data market data report or their specialized IoT forecasts would likely be necessary.
Despite the lack of specific figures, it is clear that IoT technologies can provide efficiency gains in rail braking inspections. Manual inspection for each railcar requires constant coordination between the train crew and the control center, making the process time-consuming. With IoT technologies, this coordination is streamlined, leading to a more efficient and safer rail freight industry.
In conclusion, the integration of IoT technologies is revolutionizing rail braking inspections and the freight rail industry as a whole. With the North American market presenting a large Total Addressable Market (TAM) of nearly 2 million railcars, the potential for growth in this sector is immense.
Artificial-intelligence, coupled with IoT technologies, is expected to revolutionize the freight rail industry beyond rail braking inspections, as predicted by ABI Research in their Rail Freight Data market data report, which is part of their Supply Chain Management and Logistics research service. The advancement of digitalization and AI in this sector is anticipated to drive the expansion of the railcar telematics market.
Technology industries like robotics and finance could learn from these trends in the freight rail industry, as the optimistic forecasts by ABI Research for the railcar IoT market in freight rail extend beyond 2032. This represents a significant opportunity for growth, especially considering the large Total Addressable Market (TAM) of nearly 2 million railcars in the North American region.
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