Addressable market

HEAT-MAP OF THE RAIL SIGNALLING AND TURNKEY SYSTEM MARKET

Sources: Ansaldo STS, PwC Strategy& analysis

TECHNOLOGICAL TREND



ONBOARD
AND WAYSIDE


INTERLOCKING &
GROUND EQUIPMENT


CBTC


SUPERVISION/
AUTOMATION/
DIGITAL


SATELLITARE
  • European Railway Traffic Management System (ERTMS) industry standard
  • All on-board train centric trend
  • Stable technology impacted by product commoditization and price pressure
  • Driverless requirements in all the geographies
  • Communication-Based Train Control (CBTC) required by most of the global projects
  • New offering and services, enabled by digital technologies
  • Technology not yet mature and standards still to be defined
  • Opportunities for implementation in not electrified lines

The addressable market for Rail Signalling and Turnkey systems is worth around € 15 Bn/year, with future growth slightly below the expectations because of the global economic environment.

According to our assessment, the market will remain flat in the short to medium term. However our analysis predicts a varying outlook based on geographies and lines of business. Western Europe and Asia Pacific are expected to remain the largest markets, while the US and Canada to be the fastest growing countries.

In the field of Turnkey projects, where Ansaldo STS acts as a systems integrator, the Operation &Maintenance (O&M) segment is expected to grow faster than the other lines of business, boosted by jumbo projects in specific regions such as the Middle East. Moreover, a relevant share of future Turnkey projects is expected to be financed through Public - Private Partnerships (P3).