Railway operators to invest $1.2 billion in 5G LTE by 2027

SNS Telecom & IT has released a report indicating that cumulative spending on FRMCS-ready 5G and LTE networks in the railways industry is projected to reach $1.2 billion between 2024 and 2027.

Private 5G and 4G LTE cellular networks, termed as Non-Public Networks (NPNs) in 3GPP terminology, are increasingly embraced by a variety of industries. This trend extends to the railways sector, where operators are transitioning from legacy systems like GSM-R to mission-critical LTE networks.

Several countries have initiated significant LTE-based railway communication improvements. In South Korea, the Korea National Railway has one of the globe's most extensive LTE railway networks. China has similarly established many 1.8 GHz private LTE networks catering to multiple applications like CBTC, video surveillance, broadband trunking, and Passenger Information Systems.

France's Société du Grand Paris has implemented a 2.6 GHz private LTE network for comprehensive operational communications across Grand Paris Express' stations, lines, and depots. Meanwhile, the Public Transport Authority of Western Australia is setting up a 3GPP-compliant network to succeed their current 400 MHz analog system, involving about 160 cell sites for wide-ranging communication purposes.

India's National Capital Region Transport Corporation is introducing a 700 MHz private LTE network for the Delhi-Meerut Regional Rapid Transit System. This network is designed to facilitate crucial voice and data communications, support advanced train control systems like ETCS Level 2 and 3, and accommodate Automatic Train Operation.

Despite a projected full transition from GSM-R to FRMCS systems by the late 2020s, current developments show a tendency towards adopting FRMCS-ready 5G networks for safety and operational uses. For instance, China has metro operators like Shentong, Guangzhou, and Shenzhen using hybrid public-private 5G networks.

Spain's Adif AV is pursuing a hybrid 5G network to enhance digitalisation and automation within its logistics centres nationwide. In the UK, the England's Connected Heartland Railways project is working on a standalone private 5G network intended to serve operational teams and passengers on a portion of the East West Rail from Bicester to Bletchley.

Prominent rail operators such as Deutsche Bahn, SNCF, Swiss Federal Railways, and others are currently engaged in pre-commercial 5G connectivity projects ahead of their broader deployment. This underscores a growing momentum in the sector towards integrating 5G technologies.

SNS Telecom & IT's "Private 5G/4G Cellular Networks for Railways: 2024 – 2030" report estimates a 23% compound annual growth rate in private 5G and 4G LTE infrastructure spending within the railway industry over the forthcoming three years. The sector is set to account for over $1.2 billion in expenditures during the 2024-2027 period.

SNS Telecom & IT is a global market intelligence and consulting firm with a primary focus on the telecommunications and information technology industries. Developed by in-house subject matter experts, the firm's market intelligence and research reports provide insights on both established and emerging technologies.