Nokia, Huawei, and Kapsch Fuel GSM-R Market as Coverage Grows Nearly 50% to 190,000km of Track by 2020

Oyster Bay, New York - 16 Dec 2014

GSM-R has been adopted in Europe for more than 10 years to provide voice and data communications for railway and acts as a radio bearer for train control messages. Mandated by the European Commission and supported by the dynamic railway industry in the region, the GSM-R system has established a significant market in Europe. Over the past few years the market extended to regions outside Europe including Asia-Pacific, Middle East, and Africa. Led by Nokia, Kapsch CarrierCom, and Huawei, GSM-R track coverage is growing to 190,000 km by 2020.

Despite being the latest technology that caters to railways needs, GSM-R itself is based on 2G GSM which is now a declining technology. However, in the absence of strong alternatives, GSM-R continues to be the technology of choice for many new railway projects. System evolution and the development of the next-generation networks go hand in hand creating a transition period over the 2020’s. “GSM-R structure is migrating to an IP-based transmission network to improve performance, and lower OPEX, and is a step towards the next generation network,” comments Ahmed Ali, research analyst at ABI Research.

LTE is emerging as a strong candidate to succeed GSM-R considering the growing adoption in the commercial sector and the support from the majority of equipment manufacturers. Embracing LTE-based networks introduces new areas of growth and new market players to the industry. “One interesting scenario is the collaboration between public network operators and railway operators to create a converged network and reduce cost. With LTE, providers like Alcatel-Lucent and Ericsson can further improve the railway solution market and drive competition,” continues Ali.

These findings are part of ABI Research’s In-Building Wireless and Macro Basestations Market Research.

ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 70+ research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.

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