Railway Cybersecurity Market Research Report and Outlook by 2028

The railway cybersecurity sector is anticipated to expand significantly, with projections indicating growth from US$ 7,469.51 million in 2022 to US$ 13,763.76 million by 2028. This growth represents a compound annual growth rate (CAGR) of 10.7% over the six-year period.

As the information and communication technology (ICT) landscape evolves and customer expectations for sophisticated services rise, railway operators are increasingly motivated to upgrade their outdated systems. They are transitioning to modern, standards-based infrastructures, such as IP communication networks, which enhance reliability, capacity, efficiency, and overall customer satisfaction. The trend towards interconnected railway systems is also notable, with technologies becoming more interoperable and standardized.

In recent years, there has been a marked increase in cybersecurity incidents affecting operational technology (OT) and control networks within railway systems globally. Reports of breaches involving the theft of sensitive passenger information and disruptions to services due to cyber-attacks have surfaced, adversely affecting the profitability of railway operators and their ability to meet escalating cybersecurity compliance standards. Given that control systems are vital for monitoring and managing train operations, railway operators must maintain a clear understanding of the risks posed by potential cyber threats. The growing sophistication of cyber-attacks highlights the vulnerabilities of train control systems, underscoring the need for robust protective measures. Consequently, many countries have mandated that train operators adopt risk management systems that align with established risk management standards. The railway cybersecurity infrastructure is designed to integrate features that facilitate compliance tracking and reporting, thereby propelling market growth.

In North America, particularly in the United States and Canada, the demand for cybersecurity solutions in the railway sector is on the rise. This demand is driven by the need to thwart complex cyber threats and the introduction of new cybersecurity standards by the Transportation Security Administration (TSA). The presence of leading cybersecurity providers in the region is expected to create significant growth opportunities for the market in the near future.

Moreover, the federal government has enacted two cybersecurity mandates targeting "high-risk" rail and rail transit systems, despite industry resistance to increased regulation. These new safety protocols require critical passenger and freight rail systems to:

• Report cyber incidents to federal authorities within 24 hours.


• Designate a cybersecurity officer with 24/7 access to federal agencies.


• Develop a comprehensive incident response plan.


• Identify and address cybersecurity vulnerabilities through assessments.

These updated cybersecurity requirements aim to safeguard travelers and protect critical infrastructure from emerging threats.

Securing passenger rail networks is inherently more complex than safeguarding freight transport due to the open nature of the infrastructure, numerous access points, and a large user base. Recent cyber-attacks on passenger trains in New York have underscored the critical need for enhanced railroad cybersecurity measures. Consequently, North American governments are actively implementing cybersecurity solutions for both passenger and freight rail systems. In April 2020, the US Government Accountability Office published a report assessing cyber threats to passenger trains in the US and Europe, leading to the adoption of restrictive guidelines. These government initiatives are expected to stimulate growth in the railway cybersecurity market throughout the forecast period.

Key countries in North America, including the US and Canada, benefit from favorable government policies that encourage innovation, a robust industrial base, and a high rate of adoption of industrial automation solutions. The US stands out as a significant market for cybersecurity solutions across various sectors, housing the largest number of railway cybersecurity platform developers. However, any adverse effects on the regional economy or industrial growth can negatively impact the operations of companies within this sector. The COVID-19 pandemic, for instance, led to a decline in industrial and manufacturing activities in the US, Canada, and Mexico, which adversely affected the railway cybersecurity market during the first quarter of 2020.

During the pandemic, many railway organizations, including US railroads, were forced to implement remote work policies. This shift has heightened the risk of cyber threats, including intrusions, man-in-the-middle (MITM) attacks, and spear phishing. Additionally, the surge in digital traffic has resulted in increased phishing attacks, online fraud, inventory denials, and ransomware threats. In light of these heightened risks, railway operators are actively seeking advanced cybersecurity solutions to detect and manage unusual network behavior. As a result, the demand for railway cybersecurity solutions and services is expected to rise during the forecast period.

The railway cybersecurity market is categorized based on offerings, security types, types, applications, and geographical regions. In terms of offerings, the market is divided into solutions and services, with the solutions segment further categorized into risk and compliance management, encryption, firewalls, antivirus/antimalware, and intrusion detection/prevention systems, among others. Regarding security types, the market includes application security, network security, data protection, endpoint security, and system administration. The market is also segmented by type into operational technology (OT) and information technology (IT), and by application into passenger trains and freight trains. Geographically, the market is divided into North America (including the US, Canada, and Mexico), Europe (covering Austria, Italy, Poland, Switzerland, Sweden, Norway, Denmark, the Netherlands, Finland, Spain, the Baltics, and the rest of Europe), Asia Pacific (including Australia, Japan, South Korea, Taiwan, and the rest of APAC), the Middle East & Africa (including Saudi Arabia, UAE, South Africa, and the rest of MEA), and South America (including Brazil, Argentina, and the rest of SAM).

The overall size of the railway cybersecurity market has been determined through a combination of primary and secondary research. Extensive secondary research has been conducted using both internal and external sources to gather qualitative and quantitative data related to the railway cybersecurity market. This process has also involved obtaining an overview and forecast for the market across all segments. Additionally, numerous primary interviews have been conducted with industry participants to validate the data and gain deeper analytical insights. Participants in this research include industry experts such as VPs, business development managers, market intelligence managers, national sales managers, external consultants, valuation experts, research analysts, and key opinion leaders specializing in the railway cybersecurity market.