More Passengers Through Digitalization

Rail transportation is facing the task of moving growing numbers of passengers in an efficient and environmentally friendly way. The global market for rail supply (rolling stock, service, infrastructure, rail control) was evaluated at around 202 billion EUR in 2023 and is expected to reach 241 billion EUR by 2029.¹ In Europe, rail use reached a record 429 billion passenger kilometres in 2023 recovering from pandemic-related slumps.² Annual growth of 4 percent to 6 percent is forecast from here to 2028. The EU Commission's ‘Green Deal’ plans to double European high-speed transport by 2030 and to triple it by 2050. 

These growth, climate, and transportation policy targets are increasing the pressure to act. Rail digitalization is therefore indispensable – it is required due to fragmented, isolated solutions, outdated technology, and demographic change. It is also necessary to achieve growth and capacity targets. Digital innovations promise to boost the attractiveness and efficiency of rail transportation. At the same time, passengers nowadays have high expectations of digital services regarding booking and travel. Digitalization in the rail transportation sphere is, therefore, not an end in itself, but instead, the answer to the specific requirements of today. 

Asia leads the way, Europe needs to catch up

Despite all the advantages digitalization brings, implementation is often slow – large parts of the European rail network still employ conventional technology. Obstacles include high investment costs and long renewal cycles. One example of this is the standardized European Train Control System (ETCS). In 2020, only 14 percent of the EU rail network was equipped with ETCS; at the current rate, this figure will lie somewhere around only 25 percent by 2030.³ 

Regionally, impressive developments are taking place in the area of digitalization, with Asia leading the way. China and Japan in particular are investing heavily in the digitalization of rail transportation. These countries are introducing modern high-speed trains with advanced digital control systems, whilst benefiting from the historical advantage of a less complex rail networks. China Railway Corporation uses big data and artificial intelligence to further optimize its operations. This has led to a reduction in minor disruptions, for example, in the reliability of points and to a reduction in dwell times around large stations.⁴ Japan, known for its Shinkansen high-speed bullet trains, also relies on modern signaling and control technologies which, amongst other influential factors, are a key success factor for the world-famous punctuality of Japanese trains.

In Europe, countries such as Switzerland and France are pioneers in rail transport digitalization. With ‘SmartRail 4.0’, Swiss Federal Railways (SBB) is pursuing the comprehensive digitalization and automation of rail operations with a view to increasing safety and efficiency. This project optimizes capacity planning, system monitoring and vehicle control as well as responses to operational disruptions.⁵ In France, the rail company SNCF is testing autonomous trains and digital interlocking as part of the ‘Train Autonome’ project.⁶ Scandinavia is also making progress. Norway plans to equip its entire rail network with the European Train Control System (ETCS) by 2034. With its ‘Digitale Schiene Deutschland’ [Digital Rail Germany] program, Deutsche Bahn is pursuing an initiative to boost the capacity and efficiency of its rail network.⁷ Germany's first digital rail system with highly automated operation is being implemented in Hamburg. This system enables high punctuality, maximum route capacity and up to 20 percent less energy consumption.^{8; 9} 

Travel more conveniently: Digitalization of the customer interface

An important lever for raising rail passenger numbers is customer experience. This all starts with travel planning and booking. Passengers want convenience and efficiency, and digitalization of the customer interface improves just that. It revolutionizes the passenger experience by proactively identifying customer needs: Passengers can benefit from personalized travel options that take into account individual preferences such as the fastest, most comfortable or cheapest connection. Supraregional apps enable the combined booking of different transport providers, making integrated mobility a reality. There are good approaches worldwide in this area, however, the solutions are mostly regionally limited and not mutually integrated. Supraregional, transnational and cross-modal solutions are necessary. Examples of such digital platforms include Moovit from Israel, available in over 3,400 cities worldwide, and Citymapper from the UK, which offers public transport, rail, bicycle and taxi services in 31 European countries.^{10; 11}

In Germany, external mobility platforms such as Trainline or Omio have had direct access to Deutsche Bahn's live data since 2024. These facilitate the combination of different means of transportation, display of the best route and simplify ticket management and purchases. These platforms provide real-time information, handle bookings and deliver personalized travel recommendations. Mobility data makes it possible to adapt travel plans to every situation. Train connections, delays, and disruptions are provided in real time. Integrated, cross-border solutions are needed here. For this to happen, rail operators are pursuing an omnichannel strategy: On the one hand, digital channels are being expanded, whilst on the other, care is being taken not to leave less tech-savvy passengers behind and personal advice continues to be offered.

New technologies such as artificial intelligence and digital twins are the basis for further improvement of the customer experience. The specific needs of different customer groups, such as the so-called silver agers aged 50 and over, or passengers with reduced mobility, are taken into account by digital platforms that provide information on accessible travel options and allow assistance services to be booked in advance. Analysis of user data allows for personalized advertising and special offers to be sent directly to passengers, e.g., discounts for frequently used routes or recommendations for tourist attractions.¹² 

Intelligent control systems harness passenger flow data to optimally distribute capacities and prevent overcrowding. For example, flexible pricing can be used to manage demand in order to minimize capacity peaks. Based on forecast data, resources can be adapted to special situations at an early stage. Blockchain technology increases the security and transparency of booking systems by enabling the traceable processing of transactions and minimizing the risk of fraud.¹²

Improved punctuality, reliability, and speed: Digitalization of infrastructure

The second important factor in making rail transport more attractive is the triad of punctuality, reliability and speed. The main prerequisite here is digitalization of rail infrastructure. It is closely linked to the European Train Control System (ETCS), a standardized, Europe-wide technological train control system and the Automatic Train Operation (ATO) system – a type of autopilot for trains. ETCS replaces old signaling systems with radio-based real-time communication between trains as well as track and train, enabling trains to run more closely and with greater safety. This permits a higher train frequency and increases overall capacity by up to 20 percent.

This will boost the capacity on existing routes – without the need for new tracks. ETCS Level 3 will also facilitate driverless operation, compensating for the current shortage of train drivers and further improve rail transportation efficiency.¹³ In addition, the Capacity and Traffic Management System (CTMS) optimizes traffic flow and network utilization – a decisive factor for punctuality and reliability.¹⁴ The monitoring of signaling systems and switching components reduces the risk of accidents and malfunctions. Point sensors enable remote diagnosis of the condition of the points and facilitate early maintenance, thereby preventing faults and reducing maintenance costs by 15 to 20 percent. Control and monitoring systems offering greater precision improve the coordination of rail traffic and increase system robustness.

Digital throughout: Modern vehicles and digital driving

However, the full potential of digitalization in rail transport can only be achieved through the close interplay between infrastructure, vehicles and driving operations. This calls for secure, compatible and standardized technical integration that complies with both national and European requirements. The harmonization of these standards is essential in order to make rail transport more efficient and strengthen its competitiveness versus other modes of transport. Train modernization plays a key role here: Sophisticated on-board systems enable the transmission of real-time data and form the basis for predictive maintenance. Sensors for monitoring critical components such as brakes, axles and air conditioning systems increase operational safety, minimize downtime and boost operational stability.

A sustainable punctuality rate of well over 90 percent can be achieved – the full digitalization of the entire value chain and the relevant interfaces creates vital conditions for this to happen. This includes automated dispatching systems, AI-supported forecasting tools for traffic flows and integrated platforms for communication between infrastructure, train staff and passengers.

How to accelerate digitalization in Europe

For digitalization of rail transport to be accelerated, it must be actively driven forward by the industry's top managers – both in operating companies and the train manufacturing industry – and supported by close cooperation with all the member states. To make this transformation a success, the focus should be on the following initiatives.

Reliable planning and financing of infrastructure expansion

Substantial investment in the modernization of infrastructure and rolling stock is called for. Government-backed financing programs are needed to secure these medium-term plans and should facilitate the involvement of private capital. It is also necessary to develop a cross-border master plan to set the guide rails for rail transport. This includes reliable planning and the expansion of the rail network, uniform technological specifications and a commitment to implementation over time, regulatory framework conditions and stable multi-year financing. A look at the existing initiatives of the EU Commission, such as the Trans-European Transport Network (TEN-T), can serve as a guideline.¹⁵

Establishing Europe-wide standards

Legal framework conditions should support the digitalization of rail transport, in particular via harmonized requirements for automation and digitalization. International harmonization of mobility data is necessary to promote data exchange and enable innovation.¹³ Uniform approvals for operation, control and safety technology and vehicles will simplify cross-border traffic. This also includes standards for compatibility with uniform interfaces and data formats. This enables the seamless integration of new technologies and reduces costs and development times.¹⁶

Promotion of innovation

Targeted incentives for the development and application of new technologies are needed. These include funding programs for start-ups developing innovative solutions and pilot projects to evaluate new technologies.¹⁷ One example of this is the Future Railway Mobile Communication System (FRMCS) based on 5G, a modern communication system that serves both voice and data communication and supports the digitalization of rail transport.¹⁸ Partnerships with technology companies and other modes of transport are essential to develop and implement digital solutions. Projects such as the European Rail Traffic Management System (ERTMS) promote cross-border cooperation and harmonize train control systems within Europe.¹⁹

All these measures sustainably enhance the efficiency, safety and reliability of rail transportation. They form the basis for a future-proof and high-performance rail system. For rail to fulfil its role as the backbone of sustainable mobility, a faster pace of digitalization is now required. European rail transport is at the threshold of a new era in which digitalization will become a key driver of attractiveness, efficiency and growth – to the benefit of passengers, operators and society as a whole.