2025 wasn’t just another year for rail – it was the moment the sector switched tracks from slow, incremental upgrades to full-scale digital and operational transformation.
This year brought accelerated investment in smart infrastructure, a new wave of rolling-stock modernisation, stronger regulatory pressure, and the rapid rise of automation. For engineering service providers, it marked a structural shift in expectations – from delivering isolated tasks to stepping into the role of strategic, long-term technology partners.
“Rail has reached a point where modernisation is not optional – it’s a prerequisite for reliability, competitiveness and long-term sustainability.”
– Krzysztof Walczak, CEO, Endego
At Endego, through our work across mobility engineering, we see these changes first-hand: from the surge in enquiries for digital railway systems to projects involving modernisation, system integration, automation, and smart maintenance.
This article explains what 2025 brought to the rail market and what challenges and opportunities we expect in 2026.
The “digital railway” market is expanding rapidly. According to the latest analyses, the value of digital rail technologies (traffic management systems, predictive maintenance, IoT sensors, operational platforms, passenger information systems) reached USD 77-83 billion in 2025, with forecasts projecting growth to nearly USD 190 billion by 2035 at a ~9% CAGR.
“Digitalisation in rail isn’t about adding gadgets – it’s about giving operators the ability to run safer, more punctual and more cost-efficient networks. Data has become the new backbone of reliability.”
– Krzysztof Walczak, CEO, Endego
This transformation spans:
Urbanisation, climate policy, and ageing infrastructure make this transition essential – and create a significant opportunity for Engineering Service Providers (ESPs) specialised in system integration, embedded systems, data analytics, and rolling-stock engineering.
The second major driver is automation. The autonomous trains market – which includes metro, light rail, regional rail, and eventually high-speed and freight – continues to expand. The market was valued at USD 12.23 billion in 2024, with an expectation of USD 12.99 billion in 2025 and further growth to USD 23.7+ billion by 2034, at ~6.9% CAGR.
In 2025, projects in the following areas accelerated:
This is a strategic area for companies like Endego, which combine mechanical, electrical/E/E/E, and system integration expertise across the mobility industry.
With new investment programmes in Europe, the Middle East, and Asia, high-speed rail networks continue to expand. Forecasts indicate ~4.6% annual growth in HSR track length over the next decade.
Simultaneously, rail operators in Europe face significant pressure to modernise ageing rolling stock — regional, commuter, and intercity fleets — adapting them to new standards of sustainability, passenger comfort, safety, and digital integration.
This trend creates strong demand for engineering partners capable of end-to-end delivery:
With increasing traffic volumes and ageing infrastructure, maintenance demands are rising. Track, signalling, electrification, and rolling stock maintenance often account for 30-40% of rail operators’ operational costs.
Digital tools are becoming essential:
This push for intelligent, cost-efficient maintenance significantly increases demand for engineering partners skilled in both physical and digital railway systems.
Based on rail projects and client enquiries observed in 2025, Endego sees a clear shift in expectations toward ESPs.
Rail operators and integrators increasingly expect suppliers to take full responsibility for entire modules or systems – from concept and engineering to E/E design, integration, and even lifecycle support.
The ESP becomes a co-creator, not just an executor.
For Endego, this is a natural evolution: our multidisciplinary competencies (mechanical, electrical, systems, and integration) enable us to deliver complex rail projects end-to-end.
Digitalisation, IoT, predictive maintenance, automation, and control systems require substantial expertise in:
ESPs relying solely on traditional mechanical or body-in-white rolling stock capabilities will struggle to remain competitive. Digital capability is becoming the new baseline.
Operators need solutions that work across different contexts:
This requires modular, configurable engineering solutions and the ability to manage variant-rich projects efficiently.
Because infrastructure and rolling stock maintenance are so critical, operators increasingly seek partners who can support assets throughout their lifecycle, not just during initial design.
This model benefits ESPs as well, enabling continuity, shared know-how, and stable, long-term cooperation.
“Rail programmes today demand multidisciplinary thinking – mechanical, electrical, digital, and systems engineering must operate as one. No single discipline can solve the challenges of modern mobility in isolation.”
– Krzysztof Walczak, CEO, Endego
Based on current trends and active industry programmes, here are Endego’s five strongest predictions for the coming year.
By 2026, most new rolling stock and infrastructure projects will include digital components such as:
Digital will no longer be an add-on – it will be a requirement.
Urban mobility demand and pressure to reduce operational costs will drive the adoption of higher Grades of Automation.
ESPs with expertise in E/E systems, automation, and signalling integration will have a competitive advantage.
Many operators cannot build new lines at scale – but they can modernise existing fleets and infrastructure.
This creates high demand for:
Predictive, data-driven maintenance will play a central role as operators aim to achieve:
ESPs capable of combining mechanical, electrical, IoT, and analytical engineering will be best positioned to support this transition.
Operators will favour engineering partners who can:
This aligns perfectly with the shift to lifecycle-oriented engineering and multi-year framework agreements.
As an engineering partner experienced in mobility, infrastructure, and systems integration, Endego can offer high value across several strategic areas:
Connecting mechanical, electrical, and digital layers into unified systems.
Upgrading legacy rolling stock and infrastructure to current performance, usability, and sustainability standards.
IoT integration, sensor networks, diagnostics, predictive maintenance, and remote monitoring.
From concept and design through integration, commissioning, and lifecycle support.
Systems engineering, signalling integration, safety systems, and automated operation technologies.
With this multidisciplinary approach, Endego can act as a long-term engineering partner for European rail operators, rolling-stock manufacturers, and systems integrators.
2025 clearly showed that rail is entering a new era – one defined by digitalisation, automation, modularity, and smart maintenance.
For the engineering sector, this means the traditional “design → build → handover” model is no longer enough. What the market now needs are:
For Endego, this is an opportunity to demonstrate that we are ready to deliver real value in this new environment – supporting operators and integrators across Europe with comprehensive engineering services that connect mechanical, electrical, and digital domains.
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