Signalling, safety or traffic control equipment for railways or tramways excluding railway signalling of heading 8608 market in Germany

Earlier Report Observations

The market for railway signalling and safety equipment in Germany contracted from 2019 to 2022, with its value falling from $496.5 million to $379.9 million. The initial decline in 2020 was triggered by the COVID-19 pandemic, which severely reduced rail passenger traffic and dampened demand for new installations. State support measures, including track charge subsidies for rail operators, helped cushion the sector's economic shock but did not prevent a continued market slide through 2021 and 2022.

A sharp reversal began in 2023, with the market value jumping to $516.7 million and reaching $594.1 million in 2024. This rebound was propelled by the strong post-pandemic recovery of rail traffic, particularly in long-distance passenger transport where competitive rail companies increased their traffic performance by about 26%. The temporary €9 ticket introduced in summer 2022 boosted local rail demand, while non-state-owned operators expanded their market share, intensifying competition and likely accelerating investment cycles. Concurrently, the industry's push toward digital signaling systems, IoT connectivity, and automation drove renewed demand for modern equipment.

The market structure, long characterized by state-owned Deutsche Bahn and over 350 private and municipal rail companies, saw competitive dynamics intensify as non-state players gained share. Major suppliers Siemens AG and Alstom continued to lead the European signaling market, focusing on network integration and modernization. Persistent infrastructure challenges, including punctuality issues linked to staffing shortages and aging assets, underscored the ongoing need for signaling and safety upgrades.

Production railway and tramway signalling equipment in Germany

In value, 2017-2020, M $ US

Germany's production of railway and tramway signalling, safety, and traffic control equipment (excluding heading 8608) declined after two years of growth. In 2020, output was valued at 646.4 million US dollars, marking a moderate year-over-year decrease of 3.9%. Over the 2017-2020 period, production rose by 21.5%, with a compound annual growth rate of 6.7%. The peak was reached in 2019 at 672.8 million US dollars, while the largest annual increase occurred in 2018 at 20.8%.

Annual dynamics of production in Germany in value, 2017-2020, M $ US

Exports railway and tramway signalling equipment from Germany

Exports in kind, t

Germany's exports of railway and tramway signalling, safety, and traffic control equipment (excluding heading 8608) grew for the second consecutive year. In 2020, exports totaled 1,886 tonnes, representing a 15.7% increase compared to the previous year. From 2017 to 2020, exports rose by 18.1%, equivalent to an annualized rate of 5.7%. The lowest volume was recorded in 2018 at 1,102 tonnes, which also saw the largest decline of 31.0%. The most significant increase occurred in 2019 at 48.0%.

Annual dynamics of product's exports from Germany in kind, 2017-2020, t

Between 2017 and 2020, Germany's export destinations for this equipment in volume terms were highly diversified. Austria accounted for 19.9% of exports, Poland for 16.1%, and Belgium for 6.7%, together making up 42.6% of total flows. The remaining 57.4% was distributed among a wide range of smaller markets.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Germany in kind, 2017-2020

Exports in value, M $ US

Germany's export value of railway and tramway signalling, safety, and traffic control equipment (excluding heading 8608) increased for the second year in a row. In 2020, exports reached 196.8 million US dollars, up 3.2% from the previous year. Over the 2017-2020 period, export value grew by 24%, corresponding to an annualized rate of 7.4%. The lowest value was in 2018 at 157.7 million US dollars, which also experienced a slight decline of 0.6%. The largest increase was in 2019 at 20.9%.

Annual dynamics of product's exports from Germany in value, 2017-2020, M $ US

From 2017 to 2020, key buyers of this equipment from Germany in value terms included Israel (12.6% of exports), Switzerland (8.7%), and China (8.6%). However, their combined share accounted for only 29.9% of total export value, with the remaining 70.1% spread across numerous other trading partners.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Germany in value, 2017-2020

Imports railway and tramway signalling equipment to Germany

Imports in kind, t

Germany's imports of railway and tramway signalling, safety, and traffic control equipment (excluding heading 8608) in volume terms rose for the second consecutive year. In 2020, imports amounted to 72 tonnes, a 28.1% increase over the previous year. Between 2017 and 2020, import volume grew by 33.9%, equating to an annualized rate of 10.2%. The lowest volume was in 2018 at 41 tonnes, which also saw the largest decline of 23.7%. The most substantial increase occurred in 2019 at 36.9%.

Annual dynamics of product's imports to Germany in kind, 2017-2020, t

During the 2017-2020 period, Italy was the leading source for Germany's imports in volume terms, accounting for 41.8% of the total. Austria followed with 11.3%, and France with 9.4%. Together, these three countries represented 62.5% of all import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Germany in kind, 2017-2020

Imports in value, M $ US

After two years of decline, Germany's import value of railway and tramway signalling, safety, and traffic control equipment (excluding heading 8608) rebounded. In 2020, imports stood at 17.9 million US dollars, a 24.0% increase from the previous year. Over the 2017-2020 period, however, import value decreased by 31.1%, corresponding to an annualized decline of 11.7%. The lowest value was recorded in 2019 at 14.4 million US dollars, while the largest drop occurred in 2018 at 32.5%.

Annual dynamics of product's imports to Germany in value, 2017-2020, M $ US

From 2017 to 2020, France was the top supplier to Germany in value terms, accounting for 37.4% of imports. Italy followed with 24.6%, and Switzerland with 10.7%. Collectively, these three countries accounted for 72.7% of total import value.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Germany in value, 2017-2020