Knorr-Bremse: Cost Base Is not the Barrier to Rail Innovation Please mention the Source: https://www.indexbox.io/blog/knorr-bremse-cost-base-is-not-the-barrier-to-rail-innovation/

Knorr-Bremse: Cost Base Is not the Barrier to Rail Innovation Knorr-Bremse is pressing the case that its cost base is not the obstacle to innovation in the global rail market, according to Railway Gazette. Speaking on the sidelines of the InnoTrans 2026 trade fair in Berlin, the company's Executive Board Member for Rail, Dr Nicolas Lange, said the industry invests heavily of its own money in research and development, while arguing that the sector needs a clearer understanding of where innovation delivers most benefit in the rail value chain and which organisations are best placed to deliver it. Lange identified Europe as the most pressing arena for that debate, with discussion over the future of the Europe's Rail Joint Undertaking intensifying ahead of planned reforms to the EU's wider Horizon Europe research programme. He described an EU fund as valuable because it brings parties together under a single umbrella and assembles a larger package, and he said he and several peers in the UNIFE supply chain association have been speaking to the European Commission to argue for a successor to the ERJU programme. He drew a distinction between multilateral initiatives such as ERJU and its Shift2Rail predecessor, which he associated with broad policy goals such as moving more freight onto rail, and the innovation work of suppliers themselves. In his view, companies such as Knorr-Bremse should be responsible for developing the next iteration of products and technologies, and the sector needs to get that balance of responsibilities right. 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Knorr-Bremse announced the contract on September 17, saying it would equip a train of RCG wagons with DAC, electronic control units and sensors to monitor vehicle functions and condition digitally. According to the company, this was the first commercial equipment contract for the technology in Europe, with the train due to enter regular freight operations from 2028 under the EU-backed PioDAC programme. Lange framed DAC as more than a coupler, describing it as the starting point for genuine optimisation of rail freight operations. An electrical connection along the train and a data wire through it would allow sensors to be fitted to wagons and locomotives, beginning to realise a long-held ambition for a connected freight train. Knorr-Bremse also points out that digital innovation need not wait for mass fitment of full DAC equipment. Lange cited the company's UK project using its FreightControl Sentinel axle-mounted kinetic energy harvesting product, which provides an energy source for wagons so that sensors and other equipment can be powered by the motion of the train without the in-train feed envisaged under the DAC programme. Global footprint While European debate tends to focus on top-down policy, process and regulation, the rail supply chain continues to consolidate around a handful of major global players, among them Knorr-Bremse. The company emphasised its international presence in September when it signed a comprehensive memorandum of understanding with the China Academy of Railway Sciences to develop digital technologies, driver assistance systems and advanced braking systems aimed at improving the safety, efficiency and performance of freight trains in China. Lange rejected the idea that the arrangement amounts to transferring European technology to China, stressing that Knorr-Bremse is a global company. He acknowledged that adapting to differing standards, regulations and certification processes in each market is a pain point of operating globally, but said China remains a major opportunity, partly because of its size and because a single set of standards applies across the country. He also stressed similarities between the strategic challenges facing Chinese rail freight and those in Europe, including a shortage of skilled personnel, outdated operating practices and network capacity constraints that limit China Railway's ability to carry more freight. He put rail's modal share of Chinese freight at about 10% and said many of the challenges seen across the western world are the same. Lange noted that Knorr-Bremse has been active in China for years, since the start of railway modernisation there, and rejected any suggestion that local suppliers could displace the company from its own local joint ventures. He said the company is regarded there as a key partner, with respect for its heritage and its ability to invest 6 to 7% of turnover in research and development. Asked about any tension between leading a company with German roots and playing a prominent role in associations such as UNIFE while holding substantial investments outside Europe, Lange said the company does not take one customer more seriously than another, regardless of whether the customer is in Europe, China or elsewhere, and that it seeks to play fair. He added that this means competing on technological merit while avoiding the risks of social dumping associated with unequal localisation practices, and that if European companies localise elsewhere, it is fair for European politicians to require localisation in Europe in return. Beyond rolling stock Amid significant industry consolidation, Knorr-Bremse has pushed over the past couple of years to expand its rail activities beyond its traditional role as a supplier of rolling stock components, notably into signalling. Lange said the company had limited itself for decades to being a rolling stock subsupplier, but that it has more in its DNA, including safety, and understands not only rail vehicles but the rail system. Central to that expansion was the US$690m acquisition in September 2024 of the conventional rail signalling business of Alstom Signaling North America, with 800 employees across six locations becoming employees of KB Signaling, a standalone business. Lange described the aim as becoming a tier one supplier for infrastructure, while making clear that Knorr-Bremse does not want to move away from its core identity and will not take care of the track itself; activities that fit its safety and technology strengths are automatically of interest, and he asked why the company should not extend to signalling the advantages it delivers on rolling stock. KB Signaling's strong presence in conventional signalling equipment supply in North America is serving as a launchpad to build a footprint in other markets, initially those with operational characteristics similar to the USA and Canada. Lange characterised this as a small start point, given that the portfolio does not yet contain everything the company would like, and indicated that further acquisitions are likely. In October 2025, Knorr-Bremse completed a deal to buy embedded electronics and software specialist Duagon, which Lange described as a small but important step into digital control systems. He described two parallel approaches in the company's strategy. One is continued bottom-up development to serve existing markets better in Europe and elsewhere, such as India. The other is continued pursuit of mergers and acquisitions, which he described as logical because building a product independently requires invention, research and development, certification time and market entry, a possible but slower route. Interactive table based on the Store Companies dataset for this report. # Company Headquarters Focus Scale Note 1 Voestalpine Railway Systems Austria Complete track systems, rails, switches Global Leading full-range supplier 2 Vossloh AG Germany Rail fastening systems, switches Global Core business in track technology 3 Pandrol France Rail fastening systems, rail pads Global Delachaux Group, industry benchmark 4 ArcelorMittal Luxembourg Rails, track products Global World's largest steel producer 5 Nippon Steel Corporation Japan Rails, track components Global Major steel and rail producer 6 Tata Steel India Rails, track fittings Global Major producer, strong in India/Europe 7 Progress Rail (Caterpillar) USA Trackwork, frogs, crossings Global Integrated rail products and services 8 L.B. Foster Company USA Track, fittings, specialty products Global Distributor and manufacturer 9 Harmer Steel USA Rails, track accessories Americas Leading North American producer 10 Kunming Railway Heavy Steel China Heavy steel rails, fittings Global Major Chinese state-owned producer 11 BaoTou Steel Union China Rails, track materials Global Key Chinese rail producer 12 AGICO Group China Rail fasteners, elastic clips Global Major fastener manufacturer 13 NARSTCO USA Relay rail, trackwork North America National Railway Supply Co. 14 Rocla Concrete Tie USA Concrete ties, fastening systems Americas Leading tie manufacturer 15 Austrian Federal Railways (ÖBB) Austria Track systems, maintenance Europe Major railway infrastructure manager 16 Balfour Beatty Rail UK Track systems, installation Global Major rail infrastructure contractor 17 Plasser & Theurer Austria Track machinery, maintenance Global Leading track maintenance tech 18 Ribbon Rail Australia Rail, track products Asia-Pacific Major Australian producer 19 Jindal Steel & Power India Rails, track products Global Major Indian steel producer 20 Evraz UK/Russia Steel rails, track products Global Major steel and mining group 21 Getzner Werkstoffe Austria Rail pads, vibration control Global Specialist in sleeper pads 22 Stradal Czech Republic Points, crossings, trackwork Europe Specialist switch manufacturer 23 Bemo Rail Germany Track components, fastenings Europe Track technology specialist 24 Egis Rail France Engineering, track systems Global Engineering and consulting 25 Salcef Group Italy Track laying, maintenance Global Trackworks contractor and supplier 26 RailOne Germany Concrete sleepers, fastenings Global Leading concrete sleeper producer 27 Koppers USA Rail joint bars, track accessories Global Specialized track products 28 Hanson USA Concrete ties, track materials Americas Heidelberg Materials subsidiary 29 Gutehoffnungshütte Radsatz Germany Wheelsets, track components Global Specialist in wheelsets and axles 30 Molyneux Industries USA Rail fasteners, track hardware North America Specialist fastener manufacturer Please mention the Source: https://www.indexbox.io/blog/knorr-bremse-cost-base-is-not-the-barrier-to-rail-innovation/