Preparing for Industry 5.0: Next-Generation Asset Management for Rail Companies

The European rail sector is at a critical juncture. The EU’s ambitious targets—doubling high-speed rail usage by 2030 and tripling it by 2050—demands significant upgrades in infrastructure, digitization and operational efficiency. Yet, these goals collide with aging infrastructure, funding constraints and rising passenger demands. 

This blog explores these challenges through the lens of the Swedish rail market, offering specific insights and examples. To explore how rail companies can overcome these hurdles and prepare for Industry 5.0, our Executive Director Pre-sales, Jochen Reiss, spoke with industry experts from our strategic partner, Prevas, a Swedish engineering services company. Their insights highlight how next-generation asset management tools like HxGN EAM are transforming the Swedish rail industry and offer broader lessons for the European market. 

Breaking the Maintenance Bottleneck 

One of the industry experts, Per Malmcrona, a Senior Advisor at Prevas, highlighted the enormous pressure their clients face in balancing rising operational costs with declining revenues, particularly in the post-pandemic landscape. He explained that this situation is compounded by significant maintenance backlogs in rolling stock and infrastructure, especially in Sweden, where investments have lagged for decades. 

Despite these challenges, Per noted an industry shift toward integrating maintenance with traffic production. He emphasized that this approach reduces redundancy, enhances efficiency and increases transport reliability—key objectives in a sector grappling with capacity constraints and sustainability demands. Per further mentioned that linking production logistics with maintenance planning has been transformative for their clients, minimizing disruptions and ensuring transport services meet tight schedules without sacrificing cost efficiency. 

Turning Data into Action 

Another expert, an Application Specialist at Prevas, underscored the role of advanced technologies in enabling this shift. They observed that rail operators often struggle with unplanned maintenance or poorly executed scheduled maintenance, despite having access to traffic production data well in advance. They explained how HxGN EAM has demonstrated that digitization and predictive analytics can turn this data into actionable insights. 

Using AI-driven predictive maintenance, rail companies can identify and address issues before they escalate, thereby improving service reliability, reducing costs, and enhancing operational safety. The expert shared an example from Gothenburg, where strategic investments have revolutionized the city’s tram system. They described the new tram depot at Ringön as transformative, not only due to increasing capacity but also due to supporting the introduction of longer, modern trams, aligning with the city’s vision for a sustainable and efficient transport network. 

Challenges on the Horizon 

The experts also pointed to Sweden’s aging rail infrastructure as a persistent challenge. One of them remarked that the debate over high-speed versus existing track investments has stalled progress. Additionally, extreme weather conditions are increasingly damaging tracks, further complicating maintenance. 

However, they noted that the public transport sector offers hope. They observed that densifying cities and shifting commuter patterns provide opportunities for innovation. In Gothenburg, trams are becoming the backbone of sustainable urban transport, supported by cutting-edge asset management tools. 

Building a Sustainable Future 

Looking ahead, the industry experts indicated a multimodal transport future, where electrified solutions dominate. One expert mentioned that the focus would be on reducing redundancy and maximizing efficiency, citing examples such as electric buses and high-speed rail. They explained that achieving this would require robust asset management systems capable of adapting to evolving regulations and operational demands. 

Per emphasized the importance of collaboration, stating that sustainability involves more than just technology—it also requires aligning stakeholders, from tram operators to city planners. He adds, “Sustainability is not only about the mode of transportation, it is also much about reducing redundancy, modifying existing infrastructure and reducing the need for unplanned maintenance”.  Per further highlights that that tools like HxGN EAM play a central role in enabling informed decision-making and streamlined operations. 

The Path to Industry 5.0 

As rail companies navigate this complex landscape, the message from the experts was clear: embracing digital transformation and next-generation asset management is not optional—it’s essential. Whether addressing aging infrastructure, meeting EU mandates or adapting to urbanization, tools like HxGN EAM offer a path forward. 

To learn more about how Hexagon and Prevas are driving innovation in the rail sector, watch the video here and  visit our offerings in transportation.