Europe’s signalling upgrade cycle continues. German rail systems supplier Knorr-Bremse has completed its acquisition of Swiss electronics specialist duagon Group, a move the company says “significantly expands its expertise in signalling technology”, positioning it as “one of the leading suppliers in an attractive market segment.”
In a bid to further boost its signalling expertise as well as electronic and software rail solutions in a market forecast to grow by 5.6% by 2030, Knorr-Bremse first signed the deal to acquire duagon in September last year, part of its wider expansion into digital rail systems. The transaction was subject to the usual closing conditions and regulatory clearances, but the group has now confirmed that the acquisition was finalised in early January, formally bringing duagon into its ever-expanding Rail Division.
“Acquiring duagon will strengthen our future positioning from both a technological and a financial perspective,” said Knorr-Bremse CEO Marc Llistosella. “In particular, it will allow us to tap into significant business opportunities for fast-growing, high-margin product lines for trains and rail infrastructure.”
The duagon takeover is the latest step in a series of targeted acquisitions that have steadily expanded Knorr-Bremse’s footprint into signalling, control and digital rail technologies. Over the past decade, the group has built up capabilities in onboard communication and control through the acquisition of Swiss specialist Selectron, before moving further into the signalling space with the purchase of Alstom’s North American conventional signalling business in 2024.
duagon and digital rail scale-up
Headquartered in Switzerland’s Dietikon, duagon supplies embedded hardware and software used across rolling stock and trackside applications, with a focus on control, communication and safety-critical systems. The company achieved a compound annual growth rate of around 15% between 2022 and 2025, a trajectory Knorr-Bremse expects to be sustained in the coming years.
For Knorr-Bremse’s Rail Division, the acquisition builds scale around electronics and signalling at a time when digital systems are becoming central to capacity upgrades, ETCS roll-outs and fleet modernisation programmes. “duagon’s expertise in electronics, software and digital solutions is a perfect match for our portfolio,” said Dr Nicolas Lange, executive board member responsible for the division. “The acquisition will open up opportunities for considerable growth, particularly in our lines of business involving communication and control solutions for rail transport (Selectron) and rail signalling technology (KB Signaling). All in all, it will allow us to reinforce our position as a leading Tier-1 partner for the overall rail system.”
Knorr-Bremse said the combined organisation will bring together around 1,000 electronics and software specialists. That scale is intended to accelerate development of next-generation control and communication systems for trains, including custom electronics and microprocessors, as well as safety-critical components for signalling and track technology.
The signalling boom
The group expects duagon to deliver an operating EBIT margin of around 16% in 2026, excluding integration costs, with scope for further improvement as volumes grow. It also forecasts EBIT-effective run-rate synergies of €5–10 million per year from 2028, driven by efficiencies across research and development, purchasing and other shared functions. Together, Knorr-Bremse’s Selectron and duagon businesses are expected to generate annual revenues of around €250 million, serving vehicle manufacturers, systems integrators and rail infrastructure companies.
More broadly, the global railway signalling systems market is forecast to grow from $21.20bn in 2023 to $31.02bn by 2030, a compound annual growth rate of 5.6%. In Europe, demand is structurally underpinned by EU policy, with TEN-T guidelines requiring ERTMS deployment on the core network by 2030 and on the comprehensive network by 2050, sustaining a long pipeline for ETCS and related digital signalling upgrades.