The rail infrastructure renewal cycle is entering full swing, with JR companies moving ahead with massive renewal investment, starting with measures to address the aging Tokaido Shinkansen. Attention is also focusing on fields that serve as the “brains” of renewal, including signaling, platform screen doors and remote monitoring.
Japan’s railway investment is shifting away from new-line construction toward large-scale renewal based on the long-term operation of existing facilities. Taking the Tokaido Shinkansen, which opened in 1964, as an example, government policy also identifies measures to address aging infrastructure as a key priority, and safety-related investment is expected to reach a substantial scale in fiscal 2026.
Investment by the JR Group is substantial. JR Central expects safety-related investment of ¥244 billion in fiscal 2026, including ¥170 billion in capital investment. JR East has earmarked approximately ¥1.3 trillion for safety investment and plans to install platform screen doors at approximately 244 stations and along 758 platform tracks, with related investment totaling approximately ¥490 billion. JR West increased its safety investment for fiscal 2023 through fiscal 2027 from previous levels, bringing the total to ¥610 billion.
Labor shortages are cited as a factor driving renewal demand. In 2025, the Ministry of Land, Infrastructure, Transport and Tourism drew up a plan to promote labor-saving investment in the railway sector, supporting the mechanization, standardization and digitalization of maintenance work. Going forward, the investment wave is expected to spread across a broad range of fields, including electronic signaling, platform screen doors, remote monitoring, maintenance machinery, track construction and bridge repairs.
In selecting 20 stocks from companies listed on the Tokyo Stock Exchange, this article highlights Nippon Signal and Kyosan Electric Manufacturing as companies at the core of renewal demand for signaling, level crossings and train control equipment. Their expansion beyond signal equipment renewal into areas such as automated-operation systems and digital transformation of maintenance is a notable feature.