Frauscher Sensortechnik GmbH is technology and market leader in the area of inductive sensor technology solutions (40% global market share). For its further development we are continuously innvoating our product portfolio.The presented project aims at the development and commercialisation of optic sensor technology (Fibre Bragg Grating, Distributed Accoustic Sensors) in the railway application. The new technology should complement state-of-the-art inductive sensor technology which show some limitations (electromagnetic interference with magnetic rail brakes, high costs due to expensive cable connections etc.).Within the proposed feasibility study a technical, economical and regulatory assessement will be conducted in order to establisch a business plan. It will be the basis for an innovation project (phase 2 of the SME-isntrument) during 2015/2016.The commercial exploitation of the development will be ensured by a worldwide presence of Frauscher Sensortechnik GmbH (Headquarter in Austria) in the form of subsidiaries (Poland, India, Brasil, CIS, UK). With the new technology a continuous growth of the company will be possible. A total market volume of 14 billion EUR in the area of signalling and safety infrastructure on railways is an attractive argument to invest into this innovation project. The innovation will allow FRAUSCHER to grow further and faster in the upcoming years.