This paper illustrates some outcomes of the EU project Assets4Rail, funded by the Shift2Rail Joint Undertaking, as well as on-going research developments.Nowadays, many Track Recording Vehicles (TRV) are equipped with contactless optical/inertial systems to monitor Track Geometry (TG). The dedicated trains and sophisticated measurement equipment are costly to acquire and maintain. Therefore, the interval between two TRV recordings of the TG on the same line section cannot be too short (twice per month to twice per year).Recently, railway operators are showing increasing interest in the use of commercial trains to monitor track condition in a cost-effective manner.TRVs' expensive and constantly maintained optical systems make them unsuitable for commercial fleets. On-board sensor systems based on indirect measurements such as accelerations have been developed in various studies. While detection of the vertical irregularity is relatively straightforward through double-integration of the recorded acceleration, it is yet an unsolved issue for lateral irregularities due to the complicated relative wheel-rail motion.The investigated system conceptually combines on-board measurements of wheel-rail lateral relative position and lateral axlebox acceleration to detect rail alignment variations. It includes a functional prototype of an on-board Computer Vision (CV) sensor capable of monitoring the Lateral Displacement of the Wheel with respect to the Rail (LDWR). Further progress is aiming at the reduction of the measurement errors due to wheelset lateral displacements relative to the track, which is essential for calculating rail alignment.The sensor system prototype was tested in Italy at 100 km/h on the Aldebaran 2.0 TRV of RFI (Rete Ferroviaria Italiana), the main Italian Infrastructure Manager. It was found that the estimated lateral displacement correlates to the lateral alignment acquired by the Aldebaran 2.0 commercial TG inspection equipment.Moreover, a Simpack® simulation of a multi-body model of Aldebaran 2.0 provides the axlebox acceleration values not measurable during the test runs, to evaluate the relationship between them, LDWR and track alignment.