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Railway Construction in Germany - Market Research Report (2014-2029)

Veton Hoxhaj Veton Hoxhaj Frankfurt, Germany Last Updated: April 2024 WZ F42.12DE

Revenue

€4.5bn

2024

€4.5bn

Past 5-Year Growth

Profit

€XXX.Xm

Employees

23,900

Businesses

177

Wages

€X.Xbn

Railway Construction in Germany industry analysis

The future prospects for the industry are good, as the German government is stepping up its promotion of rail transport in times of climate change. Subsidies for the expansion of railway lines, as well as subsidies for local rail transport, are increasing significantly in some cases, from which the industry players benefit directly and indirectly. The railway network, which is largely owned by DB Netz AG, which in turn is a wholly owned subsidiary of Deutsche Bahn AG and therefore indirectly belongs to the German state, is used by three relevant groups. On the one hand, these are companies in long-distance rail transport, which have to finance their operations without subsidies. On the other hand, the local railway companies receive subsidies, while the freight railways do not. The track access charges collected by DB Netz AG alone are nowhere near enough to finance the maintenance and expansion of the network, which is why state subsidies are necessary. The trams and underground railways are benefiting from the influx of people into Germany's urban centres. Since 2019, industry revenue has risen by an average of 4.4% per year and is expected to reach 4.5 billion euros in 2024, 3.8% above the previous year's level.The industry is currently experiencing revenue potential driven by government investment and the growing need to meet rising environmental requirements and increasing urbanisation. Despite some challenges, such as delays and financial bottlenecks, government initiatives to modernise infrastructure through key projects, such as the Berlin-Dresden line and Stuttgart 21, demonstrate the political will for sustainable mobility. These initiatives improve the efficiency and connectivity of urban centres and thus promote the growth of the industry. By 2029, IBISWorld expects average annual growth of 3.2% and an industry turnover of 5.3 billion euros for 2029. The restructuring of the railway network in Germany through the so-called Deutschlandtakt, which will prioritise certain main stations in the coming years, is also positive for the industry, as this can only be implemented through massive investment in the rail network. The number of companies in the sector and employees is therefore likely to increase by 2029.

Trends and Insights

  • The Federal Cabinet has launched a draft amendment to the Federal Rail Infrastructure Expansion Act. The planned amendment to the law is intended to enable the efficient and rapid implementation of expansion measures, which would result in more orders for the industry.
  • The largest share of industry turnover is generated by ballasting and pure track laying. Track laying is increasingly being carried out by machines, which is why less and less expertise is required for this task. As a result, the number of companies offering this service is increasing.
  • The Central region has the highest proportion of companies. This is due to the region's large population. As a result, there is greater use of local and long-distance rail transport than in most other large states.
  • The majority of industry players have limited themselves to a local, state- or region-specific area of operation. This means that only repair orders in geographical proximity are accepted. For larger construction projects, many companies only take on the role of subcontractor.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 4.4 % over the past five years, to reach an estimated €4.5bn in 2024.

Trends and Insights

The Federal Government is supporting the German railway infrastructure with extensive investments

  • The railway infrastructure in Germany receives extensive financial support from the federal government. This includes investments in new construction measures, subsidies for local rail transport, profit waivers at Deutsche Bahn and direct grants.
  • Additional trends and insights available with purchase
Railway Construction in Germany
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Increasing urbanisation and government subsidies are likely to drive the expansion of rail transport in the future

  • Increasing urbanisation is increasing the need for efficient road and underground lines. With the help of government subsidies, new projects are also likely to be launched in the coming years and projects currently being planned or under construction, such as Stuttgart 21 and the Rhine Valley line, will be completed.

Biggest companies in the Railway Construction in Germany

Company
Market Share (%)
2024
Revenue (€m)
2024
DB Bahnbau Gruppe GmbH
495.2
Spitzke SE
282.5
Schweerbau GmbH & Co. KG
197.3

To view the market share and analysis for all 4 top companies in this industry, view purchase options.

Products & Services Segmentation

Railway Construction in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Ballasting and track laying, Electrification work and Other activities. Ballasting and track laying is the largest segment of the Railway Construction in Germany.

Trends and Insights

Ballasting and track laying are increasingly automated

  • In the current year, the largest share of industry turnover is generated by ballasting and pure track-laying activities.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The industry includes the construction of railway lines for railways, underground railways and other railways. However, the installation of signalling technology and lighting are not part of the industry's tasks. This also applies to the construction of bridges and tunnels, the activities of architectural and construction firms and the general project management of construction projects.

What's included in this industry?

Ballasting and track layingElectrification workTrack renovation

Companies

DB Bahnbau Gruppe GmbHSpitzke SESchweerbau GmbH & Co. KG

Purchase this report to view all 4 major companies in this industry.

Related Terms

LOCAL PUBLIC TRANSPORT (PUBLIC TRANSPORT)INTERCITYEXPRESS (ICE)COVERAGESUBVENTIONSADDITIONSREVENUE MANAGEMENT

Industry Code

WZ 2008

WZ 42.12 - Railway Construction in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

The Federal Cabinet has launched a draft amendment to the Federal Rail Infrastructure Expansion Act. The planned amendment to the law is intended to enable the efficient and ...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

The largest share of industry turnover is generated by ballasting and pure track laying. Track laying is increasingly being carried out by machines, which is why less and les...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

The Central region has the highest proportion of companies. This is due to the region's large population. As a result, there is greater use of local and long-distance rail tr...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

The majority of industry players have limited themselves to a local, state- or region-specific area of operation. This means that only repair orders in geographical proximity...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Deutsche Bahn is continuing its renewal and modernisation measures as part of the New Network for Germany investment programme. The aim is to expand the heavily used rail net...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of DB Bahnbau Gruppe GmbH's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Spitzke SE's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Schweerbau GmbH & Co. KG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for one additional company

Detailed analysis

  • Description and key data for DB Bahnbau Gruppe GmbH, and factors influencing its performance in the industry
  • Description and key data for Spitzke SE, and factors influencing its performance in the industry
  • Description and key data for Schweerbau GmbH & Co. KG, and factors influencing its performance in the industry
  • Description, key data and performance trends for one additional company

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The majority of investment in the rail network is financed from public funds. This is based on the federal government's mandate to safeguard the rail network, which is enshri...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Rail transport line builders have recently been able to increase their profit margins again. The industry is benefiting from increased demand in local and long-distance trans...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Railway Construction industry in Germany in 2024?

The market size of the Railway Construction industry in Germany is €4.5bn in 2024.

How many businesses are there in the Railway Construction in Germany industry in 2024?

There are 177 businesses in the Railway Construction industry in Germany, which has grown at a CAGR of 2.7 % between 2019 and 2024.

Has the Railway Construction industry in Germany grown or declined over the past 5 years?

The market size of the Railway Construction industry in Germany has been growing at a CAGR of 4.4 % between 2019 and 2024.

What is the forecast growth of the Railway Construction industry in Germany over the next 5 years?

Over the next five years, the Railway Construction industry in Germany is expected to grow.

What are the biggest companies in the Railway Construction market in Germany?

The biggest companies operating in the Railway Construction market in Germany are DB Bahnbau Gruppe GmbH, Spitzke SE and Schweerbau GmbH & Co. KG

What does the Railway Construction in Germany include?

Ballasting and track laying and Electrification work are part of the Railway Construction industry.

Which companies have the highest market share in the Railway Construction in Germany?

The company holding the most market share in Germany is DB Bahnbau Gruppe GmbH.

How competitive is the Railway Construction industry in Germany?

The level of competition is high and steady in the Railway Construction industry in Germany.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • There are no industries to display.

Complementors

  • Bridge & Tunnel Construction in Germany
  • Site Preparation in Germany
  • Electrical Installation in Germany

International industries

  • Rail Maintenance Services in the US
  • Railway & Underground Railway Construction in the UK
  • Road & Railway Construction in Ireland

View all industries in Germany

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.