On track: Increased industrial production will keep demand high for rail freight

The Railway Signaling Manufacturing industry has experienced strong growth over the past five years. Increased ridership of passenger rail service enabled rail operators to increase demand for both urban and mainline signaling solutions. In 2010, Congress approved the Rail Safety Improvement Act, which mandated that a large portion of the nation's rail network implement Positive Train Control (PTC) systems. Railroad operators were initially given a deadline of December 31st, 2015 to implement PTC systems on most Class I railroads and all passenger railroads. This date proved to be too ambitious and was considered unworkable by rail operators; as a result, the deadline was extended to 2018...read more.

Industry Statistics & Market Size
Revenue
$529m
Annual Growth 12-17
2.9%
Forecast Growth 17-22
Profit
Employment
1,643
Businesses
25
Market Share of Companies
What Our Customers Say

Industry Threats & Opportunities

  • Government funding for the High-Speed Intercity Passenger Rail program will boost demand for signaling systems
  • The speedy growth of oil prices led to strong rail freight growth
  • Higher government funding levels for transportation will stimulate demand
  • Industry Report - Starting a New Business Chapter

    This industry has high barriers to entry. Working capital requirements are very high as contracts can span many years in length. Fluctuations in economic conditions can cause once profitable projects to lose margins. Another significant barrier to entry stems from establishing solid connections with supply chains. The major players in the industry wield significant market power and tend to have long term contracts to supply chains; new entrants may struggle if they do not have existing relationships with supply chain companies.Research and development spending is required for companies to succeed in this product market. The high cost of designing complete systems, developing and testing new technology presents a significant barrier to entry for operators. The...purchase to read more.

    Additional Insights for the Railway Signaling System Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Railway Signaling System Manufacturing Industry are

  • Provision of a related range of goods/services ("one stop shop")
  • Undertaking technical research and development
  • Accessibility to consumers/users
  • IBISWorld analysts also discuss how external factors such as Total trade value and Demand from rail transportation in the Railway Signaling System Manufacturing industry impact industry performance..

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    What is the Railway Signaling System Manufacturing Industry?

    This industry is composed of companies that manufacture railway communications systems (including signaling systems) and related products.

    Industry Products
  • Signaling equipment manufacturing
  • Control equipment manufacturing
  • Equipment maintenance
  • Industry Activities
  • Manufacturing point machines
  • Manufacturing railway signals
  • Manufacturing axle counter systems
  • Manufacturing integrated control systems
  • Manufacturing other railway signaling equipment
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Total trade value
  • Demand from rail transportation
  • Federal funding for transportation
  • Industrial production index
  • Trade-weighted index

  • Current Performance
  • Federal regulation and funding
  • Freight transport
  • Profit and trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Industrial production and emerging economies
  • Sustainability and the government
  • Table: Railway Signaling System Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Railway Signaling System Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Train, Subway & Transit Car Manufacturing
  • Aircraft, Marine & Railroad Transportation Equipment Wholesaling
  • Rail Transportation
  • Public Transportation
  • Rail Maintenance Services

  • Key Selling Industries
  • Communication Equipment Manufacturing
  • Electrical Equipment Manufacturing
  • Electrical Equipment Wholesaling
  • Ferrous Metal Foundry Products
  • Screw, Nut & Bolt Manufacturing
  • Wire & Cable Manufacturing

  • Products & Services
  • Control equipment manufacturing
  • Signaling equipment manufacturing
  • Equipment maintenance
  • Chart: Railway Signaling System Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Freight and transportation services
  • Exports
  • Heavy-rail and transportation services
  • Light-rail and passenger services
  • Commuter-rail services
  • Chart: Major Market Segmentation for the Railway Signaling System Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Railway Signaling System Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Railway Signaling System Manufacturing Industry

  • Industry Globalization
    ALSTOM Ansaldo STS
  • Table: ALSTOM - financial performance
  • Table: Ansaldo STS - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Railway Signaling System Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Railway Signaling System Manufacturing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Total Trade Value (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Axle Counter System
  • A device used to detect the passing of a train between two points on a track
  • Mainline Railway
  • The main track used between towns, as opposed to tracks providing metro service
  • Positive Train Control (Ptc)
  • A system of functional requirements for monitoring and controlling train movements as an attempt to provide increased safety
  • Why buy this report?

    IBISWorld’s industry research report on Railway Signaling System Manufacturing provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Railway Signaling System Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Railway Signaling System Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Railway Signaling System Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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