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Freight Rail Transport in the UK - Market Research Report (2015-2030)

Ison Hau Ison Hau London, United Kingdom Last Updated: September 2025 SIC H49.200

Revenue

£1.1bn

2025-26

£1.1bn

Past 5-Year Growth

Profit

£XX.Xm

Employees

6,711

Businesses

196

Wages

£XXX.Xm

Freight Rail Transport in the UK industry analysis

The UK’s Freight Rail Transport industry has recently found itself at the intersection of two major forces: a growing need for low-carbon logistics and significant pressures from labour shortages and operating costs. Over the five years through 2025-26, companies have capitalised on heightened demand for sustainable freight, with large businesses and retailers shifting away from more emissive long-distance road haulage. Major players have invested in cleaner locomotives, biofuels and more efficient intermodal hubs, in response to stricter environmental targets and persistent disruptions in road transport (think driver shortages and rising HGV operating costs). The result has been a steady expansion in rail freight volumes, especially for retail goods and biomass, even as the traditional bulk haulage of coal has all but disappeared following the closure of the UK’s last coal-fired power plant in October 2024.

Trends and Insights

  • There are growing concerns regarding carbon emissions. Rising environmental awareness is driving revenue growth, with freight rail companies making some headway by promoting themselves as a more sustainable option than road freight.
  • Intermodal transport expands strongly. This form of transport has a much higher value per tonne-kilometre than bulk products. Rail freight has achieved growth in this area, taking much intermodal demand away from road freight.
  • London’s role as a key interchange drives freight rail activity. Major depots at Willesden Junction and Barking handle cross-border containers and construction flows.
  • Freight continues to shift from road to rail. More customers are shifting their freight from road to rail to reduce their carbon emissions. However, this success is only shared by a small number of train companies.
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Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has declined at a CAGR of 2.1 % over the past five years, to reach an estimated £1.1bn in 2025.

Trends and Insights

Sustainable logistics drive revenue growth

  • Low-carbon freight solutions, such as electric locomotives, biofuels and green terminal operations, are helping boost rail freight tonnage and revenue. The Office of Rail and Road (ORR) reports that in the year to March 2025 total freight moved on Britain’s rail network increased by 5% to reach 16.5 billion net tonne-kilometres.
  • Additional trends and insights available with purchase
Freight Rail Transport in the UK
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

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

Trends and Insights

An economic growth upswing spurs an uptick in rail freight volumes

  • The UK economy is expected to pick up speed in the coming years. Looser monetary policy and new fiscal stimulus are set to stimulate growth, with the International Monetary Fund forecasting GDP growth of 1.2% in 2025 and 1.4% in 2026.

Biggest companies in the Freight Rail Transport in the UK

Company
Market Share (%)
2026
Revenue (£m)
2026
GB Railfreight Ltd
336.0
Freightliner Group Ltd
285.9
DB Cargo (UK) Ltd
265.8

To view the market share and analysis for all 5 top companies in this industry, view purchase options.

Products & Services Segmentation

Freight Rail Transport in the UK
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Transporting coal, Transporting metals and Transporting construction materials. Transporting coal is the largest segment of the Freight Rail Transport in the UK.

Trends and Insights

Domestic intermodal transport continues to gain traction

  • Intermodal transport involves the movement of containerised goods, with rail forming a significant part of the journey. Rail freight has seen significant growth in this area due to its efficiency in terms of both cost and emissions for long distances.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Companies in this industry transport goods via rail using both main-line and short-line rail networks. Freight rail transport plays a crucial role in multimodal and intermodal logistics, supporting various sectors like construction, retail, manufacturing and energy by efficiently transporting goods across the country.

What's included in this industry?

Products and services covered in the Freight Rail Transport industry in the United Kingdom include Domestic intermodal transport, Transporting construction materials, Transporting other goods, Transporting metals, Transporting oil and petroleum, Transporting coal, International freight transport and Transporting biomass.

Companies

Companies covered in the Freight Rail Transport industry in the United Kingdom include GB Railfreight Ltd, Freightliner Group Ltd and DB Cargo (UK) Ltd.

Purchase this report to view all 5 major companies in this industry.

Related Terms

Related terms covered in the Freight Rail Transport industry in the United Kingdom include intermodal transport, rolling stock, tonne kilometres and sidings.

Industry Code

SIC 2007

SIC 49.20 - Freight Rail Transport in the UK

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

There are growing concerns regarding carbon emissions. Rising environmental awareness is driving revenue growth, with freight rail companies making some headway by promoting ...

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 (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • 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

Intermodal transport expands strongly. This form of transport has a much higher value per tonne-kilometre than bulk products. Rail freight has achieved growth in this area, t...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025

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

London’s role as a key interchange drives freight rail activity. Major depots at Willesden Junction and Barking handle cross-border containers and construction flows.

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 2025

Tables

  • Number and share of establishments in each region in 2025
  • Number and share of revenue each region accounts for in 2025
  • Number and share of wages each region accounts for in 2025
  • Number and share of employees in each region in 2025

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

Freight continues to shift from road to rail. More customers are shifting their freight from road to rail to reduce their carbon emissions. However, this success is only shar...

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 2020-2025
  • 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

DB Cargo’s Freight belongs on rail campaign supports demand. Its helped the company gain a strong footing, including receiving backing from Drax Group to aid it in its bid to...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2021 through 2025
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2025
  • Overview of GB Railfreight Ltd's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Freightliner Group Ltd's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of DB Cargo (UK) Ltd's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of revenue, market share and profit margin trend for 2 additional companies

Detailed analysis

  • Description and key data for GB Railfreight Ltd, and factors influencing its performance in the industry
  • Description and key data for Freightliner Group Ltd, and factors influencing its performance in the industry
  • Description and key data for DB Cargo (UK) Ltd, and factors influencing its performance in the industry
  • Description, key data and performance trends for 2 additional companies

External Environment

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

Analyst insights

Higher output from production industry drives up freight volumes. Increased manufacturing activity in recent years has driven up the need for freight rail services.

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 (2015-2030) 
  • Assistance historical data and forecast (2015-2030) 

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

Track access charges increase train companies’ purchase costs. Network Rail charges rail companies for use of the national rail network. However, the money from the charges i...

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 2025
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Investment vs. share of economy

Data tables

  • Liquidity Ratios (2019-2023)
  • Coverage Ratios (2019-2023)
  • Leverage Ratios  (2019-2023)
  • Operating Ratios (2019-2023)
  • Assets (2019-2023)
  • Liabilities (2019-2023)
  • Cash Flow & Debt Service Ratios (2015-2030)
  • Revenue per Employee (2015-2030)
  • Revenue per Enterprise (2015-2030)
  • Employees per Establishment (2015-2030)
  • Employees per Enterprise (2015-2030)
  • Average Wage (2015-2030)
  • Wages/Revenue (2015-2030)
  • Establishments per Enterprise (2015-2030)
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)

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 (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Top Questions Answered

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

What is the market size of the Freight Rail Transport industry in the United Kingdom in 2025?

The market size of the Freight Rail Transport industry in the United Kingdom is £1.1bn in 2025.

How many businesses are there in the Freight Rail Transport industry in the United Kingdom in 2025?

There are 196 businesses in the Freight Rail Transport industry in the United Kingdom, which has grown at a CAGR of 11.2 % between 2020 and 2025.

How may import tariffs affect the Freight Rail Transport industry in the United Kingdom?

The Freight Rail Transport industry in the United Kingdom is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Freight Rail Transport industry in the United Kingdom?

The Freight Rail Transport industry in the United Kingdom is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

Has the Freight Rail Transport industry in the United Kingdom grown or declined over the past 5 years?

The market size of the Freight Rail Transport industry in the United Kingdom has been declining at a CAGR of 2.1 % between 2020 and 2025.

What is the forecast growth of the Freight Rail Transport industry in the United Kingdom over the next 5 years?

Over the next five years, the Freight Rail Transport industry in the United Kingdom is expected to grow.

What are the biggest companies in the Freight Rail Transport industry in the United Kingdom?

The biggest companies operating in the Freight Rail Transport industry in the United Kingdom are GB Railfreight Ltd, Freightliner Group Ltd and DB Cargo (UK) Ltd

What does the Freight Rail Transport industry in the United Kingdom include?

Domestic intermodal transport and Transporting construction materials are part of the Freight Rail Transport industry in the United Kingdom.

Which companies have the highest market share in the Freight Rail Transport industry in the United Kingdom?

The company holding the most market share in the Freight Rail Transport industry in the United Kingdom is GB Railfreight Ltd.

How competitive is the Freight Rail Transport industry in the United Kingdom?

The level of competition is moderate and increasing in the Freight Rail Transport industry in the United Kingdom.

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 the UK include:

  • Office for National Statistics
  • Office for Budget Responsibility
  • Bank of England

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.

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