Railway Equipment Manufacturing in the UK - Market Research Report (2013-2028)
London, United Kingdom
Last Updated: September 2023
SIC C30.200Revenue
£2.0bn
Past 5-Year Growth
Profit
£XXX.Xm
Employees
6,223
Businesses
130
Wages
£XXX.Xm
Railway Equipment Manufacturing in the UK industry analysis
Rolling stock manufacturers rely heavily on long-term rolling stock replacement contracts. These contracts have long lead times and involve periodic payments throughout the manufacturing process, followed by a balloon payment when the project reaches completion, creating a high level of revenue and profit volatility. The industry's performance is heavily dependent on the performance of Alstom Transport and Hitachi Rail, with both companies holding 55.3% of market share. Revenue is forecast to drop at a compound annual rate of 8.1% over the five years through 2023-24 to £2 billion, including an expansion of 0.5% in 2023-24.In 2020-21, revenue dropped fell by 15.5% due to manufacturers delaying deliveries of trains and a standstill in passenger numbers after the COVID-19 outbreak. Office of Rail and Road data shows that 990 million rail passenger journeys were made in 2021-22, well above the 388 million seen in 2020-21 (which was the lowest since records began). Rising passenger numbers led to the delivery of rolling stock for major projects, like Crossrail and the Intercity Express Programme by Alstom Transport and Hitachi, supporting revenue growth.The Railway Equipment Manufacturing industry's revenue is anticipated to expand at a compound annual rate of 1.6% over the five years through 2028-29 to £2.1 billion. The production of rolling stock for major contracts is set to propel revenue. Significant investment to expand the capacity of the tube network in London offers even more opportunities to boost output. The Hitachi-Alstom joint venture was awarded the contract to build trains for the HS2 project, costing an estimated £71 billion. The companies will deliver the first trains between 2029 and 2033, generating significant revenue growth for both companies.
Trends and Insights
- COVID-19 cuts rail production. Manufacturers were forced to bring production lines to a halt for much of 2020-21, delaying order deliveries, while lower passenger number slashed investment from train operators.
- Rail network upgrades boost equipment orders. Investment in improving rail infrastructure, partly to meet growing demand from a climbing number of passengers, drives up orders of self-propelled carriages and signalling equipment.
- Strong sales opportunities draw train makers to the South. Local manufacturers can serve the lucrative London market, where there are plenty of opportunities for work on the Tube network, as well as major train company Southern.
- Train manufacturers need a reputation for quality. Manufacturers that are trusted to deliver robust, high-quality railway equipment on time will gain a big competitive edge.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 8.1 % over the past five years, to reach an estimated £2.0bn in 2023.
Trends and Insights
Large companies lead the way by securing lucrative rail contracts
- The rolling stock manufacturing industry revival is due to investment by the UK government and rail companies to reduce road congestion and upgrade services.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Government funding during Control Period 7 (CP7) will generate contracts as rail usage rises
- Anticipated expansion in rail passenger numbers in the coming years will stimulate orders for railway equipment and revenue for manufacturers.
Biggest companies in the Railway Equipment Manufacturing in the UK
| Company | Market Share (%)
2024 | Revenue (£m)
2024 |
|---|---|---|
Alstom Transport UK Ltd | 721.0 | |
Hitachi Rail Ltd | 380.2 | |
Knorr-Bremse Rail Systems (UK) Ltd | 78.9 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Locomotives, Train parts and Signalling equipment. Locomotives is the largest segment of the Railway Equipment Manufacturing in the UK.
Trends and Insights
Investment in upgrading the rail network drives self-propelled carriages and signalling equipment orders
- Most revenue is generated from producing cars or coaches propelled with diesel or electricity and signalling equipment for control equipment and track fixtures and fittings.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- There are no industries to display.
International industries
- Train, Subway & Transit Car Manufacturing in the US
- Railcar Manufacturing in the US
- Train, Subway & Transit Car Manufacturing in Canada
- Railway Equipment Manufacturing and Repair in Australia
- Railway Equipment Manufacturing in China
Table of Contents
About this industry
Industry definition
Companies in this industry manufacture rail locomotives, carriages, train parts (such as wheels) and signalling equipment. Repair and maintenance of trains, train parts and tracks are not included in the industry.
What's included in this industry?
Self-propelled carriages Train parts Carriages and goods wagons LocomotivesSignalling equipmentCompanies
Alstom Transport UK LtdHitachi Rail LtdKnorr-Bremse Rail Systems (UK) LtdPurchase this report to view all 4 major companies in this industry.
Related Terms
BOGIEROLLING STOCK OPERATING COMPANY (ROSCO)TRAIN OPERATING COMPANY (TOC)Industry Code
SIC 30.20 - Railway Equipment Manufacturing 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
COVID-19 cuts rail production. Manufacturers were forced to bring production lines to a halt for much of 2020-21, delaying order deliveries, while lower passenger number slas...
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 (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- 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
Rail network upgrades boost equipment orders. Investment in improving rail infrastructure, partly to meet growing demand from a climbing number of passengers, drives up order...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2023
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
- International trade, including imports by country and exports by country
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
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
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
Strong sales opportunities draw train makers to the South. Local manufacturers can serve the lucrative London market, where there are plenty of opportunities for work on the ...
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 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
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
Train manufacturers need a reputation for quality. Manufacturers that are trusted to deliver robust, high-quality railway equipment on time will gain a big competitive edge.
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 2018-2023
- 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
Alstom dominates after its Bombardier acquisition. The company jumped to the top of the market after successfully purchasing Bombardier's train manufacturing operations in Ja...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Alstom Transport UK Ltd's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Hitachi Rail Ltd's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Knorr-Bremse Rail Systems (UK) Ltd's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Alstom Transport UK Ltd, and factors influencing its performance in the industry
- Description and key data for Hitachi Rail Ltd, and factors influencing its performance in the industry
- Description and key data for Knorr-Bremse Rail Systems (UK) Ltd, 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
Regulations pressure railway equipment manufacturers. They’re obliged to embrace contemporary safety mechanisms and ditch outdated stock to comply with the Railway Safety Reg...
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 (2013-2028)
- Assistance historical data and forecast (2013-2028)
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
Railway equipment manufacturers see their profit fall. Rising steel prices and investment in expanding manufacturing capacity escalate production costs, cutting returns – esp...
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 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2017-2021)
- Coverage Ratios (2017-2021)
- Leverage Ratios (2017-2021)
- Operating Ratios (2017-2021)
- Assets (2017-2021)
- Liabilities (2017-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
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 (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
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.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Railway Equipment Manufacturing in the UK industry in United Kingdom in 2024?
The market size of the Railway Equipment Manufacturing in the UK industry in United Kingdom is £2.0bn in 2024.
How many businesses are there in the Railway Equipment Manufacturing in the UK industry in 2023?
There are 130 businesses in the Railway Equipment Manufacturing in the UK industry in United Kingdom, which has declined at a CAGR of 1.2 % between 2018 and 2023.
Has the Railway Equipment Manufacturing in the UK industry in United Kingdom grown or declined over the past 5 years?
The market size of the Railway Equipment Manufacturing in the UK industry in United Kingdom has been declining at a CAGR of 8.1 % between 2018 and 2023.
What is the forecast growth of the Railway Equipment Manufacturing in the UK industry in United Kingdom over the next 5 years?
Over the next five years, the Railway Equipment Manufacturing in the UK industry in United Kingdom is expected to grow.
What are the biggest companies in the Railway Equipment Manufacturing in the UK market in United Kingdom?
The biggest companies operating in the Railway Equipment Manufacturing market in United Kingdom are Alstom Transport UK Ltd, Hitachi Rail Ltd and Knorr-Bremse Rail Systems (UK) Ltd
What does the Railway Equipment Manufacturing in the UK in United Kingdom include?
Self-propelled carriages and Train parts are part of the Railway Equipment Manufacturing in the UK industry.
Which companies have the highest market share in the Railway Equipment Manufacturing in the UK in United Kingdom?
The company holding the most market share in United Kingdom is Alstom Transport UK Ltd.
How competitive is the Railway Equipment Manufacturing in the UK industry in United Kingdom?
The level of competition is moderate and increasing in the Railway Equipment Manufacturing in the UK industry in United Kingdom.
