Railcar Manufacturing in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: August 2024
NAICS OD5510Revenue
$1.8bn
Past 5-Year Growth
Profit
$XX.Xm
Employees
8,668
Businesses
15
Wages
$XXX.Xm
Railcar Manufacturing in the US industry analysis
Railcar manufacturers have endured a sharp down-cycle, with product oversupply leading to limited growth opportunities. High interest rates and lingering economic uncertainty have also contributed to heavy volatility and few companies were willing to invest in new railcars. Similarly, plummeting coal freight volumes have slammed demand, especially as regulations discourage coal mining and consumption. Conversely, strong e-commerce growth and a rebounding freight transportation services index have led to lower railcar vacancy rates. Overall, revenue has contracted at an expected CAGR of 10.1% to $1.8 billion through the current period, including a 1,2% drop in 2024, where profit fell to 3.6%.
Trends and Insights
- Low usage rates and railcar oversupply have contributed to weak demand, especially during the pandemic. Cyclical replacements, technological advancements and improving economic conditions will spur a new round of railcar investment through the outlook period.
- Railcars are incorporating new technologies, like telemetry and automatic braking systems, to improve safety and efficiency. These technologies can improve freight rail transportation's reliability and safety, reducing the risk of accidents.
- Many railroad manufacturers operate near prominent railroad companies. The Southeast and Mid-Atlantic regions are home to many large railroad companies.
- Manufacturers compete on price, quality, innovation and customer service. Strong reputations are critical for securing long-term contracts and repeat buyers.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 10.1 % over the past five years, to reach an estimated $1.8bn in 2024.
Trends and Insights
Railcar oversupply has decimated demand
- Buyers express highly cyclical demand for new railcars, reflecting the extensive economic life cycle of railcars. As a result, manufacturers can forecast purchasing trends and allocate capacity years in advance. However, many buyers have overstocked railcars through the current period, forcing buyers to keep a significant portion of cars in storage and reducing demand for replacement cars.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
New technology will support revenue
- Railcar manufacturers will need to invest in research and development to stay competitive in a rapidly evolving market, meet stricter environmental and safety regulations and cater to the growing demand for more advanced rail solutions.
Biggest companies in the Railcar Manufacturing in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Greenbrier Companies Inc. | 721.3 | 28.2 | 3.9 | |
Siemens Ag | 533.4 | 49.9 | 9.4 | |
Westinghouse Air Brake Technologies Corp | 381.6 | 43.4 | 11.4 |
To view the market share and analysis for all 5 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 Boxcar, Gondola and Hopper and covered hopper . Boxcar is the largest segment of the Railcar Manufacturing in the US.
Trends and Insights
Hoppers and gondola are the most common freight transportation railcars
- Hoppers are railcars designed for quick unloading of bulk commodities. These products often have doors on the bottom or side to facilitate unloading. Buyers commonly use open-top hoppers to transport low-maintenance bulk commodities that aren't influenced by the weather, like coal, shale, stone, shale, gravel or other similar products.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Railroad Car Rental & Leasing in the US
- Truck Trailer Manufacturing in the US
Complementors
- Train, Subway & Transit Car Manufacturing in the US
- Rail Transportation in the US
- Public Transportation in the US
- Rail Maintenance Services in the US
International industries
- Train, Subway & Transit Car Manufacturing in Canada
- Railway Equipment Manufacturing and Repair in Australia
- Railway Equipment Manufacturing in the UK
- Railway Equipment Manufacturing in China
Table of Contents
About this industry
Industry definition
This industry manufactures railcars for passenger, freight and military use. These railcars include gondolas, tank cars, flatcars, refrigerator cars, covered hoppers and intermodal cars.
What's included in this industry?
PassengerTankHopper and covered hopper FlatGondolaBoxcarCompanies
Greenbrier Companies Inc.Siemens AgWestinghouse Air Brake Technologies CorpPurchase this report to view all 5 major companies in this industry.
Related Terms
GONDOLAFLATCARHOPPER CARREEFERSSLEEPERSIndustry Code
NAICS 33651 - Railcar Manufacturing in the US
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
Low usage rates and railcar oversupply have contributed to weak demand, especially during the pandemic. Cyclical replacements, technological advancements and improving econom...
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
Railcars are incorporating new technologies, like telemetry and automatic braking systems, to improve safety and efficiency. These technologies can improve freight rail trans...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- 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
Many railroad manufacturers operate near prominent railroad companies. The Southeast and Mid-Atlantic regions are home to many large railroad companies.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, 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
Manufacturers compete on price, quality, innovation and customer service. Strong reputations are critical for securing long-term contracts and repeat buyers.
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
Incumbent manufacturers dominate the industry. These companies often have long-term contracts with key buyers, preventing entry and limiting import penetration. Many smaller ...
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 Greenbrier Companies Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Siemens Ag's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Westinghouse Air Brake Technologies Corp's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for Greenbrier Companies Inc., and factors influencing its performance in the industry
- Description and key data for Siemens Ag, and factors influencing its performance in the industry
- Description and key data for Westinghouse Air Brake Technologies Corp, 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
Changes in emissions and safety regulations have impacted the railcars' design and manufacturing process. Manufacturers must stay current with regulatory changes and adapt th...
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
Competition from other railcar manufacturers can impact profitability. Companies often need to lower prices or improve product quality to remain competitive, limiting returns...
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
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- 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)
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 US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
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 Railcar Manufacturing in the US industry in United States in 2024?
The market size of the Railcar Manufacturing in the US industry in United States is $1.8bn in 2024.
How many businesses are there in the Railcar Manufacturing in the US industry in 2024?
There are 15 businesses in the Railcar Manufacturing in the US industry in United States, which has declined at a CAGR of 1.3 % between 2019 and 2024.
Has the Railcar Manufacturing in the US industry in United States grown or declined over the past 5 years?
The market size of the Railcar Manufacturing in the US industry in United States has been declining at a CAGR of 10.1 % between 2019 and 2024.
What is the forecast growth of the Railcar Manufacturing in the US industry in United States over the next 5 years?
Over the next five years, the Railcar Manufacturing in the US industry in United States is expected to grow.
What are the biggest companies in the Railcar Manufacturing in the US market in United States?
The biggest companies operating in the Railcar Manufacturing market in United States are Greenbrier Companies Inc., Siemens Ag and Westinghouse Air Brake Technologies Corp
What does the Railcar Manufacturing in the US in United States include?
Passenger and Tank are part of the Railcar Manufacturing in the US industry.
Which companies have the highest market share in the Railcar Manufacturing in the US in United States?
The company holding the most market share in United States is Greenbrier Companies Inc..
How competitive is the Railcar Manufacturing in the US industry in United States?
The level of competition is high and steady in the Railcar Manufacturing in the US industry in United States.
