Off the rails: Growth is expected to slow as inefficiencies risk limiting demand

Operators in the Railway and Underground Railway Construction industry construct and maintain railway and tramway infrastructure. Industry contractors are employed by government bodies such as Network Rail, Transport for London and NI Railways. These organisations are funded by the government's Department for Transport, and also generate income from private train operators and passenger fares. Rail infrastructure spending is organised in five-year cycles called control periods (CPs), which can result in volatile spending distribution. Major projects like Crossrail and an increased government focus on rail infrastructure have supported buoyant growth in recent years...read more.

Industry Statistics & Market Size
Revenue
£3.9bn
Annual Growth 14-19
13.9%
Forecast Growth 19-24
Profit
Employment
24,531
Businesses
681

Industry Threats & Opportunities

  • Revenue has been supported by government investment and infrastructure projects
  • Unorthodox investment cycles have induced strong growth and revenue is anticipated to increase
  • Industry growth is threatened by cost escalations and delays in major infrastructure projects
  • Industry Report - Industry Products Chapter

    Operators in the Railway and Underground Railway Construction industry carry out work in a variety of areas, including both the laying of new tracks and repair work. Supporting work, such as the construction of platforms and level crossings, is included in some instances. However, the construction and maintenance of support infrastructure, such as bridges and tunnels, is undertaken by operators in the Bridge and Tunnel Construction industry (IBISWorld report F42.130) and the Infrastructure Maintenance Services industry (IBISWorld report UK0.005).Track workTrack work is estimated to account for 53.7% of industry revenue in 2018-19. The UK rail network consists of 15,800 kilometres of track in Great Britain and 330 kilometres in Northern Ireland. The...purchase to read more.

    Additional Insights for the Railway & Underground Railway Construction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Railway & Underground Railway Construction Industry are

  • Ability to compete on tender
  • Ability to effectively communicate and negotiate
  • Ensuring pricing policy is appropriate
  • IBISWorld analysts also discuss how external factors such as Government capital expenditure and Demand from intercity passenger rail transport in the Railway & Underground Railway Construction industry impact industry performance..

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    What's in this report

    What is the Railway & Underground Railway Construction Industry?

    This industry includes contractors that work on railway, underground railway and tramway infrastructure. New work, repairs, additions and maintenance on existing infrastructure are all included, but the installation of lighting and signalling equipment and the construction of bridges are excluded. Portions of the work can be subcontracted.

    Industry Products
  • Track work
  • Supporting work
  • Electrification work
  • Industry Activities
  • Constructing railways and tramways
  • Constructing associated structures such as platforms, fences and level crossings
  • Preparing construction sites
  • Designing, laying and electrifying tracks
  • Maintaining and repairing rail infrastructure
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Government capital expenditure
  • Demand from intercity passenger rail transport
  • Demand from urban passenger rail operations
  • Demand from freight rail transport

  • Current Performance
  • Investment cycles
  • Rail usage
  • Major projects
  • Chart: Revenue Growth

  • Industry Outlook
  • Delayed growth
  • Pipeline developments
  • Employment concerns
  • Table: Railway & Underground Railway Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Railway & Underground Railway Construction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Intercity Passenger Rail Transport
  • Freight Rail Transport
  • Urban Passenger Rail Operations
  • Bus & Tramway Operations

  • Key Selling Industries
  • Concrete Construction Product Manufacturing
  • Construction Supplies Wholesaling
  • Iron & Steel Manufacturing
  • Mining, Construction & Civil Engineering Machinery Wholesaling
  • Ready-Mixed Concrete Manufacturing

  • Products & Services
  • Track work
  • Supporting work
  • Electrification work
  • Chart: Railway & Underground Railway Construction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Network Rail
  • Transport for London
  • Other
  • Chart: Major Market Segmentation for the Railway & Underground Railway Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitSubcontractor paymentsWagesSpecialist servicesPurchasesCapital costsOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Railway & Underground Railway Construction

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Railway & Underground Railway Construction Industry

  • Industry Globalization
    Balfour Beatty Group Limited, Colas Rail Limited, Babcock Rail Limited,
  • Table: Balfour Beatty Group Limited - financial performance
  • Table: Colas Rail Limited - financial performance
  • Table: Babcock Rail Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Railway & Underground Railway Construction 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 & Underground Railway Construction Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Network Rail
  • Government-created and -backed company that owns and operates of most of the rail infrastructure in Great Britain.
  • Office Of Rail And Road (Orr)
  • The non-ministerial government department responsible for ensuring rail sector operators, particularly Network Rail, comply with regulation and funding requirements.
  • Transport For London (Tfl)
  • The local government authority responsible for the transport system in Greater London, including the London Underground.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Railway & Underground Railway Construction market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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 & Underground Railway Construction:
    • 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 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 & Underground Railway Construction 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 & Underground Railway Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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