Bus passing: Bus usage figures have fallen as a result of increased congestion on UK roads

The Bus and Tramway Operations industry provides land transport of passengers on urban, suburban or metropolitan transport systems. Industry operators can be separated into bus and tram operators, with bus operators dominating the industry. The industry relies on subsidies from local government authorities, public transport executives and the national government. Over the past five years, the government has overseen significant funding cuts that have led to decreased revenue and constrained profit margins, with many operators scrapping or scaling back uneconomical services.Industry revenue is expected to contract at a compound annual rate of 1.2% over the five years through 2018-19, reaching £6.7 billion...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Recent funding cuts and volatile fuel prices have negatively affected the industry
  • Government funding cuts have constrained the industry’s average operating margin
  • The Bus Services Act is expected to increase competition in the industry
  • Industry Report - Industry Investment Chapter

    The Bus and Tramway Operations industry is considered to have a moderate level of capital intensity, with an estimated £4.88 spent on labour for every £1.00 spent on capital in 2018-19. This indicates the importance of both labour and capital to the industry. Bus drivers are an essential role and most companies employ several drivers per bus so that each bus remains in service for longer hours per day. On the other hand, capital costs are high because firms need to update and replace their fleets regularly. Furthermore, technological advancements such as the launch of hybrid buses increase capital and maintenance costs. The industry’s capital costs have risen over the past five years as many firms delayed fleet upgrades at the start of the period due to financial pressures...purchase to read more.

    Additional Insights for the Bus & Tramway Operations Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Bus & Tramway Operations Industry are

  • Ability to alter goods and services produced in favour of market conditions
  • Carrying out all necessary maintenance to keep facilities in good condition
  • Ability to take advantage of government subsidies and other grants
  • IBISWorld analysts also discuss how external factors such as National unemployment rate and Urban population in the Bus & Tramway Operations industry impact industry performance..

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    What's in this report

    What is the Bus & Tramway Operations Industry?

    This industry provides passenger transport on urban, suburban or metropolitan transport systems. Modes of transport include buses and tramways, but exclude underground and metro railway systems and coach operations. Operators transport on scheduled routes with fixed stops.

    Industry Products
  • Scheduled deregulated bus services
  • Scheduled regulated bus services
  • Tramway operations
  • Industry Activities
  • Operating scheduled bus services
  • Operating tramways
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • National unemployment rate
  • Urban population
  • Fuel prices
  • Total domestic tourism

  • Current Performance
  • Changing cityscape
  • Trams on track
  • Low oil prices
  • Budget buses
  • Right on time
  • Chart: Revenue Growth

  • Industry Outlook
  • Change here
  • On the tramway
  • Green commitment
  • Rocky road ahead
  • Table: Bus & Tramway Operations Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Bus & Tramway Operations Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Travel Agencies
  • Consumers

  • Key Selling Industries
  • Motor Vehicle Maintenance & Repair
  • Motor Vehicle Manufacturing
  • Motor Vehicle Parts Wholesaling
  • Other Motor Vehicle Sales
  • Other Transport Equipment

  • Products & Services
  • Scheduled deregulated bus services
  • Scheduled regulated bus services
  • Tramway operations
  • Chart: Bus & Tramway Operations Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Commuters
  • Other
  • Tourists
  • Chart: Major Market Segmentation for the Bus & Tramway Operations Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesDepreciationRentUtilities and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Bus & Tramway Operations

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Bus & Tramway Operations Industry

  • Industry Globalization
    Stagecoach Group plc, Deutsche Bahn AG, Go-Ahead Group plc, FirstGroup plc, Metroline Ltd,
  • Table: Stagecoach Group plc - financial performance
  • Table: Deutsche Bahn AG - financial performance
  • Table: Go-Ahead Group plc - financial performance
  • Table: FirstGroup plc - financial performance
  • Table: Metroline Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Bus & Tramway Operations 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 Bus & Tramway Operations Industry
  • 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
    Charter Bus Service
  • Privately booked and scheduled services.
  • Fuel Hedging
  • A way of using a commodity option that allows firms to purchase fuel at a particular price at some point in the future. It allows firms to reduce their exposure to changing fuel costs.
  • Heavy Rail
  • The standard inter-city rail network, which is built to be robust enough for heavy and high-speed trains.
  • Interchange Station
  • A bus station that caters for more than one bus route and allows passengers to switch from one route to another.
  • Passenger Transport Executives (Ptes)
  • Travel South Yorkshire, Merseytravel, Nexus, Centro, Metro and Transport for Greater Manchester (TfGM).
  • Tram
  • An electric vehicle that runs on tracks. The tracks usually run along streets.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Bus & Tramway Operations market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry 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 Bus & Tramway Operations:
    • 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 Bus & Tramway Operations 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 Bus & Tramway Operations, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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