Closely tracked: There has been a renewed political focus on rail transport in recent years

The Intercity Passenger Rail Transport industry has grown strongly despite recent economic uncertainty. The industry includes large multinational rail companies that operate mainline rail services, in addition to a larger number of smaller operators that run and maintain heritage and tourist railways. The performance of the industry as a whole is affected by many different factors, including the total number of passenger rail journeys made each year, government subsidies, regulatory changes, the rate of unemployment and the relative cost of travelling by rail as opposed to by alternative modes of transport. This latter variable is largely influenced by fuel costs; when these are high, people tend to opt for public transport over car more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Some franchises are scheduled to come up for tender, which will affect the industry’s future
  • Franchise renewal delays have caused the average age of franchise contracts to increase
  • Renewal procedures will play a large role in determining the structure of the industry
  • Industry Report - Industry SWOT Analysis Chapter

    Industry value added (IVA), which measures the industry’s contribution to the overall economy, is expected to grow at a compound annual rate of 2.7% over the 10 years through 2022-23. Over the same period, IBISWorld forecasts that real GDP will increase at a compound annual rate of 2%. This means the Intercity Passenger Rail Transport industry will increase at a slightly higher rate than the greater economy. However, the industry is considered to be in the mature stage of its life cycle.Profit margins are expected to grow only slightly over the 10-year period to account for 3.5% of revenue in 2022-23, as the high competition in the industry is expected to weigh on profit margin expansion. The...purchase to read more.

    Additional Insights for the Intercity Passenger Rail Transport Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Intercity Passenger Rail Transport Industry are

  • Having an effective performance monitoring system
  • Carrying out all necessary maintenance to keep facilities in good condition
  • Ensuring pricing policy is appropriate
  • IBISWorld analysts also discuss how external factors such as Passenger rail journeys and National unemployment rate in the Intercity Passenger Rail Transport industry impact industry performance..

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    What's in this report

    What is the Intercity Passenger Rail Transport Industry?

    The Intercity Passenger Rail Transport industry operates railways for passenger travel between urban areas. The industry also provides some support and auxiliary services to passenger railways and transports small amounts of freight and post. The industry excludes the operation of railways primarily used to transport freight and the operation of light rail networks.

    Industry Products
  • Ordinary fares - off peak
  • Ordinary fares - anytime
  • Ordinary fares - advance and other
  • Season tickets
  • Other revenue
  • Industry Activities
  • Operating passenger railways
  • Managing train stations
  • Providing passenger rail support services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Passenger rail journeys
  • National unemployment rate
  • Fuel prices
  • Population
  • Real government consumption expenditure

  • Current Performance
  • Passenger numbers
  • Fair fares
  • Steady margins
  • Chart: Revenue Growth

  • Industry Outlook
  • Franchising fracas
  • Increased competition
  • Legislative developments
  • A different track
  • Table: Intercity Passenger Rail Transport Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Intercity Passenger Rail Transport Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Postal & Courier Activities
  • Advertising Agencies
  • Consumers

  • Key Selling Industries
  • Petroleum Refining
  • Railway Equipment Manufacturing

  • Products & Services
  • Ordinary fares - off peak
  • Ordinary fares - anytime
  • Season tickets
  • Ordinary fares - advance and other
  • Other revenue
  • Chart: Intercity Passenger Rail Transport Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Leisure travellers
  • Commuters
  • Business travellers
  • Chart: Major Market Segmentation for the Intercity Passenger Rail Transport Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesAccess chargesRolling stock costsMaintenancePurchasesDepreciation, rent and utilities and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Intercity Passenger Rail Transport

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Intercity Passenger Rail Transport Industry

  • Industry Globalization
    Govia Limited, Stagecoach Group plc, Arriva plc, FirstGroup plc, Abellio Transport Holdings Ltd,
  • Table: Govia Limited - financial performance
  • Table: Stagecoach Group plc - financial performance
  • Table: Arriva plc - financial performance
  • Table: FirstGroup plc - financial performance
  • Table: Abellio Transport Holdings Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Intercity Passenger Rail Transport 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 Intercity Passenger Rail Transport Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Control Period
  • Network Rail sets plans and budgets in five-year periods called control periods, in which it establishes regulations and charges that effect industry operators.
  • High Level Output Specification
  • A policy paper published by the Department for Transport.
  • Network Rail
  • A not-for-dividend company created by the government to run and maintain track, signals, bridges, tunnels, level crossings and key stations.
  • Rail Franchise
  • Under a rail franchise, the Department for Transport licenses a train operating company to operate passenger services in a particular area. Franchises were created under the 1993 Railways Act.
  • Rolling Stock
  • The train cars, carriages and locomotives used to transport passengers.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Intercity Passenger Rail Transport 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 Intercity Passenger Rail Transport:
    • 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 Intercity Passenger Rail Transport 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 Intercity Passenger Rail Transport, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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