Right on track: Strong investment in rail infrastructure has propelled revenue

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
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Strong investment in rail infrastructure has increased demand and supported growth
  • Increasing track usage has boosted demand and encouraged an expansion in enterprise numbers
  • Overspending on past projects may restrict investment from Network Rail over the next five years
  • Industry Report - Industry Locations Chapter

    LondonLondon accounts for 27.3% of industry establishments, owing to the region’s substantial share of the UK’s rail infrastructure. Moreover, the capital has been a primary focus of construction activity and system improvements over the past five-year period. Demand for rail construction in the capital is ultimately driven by the large and dense population. Many people working in London also commute from areas surrounding the capital, while the London Underground alone accounts for five million journeys per day.Considerable work has been completed and is ongoing on Crossrail, a major expansion of the London network. Transport for London is the principal authority responsible for the London Underground. 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
  • Other services
  • Track work
  • Electrification work
  • Supporting 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
  • Investment and project proposals
  • 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
  • Other services
  • 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 servicesPurchasesDepreciation and equipment rentalOther 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, Babcock Rail Limited, Colas Rail Limited, Carillion plc,
  • Table: Balfour Beatty Group Limited - financial performance
  • Table: Babcock Rail Limited - financial performance
  • Table: Colas Rail Limited - financial performance
  • Table: Carillion plc - 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
  • 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
    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 offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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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