A different route: Though revenue has fallen, the revival of trams has supported demand

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 declining revenue and constrained profit margins, with many industry operators scrapping or scaling back uneconomical services.Industry revenue is expected to contract at a compound annual rate of 1.3% over the five years through 2018-19 to £6.6 billion. In the current year, industry revenue is expected decline by 0.6%...read more.

Industry Statistics & Market Size
Revenue
£6.6bn
Annual Growth 14-19
-1.3%
Forecast Growth 19-24
Profit
Employment
111,711
Businesses
1,787

Industry Threats & Opportunities

  • Industry revenue has been negatively affected by funding cuts and volatile fuel prices
  • Declines in funding and alterations to services for buses have contributed to declining revenue
  • Trams are expected to continue their revival, with more networks expected to be introduced in the future
  • Industry Report - Industry SWOT Analysis Chapter

    The Bus and Tramway Operations industry is in the mature phase of its life cycle. Industry value added, defined as the industry's contribution to GDP, is forecast to grow at a compound annual rate of 0.5% over the 10 years through 2023-24, while GDP is expected to rise at a comparatively higher compound annual rate of 1.7% over the same period This indicates that the industry is growing at a slower rate than the overall economy.The products and services offered by industry operators have been stable for a number of years and, whilst firms in the industry continue to focus on improving operating efficiency and customer services, there are no rapid technological changes that come with a growing industry. Alt...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
  • On a budget
  • Right on time
  • Chart: Revenue Growth

  • Industry Outlook
  • Regulatory reforms
  • 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

  • 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
    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
    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.
  • 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 provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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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