New tracks: Substantial reforms are likely to take place in the industry over the coming years

The Intercity Passenger Rail Transport industry includes large multinational rail companies that operate mainline rail services, in addition to a number of smaller operators that run and maintain heritage and tourist railways. Performance 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. The latter variable is principally influenced by fuel costs; when these are high, people tend to opt for public transport over car usage.Over the five years through 2019-20, revenue is expected to rise at a compound annual rate of 4.6% to reach £12.7 billion...read more.

Industry Statistics & Market Size
Revenue
£12.7bn
Annual Growth 15-20
4.6%
Forecast Growth 20-25
Profit
Employment
61,020
Businesses
65

Industry Threats & Opportunities

  • Some franchises are scheduled to come up for tender, which will affect industry operations
  • National Rail states that four of the past six fare increases were below the rate of inflation
  • The findings of a review into the rail industry will likely affect industry players and profit
  • Industry Report - Industry Products Chapter

    There are two different types of train fares: regulated train fares and unregulated train fares. Generally, regulated fares are those set aside after privatisation for the government to oversee. They are mostly standard and saver return fares, including weekly season tickets. Unregulated fares are set by train operating companies at commercial rates. Unregulated fares include first class and advance purchase fares. These are not subject to government regulation and are set freely by operators at competitive prices.Off-peak faresThe most popular ticket type, off-peak, is estimated to contribute 27.5% of revenue in 2019-20. Off-peak tickets are used primarily by leisure travellers to save money, but can also be used by business travellers to cut costs. Off...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
  • Off-peak fares
  • Anytime fares
  • Advance fares
  • Season tickets
  • Other revenue
  • Management fees
  • 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
  • Real government consumption expenditure
  • Total labour force
  • Urban population

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

  • Industry Outlook
  • Franchising fracas
  • Future fares
  • Rail investment
  • 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
  • Off-peak fares
  • Anytime fares
  • Season tickets
  • Advance fares
  • Management fees
  • 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
    WagesPurchasesProfitDepreciationMarketingRentUtilitiesOtherAccess chargesRolling stock leasingFranchise premium
  • 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
    FirstGroup plc, Govia Limited, Arriva UK Trains Ltd, Abellio Transport Holdings Ltd, Stagecoach Group plc,
  • Table: FirstGroup plc - financial performance
  • Table: Govia Limited - financial performance
  • Table: Arriva UK Trains Ltd - financial performance
  • Table: Abellio Transport Holdings Ltd - financial performance
  • Table: Stagecoach Group plc - 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
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • 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.
  • 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?

    The Intercity Passenger Rail Transport market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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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