Industry Analysis & Industry Trends
The industry relies heavily on long-term rolling stock replacement contracts. These contracts have long lead times and involve periodic payments throughout the manufacturing process followed by a balloon payment when the project reaches completion. This creates revenue and profit volatility and means that industry trends often go against underlying passenger demand or economic circumstances. Over the five years through 2015-16, industry revenue is expected to grow at a compound annual rate of 0.9% to reach £1.5 billion. Over the period, Bombardier remained the only major train manufacturer in the United Kingdom with a market share of over 50%. Therefore, industry trends largely reflected the performance of Bombardier... purchase to read more
Industry Report - Industry Key Buyers Chapter
The Railway Equipment Manufacturing industry has a medium level of concentration, with largest three players accounting for an estimated 66.3% of industry revenue in 2015-16. In reality, just one firm, Bombardier, dominates the industry and has a market share of over 50%. However, this is expected to change during the current year, as Hitachi commenced production in January 2016.
The industry also has a large number of small players operating in the industry. They are mainly independent firms specialising on producing parts, or reconditioning rolling stock. The number of small operators operating in the industry increased during the past five years, as some redundant employees started their own operations. purchase to read more