On a roll: Major investment in the rail network pushes the industry back into growth after years of revenue decline
Rolling stock manufacturers rely 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, creating a high level of revenue and profit volatility. The industry's performance is heavily dependent on the performance of Alstom Transport and Hitachi Rail, with both companies holding 55.3% of market share. Revenue is forecast to drop at a compound annual rate of 8.1% over the five years through 2023-24 to £2 billion, including an expansion of 0.5% in 2023-24.
Companies in this industry manufacture rail locomotives, carriages, train parts (such as wheels) and signalling equipment. Repair and maintenance of trains, train parts and tracks are not included in the industry.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
Table of Contents
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Alstom Transport UK Ltd
- Hitachi Rail Ltd
Methodology
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