Running express: Rising demand for high-tech rail manufacturing has limited revenue declines

The Railway Equipment Manufacturing and Repair industry manufactures and maintains rail locomotives and carriages for freight and passenger use. The industry has struggled against import penetration of rail locomotives and wagons over the past five years, contributing to a decline in demand for industry products. However, rising demand for high-tech rail locomotives and carriages, largely from state governments, has partly offset this trend.Industry operators have struggled with high revenue volatility over the past five years. The industry heavily relies on large, irregular contracts with major logistics companies and government bodies, many of which came to an end over the period...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 14-19
-1.0%
Forecast Growth 19-24
Profit
Employment
4,656
Businesses
128

Industry Threats & Opportunities

  • Industry operators are increasingly focusing on high-tech rail manufacturing areas
  • Smaller firms have targeted sectors that require technical sophistication and high safety standards
  • Rising traffic congestion will encourage increased government investment in rail infrastructure
  • Industry Report - Industry Investment Chapter

    The Railway Equipment Manufacturing and repair industry displays a low level of capital intensity, a trend which has declined over the past five years. In the current year, for every dollar spent on capital investment, industry operators are expected to spend $7.42 on wage costs. Industry operators generally require large production facilities with specialised equipment which, while expensive, have significant lifespans. The industry has high wages costs as it generally requires highly skilled labour and many employees in the manufacturing process. Maintenance and repair services are also labour-intensive...purchase to read more.

    Additional Insights for the Railway Equipment Manufacturing and Repair Industry

    IBISWorld has determined the most important Key Success Factors for the Railway Equipment Manufacturing and Repair are:

  • Undertaking technical research and development
  • Economies of scope
  • Well developed internal processes
  • IBISWorld analysts also discuss how external factors such as Demand from rail freight transport and Domestic price of iron and steel in the Railway Equipment Manufacturing and Repair industry impact industry performance..

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    What's in this report

    What is the Railway Equipment Manufacturing and Repair Industry?

    Industry companies manufacture or repair railway locomotives and rolling stock. This includes rail carriages, tram cars and wagons. The industry excludes railroad construction.

    Industry Products
  • Repair and maintenance services
  • Passenger trains and carriages
  • Freight trains and wagons
  • Passenger light rail and trams
  • Industry Activities
  • Locomotive
  • Railway rolling stock
  • Repair of locomotives and rolling stock
  • Tram
  • Cable car
  • Rail carriage
  • Railway gear and parts
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from rail freight transport
  • Domestic price of iron and steel
  • Demand from rail passenger transport
  • Trade-weighted index

  • Current Performance
  • Freight and passenger rail
  • International trade
  • Changing focus
  • Chart: Revenue Growth

  • Industry Outlook
  • Improving market conditions
  • Staying viable
  • Passenger rail investment
  • Table: Railway Equipment Manufacturing and Repair Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Railway Equipment Manufacturing and Repair Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Grain Growing
  • Sugar Cane Growing
  • Black Coal Mining
  • Iron Ore Mining
  • Rail Freight Transport
  • Rail Passenger Transport

  • Key Selling Industries
  • Fabricated Metal Product Manufacturing
  • Iron and Steel Casting
  • Nut, Bolt, Screw and Rivet Manufacturing
  • Power Automation Products and Other Electrical Equipment Manufacturing
  • Spring and Wire Product Manufacturing
  • Steel Pipe and Tube Manufacturing

  • Products & Services
  • Repair and maintenance services
  • Passenger trains and carriages
  • Freight trains and wagons
  • Passenger light rail and trams
  • Chart: Railway Equipment Manufacturing and Repair Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Rail passenger transport operators
  • Rail freight transport operators
  • Mining companies
  • Chart: Major Market Segmentation for the Railway Equipment Manufacturing and Repair Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Railway Equipment Manufacturing and Repair

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Railway Equipment Manufacturing and Repair Industry

  • Industry Globalization
    CIMIC Group Limited, Downer EDI Limited, Bombardier Transportation Australia Pty Ltd,
  • Table: CIMIC Group Limited - financial performance
  • Table: Downer EDI Limited - financial performance
  • Table: Bombardier Transportation Australia Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Railway Equipment Manufacturing and Repair 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 Equipment Manufacturing and Repair Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)
  • (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Freight Rail
  • Trains used for transporting goods or cargo. Freight rail carries a variety of goods and cargo.
  • Rolling Stock
  • Rail units that run on rail tracks, including locomotives and carriages.
  • Tonne Kilometres
  • Tonne of freight multiplied by the distance (kilometres) travelled.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Railway Equipment Manufacturing and Repair 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 Railway Equipment Manufacturing and Repair:
    • 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 of 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 Equipment Manufacturing and Repair 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 Equipment Manufacturing and Repair, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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