Back on track: Significant road congestion has caused rail patronage rates to accelerate

The Rail Passenger Transport industry has strongly grown over the past five years. Several factors have driven increasing patronage, including growing road congestion, higher parking costs and rising awareness of environmental issues. Higher employment in CBDs and population growth have also boosted patronage rates. Consequently, industry revenue is expected to grow at an annualised 2.1% over the five years through 2017-18, to reach $8.9 billion. This includes expected revenue growth of 1.7% in the current year.Increased demand for passenger rail services has led to ticket sales growth, but the bulk of industry revenue has continued to come from government subsidies and grants...read more.

Industry Statistics & Market Size
Revenue
$9bn
Annual Growth 13-18
2.1%
Forecast Growth 18-23
Profit
Employment
32,380
Businesses
25

Industry Threats & Opportunities

  • Growing road congestion and rising environmental consciousness have boosted demand
  • Many companies have posted losses, while others have subsisted on a thin operating surplus
  • The industry is forecast to benefit from significant capital investment in rail networks
  • Industry Report - Industry Investment Chapter

    The Rail Passenger Transport industry exhibits a moderate level of capital intensity. For every dollar spent on capital costs, $8.0 is spent on wages. The industry requires large investments in infrastructure, equipment and train stations. The dedicated and inflexible rolling stock used in railway operations contributes to the high capital costs associated with entry to the industry.Outsourcing the ownership of rail tracks to independent managers reduces the capital costs associated with rail tracks in the interstate corridor, although this will increase access fees payable. In urban rail networks, ownership of the rails is usually separated from the service provider. Rolling stock, such as trains and carriages, represents the largest capital expense in the industry. Thi...purchase to read more.

    Additional Insights for the Rail Passenger Transport Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Rail Passenger Transport Industry are

  • Automation - reduces costs, particularly those associated with labour
  • Well developed internal processes
  • Production of premium goods/services
  • IBISWorld analysts also discuss how external factors such as Government consumption expenditure and Capital expenditure by the government in the Rail Passenger Transport industry impact industry performance..

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    What's in this report

    What is the Rail Passenger Transport Industry?

    Companies in the industry operate railways that transport passengers. This includes passenger services for commuter rail and metropolitan rail, and monorail operations. The industry excludes tramways, rail terminal operations and tourist rail passenger services.

    Industry Products
  • Urban weekday peak services
  • Urban weekday off-peak services
  • Urban weekend services
  • Rural services
  • Industry Activities
  • Passenger railway transport services
  • Suburban passenger railway transport services
  • Monorail operation
  • Rural passenger railway transport services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Government consumption expenditure
  • Capital expenditure by the government
  • Secondary school retention rate
  • Total full-time workforce
  • World price of crude oil

  • Current Performance
  • Subsidies and profit
  • Commuters abandon cars
  • Environmental considerations
  • Chart: Revenue Growth

  • Industry Outlook
  • External competition
  • Expansion trends
  • Table: Rail Passenger Transport Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Rail Passenger Transport Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Tourism
  • Consumers

  • Key Selling Industries
  • Heavy Industry and Other Non-Building Construction
  • Measurement and Other Scientific Equipment Manufacturing
  • Railway Equipment Manufacturing and Repair
  • Telecommunications and Other Electrical Goods Wholesaling

  • Products & Services
  • Urban weekday peak services
  • Urban weekday off-peak services
  • Rural services
  • Urban weekend services
  • Chart: Rail Passenger Transport Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Commuters
  • Personal travel
  • Students
  • Chart: Major Market Segmentation for the Rail Passenger Transport 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 Rail Passenger Transport

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Rail Passenger Transport Industry

  • Industry Globalization
    Department of Transport NSW, Public Transport Development Authority, Queensland Rail Limited,
  • Table: Department of Transport NSW - financial performance
  • Table: Public Transport Development Authority - financial performance
  • Table: Queensland Rail Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Rail Passenger 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 Rail Passenger Transport Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Commuter Rail
  • A railway that radiates from a central location (generally city CBDs) to outer suburban areas.
  • Heavy Rail
  • Electrified railways capable of carrying a high volume of passengers and with their own right of way, as distinct from light rail (e.g. tram networks).
  • Patronage
  • Volume measure for passenger rail transport, typically measured as the number of journeys taken.
  • What Our Customers Say

    Why buy this report?

    The Rail Passenger 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 Rail Passenger 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 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 Rail Passenger 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 Rail Passenger Transport, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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