On track: New railway investment has boosted industry revenue over the past five years

The Rail Maintenance industry provides third-party below-rail maintenance services to operators of Australia’s freight and passenger rail networks. Due to the high safety standards required to operate rail systems and protect assets, demand for rail network maintenance is largely inelastic. The industry has historically depended on outsourcing trends, as governments have increasingly involved the private sector in managing railways. The scope of Australia’s railways is another factor affecting demand for industry services. When new track is constructed, the market for maintenance services grows...read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Demand for the industry is largely inelastic, as the safety standards for rail systems are high
  • Improved demand conditions have boosted industry operating profit over the past five years
  • Private rail operators are expected to be a principal source of demand for rail repair services
  • Industry Report - Industry Analysis Chapter

    The Rail Maintenance industry has enjoyed a robust performance since the late 2000s, growing as a share of the Australian economy on the back of unprecedented investment in new railway construction and public transport authorities outsourcing long-term maintenance activities. Industry revenue is expected to grow by an annualised 4.4% over the five years through 2016-17, climbing to $1.0 billion. Many of the industry’s leading players are also heavily involved in the Railway Track Construction industry, and the surge of new construction activity by these firms from the mid-2000s through to a record peak in 2011-12 has allowed them to secure long-term maintenance arrangements on completed developments. This has been particularly evident among privately funded freight line projects...purchase to read more.

    Additional Insights for the Rail Maintenance Industry

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

  • Ability to negotiate successfully with regulator
  • Economies of scale
  • Having an extensive distribution/collection network
  • IBISWorld analysts also discuss how external factors such as Demand from rail freight transport and Demand from rail passenger transport in the Rail Maintenance industry impact industry performance..

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    What's in this report

    What is the Rail Maintenance Industry?

    Industry companies maintain and repair rail lines. The construction of new infrastructure is excluded from the industry.

    Industry Products
  • Railway track maintenance
  • Capital works
  • Signalling systems maintenance
  • Tramway maintenance
  • Industry Activities
  • Railway maintenance
  • Signalling equipment maintenance
  • Capital works
  • 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
  • Demand from rail passenger transport
  • Actual capital expenditure on mining
  • Domestic price of iron and steel
  • Government consumption expenditure

  • Current Performance
  • New track
  • Competitive advantage
  • Operating profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Private markets
  • Public markets
  • Profit and participation
  • Table: Rail Maintenance Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Iron Ore Mining

  • Key Selling Industries
  • Machinery and Scaffolding Rental
  • Measurement and Other Scientific Equipment Manufacturing
  • Passenger Car Rental and Hiring

  • Products & Services
  • Railway track maintenance
  • Signalling systems maintenance
  • Capital works
  • Tramway maintenance
  • Chart: Rail Maintenance Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • State governments
  • Private rail operators
  • Federal Government
  • Chart: Major Market Segmentation for the Rail Maintenance 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 Maintenance

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

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

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Rail Maintenance 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 Maintenance Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Above Rail
  • Rolling stock and provision of rail services.
  • Below Rail
  • The fixed infrastructure used by rail. This includes tracks, sleepers and sidings.
  • Bulk Freight
  • Homogeneous bulk goods such as grain or mineral output, which are transported in custom vehicles.
  • Dry Hire
  • The hire or lease of plant and machinery without an operator. Dry hire can be paid on an hourly, daily or weekly basis.
  • Non-Bulk Freight
  • General merchandise freight that is carried in standardised containers for transport, such as shipping containers, general freight wagons or on pallets.
  • Rolling Stock
  • Locomotives and carriages.
  • Wet Hire
  • The hire or lease of plant and machinery with a suitably qualified operator working under the direction of the prime contractor. Wet hire can be paid on an hourly, daily or weekly basis.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Rail Maintenance 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 Rail Maintenance:
    • 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 Maintenance 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 Maintenance, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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