A growing population and high fuel prices keep the industry on track
London, United Kingdom (PRWEB) October 03, 2012
The Urban & Suburban Passenger Rail industry has grown over the past five years, despite a dip in revenue during the downturn. In 2012-13, the industry is forecast to generate £2.59 billion, up an annualised 2.1% since 2007-08. According to IBISWorld industry analyst Caroline Finch, “industry growth has been supported by increased patronage due to a growing population, higher employment levels, rising fuel prices, congestion charges and increased awareness of environmental issues”. Higher demand for services over the past five years has resulted in increased investment in trains. Investment has also been boosted in the lead-up to the London Olympics in 2012-13. However, the recession and high government debt means that investment is likely to slow over the next five years. The Olympics are projected to provide a one off boost to industry revenue, with growth of 4.6% forecast for 2012-13 despite the economic uncertainty.
The recession has caused unemployment to rise and the demand for commuter services to decline. About 63% of all train journeys in the United Kingdom are for commuter services (i.e. trips to and from work, school and university). The decline in commuter passengers resulted in a revenue contraction during 2009-10. In response to declining demand for services, many operators have cut back on staffing levels. Finch adds, “over the five years through 2017-18, the industry is expected to sustain growth as employment increases, resulting in higher demand for commuter services”.
The Urban & Suburban Passenger Rail industry is highly concentrated, with the top two companies accounting for 97.2% of revenue in 2012-13. The concentration of the industry is a sign of the industry's capital requirements and barriers to entry. Major companies include Transport for London and Serco-Abellio.
For more information on the Urban & Suburban Passenger Rail industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
This industry provides urban, suburban or metropolitan area passenger railway transportation by underground, metro and similar systems.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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