Rail transit systems are expanding to alleviate urban traffic congestion.
San Francisco, CA (PRWEB) September 21, 2013
With rapid urbanization under way in China, rail transit systems have been expanding to alleviate increased traffic congestion in cities. Over the past five years, the Subway, Light Rail and Cable Car Transport industry has been growing at an annualized rate of 19.7% over the past five years to about $5.6 billion in 2013, says IBISWorld.
The industry in China is still in the early stages of its development. Currently, rail transit systems have only a 10.0% share of China's urban transportation passenger volumes and are limited to a few large cities in China, mainly the four metropolitan cities of Shanghai, Beijing, Guangzhou and Shenzhen. However, many rail transit systems are under construction or in the planning stages. In China, there are more than 100 cities with a population larger than one million, which is generally acknowledged as the threshold for the establishment of a rail transit system.
The largest firms in the Subway, Light Rail and Cable Car Transport industry are Shanghai Shentong Metro Group, Beijing Subway Operation, Guangzhou Metro Corporation, and Shenzhen Metro. They account for over 65.0% of total industry revenue, showing medium concentration in the industry. Due to the state-owned and public-interest nature of the industry, rail transit systems are generally monopolized by one or two operational firms formed by the government in each city. These firms are dependent on government subsidies and revenue from related tertiary industry businesses for operations as profit margins are near zero, says IBISWorld. With more diversified financing and ownership, more operational firms will enter the industry, weakening the dominance of existing operators.
For more information, visit IBISWorld’s Subway, Light Rail and Cable Car Transport in China industry report page.
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IBISWorld Industry Report Key Topics
Firms within the Subway, Light Rail and Cable Car Transport industry in China provide local and suburban public transportation services with right of way. These services are separated from other street traffic and provide a regular timetable for passengers. The four most common means of transportation provided are subways, light rail, tram cars and cable cars.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.