Industry Statistics and Trends
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 0.2 % over the past five years, to reach an estimated £14.7bn in 2023.
Trends and Insights
Revenue sways in line with passenger numbers
- Passenger numbers were growing before COVID-19 hit.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Rail investment will stay steady despite falling government spending
- Network Rail plans for £13 billion to be invested in rail infrastructure by TOCs in the five years through 2023-24. A further £53 billion will be invested by the Department for Transport and Transport Scotland,
Biggest companies in the Intercity Passenger Rail Transport in the UK
| Company | Market Share (%)
2024 | Revenue (£m)
2024 |
|---|---|---|
FirstGroup plc | 3,724.9 | |
DfT OLR Holdings Ltd | 3,481.4 | |
Govia Ltd | 2,428.4 |
To view the market share and analysis for all 5 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Off-peak fares, Anytime fares and Advance fares. Off-peak fares is the largest segment of the Intercity Passenger Rail Transport in the UK.
Trends and Insights
Management fees become the dominant revenue stream for train operating companies
- The shift from franchises to National Rail Contracts (NRCs) means that ticketing revenue is passed directly to the government, which pays TOCs a management fee for their services.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
The Intercity Passenger Rail Transport industry operates railways for passenger travel between urban areas. The industry also provides some support and auxiliary services to passenger railways and transports small amounts of freight and post. The industry excludes the operation of railways primarily used to transport freight and the operation of light rail networks.
What's included in this industry?
Off-peak faresManagement feesAnytime faresSeason ticketsAdvance faresAdvertising spaceFood and drink salesMaintenance serviceCompanies
FirstGroup plcDfT OLR Holdings LtdGovia LtdPurchase this report to view all 5 major companies in this industry.
Related Terms
ROLLING STOCKRAIL FRANCHISENETWORK RAILNATIONAL RAIL CONTRACTS GATELINEOPEN ACCESS SERVICEIndustry Code
SIC 49.10 - Intercity Passenger Rail Transport in the UK
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The government propped up TOCs during COVID-19. This ultimately changed the way the industry operates. TOCs are now paid management fees by the government, which retains all ...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Management fees are TOCs’ largest revenue stream. This is because of the change to the way contracts are awarded after COVID-19 - the shift away from franchises to National R...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
London draws TOCs in. Its status as the UK’s business and leisure capital drives demand. The city’s high population also keeps rail travel high and means its rail infrastruct...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
How contracts are awarded limits competition. Only the larger TOCs can compete for the big franchises because of the need to meet certain operating criteria.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Companies have lost services through poor performance. For example, Govia lost Southeastern and Arriva lost the Northern franchise. These were passed onto DfT OLR, which has ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of FirstGroup plc's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of DfT OLR Holdings Ltd's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Govia Ltd's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for FirstGroup plc, and factors influencing its performance in the industry
- Description and key data for DfT OLR Holdings Ltd, and factors influencing its performance in the industry
- Description and key data for Govia Ltd, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Fuel prices hikes boost demand for travel. This is because they make travelling by car more expensive, so train travel becomes more cost effective. This is especially importa...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Workers want wages increased. As it stands, wages absorb 27% of industry revenue. However, there’s been widespread strike action across the rail network in 2022-23, driven mo...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2017-2021)
- Coverage Ratios (2017-2021)
- Leverage Ratios (2017-2021)
- Operating Ratios (2017-2021)
- Assets (2017-2021)
- Liabilities (2017-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Intercity Passenger Rail Transport in the UK industry in United Kingdom in 2024?
The market size of the Intercity Passenger Rail Transport in the UK industry in United Kingdom is £14.7bn in 2024.
How many businesses are there in the Intercity Passenger Rail Transport in the UK industry in 2023?
There are 63 businesses in the Intercity Passenger Rail Transport in the UK industry in United Kingdom, which has declined at a CAGR of 0.0 % between 2018 and 2023.
Has the Intercity Passenger Rail Transport in the UK industry in United Kingdom grown or declined over the past 5 years?
The market size of the Intercity Passenger Rail Transport in the UK industry in United Kingdom has been growing at a CAGR of 0.2 % between 2018 and 2023.
What is the forecast growth of the Intercity Passenger Rail Transport in the UK industry in United Kingdom over the next 5 years?
Over the next five years, the Intercity Passenger Rail Transport in the UK industry in United Kingdom is expected to grow.
What are the biggest companies in the Intercity Passenger Rail Transport in the UK market in United Kingdom?
The biggest companies operating in the Intercity Passenger Rail Transport market in United Kingdom are FirstGroup plc, DfT OLR Holdings Ltd and Govia Ltd
What does the Intercity Passenger Rail Transport in the UK in United Kingdom include?
Off-peak fares and Management fees are part of the Intercity Passenger Rail Transport in the UK industry.
Which companies have the highest market share in the Intercity Passenger Rail Transport in the UK in United Kingdom?
The company holding the most market share in United Kingdom is FirstGroup plc.
How competitive is the Intercity Passenger Rail Transport in the UK industry in United Kingdom?
The level of competition is low and increasing in the Intercity Passenger Rail Transport in the UK industry in United Kingdom.
Related Industries
Widen your competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Railway Equipment Manufacturing in the UK
- Freight Rail Transport in the UK
- Urban Passenger Rail Operations in the UK
- Freight Forwarding & Customs Agents in the UK
International industries
- Rail Transportation in Canada
- Rail Passenger Transport in Australia
- Rail Transport in New Zealand
- Personenbeförderung im Eisenbahnfernverkehr
- Rail Transport in Ireland
View all industries in United Kingdom
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the UK include:
- Office for National Statistics
- Office for Budget Responsibility
- Bank of England
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
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