The industry relies heavily on long-term rolling stock replacement contracts. These contracts have long lead times and involve periodic payments throughout the manufacturing process followed by a balloon payment when the project reaches completion. This creates revenue and profit volatility and means that industry trends often go against underlying passenger demand or economic circumstances. Over the five years through 2015-16, industry revenue is expected to grow at a compound annual rate of 4.8% to reach £1.8 billion. Bombardier is the only major train manufacturer that remains in the United Kingdom and the company accounts for the majority of industry revenue.
Companies in this industry manufacture rail locomotives, carriages, train parts (such as wheels) and signalling equipment. Repair and maintenance of trains, train parts and tracks are not included in the industry.
The report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecast, growth rates and an analysis of the industry key players and their market shares.