$3.3bn
$XXX.Xm
7,257
101
$XXX.Xm
A variety of factors have influenced the Railway Equipment Manufacturing and Repair industry’s performance over the past few years. Inexpensive imports from international manufacturers threatened the industry, particularly for prefabricated rolling stock bodies and simple components. To mitigate this, railway equipment manufacturers have increasingly focused on repair and maintenance services and high-tech component manufacturing. More specialisation has allowed small manufacturers to remain in business as large manufacturers increasingly focused on assembly and moved simple production to countries with lower labour costs.
Imports’ share of revenue has rebounded to pre-pandemic benchmarks following a colossal drop due to pandemic-related supply chain disruptions. Free trade agreements and technological advancements in major importing countries, in particular China, South Korea and the United States, have aided this trend, discouraging industry revenue growth. Overall, industry revenue is expected to have fallen at an annualised 7.1% over the five years through 2024-25, to $3.3 billion. This trend includes an estimated 6.9% drop in 2024-25 due to intense import competition and as manufacturers pass on continued declines in steel prices to customers.
Industry revenue is forecast to grow marginally over the next five years, rising at an annualised 1.2% through the end of 2029-30, to total $3.5 billion. This improvement is in part due to heightened public sector demand. Despite the Federal Government axing six railway projects in 2023, a large proportion of its 10-year $120.0 billion infrastructure funding is set aside for the industry, and the majority of large government contracts have been awarded to local manufacturers to support Australia’s domestic economy. At the same time, industry participation is forecast to shrink as small and medium-size manufacturers lose out in winning tender government contracts due to the larger companies’ dominance through scaling and strong-standing reputations. Over the coming years, manufacturers that successfully maintain and expand their manufacturing through upgrading their facilities, outsourcing, winning tenders and undertaking R&D can capitalise on opportunities and maintain strong profitability.
Industry revenue has declined at a CAGR of 7.1 % over the past five years, to reach an estimated $3.3bn in 2024.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2025 | Revenue ($m)
2025 |
---|---|---|
HOCHTIEF Australia | 1,349.3 | |
Downer | 877.5 | |
Alstom Transport Australia Holdings | 422.8 |
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Industry revenue is measured across several distinct product and services lines, including Repair and maintenance services, Passenger trains and carriages and Freight trains and wagons. Repair and maintenance services is the largest segment of the Railway Equipment Manufacturing and Repair in Australia.
Greater investment in new railcars and trams has shrunk repair and maintenance services demand
Industry companies manufacture or provide repair services to railway locomotives and rolling stock. This includes rail carriages, freight trains, wagons, trams and cable cars.
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ANZSIC 2393 - Railway Equipment Manufacturing and Repair in Australia
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Operational disruptions from the COVID-19 pandemic have dulled demand. Fortunately, significant public sector investment in the past few years has somewhat offset these ill e...
Learn about an industry's products and services, markets and trends in international trade.
Many manufacturers are focusing on producing high-tech, complex and specialised railway equipment and components. This is helping them to remain relevant in the domestic mark...
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
The distribution of industry enterprises largely correlates with Australia’s population and economic activity. Most enterprises are located in the two most populous states – ...
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.
A handful of railway equipment manufacturers dominate the industry. Only a few manufacturers have the scale and scope to obtain large contracts from government bodies.
Learn about the performance of the top companies in the industry.
Alstom Transport Australia Holdings acquired former major player Bombardier Transportation Australia in 2022. This acquisition propelled Alstom Transport Holdings’ revenue be...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Railway equipment manufacturers face moderate regulatory pressure. The Office of the National Rail Safety Regulator and the Rail Industry Safety and Standards Board ensure th...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Wage costs have eaten into profit margins. Building up a more skilled workforce has meant that total wages have fallen at a much slower rate than revenue, increasing wages’ s...
Including values and annual change:
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Key data sources in Australia include:
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The market size of the Railway Equipment Manufacturing and Repair industry in Australia is $3.3bn in 2024.
There are 101 businesses in the Railway Equipment Manufacturing and Repair industry in Australia, which has declined at a CAGR of 3.9 % between 2019 and 2024.
The market size of the Railway Equipment Manufacturing and Repair industry in Australia has been declining at a CAGR of 7.1 % between 2019 and 2024.
Over the next five years, the Railway Equipment Manufacturing and Repair industry in Australia is expected to grow.
The biggest companies operating in the Railway Equipment Manufacturing and Repair market in Australia are HOCHTIEF Australia, Downer and Alstom Transport Australia Holdings
Repair and maintenance services and Passenger trains and carriages are part of the Railway Equipment Manufacturing and Repair industry.
The company holding the most market share in Australia is HOCHTIEF Australia.
The level of competition is high and increasing in the Railway Equipment Manufacturing and Repair industry in Australia.