Train, Subway & Transit Car Manufacturing in Canada - Market Research Report (2013-2028)
New York, United States
Last Updated: October 2023
NAICS 33651CARevenue
$2.7bn
Past 5-Year Growth
Profit
$XX.Xm
Employees
8,624
Businesses
50
Wages
$XXX.Xm
Train, Subway & Transit Car Manufacturing in Canada industry analysis
Over the past five years, train, subway and transit car manufacturers have faced a harsh economic climate that hasn't been easy for the industry. In the early period, new federal funding for infrastructure projects combined with tightening safety regulations to promote the sale of new, expensive railcars. Imports rose in response to the spike in demand as globalized manufacturers looked to leverage cheaper labour in developing nations to offer lower prices, but domestic manufacturers were still able to earn a hefty jump in revenue. Despite early wins, revenue tanked as the COVID-19 pandemic brought a myriad of challenges that have just begun to wane. Industry-wide revenue has been dropping at a CAGR of 5.4% over the past five years and is expected to total $2.7 billion in 2023, when revenue will climb by an estimated 2.9%. The COVID-19 pandemic disrupted demand from all of the industry's markets. Government infrastructure projects that would need trains, subways or transit cars were paused, and passenger rail travel nearly entirely evaporated. Temporary shutdowns and reduced operating capacities amid social distancing guidelines were common throughout many industries, leading to diminished outputs and a reduced need for railways to ship heavy freight. Industrial activity and investment in infrastructure didn't rebound the way most manufacturers hoped, and lingering challenges have kept most railcar manufacturers unable to bring in enough revenue to break even. While the industry experienced one year of positive profit, train, subway and transit car manufacturers have been in the red ever since.The next five years, however, have the potential to be much more conducive to the industry's success. Investment in infrastructure programs is set to continue on an upward trajectory, propelled by growing desire for eco-friendly public transport. Larger railcar manufacturers will answer these climate change concerns with the hydrogen-powered train, the first Canadian test of which was started mid-2023. Emerging markets in developing nations will become more important as the industry looks to avoid the pressure of competing imports. Freight transportation will become a major focus point as passenger rail travel remains sluggish, but slumping industrial production will mute revenue growth and stifle profit expansion. Industry revenue is forecast to climb at a CAGR of 1.4% over the five years through 2028 to total $2.9 billion.
Trends and Insights
- The COVID-19 pandemic hit the industry hard. Reduced freight transportation, passenger rail travel and construction on new infrastructure projects made it difficult and unhelpful for buyer from all major markets to purchase new railcars. A sluggish rebound in the wake of the pandemic hasn’t brought much relief, and most train, subway and transit car manufacturers haven’t been able to break even.
- Freight transportation is crucial to many industries. Train, subway and transit car manufacturers overwhelmingly rely on demand from freight transportation services that provide the cheapest option for shipping heavy loads across Canada.
- Industrial activity attracts manufacturers. Train, subway and transit car manufacturers need to locate near upstream producers of steel as well as downstream demand for heavy freight transportation, so the concentration of industrial production in Quebec and Ontario make them premier locations for the industry’s manufacturers.
- Competition varies by product segment. Manufacturers of passenger railcars compete on luxury and price, while fuel tank railcar manufacturers compete on the quality of their safety measures.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 5.4 % over the past five years, to reach an estimated $2.7bn in 2023.
Trends and Insights
The pandemic hit railcar manufacturers hard
- As the COVID-19 pandemic spread, investment in infrastructure projects was put on hold and demand for new trains, subways and transit cars tanked. While infrastructure projects began to resume in 2022, they have yet to make up for pandemic-era losses.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Returning investment in infrastructure will bring revenue growth
- Federal and provincial government funding for infrastructure projects in urban areas is set to steadily rise through the end of 2028 as the effects of the COVID-19 pandemic dissipate.
Biggest companies in the Train, Subway & Transit Car Manufacturing in Canada
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Alstom SA | 940.2 | N/A | N/A | |
National Steel Car Limited | 629.3 | 4.3 | 0.7 | |
Wabtec Corporation | 86.1 | N/A | N/A |
To view the market share and analysis for all 4 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 New locomotives and parts, New passenger trains and cars and Rebuilt trains and repairs. New locomotives and parts is the largest segment of the Train, Subway & Transit Car Manufacturing in Canada.
Trends and Insights
New freight trains and cars are in demand amid tightening regulations
- Over half the revenue earned by train, subway and transit car manufacturers in Canada comes from the sale of freight cars, including boxcars, refrigerator cars, flat cars and hoppers, among others.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Heavy Equipment Rental in Canada
Complementors
- Mining, Oil & Gas Machinery Manufacturing in Canada
- Automobile Engine & Parts Manufacturing in Canada
- Machinery Maintenance & Heavy Equipment Repair Services in Canada
International industries
- Train, Subway & Transit Car Manufacturing in the US
- Railcar Manufacturing in the US
- Railway Equipment Manufacturing and Repair in Australia
- Railway Equipment Manufacturing in the UK
- Railway Equipment Manufacturing in China
Table of Contents
About this industry
Industry definition
This industry primarily manufactures and rebuilds locomotives and railroad cars of any type or gauge, including frames and parts. This industry includes manufacturing rapid transit cars and special-purpose self-propelled railroad equipment, such as rail layers, ballast distributors, rail tamping equipment and other railway track maintenance equipment.
What's included in this industry?
Rebuilding of locomotivesManufacturing railroad cars and equipmentManufacturing of transit cars and equipmentManufacturing of railway track maintenance equipmentManufacturing railway and transit equipmentCompanies
Alstom SANational Steel Car LimitedWabtec CorporationPurchase this report to view all 4 major companies in this industry.
Related Terms
ROLLING STOCKBACKLOGPOSITIVE TRAIN CONTROL (PTC)NORMAL TRADE RELATIONS (NTR)Industry Code
NAICS 336510 - Train, Subway & Transit Car Manufacturing in Canada
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 COVID-19 pandemic hit the industry hard. Reduced freight transportation, passenger rail travel and construction on new infrastructure projects made it difficult and unhel...
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
Freight transportation is crucial to many industries. Train, subway and transit car manufacturers overwhelmingly rely on demand from freight transportation services that prov...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2023
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
- International trade, including imports by country and exports by country
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
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
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
Industrial activity attracts manufacturers. Train, subway and transit car manufacturers need to locate near upstream producers of steel as well as downstream demand for heavy...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each province
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each province in 2023
- Number and share of revenue each province accounts for in 2023
- Number and share of wages each province accounts for in 2023
- Number and share of employees in each province in 2023
Detailed analysis
- Geographic spread of the industry across North America, 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
Competition varies by product segment. Manufacturers of passenger railcars compete on luxury and price, while fuel tank railcar manufacturers compete on the quality of their ...
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
Alstom has bought a strong foothold in the industry. The France-based company recently bought out Montreal-based Bombardier, giving them a solid position in Canadian markets....
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 Alstom SA's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of National Steel Car Limited's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Wabtec Corporation's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Alstom SA, and factors influencing its performance in the industry
- Description and key data for National Steel Car Limited, and factors influencing its performance in the industry
- Description and key data for Wabtec Corporation, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Government aid supports infrastructure development. Interest-free loans to train, subway and transit car manufacturers help them weather volatility and supply cars to clients...
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
Manufacturers are struggling to turn a profit. Train, subway and transit car manufacturers have had to content with tightening regulations, volatile input costs, increasing w...
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 (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Assets (2016-2021)
- Liabilities (2016-2021)
- 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)
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 Canada include:
- Statistics Canada
- Industry Canada
- Canadian Business Patterns
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.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Train, Subway & Transit Car Manufacturing industry in Canada in 2024?
The market size of the Train, Subway & Transit Car Manufacturing industry in Canada is $2.7bn in 2024.
How many businesses are there in the Train, Subway & Transit Car Manufacturing in Canada industry in 2023?
There are 50 businesses in the Train, Subway & Transit Car Manufacturing industry in Canada, which has grown at a CAGR of 1.2 % between 2018 and 2023.
Has the Train, Subway & Transit Car Manufacturing industry in Canada grown or declined over the past 5 years?
The market size of the Train, Subway & Transit Car Manufacturing industry in Canada has been declining at a CAGR of 5.4 % between 2018 and 2023.
What is the forecast growth of the Train, Subway & Transit Car Manufacturing industry in Canada over the next 5 years?
Over the next five years, the Train, Subway & Transit Car Manufacturing industry in Canada is expected to grow.
What are the biggest companies in the Train, Subway & Transit Car Manufacturing market in Canada?
The biggest companies operating in the Train, Subway & Transit Car Manufacturing market in Canada are Alstom SA, National Steel Car Limited and Wabtec Corporation
What does the Train, Subway & Transit Car Manufacturing in Canada include?
Rebuilding of locomotives and Manufacturing railroad cars and equipment are part of the Train, Subway & Transit Car Manufacturing industry.
Which companies have the highest market share in the Train, Subway & Transit Car Manufacturing in Canada?
The company holding the most market share in Canada is Alstom SA.
How competitive is the Train, Subway & Transit Car Manufacturing industry in Canada?
The level of competition is moderate and increasing in the Train, Subway & Transit Car Manufacturing industry in Canada.
