Urban Passenger Rail Operations in the UK - Market Research Report (2013-2028)
London, United Kingdom
Last Updated: December 2023
SIC H49.311Revenue
£3.3bn
Past 5-Year Growth
Profit
£XXX.Xm
Employees
29,062
Businesses
16
Wages
£X.Xbn
Urban Passenger Rail Operations in the UK industry analysis
Over the five years through 2023-24, revenue is projected to contract at a compound annual rate of 5.9% to £3.3 billion. TfL dominates the urban rail industry, accounting for 90% of total passenger journeys, largely due to London’s substantial urban population, which requires an expansive transport system to meet its varied travel needs. The pandemic negatively impacted the industry, as heightened health concerns and enforced social distancing led to a steep decline in demand for urban rail travel. This drove the industry to reduce services, directly causing a downturn in revenue. As the industry emerged from the pandemic, the significance of fare revenue became evident as the sector’s performance largely hinges on ridership levels. Rail demand is also influenced by other macroeconomic factors like urban population size, employment rates and government capital expenditure levels.
Trends and Insights
- COVID-19 demolished urban passenger numbers. Lockdown restrictions from March 2020 meant that people were forced to stay at home to stop the spread of the virus, meaning rail traffic numbers plummeted.
- Demand for season tickets has fallen. The shift to remote working, accelerated by COVID-19, has slashed commuters’ demand for urban rail season tickets.
- London accounts for more than 90% of urban rail passengers. The region is home to a mix of underground and overground rail routes that give people easy access through the city and outside of London.
- The industry is highly concentrated. London’s transport networks bring in the bulk of revenue through Transport for London. The lack of potential for new entrants in London means TfL can maintain its position and dominate the industry.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 5.9 % over the past five years, to reach an estimated £3.3bn in 2023.
Trends and Insights
Post-pandemic economic recovery has ignited demand for urban passenger rail
- During the pandemic, the industry witnessed a drastic decline in passenger ridership, consequent to lockdown restrictions and the rise of remote working arrangements.
- 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
The growing awareness of environmental issues bolsters the industry’s growth prospects
- A push for initiatives that enhance air quality in urban areas has been noticeable, particularly in London, which now has the ULEZ in all its boroughs . Other major cities like Birmingham and Newcastle have also adopted Clean Air Zones.
Biggest companies in the Urban Passenger Rail Operations in the UK
| Company | Market Share (%)
2024 | Revenue (£m)
2024 |
|---|---|---|
TRANSPORT FOR LONDON | 3,147.0 | |
Tyne and Wear Passenger Transport Executive | 88.8 | |
Strathclyde Partnership for Transport | 22.2 |
To view the market share and analysis for all 3 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 Ordinary tickets, Season tickets and Other. Ordinary tickets is the largest segment of the Urban Passenger Rail Operations in the UK.
Trends and Insights
Contactless and oyster payments grow in popularity due to fare caps and expanding digitalisation
- Contactless payments are comprised of pay-as-you-go journeys paid for using a contactless card, phone or smartwatch device. The service was developed from TfL’s partnership with the broader banking industry.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Intercity Passenger Rail Transport in the UK
- Freight Rail Transport in the UK
- Bus & Tramway Operations in the UK
- Taxi Operation in the UK
Complementors
- Railway Equipment Manufacturing in the UK
- Railway & Underground Railway Construction in the UK
International industries
- Public Transportation in the US
- Public Transportation in Canada
- Rail Passenger Transport in Australia
- Rail Transport in New Zealand
Table of Contents
About this industry
Industry definition
This industry transports passengers by rail through urban, suburban or metropolitan areas via underground, metro and similar systems. This service involves scheduled land transport with fixed routes and timetables. This industry also covers town-to-airport and town-to-station transport by rail.
What's included in this industry?
Contactless paymentsOyster card payments Season rail ticketsOrdinary rail tickets Advertising spaceCompanies
TRANSPORT FOR LONDONTyne and Wear Passenger Transport ExecutiveStrathclyde Partnership for TransportPurchase this report to view all 3 major companies in this industry.
Related Terms
ROLLING STOCKLIGHT RAILCONGESTION CHARGEFINANCIAL SUSTAINABILITYIndustry Code
SIC 49.31/1 - Urban Passenger Rail Operations 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
COVID-19 demolished urban passenger numbers. Lockdown restrictions from March 2020 meant that people were forced to stay at home to stop the spread of the virus, meaning rail...
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
Demand for season tickets has fallen. The shift to remote working, accelerated by COVID-19, has slashed commuters’ demand for urban rail season tickets.
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 accounts for more than 90% of urban rail passengers. The region is home to a mix of underground and overground rail routes that give people easy access through the cit...
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
The industry is highly concentrated. London’s transport networks bring in the bulk of revenue through Transport for London. The lack of potential for new entrants in London m...
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
TfL’s Night Tube services have boosted demand for the Underground. TfL began running Night Tube services extending the times certain lines run until. People travelling late a...
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 TRANSPORT FOR LONDON's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Tyne and Wear Passenger Transport Executive's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Strathclyde Partnership for Transport's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for TRANSPORT FOR LONDON, and factors influencing its performance in the industry
- Description and key data for Tyne and Wear Passenger Transport Executive, and factors influencing its performance in the industry
- Description and key data for Strathclyde Partnership for Transport, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The UK’s urban population determines industry performance. When more people live in urban areas, the potential market for urban rail expands, raising the need for urban rail ...
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
Wages absorb the bulk of industry costs. Heavy unionization means that wages are typically negotiated on a collective basis. Employees have taken strike action to raise wages...
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)
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.
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 Urban Passenger Rail Operations in the UK industry in United Kingdom in 2024?
The market size of the Urban Passenger Rail Operations in the UK industry in United Kingdom is £3.3bn in 2024.
How many businesses are there in the Urban Passenger Rail Operations in the UK industry in 2023?
There are 16 businesses in the Urban Passenger Rail Operations in the UK industry in United Kingdom, which has grown at a CAGR of 1.3 % between 2018 and 2023.
Has the Urban Passenger Rail Operations in the UK industry in United Kingdom grown or declined over the past 5 years?
The market size of the Urban Passenger Rail Operations in the UK industry in United Kingdom has been declining at a CAGR of 5.9 % between 2018 and 2023.
What is the forecast growth of the Urban Passenger Rail Operations in the UK industry in United Kingdom over the next 5 years?
Over the next five years, the Urban Passenger Rail Operations in the UK industry in United Kingdom is expected to grow.
What are the biggest companies in the Urban Passenger Rail Operations in the UK market in United Kingdom?
The biggest companies operating in the Urban Passenger Rail Operations market in United Kingdom are TRANSPORT FOR LONDON, Tyne and Wear Passenger Transport Executive and Strathclyde Partnership for Transport
What does the Urban Passenger Rail Operations in the UK in United Kingdom include?
Contactless payments and Oyster card payments are part of the Urban Passenger Rail Operations in the UK industry.
Which companies have the highest market share in the Urban Passenger Rail Operations in the UK in United Kingdom?
The company holding the most market share in United Kingdom is TRANSPORT FOR LONDON.
How competitive is the Urban Passenger Rail Operations in the UK industry in United Kingdom?
The level of competition is moderate and increasing in the Urban Passenger Rail Operations in the UK industry in United Kingdom.
