Rail Maintenance Services in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: August 2024
NAICS 48821Revenue
$7.2bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
44,882
Businesses
650
Wages
$X.Xbn
Rail Maintenance Services in the US industry analysis
The rail transportation industry has experienced a dynamic phase marked by significant capital investments and the gradual adoption of digital technologies like cloud-integrated systems and sensors. Although the influx of federal and private funding has bolstered the rail networks, it has simultaneously dampened the need for maintenance services in the short term. Railroads have been directing much of their funds toward acquiring new equipment and undertaking large-scale construction projects, which has temporarily eclipsed the need for extensive maintenance. Revenue is expected to decline at a CAGR of 1.6% to $7.2 billion through the end of 2024, including growth of 2.4% in 2024 alone.
Trends and Insights
- Railroads increasingly adopt big data solutions like cloud-integrated systems and sensors for condition-based maintenance. This technological shift reduces unnecessary maintenance scheduling and pressures maintenance providers' revenues.
- The consistent need for maintenance strengthens demand. All freight train cars and rail tracks must undergo scheduled maintenance to ensure safety and compliance with regulations.
- The Southeast region is a crucial transportation hub, boosting demand for rail maintenance services. Its strategic location, growing industrial sector and mild climate enable year-round rail maintenance that is supported by a large pool of experienced labor.
- The prominence of in-house maintenance services contributes to fragmentation. Rail operators and leasing companies providing their own support services lead to a rail system with multiple Class I railroads and limited major hubs.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 1.6 % over the past five years, to reach an estimated $7.2bn in 2024.
Trends and Insights
Climbing freight transportation is supporting the need for maintenance
- Rail transportation accounts for 40.0% of long-distance freight. Rising freight transportation and increasing total trade value are prompting continued investment in rail networks throughout the US. The Biden administration attributed $1.4 billion to 70 projects aimed at improving safety, supply chains and passenger rail services in underdeveloped areas.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Rebounding consumer spending is expected to support rail maintenance
- An expected increase in total trade value and freight transportation is set to support rail maintenance services. Class I railroads, which are heavy-duty, long-distance railroads primarily used by freight operators, are expected to be the primary beneficiaries.
Biggest companies in the Rail Maintenance Services in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Gatx Corporation | 155.9 | 19.8 | 12.7 |
To view the market share and analysis for all 1 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 Maintenance and repair work, Packing services for goods and Rail transportation support and other products. Maintenance and repair work is the largest segment of the Rail Maintenance Services in the US.
Trends and Insights
The integration of condition-based maintenance pressures maintenance and repair work
- Train car maintenance includes both scheduled and nonscheduled maintenance and can be divided into general repairs, interior cleaning, wheelset replacements, exterior blasting and painting and car stenciling.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Janitorial Services in the US
Complementors
- Train, Subway & Transit Car Manufacturing in the US
- Rail Transportation in the US
- Port & Harbor Operations in the US
- Stevedoring & Marine Cargo Handling in the US
- Heavy Equipment Rental in the US
International industries
- Rail Transportation in Canada
- Railway Equipment Manufacturing and Repair in Australia
- Rail Transport in New Zealand
- Road, Rail & Pipeline Transport in the UK
- Transport via railways
Table of Contents
About this industry
Industry definition
Rail Maintenance Services provide specialized services for railroad transportation including servicing, administering routine repairs (exclusive of factory conversion, overhaul or rebuilding of rolling stock), performing maintenance on railcars, loading and unloading of railcars and operating independent rail terminals.
What's included in this industry?
Providing freight car cleaning services Providing grain leveling and trimming in railroad cars Providing loading and unloading services at rail terminals Repairing locomotives and railcars (except factory conversion, overhaul and rebuilding) Providing railroad switching services Providing independent operation of railroad terminals Providing shunting trailers in rail terminalsCompanies
Gatx CorporationPurchase this report to view all 1 major companies in this industry.
Related Terms
CLASS I RAILROADRAILCARCOMMUTER RAILROLLING STOCKHOPPER CARIndustry Code
NAICS 48821 - Rail Maintenance Services in the US
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
Railroads increasingly adopt big data solutions like cloud-integrated systems and sensors for condition-based maintenance. This technological shift reduces unnecessary mainte...
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 (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- 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
The consistent need for maintenance strengthens demand. All freight train cars and rail tracks must undergo scheduled maintenance to ensure safety and compliance with regulat...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
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
The Southeast region is a crucial transportation hub, boosting demand for rail maintenance services. Its strategic location, growing industrial sector and mild climate enable...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
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
The prominence of in-house maintenance services contributes to fragmentation. Rail operators and leasing companies providing their own support services lead to a rail system ...
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 2019-2024
- 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
No company owns more than a 2.2% share of the industry. Maintenance service providers operate across different local markets and service regional rail infrastructure, boostin...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Gatx Corporation's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Gatx Corporation, 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 Bipartisan Infrastructure Law designated significant funding for US rail infrastructure. With $102 billion allocated, it represents one of the largest investments in the ...
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 (2014-2029)
- Assistance historical data and forecast (2014-2029)
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
Software integration in conditional maintenance enables purchase cost savings. Technological advances and cloud computing have enhanced efficiency, leading to declining purch...
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 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
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 (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
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 US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
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 Rail Maintenance Services in the US industry in United States in 2024?
The market size of the Rail Maintenance Services in the US industry in United States is $7.2bn in 2024.
How many businesses are there in the Rail Maintenance Services in the US industry in 2024?
There are 650 businesses in the Rail Maintenance Services in the US industry in United States, which has grown at a CAGR of 2.6 % between 2019 and 2024.
Has the Rail Maintenance Services in the US industry in United States grown or declined over the past 5 years?
The market size of the Rail Maintenance Services in the US industry in United States has been declining at a CAGR of 1.6 % between 2019 and 2024.
What is the forecast growth of the Rail Maintenance Services in the US industry in United States over the next 5 years?
Over the next five years, the Rail Maintenance Services in the US industry in United States is expected to grow.
What are the biggest companies in the Rail Maintenance Services in the US market in United States?
The biggest company operating in the Rail Maintenance Services market in United States is Gatx Corporation
What does the Rail Maintenance Services in the US in United States include?
Providing freight car cleaning services and Providing grain leveling and trimming in railroad cars are part of the Rail Maintenance Services in the US industry.
Which companies have the highest market share in the Rail Maintenance Services in the US in United States?
The company holding the most market share in United States is Gatx Corporation.
How competitive is the Rail Maintenance Services in the US industry in United States?
The level of competition is moderate and steady in the Rail Maintenance Services in the US industry in United States.
