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Passenger Rail Transport Industry

The intercity passenger rail transport industry in the UK saw revenue grow by 0.7% annually over five years, reaching £13.8 billion in 2022-23, with a notable 4.7% increase in that year.

£14B

Intercity Passenger Rail Transport Market Size

£4B

Urban Passenger Rail Operations Market Size

5.9%

Fares increased by 5.9% in March 2023

In the intercity passenger rail transport industry, revenue increased by 0.7% annually over five years, reaching £13.8 billion in 2022-23, with a 4.7% boost in that year. Passenger numbers drove revenue fluctuations, initially growing due to the introduction of the 26-30 Railcard in 2019 but plummeting during COVID-19 restrictions and rebounding as restrictions lifted.

Industry Challenges

Inconsistent pricing and value
Need for improvement in accessibility, Customer
Experience, Safety and Reliability
Financial impact of privatisation
Environmental and sustainability challenges

(Coyle, 2023)

Conversely, urban passenger rail operations saw revenue decline at a 1.7% annual rate, with an expected 33.9% increase in 2022-23, though the average profit margin is projected to be -41.4%. COVID-19 severely impacted this sector, causing a dip in 2019-20 and a drastic drop in passenger numbers of over 90% in the three months through June 2020. Overall, passenger numbers on Transport for London’s services fell by 75.9% in 2020-23.

Industry Opportunities

Investing in engineering talent
Improvement of the passenger experience by improving existing stations and building new ones
Rolling out digital signalling
Supporting rail electrification and transport decarbonisation

(Railway Technology, 2023; Issue, 2023)