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Freight Rail Transport in the UK - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Adriana De Azevedo Adriana De Azevedo London, United Kingdom Last Updated: May 2025 SIC UK-H4912

Revenue

£51.8bn

2025-26

£54.1bn

Past 5-Year Growth

Profit

£X.Xbn

Employees

722k

Businesses

4,757

Wages

£X.Xbn

Freight Rail Transport in the UK industry analysis

Over the five years through 2025, industry revenue is expected to inch up at a compound annual rate of 0.1% to €51.8 billion. European freight rail transportation has succumbed to intense competition over the past decade, with road freight accounting for a consistently greater proportion of inland freight volumes. Dependence on rail freight varies widely across Europe, with Russia being the most prominent user of rail freight transport. Western Europe uses their extensive railway network for passenger transport, whereas Central Europe and the Balkans rely more heavily on rail freight. Industry performance is significantly influenced by broader macroeconomic conditions and geopolitical relations. These factors dictate freight volume and trade dynamics, which, in turn, determine income opportunities for freight rail transport.

Trends and Insights

  • EU rail policy bolsters freight rail transport movement. With increasing environmental awareness, there is a strong push to transition to rail transport. The EU Green Deal aims to double rail freight transport by 2050, which is expected to significantly support industry growth.
  • Obstacles hinder international freight transport growth. Delivering freight across Europe requires a new train driver with no uniform EU track width – barriers that do not concern road freight transport.
  • Competition in individual regions is low. Once train operating companies win a contract, they have a natural monopoly on their area, limiting internal competition.
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Top Questions Answered in this Report

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What is the market size of the Freight Rail Transport industry in the United Kingdom in 2025?

The market size of the Freight Rail Transport industry in the United Kingdom is £51.8bn in 2025.

How many businesses are there in the Freight Rail Transport industry in the United Kingdom in 2025?

There are 4,757 businesses in the Freight Rail Transport industry in the United Kingdom, which has grown at a CAGR of 6.8 % between 2020 and 2025.

Has the Freight Rail Transport industry in the United Kingdom grown or declined over the past 5 years?

The market size of the Freight Rail Transport industry in the United Kingdom has been growing at a CAGR of 1.2 % between 2020 and 2025.

What is the forecast growth of the Freight Rail Transport industry in the United Kingdom over the next 5 years?

Over the next five years, the Freight Rail Transport industry in the United Kingdom is expected to grow.

What does the Freight Rail Transport industry in the United Kingdom include?

National transport and International transport are part of the Freight Rail Transport industry in the United Kingdom.

How competitive is the Freight Rail Transport industry in the United Kingdom?

The level of competition is moderate and increasing in the Freight Rail Transport industry in the United Kingdom.

Everything you need in one report

  • Reliable market estimates from 2015-2030
  • Competitive analysis, industry segmentation, financial benchmarks
  • Powerful SWOT, Porter’s Five Forces and risk management frameworks
  • Online membership platform with PDF, Word, Excel and PPT exports

Table of Contents

External Environment

Highlights

Trends
  • Regulation & Policy
  • Assistance

Key Takeaways

Harmonised regulations improve efficiency. EU railways (interoperability) regulations ensure standard Technical Specifications for Interoperability apply across Europe's railways and establish a formal European verification and authorisation process for placing new, upgraded or renewed infrastructure or rolling stock in service.

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External Drivers

Analysis

What demographic and macroeconomic factors impact the Freight Rail Transport in the UK industry?

Financial Benchmarks

Highlights

Trends
  • Profit Margin
  • Average Wage
  • Largest Cost

Key Takeaways

Decreasing employment lowers wage costs. Greater automation in the rail freight industry has kept the industry immune to European labour shortages.

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Cost Structure

Charts
  • Share of Economy vs. Investment Matrix
  • Industry Cost Structure Benchmarks:
    • Marketing
    • Depreciation
    • Profit
    • Purchases
    • Wages
    • Rent
    • Utilities
    • Other
Analysis

What trends impact cost in the Freight Rail Transport in the UK industry?


Key Ratios

Data tables
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)
  • Revenue per Employee (2015-2030)
  • Wages/Revenue (2015-2030)
  • Employees per Establishment (2015-2030)
  • Average Wage (2015-2030)

Country Benchmarks

European Leaders & Laggards

Data Tables

Top and bottom five countries listed for each:

  • Revenue Growth (2025)
  • Business Growth (2025)
  • Job Growth (2025)

European Country Performance

Data Tables

Rankings available for 37 countries. Statistics ranked include:

  • IVA/Revenue (2025)
  • Imports/Demand (2025)
  • Exports/Revenue (2025)
  • Revenue per Employee (2025)
  • Wages/Revenue (2025)
  • Employees per Establishment (2025)
  • Average Wage (2025)

Structural Comparison

Data Tables

Trends in 37 countries benchmarked against trends in Europe

  • Concentration
  • Competition
  • Barriers to Entry
  • Buyer Power
  • Supplier Power
  • Volatility
  • Capital Intensity
  • Innovation
  • Life Cycle

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Methodology

Where does IBISWorld source its data?

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