Subway and light rail industry has great potential for growth in China: report

China has more than 100 cities with populations greater than 1 million: potential for subway and light rail transit growth is enormous, according to IBIS World report.

IBISWorld Forecasts Industry Revenue to Top US$8 Billion by 2016

With more than 100 cities with populations greater than 1 million, China’s subway, light rail and cable car transport industry has immense growth potential. Rail transit services are currently restricted to a small number of cities in China, and their current contribution to the overall public transportation system is limited. As China’s economy continues to grow rapidly, rail transit is expected to benefit further, with industry revenue topping US$8.2 billion by 2016, according to IBISWorld, America’s largest publisher of industry research.

The subway, light rail and cable car transport industry is newly developed in China, with most rail transit systems established in the past fifteen years. However, with rapid urbanization underway and growing population density in cities, rail transit systems have been expanding rapidly to alleviate increased traffic congestion in cities. Currently, rail transit systems have a limited share of less than 8 per cent of China's entire urban transportation system in terms of passenger volumes. However, this will increase as many rail transit systems are under construction or in the planning stages in cities throughout China.

Industry revenue is expected to amount to $3.64 billion in 2011, up 25.7 per cent from 2010. Passenger trips on the industry's rail transit systems are estimated to have grown at an average annual rate of 22.5 per cent over the past five years, and are expected to total 5.3 billion person trips in 2011.

IBISWorld forecasts that this industry will continue to grow rapidly in the next five years due to heavy investment in rail transit systems. Industry revenue is expected to grow to $8.29 billion in 2016.

For more information, including profit levels, market shares, product segmentation and more, download IBISWorld’s report on the Subway, Light Rail & Cable Car Transport Industry in China.

IBISWorld offers a comprehensive database of unique information and analysis on 200 Chinese industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.cn.