Industry Statistics and Trends
Market size and recent performance (2015-2030)
Industry revenue has grown at a CAGR of 1.8 % over the past five years, to reach an estimated $623.5m in 2025.
Trends and Insights
Freight volumes have declined in recent years as competition intensifies and modal shifts continue
- Revenue generated from transporting domestic freight, imports and exports, historically the backbone of the industry, has fallen since 2022-23, pushing down industrywide revenue and negatively impacting profit margins. Before this, inflation of key export commodities led to many producers ramping up production for export, pushing up revenue for KiwiRail services in 2021-22. Freight volumes also fell in 2022–23 and 2023–24; however, revenue increased in 2022–23 because of a sharp rise in rail freight service prices.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2025-2030)
Market size is projected to grow over the next five years.
Trends and Insights
Rail freight is set for growth as international trade and environmental focus lift demand
- The outlook for rail freight volumes are positive, underpinned by stronger international trade and rising environmental expectations.
Biggest companies in the Rail Transport in New Zealand
| Company | Market Share (%)
2026 | Revenue ($m)
2026 |
|---|---|---|
KiwiRail | 504.7 | |
Greater Wellington Regional Council | 82.7 | |
Auckland Council | 36.1 |
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 Domestic freight transport, Import and export freight transport and Rail passenger transport. Domestic freight transport is the largest segment of the Rail Transport in New Zealand.
Trends and Insights
Domestic freight transport is vital to the industry
- The domestic freight transport product segment is the largest in the the Rail Transport industry, accounting for the majority of industrywide revenue in 2025-26. Domestic freight is the transport of goods, including commodities and forestry products, through New Zealand rather than directly for import or export.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
Industry operators provide freight and passenger rail transport. This excludes railway terminal operation, tramway transport and private railroads used internally by companies.
What's included in this industry?
Products and services covered in the Rail Transport industry in New Zealand include Domestic freight transport, Import and export freight transport and Rail passenger transport.Companies
Companies covered in the Rail Transport industry in New Zealand include KiwiRail, Greater Wellington Regional Council and Auckland Council.Purchase this report to view all 3 major companies in this industry.
Related Terms
Related terms covered in the Rail Transport industry in New Zealand include rolling stock, multimodal transport and commuter rail.Industry Code
ANZSIC 47 - Rail Transport in New Zealand
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
Freight volumes and revenue have declined since 2022-23. Rail freight activity has weakened due to contract losses, competition from flexible road freight operators and softe...
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 (2015-2024) and forecast (2025-2030)
- Employees, including historical (2015-2024) and forecast (2025-2030)
- Businesses, including historical (2015-2024) and forecast (2025-2030)
- Profit, including historical (2015-2025)
- 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
Domestic freight transport remains the largest product segment, but its share has declined following contract losses and infrastructure disruptions. Key setbacks, like lost l...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2025
- Product innovation level
Charts
- Products & services segmentation in 2025
- Major market segmentation in 2025
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
New Zealand's commuter rail network is only in two regions. Auckland and Wellington are the only two regions in New Zealand to have their own rail networks.
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 2025
Tables
- Number and share of establishments in each region in 2025
- Number and share of revenue each region accounts for in 2025
- Number and share of wages each region accounts for in 2025
- Number and share of employees in each region in 2025
Detailed analysis
- Geographic spread of the industry across Asia Pacific, 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
Rail transport providers tend to operate in geographically isolated markets. Since providers usually hold a regional monopoly, internal industry competition is limited.
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 2020-2025
- 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
The industry is dominated by government-owned entities. KiwiRail dominates commercial rail freight, and only Auckland and Wellington have regional commuter rail operations. O...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2021 through 2025
- Major companies in the industry, including market share, revenue, profit and profit margin in 2025
- Overview of KiwiRail's performance by revenue, market share and profit margin from 2019 through 2025
- Overview of Greater Wellington Regional Council's performance by revenue, market share and profit margin from 2019 through 2025
- Overview of Auckland Council's performance by revenue, market share and profit margin from 2019 through 2025
Detailed analysis
- Description and key data for KiwiRail, and factors influencing its performance in the industry
- Description and key data for Greater Wellington Regional Council, and factors influencing its performance in the industry
- Description and key data for Auckland Council, 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 industry is wholly owned and regulated by the New Zealand Government. The NZ Transport Agency, a government entity, regulates New Zealand's railways, stipulating minimum ...
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 (2015-2030)
- Assistance historical data and forecast (2015-2030)
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
The Rail Transport industry is dominated by KiwiRail, which has over 80% of the industry's market share. Consequently, the industry's cost structure largely reflects the cost...
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 2025
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2015-2030)
- Revenue per Employee (2015-2030)
- Revenue per Enterprise (2015-2030)
- Employees per Establishment (2015-2030)
- Employees per Enterprise (2015-2030)
- Average Wage (2015-2030)
- Wages/Revenue (2015-2030)
- Establishments per Enterprise (2015-2030)
- IVA/Revenue (2015-2030)
- Imports/Demand (2015-2030)
- Exports/Revenue (2015-2030)
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 (2015-2030)
- IVA (2015-2030)
- Establishments (2015-2030)
- Enterprises (2015-2030)
- Employment (2015-2030)
- Exports (2015-2030)
- Imports (2015-2030)
- Wages (2015-2030)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Rail Transport industry in New Zealand in 2025?
The market size of the Rail Transport industry in New Zealand is $623.5m in 2025.
How many businesses are there in the Rail Transport industry in New Zealand in 2025?
There are 3 businesses in the Rail Transport industry in New Zealand, which has declined at a CAGR of 0.0 % between 2020 and 2025.
How may import tariffs affect the Rail Transport industry in New Zealand?
The Rail Transport industry in New Zealand is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Rail Transport industry in New Zealand?
The Rail Transport industry in New Zealand is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Rail Transport industry in New Zealand grown or declined over the past 5 years?
The market size of the Rail Transport industry in New Zealand has been growing at a CAGR of 1.8 % between 2020 and 2025.
What is the forecast growth of the Rail Transport industry in New Zealand over the next 5 years?
Over the next five years, the Rail Transport industry in New Zealand is expected to grow.
What are the biggest companies in the Rail Transport industry in New Zealand?
The biggest companies operating in the Rail Transport industry in New Zealand are KiwiRail, Greater Wellington Regional Council and Auckland Council
What does the Rail Transport industry in New Zealand include?
Domestic freight transport and Import and export freight transport are part of the Rail Transport industry in New Zealand.
Which companies have the highest market share in the Rail Transport industry in New Zealand?
The company holding the most market share in the Rail Transport industry in New Zealand is KiwiRail.
How competitive is the Rail Transport industry in New Zealand?
The level of competition is low and increasing in the Rail Transport industry in New Zealand.
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 New Zealand include:
- Statistics New Zealand
- New Zealand Company Register
- Ministry of Business, Innovation & Employment
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.
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