Tank Wagons Global Market Report 2021: COVID 19 Impact and Recovery to 2030

Summary

Major players in the tank wagons market are American Railcar Industries Inc., GATX, National Steel Car, The Greenbrier Companies, Trinity Industries Inc., Vertex Railcar, Union tank car company, American-Rails, Chongqing ChagnZheng Heavy Industry, and TrinityRail Products.

The global tank wagons market is expected to grow from $62.59 billion in 2020 to $68.74 billion in 2021 at a compound annual growth rate (CAGR) of 9.8%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $88.55 billion in 2025 at a CAGR of 6.5%.

The tank wagons market consists of sales of tank wagons rail freight transportation services and related goods by entities (organizations, sole traders, and partnerships) that provide the transportation of freight in a tank wagon.Tank Wagons are a type of railroad cars or rolling stock that are designed to transport liquid and gaseous commodities on the rail transport system.

Only goods and services traded between entities or sold to end consumers are included.

The launch of the internet of things (IoT) to fast-track the safety and compliance of the rail tanks have created immense demand in the tank wagons market.The Internet of Things (IoT) empowers rail administrators to use internet-connected communication devices installed across infrastructure and rolling stock to increase safety.

For instance, in August 2018, Tata Consultancy Services has planned out a series of IoT-based apps to improve the safety of the increasing volumes of crude oil being transported by rail in North America.These apps will maintain a record of activities and will provide real-time operating conditions such as speed restrictions.

In 2018, the Association of American Railroads (AAR) certified the TransRail Innovation Group’s (TRIG) XLOAD sensor to measure and track dangerous commodities being transported by tank cars. Moreover, there are many apps such as the safety lock app, terminal automation app, and anti-roll-away apps rolled out by TCS to digitalize the tank wagons.

The tank wagons market covered in this report is segmented by tank pressure type into pressurized railroad tank car; general purpose or non-pressurized tank car. It is also segmented by protection type into insulated; non-insulated and by application into crude oil; ethanol; liquefied gases; bio fuels; milk; chemicals; others.

In July 2019, Greenbrier, a US-based railroad transportation company, announced the acquisition of American Railcar Industries manufacturing business for $430 million.The acquisition is expected to enable Greenbrier to provide customers not only with direct sales or leasing options but also with after-market services and also to help customers seeking tank cars and covered hoppers.

American Railcar Industries is a US-based company that manufactures railroad rolling stock.

Increased demand for liquid and gases as a raw material in residential and petrochemicals sectors that use railways as one of the modes of transportation is contributing to the growth of the tank wagon market.This upswing in need is due to lockdown and ban on traveling which has happened worldwide.

For instance, according to the Facts Global Energy (FGE) data, India is expected to buy 15.8 million tons of LPG from abroad in 2020 year which is 9% more than in 2019. Furthermore, FGE has also estimated that the Asia region will buy 67-69.5 million tons of gas from abroad in 2020, which will be 1-3% more than that of 2019. Due increase in need of PPE kits and cooking at home is causing a rise in demand for liquid and gas which is fulfilled with help of tank wagons to carry tons of these materials, thus driving the tank wagon market.

The increased rate of accidents due to the high speed of railways is expected to limit the growth of the tank wagon market.These high accident rates can hamper the service provided by the rail tank wagons and also loss of economy and fuels.

For instance, in June 2020, in Andhra Pradesh, a state in India, tank wagons carrying oil got derailed due to high speed and caught fire which caused huge combustion of the oil.In February 2020, in Canada, a train with 19 wagons carrying dangerous goods got derailed due to high speed causing an explosive fire.

This led to the imposition of trains carrying hazardous goods. Thus, a rise in accidents is hampering the revenues generated for the tank wagons market.

Methodology

Our market research methodology is designed to provide the clients with comprehensive and accurate information on various industries and markets. It includes data collection, primary interviews, macro-economic factor analysis, country-level data analysis etc.

The data is gathered from a wide range of sources, including industry reports, government statistics, and company financials. This data is then analyzed and cross-referenced to ensure its accuracy and reliability. Next, primary interviews are conducted with industry experts and key stakeholders to gather their insights and perspectives on the market. This information is then combined with the data collected to provide a complete picture of the market. Macro-economic factor analysis is also carried out to understand the impact of external factors on the market. Finally, country-level data analysis is performed to understand the market dynamics in specific regions and countries.

Reportlinker's market research methodology is designed to provide clients with a clear understanding of the market, its trends, and its future potential.

Related Topics

• Rolling Stock
• Rail Transportation
• Services
• Transportation

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