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The Barge Transportation Market size is estimated to grow at a CAGR of 5.56% between 2022 and 2027 and the size of the market is forecast to increase by USD 37.89 billion. The growth of the market depends on several factors, such as rising crude oil movement by barges, rising demand for barges from grain transportation, and the growing e-commerce industry.
This report extensively covers market segmentation by type (dry cargo barge and liquid cargo barge), application (agricultural products, coal and crude petroleum, food and beverage, and chemical and others), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Barge Transportation Market Customer Landscape
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Rising crude oil movement by barges is the key factor driving the global barge transportation market. Due to the convenience of barge transportation, crude oil transportation by barge is increasing. Barges can transport large volumes of crude oil at a lower cost than pipelines. Pipeline construction involves significant investments in technology and labor costs. In addition, transporting crude oil by pipeline poses twice the risk of a spill as by barge. Additionally, the presence of numerous tar grains of sand near river basins in North America necessitates barges. Oil sands crude production is expected to increase during the forecast period, boosting demand for barges.
Another major criterion driving barge transportation in crude oil transportation is transportation cost. The cost of transporting crude oil by barge is much lower than by rail or truck. The low cost and high capacity utilization of barges compared to other modes of transport indicate the demand for barges from crude oil producers and refiners. Therefore, increasing crude oil movement via the barge segment is expected to drive the growth of the market during the forecast period.
Growth opportunities in petrochemical industries will fuel the global barge transportation market. The market is expected to benefit from increased demand for petrochemical shipping in the US domestic market. The use of marine transportation by the US petrochemical industry is one of the major factors expected to drive demand for barges among petrochemical refiners. Many agricultural belts have access to inland waterway systems for transporting agricultural products such as pesticides through marine systems, including barges.
Petrochemicals are widely used in various end-use industries such as construction, automotive, and packaging. The growth of these industries is another factor driving the market. By assessing these market opportunities, many barge transportation service providers are starting to increase the number of tankers in their barge fleets. It is one of the key trends driving the growth of the market during the forecast period.
The high entry barrier in the barge transportation market can majorly impede the growth of the market. The global inland shipping market is inherently capital-intensive. Inland shipping operators require huge investments to purchase and maintain inland shipping fleets. The Jones Act, also known as the Merchant Shipping Act in the United States, has further impacted barge costs, keeping prices high for players within the United States compared to the cost of barges for foreign players. The purchase price of a US-made barge is about four times the price of a foreign-made barge. Fleet maintenance costs are also high due to regular activities including modernization, cleaning, and wages of the crews who maintain the ships.
In addition, a berthing fee is required even during the berth. All of these factors adversely affect inland waterway transport. Under the Jones Act, there are protectionist policies that prevent foreign competition from entering the U.S. shipping industry. Under the Jonas Act, barges must be built and owned by U.S. citizens. Therefore, high entry barriers to the inland water transportation market are one of the major challenges to the growth of the market during the forecast period.
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alter Logistics Co: The company provides different types of freight transportation services such as barge transportation, dry dock facilities, warehousing, and transfer services.
American Commercial Barge Line LLC: The company provides different types of barge transportation services such as trans-loading, warehousing, and fleeting services.
We also have detailed analyses of the market’s competitive landscape and offer information on 18 market vendors, including:
The report offers clients a deeper understanding of the market and its players through a combined qualitative and quantitative analysis of the vendors. The analysis classifies vendors into categories based on their business approach, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak to understand the dos and don’ts of business which in turn can help a client make the best decision.
The dry cargo barge segment will contribute a major share of the market, due to increased demand from different sectors. The dry cargo barge segment showed a gradual increase in market share with USD 70.53 billion in 2017 and continued to grow by 2021. The market is expected to grow upwards over the forecast period. Increasing global dry cargo capacity is the major factor driving the growth of the market.
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Demand for rental dry containers will be driven primarily by agricultural growth and manufacturing of electronics, consumer electronics, textiles, and other bulk products. Dry container demand growth is mainly from countries such as China, India, Australia, Russia, the USA, Mexico, South Africa, and Brazil. This is due to the sizeable populations of these countries fueled by high demand for commodities such as agricultural products, electronics, textiles, and other non-perishable goods. Fresh agricultural products are mainly traded in dry containers. Wheat is also transported in dry containers. Therefore, increasing the production of wheat and other non-perishable products is expected to drive the dry cargo barge segment of the market during the forecast period.
Agricultural products are one of the important segments in the market. Transporting agricultural products by barge has several advantages over other modes of transport. Inland waterway transportation is a cost-effective and energy-efficient method of transporting large quantities of goods over long distances. Barges have a high carrying capacity and can transport a wide variety of agricultural products such as grains, oilseeds, fruits, vegetables, and fodder. The demand for barge transportation of agricultural products is affected by several factors, including global population growth, changing diets, and increasing demand for biofuels. As the world population grows, the demand for food is increasing, leading to the expansion of the agricultural sector. In addition, the demand for biofuels from crops such as corn and soybeans is also increasing the shipping demand for these products. The market is highly competitive with multiple players providing transportation services for various agricultural commodities. Major players in the market include Cargill, Archer Daniels Midland, Bunge Limited, and Louis-Dreyfus Company. These companies provide a variety of transportation services, including barge transportation, to move agricultural products around the world. Therefore, the agriculture products segment is expected to drive the growth of the market during the forecast period.
APAC is estimated to contribute 32% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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The market is expected to witness significant growth during the forecast period. Increasing inland trade opportunities are expected to be a major driver of the market in the APAC region. Increased trade opportunities, along with increased government intervention to develop inland trade, are spurring the growth of inland shipping in APAC. Many countries in this region are improving their inland waterway infrastructure facilities. For example, the Indian Register of Shipping (IRS) has continuously improved the safety of inland shipping across India and played a key role in drafting the Inland Shipping Act 2021 and standardized regulations. Also, many developing countries in APAC rely on inland waterways for their domestic trade because they can improve environmental performance by lowering overall production costs and emitting less carbon dioxide than rail and trucks. In addition, the cost of expanding waterways is the same as expanding railroads and roads. As a result, a large amount of trade takes place through the waterways in this region.
In 2020, the market had negative growth due to COVID-19. A general or complete blockade was put in place, limiting the introduction of barge transport. Countries from across the world implemented a nationwide lockdown due to which barge transport got restricted. However, lockdown restrictions were lifted and operations got resumed in various sectors, including raw material supply and transportation, mainly due to a massive vaccination campaign across the region in 2021. These factors will increase the demand for barge transportation and drive the growth of the market during the forecast period.
The barge transportation market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Barge Transportation Market Scope |
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Report Coverage |
Details |
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Page number |
160 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.56% |
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Market growth 2023-2027 |
USD 37.89 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
4.67 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 32% |
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Key countries |
US, China, Japan, The Netherlands, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alter Logistics Co., American Commercial Barge Line LLC, Argosy International Inc., Blessey Marine Services Inc., Danser Group, Dubbelman Container Transporten BV, Ergon Inc., Haeger and Schmidt Logistics GmbH, Heartland Barge Management LLC, Ingram Marine Group, Kirby Corp., Livingston International Inc., Marquette Transportation Co. LLC, McAllister Towing and Transportation Co. Inc., neska Container Line BV, Poh Tiong Choon Logistics Ltd., SEACOR Holdings Inc., Singa KBH Industry Sdn Bhd, The Greenbrier Companies Inc., and Waalhaven Holding BV |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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