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The tank trucking market size is forecast to grow by USD 117.4 billion and decline at a CAGR of 8.09% between 2023 and 2028. The market is experiencing significant growth, driven by the increasing demand for the transportation of oil and natural gas. This sector is further fueled by rapid urbanization and industrialization, leading to a surge in the logistics industry's requirements for efficient and reliable bulk liquid transportation. The growing demand for petrochemicals, food and beverage products, and other bulk liquids is also contributing to the market's expansion. Moreover, Freight transportation and cargo transport are integral to global trade, ensuring the efficient movement of goods across various regions and industries. Additionally, the increasing focus on reducing carbon emissions and improving supply chain efficiency is driving the adoption of advanced tank trucks equipped with GPS tracking and temperature control systems. These factors collectively position the tank trucking market for robust growth in the coming years.
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The market share growth by the for-hire segment will be significant during the forecast period. It is essential to hire tank trucks for businesses operating in the global market since it enables them to keep their fleet up-to-date and involves lower upfront costs than purchasing them.
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The for-hire segment was valued at USD 136.60 billion in 2018. Although small-scale and mid-scale vendors are generally unable to spend their limited resources on purchasing tank trucks, there has been a rise in sales in this segment. The reason behind this is the increase in demand for tank trucking for short-term transport operations. This is a major factor that is expected to boost the growth of this market segment during the forecast period.
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North America is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Large-scale investments in infrastructure development and construction activities are the major reasons behind the market's growth in North America. High capital investments have been made in constructing many oil and gas pipelines in the US. As per the US Energy Information Administration (EIA), the natural gas pipeline network in the country is a highly integrated transmission and distribution network that can transport natural gas from and to nearly all the states in the country. In addition, increased oil and gas production due to a surge in unconventional exploration and production (E&P) activities in the region over the last five years has facilitated the availability of cheap feedstock for refineries.
The tank trucking industry plays a crucial role in cargo transportation, utilizing specialized equipment to handle a variety of goods, including chemical products and hazardous chemicals. This sector supports the health care industry by delivering essential items and fast-moving consumer goods to retail outlets. Long-distance transportation involves navigating inaccessible areas, and adherence to loading and unloading regulations is vital for safety. With fluctuating freight demand, the industry faces challenges from inflation and recession. The transport of petroleum products, such as gasoline, diesel, jet fuel, and heating oil, is particularly significant for the US construction industry. Market dynamics and regulatory compliance impact the efficient delivery of gas, oil, and chemical products, which are integral to both industrial and everyday use. Artificial intelligence is transforming the management of natural gas and crude oil operations by optimizing exploration, production, and distribution processes.
The market research report indicates a notable surge in demand for oil and natural gas, propelling market expansion. The global appetite for natural gas has experienced substantial growth over the past decade, driven mainly by its extensive utilization in heating applications. The increasing fuel consumption in emerging economies like India is also poised to boost natural gas demand in the projected timeframe.
According to the US EIA, the global daily consumption of liquid fuels bounced back in 2021 following a significant decline in 2020. Oil, natural gas, and coal collectively accounted for over 70% of the rise in energy demand. Furthermore, the gradual recovery of global crude oil prices is expected to attract fresh investments in the oil and gas sector, further reinforcing the global market in the forecast period.
Simultaneously, market growth projections and forecasts indicate favorable prospects for the Tanker Fleet, which plays a vital role in transporting oil and natural gas. Safety regulations, maintenance protocols, and optimized routes are crucial considerations within the Freight Industry to ensure efficient and secure transportation. Adhering to tank truck regulations and conducting meticulous tank truck maintenance are essential for enhancing safety and operational efficiency in the Cargo Trucking Industry. With well-planned tank truck routes and strict adherence to safety standards, the Tanker Fleet continues to make significant contributions to the energy supply chain, aligning with the broader trends observed in market forecasting..
Technological advancements are an emerging trend in the market. The new developments in technology lead to changes in the proportion, size, and structure of tank transport. Nowadays, the focus of tanker manufacturers is on lightweight components and parts that are reliable and durable and help improve the performance of their vehicles and also fuel economy. Significant investments are being done by vendors in M&A to expand their product portfolio.
Lucrative growth opportunities will be created with the integration of artificial intelligence into tankers for vendors in the global oil market. Hence, the rapidly growing global oil and gas industry and continuous technological advancements are expected to play a major role in boosting the growth of the global market during the forecast period.
Moreover, market trends indicate a growing emphasis on market growth analysis and market research and growth within the Petroleum Transportation and Chemical Transportation sectors. Specialized niches such as Food Grade Tankers and Hazardous Materials Transport are witnessing increased demand, further driving innovation and safety measures in tank truck safety protocols. As the industry evolves, aligning with emerging technologies and market forecasting becomes imperative for sustainable growth and competitiveness.
Challenges such as leakage incidents during the transportation of oil and gas pose significant hurdles to market growth within the Transportation Industry. The processes of transportation, storage, and distribution within the oil and gas sector entail the movement of these resources from oil wells to refineries and eventually to retail fuel outlets for consumption. Following the refinement of crude oil, the final products are conveyed from refineries using Tanker Truck Fleets and rail transport to reach retail fuel stores.
Generally, all modes of transportation employed in oil and gas transport face the risk of oil spills, particularly during loading and unloading operations. To mitigate this risk, various regulations are enforced to ensure effective oil spill prevention. For instance, guidelines set forth by the US Environmental Protection Agency (EPA) encompass regulations like the Facility Response Plan (FRP) and Spill Prevention, Control, and Countermeasure (SPCC) rules. Under the FRP mandate, facilities storing oil and gas must have contingency plans in place and readiness to address potential oil spill incidents. Such regulatory measures will impede the global Freight Transport market during the forecast period.
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 Market Customer Landscape
Companies 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.
Amthor International - The company offers code and non-code tanks with stationery and dumping. The company's key offerings include tank trucking services.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
.The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market plays a vital role in liquid transportation, facilitating the movement of various substances such as petroleum, chemicals, and food-grade products. Tanker trucks form the backbone of bulk transport, ensuring the safe delivery of hazardous materials while adhering to stringent regulations. Tanker trucking companies manage extensive tank truck fleets, employing skilled tank truck drivers to operate them. Safety is paramount in tank truck operations, with rigorous maintenance schedules and adherence to safety protocols. Advanced tank truck technology enhances efficiency and safety, optimizing tank truck logistics and routes. Market analysis reveals dynamic trends in tank truck capacity and industry innovations, reflecting the continuous evolution of the market in meeting diverse transportation needs.
Moreover, the motor vehicle industry is rapidly evolving with innovations like self-driving trucks and autonomous vehicles (AVs). Refrigerated tank trucks and fuel tanker trucks are crucial for transporting gas, oil, and chemical products, including flammable petroleum compounds. Advanced AI systems and satellite technology, such as Qualcomm/OmniTRACS, enhance GPS navigation systems and digital transparency in fleet management. As the truck driver shortage persists, platooning and communication technology offer solutions to optimize operations. Loading and unloading procedures are becoming more efficient to meet the needs of food and beverages, fertilizers, and crude petroleum transportation. The sector must also adapt to urban areas' energy needs and the demands of agriculture and fleet type diversity. Addressing these challenges ensures effective delivery across industries, including energy and agriculture.
Market Scope |
|
Report Coverage |
Details |
Page number |
148 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.09% |
Market growth 2024-2028 |
USD 117.4 billion |
Market structure |
USD Fragmented |
YoY growth 2023-2024(%) |
7.33 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
APAC at 34% |
Key countries |
US, China, UK, Singapore, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amthor International, Burch Tank and Truck, Dupre Logistics LLC, Eagle Transport Corp., Florida Rock and Tank Lines Inc., Groendyke Transport Inc., Kenan Advantage Group Inc., Littlejohn Inc., Mac Trailer Manufacturing Inc., Martin Transport Inc., Miller Transporters Inc., Quest Liner Inc., Ruan Transportation Management Systems, Shiny Shipping and Logistics Pvt. Ltd., Superior Bulk Logistics Inc., Superior Industries Inc., Tankstar USA Inc., TFI International Inc., and Trimac Transportation Services Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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 Ownership
7 Market Segmentation by Capacity
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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