A tank truck, also referred to as tanker trucks in the United States, only tankers in the United Kingdom and gas trucks or fuel trucks in other parts of the world, is a motor vehicle which is meant to transport liquids or gases which require a controlled environment for their transportation. From large railroad tank-type vehicles, which are equipped to carry huge liquid loads, to small tank trucks for some small applications, the market has the presence of a wide range of tank trucks. Tank trucks can be insulated or non-insulated, capable of carrying a specific type of load or multiple types of loads, can be pressurized or non-pressurized. The continuous evolution of industries, which has been going on since decades, has been transforming various aspects of the sectors. From the way industry players produce or manufacture goods, to the way these goods reach customers, everything has witnessed a fairly significant degree of evolution since the beginning of this decade. Logistics is one such part of this industry which has witnessed a good degree of change. The type of vehicles which are used today for transportation of various types is different from what were used over two decades ago. Tanker trucks have also come a long way in this era of industrialization.
The demand for tank trucks is majorly being driven by rapid growth of chemical industry across the globe. Increasing demand for chemicals from sectors which are aligned to it is increasing the demand for more capital which can aid manufacturers in increasing the output. As demand for chemicals is showing a good growth, many manufacturers are pumping significant capital investments into this sector. The member countries of the European Union, for instance, can be seen maintaining a continuous flow of capital investments into the chemical industry. According to a data from the European Chemical Industry Council (CEFIC), the European Union, the chemical manufacturers across member countries spent around €21.3 billion into capital in 2008, and this figure stood at €22.8 billion 2018. The figure given below shows the trend:
Capital Spending by Chemical Manufacturers Across EU Member Countries, in Euro Billion, 2008 to 2018
Source: The European Chemical Industry Council
This increasing capital spending across these countries is driving with it the sales of equipment which are critical to the overall productivity and profitability of a chemical manufacturing facility. Similar trend can be seen in Asia Pacific where countries like China, Japan and India among others are showing a good growth of the chemical industry. Japanese chemical Industry, for instance, is the second largest industry in the region and much of this position is attributed to the presence of some of the major market players like Mitsubishi Chemical Corporation, Sumitomo Chemical Co., Ltd, and Toray Industries, Inc. among others in this country. As these players continue to pump huge investments into capital, demand for tank trucks is also increasing, thus fuelling the market growth.
The market growth is being further fuelled by the growth of oil and gas industry in many parts of the world. Rigorous investment strategy is being adopted by many players who seek to leverage the presence of resources in many regions. The North American region, for instance, is one of the major producers of shale gas in the world with new reserves being discovered in the Arctic region. Argentina is another country with huge reserves of oil and gas. According to the US Energy Information Administration and Advanced Resources International, Argentina has the second largest shale gas resources in the world and the fourth largest shale oil resources (27 billion barrels). Since exploration activities across such sites are getting a continuous boost, the demand for machinery which can complement these activities is increase. Oil and gas, which is extracted from reserves through drilling, are transported to refining facilities for further processing. Since transporting oil and gas to every end user in every part of the world through pipeline is not cost-effective, it needs to be transported through specialized vehicles. As these products are highly inflammable, controlled environment is required in order to safely transport them. Presence of a good number of advanced tank trucks in the market, which offer high levels of reliability to customers, is increasing their adoption among them, thus propelling the market growth.
Tank trucks are popular even across the beverage industry since many beverages have the tendency to go bad if not stored in a favourable environment. Milk, for instance, is one such product which requires being stored in a specified environment in order to prevent it from going bad. Therefore, growing production of milk in many parts of the world is another major driving factor for this market. Increasing demand for milk, and availability of required resources for the production of milk, in many countries is increasing the production of milk across them. India, for instance, is a key economy which has been meeting a significant share of the global milk demand. The figure given below shows the trends in production of milk in the country:
Milk Production in India, 2013-14 to 2017-18, Million MT
Source: Department of Animal Husbandry, Dairying and Fisheries
Increasing production of milk and other beverages, which require a controlled environment, is driving with it the demand for tank trucks among producers or manufacturers, thus contributing to the growth of tank trucks market. Geographically, the report, titled Global Tank Trucks Market, by Knowledge Sourcing Intelligence, segments the market into North America, South America, Europe, Middle East and Africa, and Asia Pacific. To give a clearer view of the market, these regional markets have been further segmented into countries which account for a considerable market share.
About the Author:
Dhiraj Kumar Sharma is a Market Research Analyst at Knowledge Sourcing Intelligence. He combines his outright understanding of technologies with years of experience working in the industry to deliver actionable information to clients who span across industries and geographies. Dhiraj often works closely with clients in order to better understand their requirements and is known for the quality of market insights he delivers to them.