Tank Wagons Market Report 2025

This Tank Wagons market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The tank wagons market size has grown steadily in recent years. It will grow from $74.34 billion in 2024 to $77.57 billion in 2025 at a compound annual growth rate (CAGR) of 4.3%. The growth in the historic period can be attributed to industrial growth, energy transportation, chemical industry, safety and regulatory compliance.

The tank wagons market size is expected to see steady growth in the next few years. It will grow to $93.64 billion in 2029 at a compound annual growth rate (CAGR) of 4.8%. The growth in the forecast period can be attributed to energy transition, environmental regulations, chemical and petrochemical industry, material innovations. Major trends in the forecast period include innovations in materials, railway infrastructure development, digitalization and telematics, sustainability and green initiatives.

The growing demand for liquids and gases as raw materials in the residential and petrochemical sectors, which rely on railways for transportation, is driving the expansion of the tank wagon market. This surge in demand can be attributed to the global lockdowns and travel restrictions. For example, in September 2023, GOV.UK, a UK-based government website, reported that government revenues from UK oil and gas production rose to $9.9 billion (£9 billion) in the 2022-2023 financial year, up from $1.54 billion (£1.4 billion) in 2021-2022, reflecting an increase of $8.36 billion (£7.6 billion). The rising need for PPE kits and home cooking has further spiked the demand for liquid and gas, which is being efficiently transported using tank wagons. This trend is fueling the growth of the tank wagon market.

The tank wagon market is expected to benefit from the growing demand for efficient transportation. Efficient transportation involves optimizing the movement of goods, people, or information to minimize resource consumption, reduce waste, and maximize productivity. Tank wagons play a vital role in efficient transportation by securely and cost-effectively transporting bulk liquids or gases, such as chemicals and petroleum products, over long distances. This minimizes the requirement for numerous smaller containers and lowers handling and transportation costs. For example, in May 2024, Reuters reported that electricity consumption from electric vehicles (EVs) in the United States surged by over 50% during the first two months of 2024, compared to the same period in 2023, highlighting the growing popularity of EVs and their impact on electricity demand. According to the U.S. Energy Information Administration, total electricity usage by EVs reached 1.58 million megawatt hours (MWh), up from 1.04 million MWh in the previous year. Additionally, Tesla's Model Y became the best-selling plug-in electric vehicle in June 2022, with approximately 243,800 units sold. Overall, the market share of electric vehicles has expanded significantly, increasing from 2.2% to 6.1% of total vehicle sales by the end of 2022.

The introduction of the Internet of Things (IoT) to enhance the safety and compliance of rail tanks has generated significant demand in the tank wagon market. IoT enables rail operators to use internet-connected communication devices installed on infrastructure and rolling stock to enhance safety. Several apps, such as the safety lock app, terminal automation app, and anti-roll-away apps, have been launched to digitalize tank wagons and improve safety.

Major companies in the tank wagon market are increasingly adopting strategic partnerships to boost their capabilities and competitiveness. Strategic partnerships involve companies leveraging each other’s strengths and resources to achieve mutual benefits. For example, in June 2024, VTG Rail UK and Knorr-Bremse Ltd, a Germany-based manufacturing company, launched the digital freight wagon, the VTG iWagon. The iWagon incorporates innovative technologies such as axle lock detection and Wheel Flat Prevention (WFP), developed in collaboration with Knorr-Bremse to improve safety by monitoring wheelset slippage and brake conditions in real-time. The trial wagons, including VTG Rail JPA tank wagons, are equipped with new wheelsets featuring four axle-end generators to power the WFP system. The trial aims to gather valuable data, with initial results expected in January 2024, and the first 50 production-ready iWagons scheduled for release in the second quarter of 2024.

In November 2022, US-based liquid chemical and food transportation company Heniff Transportation Systems LLC acquired Coal City Cob Company, Inc. The acquisition enables Heniff to sustain its growth in the chemical sector of the tank truck market. Coal City Cob ('CCC') operates a significant rail-to-truck bulk transfer yard and tank wash facility at its Waxahachie, Texas headquarters, and has a nationwide network of terminals with over 230 drivers and 500 trailers. The integration of the Heniff and CCC teams aims to ensure a seamless transition, focusing on customer, employee, and driver satisfaction.

A tank wagon is a type of railroad car or rolling stock designed to transport liquid and gaseous commodities, typically from fuel stations to rail stations, as well as for road transport systems. Its purpose is to improve safety and reduce the risk of leakage of hazardous liquids. These wagons are ideal for carrying large volumes of liquids or gases, reducing the need for multiple shipments and boosting efficiency.

The main types of tank wagons covered in this report include pressurized railroad tank cars and general-purpose or non-pressurized tank cars. Pressurized railroad tank cars are specifically engineered for the efficient and secure transportation of chemicals and petroleum products. They can be further categorized based on protection type, such as insulated or non-insulated, and based on application, including the transport of crude oil, ethanol, liquefied gases, biofuels, milk, chemicals, and other liquid commodities.

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Major companies operating in the tank wagons market include American Railcar Industries Inc., GATX Corporation, National Steel Car Ltd., Greenbrier Companies, Trinity Industries Inc., Vertex Railcar, Union tank car company, Chongqing Changzheng Heavy Industry Co. Ltd., Caterpillar Inc., Japan Oil Transportation Co. Ltd., Kelso Technologies Inc., OmBesco Limited, Procor Limited, VTG GmbH, Titagarh Wagons Ltd., FreightCar America, United Wagon Company, Jupiter Wagons Limited, Texmaco Rail and Engineering Ltd., Jindal Rail Infrastructure Limited, ELH Waggonbau Niesky GmbH, W.H. Davis Ltd., AmstedMaxion, CIMC Tank Equipment (Zhangjiagang) Co. Ltd., Wabash National Corporation, CIMC ENRIC Holdings Limited, The Andersons Inc., CIMC Vehicles Group Co. Ltd., Hitachi Ltd., Talgo SA.

Asia-Pacific was the largest region in the tank wagons market in 2024. North America was the second largest region in the tank wagons market. The regions covered in the tank wagons market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the tank wagons market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The tank wagon market consists of sales of corrosive liquid tanks, highly flammable product tanks, and gasoline tanks. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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