Freight Wagons Market

Freight Wagons Market Outlook (2022-2032)

Demand for freight wagons will witness a steady recovery in the short term, with an optimistic growth outlook in the long run. Opening the world economy, increasing free trade agreements, and mounting logistical infrastructure developments will propel the market toward optimistic growth.

The enhancement of railway networks is one of the crucial factors in the growth of freight wagons. Governments across the world are into promoting public transport which is anticipated to grow in the forecast period.

The rail is considered a feasible way for freight transportation due to its lower cost of fuel. Further shipping with the railway is making high-volume transport possible. Rail has less cost associated with the drivers and this method is considered more environmentally friendly. The train burns less fuel than trucks which is also propelling freight wagon’s market share.

The global freight wagon market is valued at USD 173.48 Billion in 2022. The market is further expected to surpass a valuation of USD 264.30 Billion by end of 2032. Further, this market is anticipated to grow with a CAGR of 4.3% in the forecast duration.

Report Attributes	Details
Market size (2022 A)	USD 173.48 Billion
Base Year for Estimation	2022
Forecast duration for this research	2022-2032
Forecasted Market value (2032 F)	USD 264.30 Billion
Global Market Growth rate (2022-2032 E)	CAGR of 4.3%
Key Companies Profiled	ELH Waggonbau Niesky GmbH Greenbrier CRRC Duro Dakovic Holding d.d. TMH VTG AKTIENGESELLSCHAFT TITAGARH WAGONS LIMITED Jupiter Wagons United Wagon Company OmBesco Limited

What is Driving Demand for Freight Wagons?

Freight wagons are rolling stock that is used to transport goods and commodities. Railways are one of the many modes of transportation available for trade, and it is likely to be the cheapest. As compared to road transportation, this mode of transportation can carry a large amount of cargo in a single trip, while still taking less time over long distances than a maritime route.

Globally, as economies begin to open up and policymakers relax trade regulations, market opportunities are expected to expand northward. Governments all over the world are putting a premium on last-mile connectivity for trade, resulting in a boom in investment in logistical infrastructure. The number of projects to expand the railway network for inter-state and intra-state trade is growing. On similar grounds, innovations such as dedicated freight corridors are expected to boost trading opportunities, thus increasing demand for freight wagons.

Furthermore, manufacturers and mobility solution providers have focused on technology-enabled freight movement in recent years. The Internet of Things (IoT) and data are the industry's next big game. This technology will assist in obtaining, storing, and analyzing data for the purposes of rail track maintenance, improved reliability, and increased productivity. This advantage over the traditional approach is expected to increase demand over the course of the evaluation period.

“What is the difference between a wagon and a carriage?”

The carriage is typically having a top however the wagon doesn’t contain any top. The carriage is exclusively meant and implicated to transport humans while the wagon can be used to transport goods as well as anything.

What are the factors that hinder the growth of the freight wagon market?

The rising usage of other mediums of transport is hindering the penetration of freight wagons. Often road transport is preferred over rails due to shorter distances and faster coverage. Rail transport is not a feasible option in terms of time-sensitive loads which indeed creates deterrence for freight wagon penetration.

“Pandemic of Covid-19 has restricted the movement of freight and people”

COVID-19 pandemic lockdown restricted man and material movement across many horizons. Various industries were hit hard and freight wagon was no exception. To combat the pandemic, governments all over the world imposed trade and manufacturing controls.

Trade disruptions resulted in economic losses and increased demand for wagons. Similarly, the raw material supply has been disrupted by the closure of production plants, and there has been a significant gap in the demand-supply chain. However, the lockdown guidelines were transient and are anticipated to diminish in near future. Hence, in the aftermath of lockdown the global trade and demand are expected to come on track.

Competitive landscape

The market players are placing distinct inorganic and organic growth tactics to maintain their market position. These companies are focused on design innovation and collaborations for better results. The demand for freight wagons is partly fragmented across key regions. Manufacturers in the industry are focusing on providing rental services and partnering with various governments and service providers to develop long-term relationships in order to gain a significant share.

Segment wise insights

Manufacturers in the market are providing a wide variety of wagons, the choice generally depends upon the type of commodity or cargo, the method of loading and unloading, the body structure, and the safety range of transporting goods.

Covered wagons are efficient for transporting goods such as agricultural products, food, beverages, etc. which are likely to get affected by climatic and weather conditions. Powder and tank wagons are best for transporting chemicals, liquid fuels, gases, and beverages.

Open-top wagons transport raw weather-resistant materials such as coal and steel. Hopper wagons are special kinds of open wagons which are utilized to transport grain and fertilizers. Similarly, there are various other kinds of wagons such as flats, platforms, car carriers, etc.

Based on structural load capacity, in order to bare the structural and commodity load, the wagons are manufactured using two axles, four-axle, six-axle, and 2X2 Axle. Further hopper wagons are categorized under the open hopper and tripping hopper wagons and various others.

Regional Insights

The freight wagon industry covers six major regions: North America, Latin America, Europe, East Asia, South East Asia & Oceania, and MEA. North America and East Asia are two possible contenders. Rail freight accounts for one-fourth of overall global activity in both the United States and China.

This leap is being aided by one of the world's longest railway networks and global trade dominance. Rapid trade expansion and projects such as rail freight between China and Europe would support the region's continued development.

In terms of sales, Europe is projected to be the next big market. Russia's vast railway network, as well as its fear activity for minerals, coals, and agricultural products, have all contributed to its integrated trade with European countries. In the near future, South Asia is projected to expand at an exponential rate. The region is witnessing an increase in trade, and self-manufacturing capabilities, and developing projects like dedicated freight corridors along with large ports is to foster wagon sales.

MEA region is experiencing foreign investments for securing various trade routes such as the railway networks from Iran’s Gwadar port to Afghanistan. These developments will accelerate growth in the long term.

Freight Wagons Market: Segmentation

• By Type :

  • Open
  • Covered
  • Flat
  • Container
  • Powder/Tank
  • Hopper
    • Open Hopper
    • Tripping Hopper
  • Platform
  • Car Carriers
  • Others

• By Axle :

  • 2-Axle
  • 2x2 Axle
  • 4 Axle
  • 6 Axle

• By Commodities Type :

  • Chemistry
  • Wood
  • Foods
  • Solid Fuels
  • Building Material
  • Iron
  • Others

• By Region :

  • North America
    • US & Canada
  • Latin America
    • Brazil, Mexico, and Others
  • Western Europe
    • EU5
    • Nordics
    • Benelux
  • Eastern Europe
  • Asia Pacific
    • Australia and New Zealand (ANZ)
    • Greater China
    • India
    • ASEAN
    • Rest of Asia Pacific
  • Japan
  • Middle East and Africa
    • GCC Countries
    • Other Middle East
    • North Africa
    • South Africa
    • Other Africa