Global Market Insights: barge transportation market to exceed US$50 billion
Published by Jessica Casey,
A study by Global Market Insights Inc. shows that the barge transportation market size is set to exceed US$50 billion by 2026.
The emergence of new wireless and mobile technologies in the maritime industry is driving barge transportation market growth. Several technology companies including Ericsson, Kongsberg Gruppen, Black Duck and CGI are introducing new solutions in the maritime industry to enhance the fleet efficiency.
Technological advancements, such as the implementation of Big Data analytics, are providing a greater visibility of pricing trends, reducing uncertainties in businesses. Big Data analytics tracks ships with discharging, loading and operating cargoes. The data-driven analytics improves decision-making to choose the optimal routes, fuel consumption, weather conditions and piracy risks. The use of Big Data is reducing risks and offering growth opportunities to the market.
The positive outlook of the logistics sector, offering a convenient way of transport for heavy goods, bulk cargoes and large volumes of commodity goods, will support the barge transportation market demand. The major factor challenging the market is the implementation of stringent government regulations pertaining to the maritime industry. For instance, the European Commission has set the standards, such as Directive 2004/26/EC, held for regulating emissions from the engines of inland waterway barges. This standard depicts Stage III A to cover engines ranging from 19 kW-560 kW for inland waterway vessels. However, the emergence of electric barge transportation will propel the industry growth.
Growing demand for cost-effective transportation solutions for dry cargo
The covered barge transportation segment held over 35% market revenue share in 2019, owing to its several advantages such as protection of goods from extreme and uncertain weather conditions. It is primarily used for moving dry cargo, such as agricultural products, on account of its high cost-effectiveness.
Moreover, barge transportation service providers are focusing on building a greater number of covered barges and refitting approximately 1000 existing covered hopper barges to serve the increasing demand for grain barges, driving the market share.
Increasing trade of metal ores across the globe will boost the barge transportation market revenue
Metal ore is anticipated to capture a significant industry share during the forecast timeline due to rising local and international trade of metal ores globally. Brazil is one of the largest suppliers of metal ore in the world, responsible for substantial exports. Additionally, increasing sales of automobiles and rising investments in construction activities are proliferating the demand for metal ores.
The increasing Latin American government support for the development of regional maritime industry
The Latin America barge transportation market size crossed US$4 billion in 2019. Brazil is witnessing rapid offshore development, resulting in an increased demand for barge transportation services. Economic stability, increased activities for the offshore production of oil, and heavy investments by energy companies in the country for the construction of self-reliant maritime sector are the major market drivers for the industry development in Brazil.
The increasing support of the government for the development of regional waterways infrastructure is strengthening the industry growth.
Barge transportation market players are focusing on partnerships, strategic alliances, and collaborations, along with enhancing their R&D capabilities to introduce new solutions and provide enhanced customer services. Additionally, market leaders are also laying emphasis on enhancing barge transportation services to strengthen their market position and gain a competitive edge over rivals.
Read the article online at: https://www.drybulkmagazine.com/rail-barge/13052020/global-market-insights-barge-transportation-market-to-exceed-us50-billion/
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