Hopper Car Market - Global Industry Analysis

Hopper Car Market - By Type (Covered Hopper Cars and Open Hopper Cars), By Application (Automotive, Chemical Products, Energy & Coal, Steel & Mining, and Food & Agriculture), and By Region – Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2022 – 2028

Published Date: 24-Mar-2022 Category: Automotive Report Format : PDF Pages: 157 Report Code: ZMR-6976 Status : Published

The global hopper car market is estimated to grow with a compound annual growth rate (CAGR) of approximately 3.5 percent over the forecast period.

Description

Industry Prospective:

The global hopper car market is estimated to grow with a compound annual growth rate (CAGR) of approximately 3.5 percent over the forecast period. The report analyzes the hopper car market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the hopper car market.

Hopper Car Market: Overview

The hopper car is a self-clearing enclosed railroad freight vehicle having sideways, fixed roof, and ends, as well as unloading and loading holes at the roof and bottom. Covered hopper cars are meant to transport dry bulk cargoes, which can range from grain to sand and clay. The cargo is protected from the elements by the cover. If dry cement was combined with water in shipment, it would be difficult to unload, and grain would decay if exposed to rain. Furthermore, the diversified fleet of railcars transports a wide range of dry bulk goods. Some of these vehicles are dedicated to a single commodity, while others cater to a wide range of commodities. As a result, the hopper car fleet as a whole has distinct features, and their performance is influenced by independent business and financial considerations.

COVID-19 Impact:

The COVID-19 impact on the global hopper car market is low to moderate. The market growth slowed due to a halt on the manufacturing (OEM) plants, which affected the sale of the new hopper car. Also, the budget constraints affected the overall sale in 2020 and 2021. However, the use of hopper cars increased during the pandemic period. This is majorly due to the supply of goods in emergencies. Nevertheless, the market is recovering from the pandemic impact and is expected to grow at a steady rate over the forecast period.

Hopper Car Market: Growth Drivers

Increased transportation demand for plastic polymers, fertilizers, and chemicals likely to boost the market growth.

Demand for plastic polymers has increased double-fold due to their several applications in the automobile industry. These plastic monomers are polymerized into polymers and co-polymers via chemical reactions and catalysts, resulting in Polystyrene (PS), Polycarbonate (PC), Polyethylene (PE), PVC, PP, and other polymerized materials. These materials outperform their monomers in terms of characteristics and are exceptionally stable for molding and production. Manufacturers have been driven to employ high-performance automobile plastics leading to advancements in recycling technologies. As a result, demand for hopper cars is predicted to increase to further boost the supply of such polymerized plastic across nations. Along with that, increased demand for bulk cargo such as fertilizer, grain, and chemicals that are required to be protected from exposure to the weather is also contributing to the expansion of the market.

Hopper Car Market: Restraints

Availability of other cost-effective ways of transportation may hinder the market growth.

Other ways of transport such as road and seaway offer better alternatives to transport the goods within the nation or overseas, also the cost of freight transfer through seaway is comparatively low and besides the large volume of cargo can be transferred through ships in less cost. Due to such reasons, many product manufacturers prefer to transfer their goods through the sea route. Considering the stats, the road is still the dominant mode of transport, its share in overall freight transport has reached nearly 45 percent. Whereas, the ship is the second most important mode in freight transport. All these factors may hamper the adoption of hopper cars over the forecast period.

Global Hopper Car Market

Hopper Car Market: Opportunities

Increase in the demand for new hoppers as a result of the surplus in car size is likely to increase the demand for hopper cars.

The slow construction market has restricted need for small-cube hoppers used to transport cement and other building materials, as well as grain shipments by railways, resulting in a slight excess in the grain car fleet and fewer distillers dried grains being sent by ethanol manufacturers (DDG). As a result of a little downturn in the ethanol business, fewer large covered hoppers were deployed than projected. Furthermore, rail traffic is predicted to remain modest in the next years, which is why hopper car manufacturers are improving the size of their hoppers to meet demand, which is expected to offer stable growth opportunities for the market.

Report Scope:

Report Attribute Details
Base Year 2020
Historic Years 2016 - 2020
Forecast Years 2021 - 2028
Segments Covered By Product Type, By Application, and By End Use
Forecast Units Value (USD Billion), and Volume (Units)
Quantitative Units Revenue in USD million/billion and CAGR from 2021 to 2028
Regions Covered North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and Rest of World
Countries Covered U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others
Number of Companies Covered 10 companies with scope for including additional 15 companies upon request
Report Coverage Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis.
Customization Scope Avail customized purchase options to meet your exact research needs.

Hopper Car Market: Challenges.

Limitation with cargo weight and safety regulations are the major challenges for the market.

Every year railroad deals with more than thousands of unevenly and overweight loaded hopper cars causing glitches for both shippers and railroads. Therefore, it is crucial to ensure the load does not exceed maximum load limits. A hopper car carrying more weight than it is designed for can cause a breakdown in the wheel assembly. Moreover, a loaded car weighing more than the rail lines capacity can also cause the track to break down. These factors pose major challenges for the expansion of the global hopper car market.

Hopper Car Market: Segmentation

The global hopper car market is segregated based on type, application, and region. Different types such as covered hopper cars and open hopper cars are included in the report. Among these, open hopper car segment holds a dominant share of the market, whereas, the covered hopper car segment is likely to grow at a rapid rate over the forecast period. This increasing demand is mainly attributed to the rising need for fertilizer and chemical sector. The application segment of the market is categorized into chemical products, automotive, energy & coal, food & agriculture, and steel & mining.

Recent Developments

  • In July 2021, EuroChem has placed an order for 2,000 next-generation hopper cars for mineral fertilizers with United Wagon Company (UWC). This new deal, which covers maintenance services, underlines and enhances the two organizations’ long-standing collaboration.
  • In March 2020, a deal was made between Togliattiazot, a Russian chemical company, and UWC for the provision of 200 hopper cars for the transport of mineral fertilizers. This is the company's first deal for the acquisition of a new generation of automobiles.

Hopper Car Market: Regional Landscape

North America to maintain its dominant position in the global market

North America holds the dominant share in the global hopper car market. This is due to the increasing adoption of hopper cars in the United States. The country contributes nearly 85 percent of the share in the regional market. The rail network in the United States is well developed and employs advanced cargo carriers to maintain the quality and safety of the goods. Also, supporting government initiatives contributed to the early adoption of hopper cars in the country. Asia Pacific is expected to offer significant opportunities for the expansion of the market over the forecast period. Emerging countries such as China and India have a large network of rail playing a crucial role in cargo transport. Moreover, rapidly expanding chemical, agriculture, food & beverage industries in these countries are expected to increase the demand for hopper cars over the forecast period.

Hopper Car Market: Competitive Landscape

Major market players included in the report are Novatec, PIOVAN S.p.A., Summit Systems, UK Plastics Machinery Limited, Maguire Products Inc., Jenco Controls & Export Limited, SIMAR GmbH, Budzar Industries, Inc., Movacolor, and Advanced Auxiliary Equipment, Inc.

Global hopper car market is segmented as follows:

By Product Type

  • Covered Hopper Cars
  • Open Hopper Cars

By Category

  • Automotive
  • Chemical Products
  • Energy & Coal
  • Steel & Mining
  • Food & Agriculture

By Region

  • North America
    • The U.S.
    • Canada
  • Europe
    • France 
    • The UK
    • Spain
    • Germany
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Southeast Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa

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FrequentlyAsked Questions

Demand for plastic polymers is increased double-fold due to their several applications in the automobile industry.These plastic monomers are polymerized into polymers and co-polymers via chemical reactions and catalysts, resulting in Polystyrene (PS), Polycarbonate (PC), Polyethylene (PE), PVC, PP, and other polymerized materials. These materials outperform their monomers in terms of characteristics and are exceptionally stable for molding and production. Manufacturers have been driven to employ high-performance automobile plastics led to advancements in recycling technologies. As a result, demand for hopper cars is predicted to increase to further boost the supply of such polymerized plastic across nations. Along with that, increased demand for bulk cargo such as fertilizer, grain, and chemicals that are required to be protected from exposure to the weather is also contributing to the expansion of the market.

According to the Zion Market Research report, the global hopper car market is predicted to grow with a compound annual growth rate (CAGR) of around 3.5 percent.

North America holds the dominant share in the global hopper car market. This is due to the increasing adoption of hopper cars in the United States. The country contributes nearly 85 percent of the share in the regional market. The Rail network in the United States is well developed and employs advanced cargo carriers to maintain the quality and safety of the goods. Also, supporting government initiatives contributed to the early adoption of hopper cars in the country.

 

Major market players included in the report are Novatec, PIOVAN S.p.A., Summit Systems, UK Plastics Machinery Limited, Maguire Products Inc., Jenco Controls & Export Limited, SIMAR GmbH, Budzar Industries, Inc., Movacolor, and Advanced Auxiliary Equipment, Inc.

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