Liquid and Bulk Transportation Vessels Market Trends [2031]

Report Description

Liquid & Bulk Transportation Vessels Market Outlook 2031

The global liquid & bulk transportation vessels market size was USD 825 Billion in 2022 and is likely to reach USD 1.1 Trillion by 2031, expanding at a CAGR of 3.1% during 2023–2031. The market is driven by the rise of international trade and the growing demand for energy.

Growing energy needs across nations with the rise of population and industrial activities is driving the market. Consumption of crude oil and natural gas is growing across various nations, due to surging development and commercialization. Rising development activities in emerging economies and the need to bridge supply and demand gaps for fuels, oils, and other resources are boosting the market.

Expansion of production operations in different sectors, including agriculture, manufacturing, and energy, to meet growing consumer demand for different products, is driving the need for quick liquid & bulk transportation vessels.

• According to the Review of Maritime Transport 2023 published by the United Nations Conference on Trade and Development (UNCTAD), maritime trade is projected to rise by 2.4% in 2023, and above 2% between 2024 to 2028.

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The research report finds that the COVID-19 pandemic hampered the liquid & bulk transportation vessels market. The lockdowns and other restrictions placed by various governments significantly affected maritime trade operations. Supply chain bottlenecks, shortage of workforce & equipment, and slow movement through borders resulted in the standstill of cargo operations for long periods.

The ban imposed by governments on vessel movement originating from severely COVID-19-affected countries, such as China, caused adverse reactions in the market. However, many governments across the globe worked towards removing the hurdles before goods transport activities, which aided in the quick recovery from the decline caused during the early pandemic period.

Impact of Artificial Intelligence (AI) on Liquid & Bulk Transportation Vessels Market

Advances in Artificial Intelligence (AI) and the emergence of AI-powered maritime transport management tools are expected to support the market growth during the forecast period. The technology is likely to expedite several mundane tasks in the marine trade industry, allowing workers to focus on quality control and measures to speed up operations.

AI-powered analytics tools are set to aid the maritime transport industry in improving accuracy in estimated arrival time, predicting possible risk factors during transport and cutting unnecessary wastage of time and monetary resources.

AI is likely to further the progress towards autonomous shipping. Several AI-driven maritime transportation support solutions are emerging in the industry, which is expected to attract players in the market to adopt these tools to improve operational efficiency.

Liquid & Bulk Transportation Vessels Market Dynamics

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Major Drivers

Rising consumption of refined products is driving the market. The demand for refined petroleum products is sharply growing across various sectors, with the expansion of operations. This is boosting the need for efficient vessel transportation operations for the rapid movement of liquid and bulk goods. Industries, such as aviation, chemicals, automobiles, food & beverages, energy, and manufacturing, are boosting operations, to meet the demand for services and products.

Growth of population and change of lifestyle towards convenience, with the rise of disposable income, are likely to drive dependence on refined products, thereby, driving the market. Petroleum products such as distillate fuel oil (heating oil and diesel), finished motor gasoline, hydrocarbon gas liquids, and kerosene-type jet fuels, among others, are registering major growth in consumption.

• According to a study published by the US Energy Information Administration (EIA), the consumption of petroleum in the nation averaged close to 20.28 million barrels a day (b/d) in 2022. The total consumption recorded a 2% rise in 2022 over 2021, and a 12% rise in consumption in 2020. The key end-use sectors that contributed to the petroleum consumption in 2022 were transportation (66.6%), industrial (27.5%), residential (2.8%), commercial (2.5%), and electric power (0.6%).

Existing Restraints

High costs required for shipping operations and maintenance of liquid and bulk transportation vessels are likely to hamper the market. The cost of fuels, size of cargo, distance, government duties, and season factors influences transport operations.

These costs keep fluctuating, based on geo-political situations, hindrances during operations, and environmental regulations. Furthermore, the huge vessels need to be maintained on a regular basis efficiently, to avoid risks and possible obstructions. These costs keep climbing, based on climate, type of goods, changes in regulatory requirements, and other factors. Such expenses are likely to affect the market in the coming years.

Emerging Opportunities

Growing investment in the energy and shipping industry from emerging economies is expected to create lucrative growth opportunities in the market. The rising population, along with the growing consumption of various products, is bringing more investment towards the streamlining of maritime trade operations.

The need for fuel, oil, and chemicals is widening with the growth of aviation and transport industries. As a result, investment towards increasing energy resources is growing in developing countries such as India. Additionally, the integration of autonomous technologies such as unmanned vehicles for shipping purposes is likely to widen the growth prospects of the players in the market.

Scope of the Liquid & Bulk Transportation Vessels Market Report

The global market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Vessel Type Analysis

Based on vessel type, the liquid & bulk transportation vessels market is divided into liquid vessels, dry cargo vessels, and specialized vessels. The liquid vessels segment is projected to register robust growth during the forecast period, owing to the surging demand for oils and chemicals in various sectors.

Transport of liquid fuel and chemicals is majorly done through the sea route, for fast and efficient trade. It is a safe and cost-effective way to deliver bulk oils, chemicals, and other liquids from one nation to another. The growing demand for fuel is likely to boost the segment throughout the projection period.

• According to the survey report published in August 2023, total trade volume of crude oil through sea routes reached 1.8 billion mt (metric tons) in 2021. The growth of vessel transportation of liquid bulk is driven by the high demand and cost benefits.

The dry cargo vessels segment is anticipated to hold a key share of the market in terms of revenue, due to the rising trade of various dry goods among nations. The globalization of businesses is leading to the rise of the export and import of unpackaged dry commodities, such as metals, grains, and coal, among others.

The dry bulk containers in vessel transport keep the product quality intact. Heavy and oversized goods are safely transported with the vessels. Additionally, goods of different types are easily transported through this mode in a single shipment in a cost-effective manner.

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Transportation Type Analysis

On the basis of transportation type, the global market is segregated into deep sea tankers, short sea tankers, and inland tankers. The deep sea tankers segment is projected to expand at a considerable CAGR during the forecast period, owing to the rise of trade through intercontinental routes.

Increasing globalization of businesses and rising business expansion activities by corporations are leading to the rise of international trade operations. Transport of energy fuels, various raw materials, and chemicals through the deep sea route is environment-efficient and cost-effective. All of these factors are anticipated to boost the demand for deep sea tankers during the assessment period.

Application Analysis

On the basis of application, the liquid & bulk transportation vessels market is segmented into chemical, natural gas & crude oil, industrial, and others. The natural gas & crude oil segment is anticipated to expand at a robust CAGR during the forecast period, as these commodities are highly traded materials across the globe.

Transport of oil & gas using vessels is viable, as other means of transport are either unsafe or costly. Large volume of crude oil and natural gas is regularly traded through the sea route to meet the global demands. Fuel demand is increasing in nations, due to increasing consumption across sectors. Thus, the natural gas & crude oil segment is likely to register significant growth in the coming years.

The chemical segment is projected to register rapid growth over the forecast period, owing to the rising consumption of different chemicals in various sectors. Agriculture, construction, and pharmaceuticals are some of the major sectors that are utilizing chemicals to increase their production.

These materials are risky and hazardous to the environment, hence, the sea route is widely preferred for their transport. Vehicles for chemical transportation facilitate cutting-edge safety and are regulated by standards set by governments and international organizations.

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Regional Outlook

In terms of region, the global liquid & bulk transportation vessels market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Europe is expected to dominate the market during the forecast period, owing to the growing trade of crude oil in the region.

The lifting of COVID-19 regulations, rising industrial activities, and transportation needs are driving the regional market. Aviation and other transport modes are majorly dependent on oil products.

This, as a result, has driven the trade of oil through marine transport, thereby, boosting the market in this region. Additionally, the growing use of modern technology solutions in vessels for safety and efficiency is likely to support the market.

• According to the updates published by the European Commission’s Eurostat in March 2023, the European Union depended on total imports of 91.67% of petroleum products and crude oil in 2021. This consumption growth was driven by the relaxation of pandemic rules and the high demand for jet fuels from the aviation industry.

The market in Asia Pacific is expected to grow rapidly, owing to the growing demand for oil and gas from major economies of India, China, and Japan, among others. The consumption of petroleum products is ever-rising in these nations, due to the growing sales of vehicles, and surging industrial and commercial activities, among other factors. Additionally, the rising usage of chemicals in this region by industries such as agriculture and pharmaceuticals further propels the market.

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