Chemical Logistics Market Overview

“The Chemical Logistics Market Predictable at $275.18 billion in 2022, is estimated to increase at a CAGR of 3.97% from $286.35 billion in 2023 to $376.48 billion by 2030.”

The global chemical logistics market is gaining momentum due to the growth of the chemical industry, urbanization, infrastructure development, and industrialization. The study provides a comprehensive analysis of major segments, trends, drivers, restraints, competitive landscape, and significant market factors.

The Global Chemical Logistics Market is primarily driven by the growth of the chemical industry, urbanization, infrastructure development, and industrialization. This comprehensive analysis examines key segments, trends, drivers, restraints, competitive landscape, and factors, providing a comprehensive understanding of the market.

Chemical logistics service providers must adapt to changing federal and state regulations to minimize hazards for workers and the public. This innovative, safe, and reliable logistics system plays a crucial role in market agility and industry flexibility. Chemical logistics services are used in various fields like material flow services, warehouse management, storage services, and material flow services.

The global chemical industry is expanding rapidly due to a rise in industries and a shift in manufacturing focus from traditional centers. The Chemical Logistics Market is characterized by a dependable and effective logistics system, which enables easy adaptation to market developments. Factors such as urbanization, infrastructural development, and industrialization are also driving market expansion.

The Chemical Logistics Market is experiencing growth due to increased demand for chemical logistics due to increased chemical production and safety concerns. The rise of tech-driven logistics services and IoT-enabled devices presents significant opportunities for market players, as they help manage the transportation, storage, and distribution of dangerous chemicals.

Chemical producers are investing in cost-effective warehousing solutions that combine green practices and smart technology, such as IoT, smart sensors, and robotics, due to growing energy and environmental concerns. This expansion is driven by product security and safety concerns, as well as substantial R&D, and is primarily driven by the growing chemical industry.

The rise of tech-driven logistics services and IoT-enabled devices presents significant opportunities for market players. However, concerns about unpredictable raw material prices, rising import and export duties charges, and complications in chemical logistics, safety issues, and a lack of infrastructure hinder market expansion.

Key Takeaways

From 2023 to 2030, the highways section will grow at a CAGR of 2.85%.

Over the forecast period, the transportation and distribution industry will rise at a CAGR of 2.76%.

From 2023 to 2030, the chemical industry segment will grow at a CAGR of 2.75%. 

From 2023 to 2030, the Asia Pacific region will grow at a CAGR of 3.48%.

Europe is predicted to increase at a 4.75% CAGR.

>>> Download Sample Report Now: https://marketreportservice.com/request-sample/chemical-logistics-market-54481

Market Dynamics

Growth Factors

The demand for chemicals has surged, particularly for shale gas as a feedstock in the energy industry. The US chemical sector saw a 0.8% increase in chemical production in August 2020, and is expected to grow at a 2.9% CAGR in the coming years. However, handling chemical transportation with caution is crucial to avoid environmental issues. The rise in demand and the need for safe transportation are expected to drive the growth of the chemical logistics market.

Kuwait's largest logistics warehouse is designed to meet client needs, with the growth of the chemical logistics market predicted to be fueled by cost-effective warehousing solutions and smart technologies like IoT, smart sensors, and robotics.

The increasing demand for chemicals across various industries, including chemical, pharmaceutical, cosmetic, oil & gas, specialty chemicals, and food, is expected to drive market expansion. The complexity of transporting chemicals via roads, railroads, and seas will also contribute to market growth.

Growth Drivers

The global chemical industry is expanding at a 3.85% annual rate, driving demand for chemical logistics. In 2019, global chemical production increased by 2.7% compared to 2018, and the industry's growth is influenced by the drop in crude oil prices. Most chemicals are derived from crude oil refining, and the average price of crude oil decreased from over USD 64.90 per barrel in 2018 to USD 57.05 per barrel in 2019, increasing demand for naphtha, which accounts for 50% of the petrochemical industry's feedstock.

The chemical sector's global expansion is expected to drive market expansion, with the chemical logistics industry shifting to Asian countries. Asia, with growing economies like China, India, Singapore, Malaysia, and Vietnam, accounts for the majority of global chemical sales. By 2030, Asia is expected to account for 64.60% of worldwide chemical sales, strengthening the market during the projection period.

Trends

The global chemical logistics market is experiencing a surge in demand for large-capacity sea vessels. These high-end vessels, equipped with advanced technology like controlled pitch propellers, offer ample dock space, storage, engine power, and bollard pull. Their high load handling capability enables them to transport larger quantities of chemicals in a single trip, reducing logistics costs.

In 2018, container shipping capacity increased by 3.5%-3.7% due to Panama Canal and Suez Canal development projects, driven by rising demand for 40-foot containers in the global chemical sea transportation industry.

Challenges

The warehousing sector faces significant challenges due to high operational costs and capital-intensive companies. Construction of new chemical warehouses is labor-intensive, requiring strict standards and certifications. High operational and maintenance costs also hinder market growth. Despite this, the sector is attracting investments due to the growing demand for warehousing solutions. Optimizing warehouse operations is crucial.

Financial modeling, demand mapping, and infrastructure analyses are crucial for a successful warehouse and storage facility. The long-term return on investment due to the irreversible costs of production and operation, along with managing inventory loss, may hinder market growth over the projection period.

Competitive Landscape of the Chemical Logistics Market

• A&R Logistics
• Agility
• BASF
• BDP International
• BDtrans
• H. Robinson Worldwide Inc.
• Deutsche Bahn (DB) Schenker
• Deutsche Post AG (DHL)
• Rhenus Logistics
• Ryder System Inc.

Recent Developments in Chemical Logistics Market

On 11th September 2021, Aramco a Saudi Arabian Oil Co announced that it will create two new divisions, named Southern Area Gas Operations and Northern Area Gas Operations. This will help to expand the chemical business and to position itself for the energy transition.

On 6th April 2021, BDP International a leading privately-owned global logistics and transportation solutions company has announced the acquisition of DJS Internationala Dallas-based customs brokerage and freight forwarding company.  This acquisition will help the BDP international to expand its US import and customize its brokerage portfolio.

Schneider National Inc. - The company offers chemical logistics such as supply chain, transportation, and delivery under the logistics segment as its key offerings. It also offers non-asset freight brokerage, supply chain (including 3PL), and import/export services under its services segment.

Regional Insights

Asia Pacific is expected to dominate the chemical logistics industry due to rising economies like India and China. The developing countries are focusing on manufacturing and constructing robust warehouse infrastructure, fueling the industry's expansion. RHENUS INDIA plans to extend its warehousing space across India to 2.2 million square feet on October 4, 2021. The facility, approved by the PCB, will serve as the central Rhenus distribution hub for chemical customers throughout South India, providing good connectivity to Chennai's major ports and industrial and automobile hubs.

LAMEA is predicted to significantly increase its market share in 2021 due to the presence of oil wells in Saudi Arabia, the leading producer of oil and chemicals in the region. Ramco, a Saudi energy conglomerate, is working on two major projects in the country: a crude oil-to-chemicals project in Yanbu and a cracker joint venture with France-based Total in Jubail. The favorable government regulation for the chemical industry is expected to boost market growth.

Segments Covered in the Chemical Logistics Market

Chemical Logistics Market By Mode of Transportation

• Roadways
• Railways
• Airways
• Waterways
• Pipelines

Chemical Logistics Market By Services

• Transportation & Distribution
• Storage & Warehousing
• Customs & Security
• Green Logistics
• Consulting & Management Services
• Others

Chemical Logistics Market By End User

• Chemical industry
• Pharmaceutical Industry
• Cosmetic Industry
• Oil & Gas Industry
• Specialty Chemicals Industry
• Food
• Others

Chemical Logistics Market By Region

• North America
• Europe
• Asia Pacific
• LAMEA

Frequently Asked Questions:

What is the current size of chemical logistics market?

The Chemical Logistics Market Predictable at $275.18 billion in 2022, is estimated to increase at a CAGR of 3.97% from $286.35 billion in 2023 to $376.48 billion by 2030.

What is the CAGR of chemical logistics market?

The global chemical logistics market is expected to grow at a compound annual growth rate (CAGR) of 3.97% from 2023 to 2030.

Which are the driving factors of the chemical logistics market?

Rise in demand of chemicals across diverse industry verticals and the surge in concerns for safe transportation of dangerous chemicals are driving factors of the chemical logistics market.

Who are the major players of the chemical logistics market?

The major market player includes A&R Logistics, Agility, BASF, BDP International, BDtrans, C.H. Robinson Worldwide Inc., Deutsche Bahn (DB) Schenker, Deutsche Post AG (DHL), Rhenus Logistics and Ryder System Inc.