PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1514886
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1514886
Chemical Logistics Market size was valued at USD 267,345.89 million in 2023, expanding at a CAGR of 3.1% from 2024 to 2032.
Multiple market factors influence the Chemical Logistics industry, which in turn shapes its growth and dynamics. The demand for chemicals from the global chemical industry, which includes their production and distribution for use in a variety of industries like manufacturing, agriculture, and healthcare, is one important aspect. To avoid any safety risks like contamination and spoiling, these substances must be transported, handled, and stored with extra caution. To reduce risks to the public and employees, chemical logistics service providers also have to abide by evolving federal and state laws.
Chemical Logistics Market- Market Dynamics
Rising demand for chemical logistics
The last several years have seen an increase in the production of different chemicals. The necessity for shale gas transportation to the energy sector has increased due to the growing use of shale gas as a feedstock. According to the American Chemistry Council (ACC), for example, the U.S. chemical sector boosted its production of chemicals by 0.8% in August 2020 compared to 2016. This improvement is predicted to account for a 3% gain in 2020. Because manufactured chemicals must be delivered safely, the demand for the worldwide chemical logistics industry is expected to increase in the future. As a result, it is projected that rising chemical production for a range of end-use sectors will fuel the chemical logistics market's expansion.
Chemical Logistics Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 3.1% over the forecast period (2024-2032)
Based on transportation mode segmentation, Roadways were predicted to show maximum market share in the year 2023
Based on service segmentation, the Transportation & Distribution segment was the leading type in 2023
Based on region, Asia Pacific was the leading revenue generator in 2023
The Global Chemical Logistics Market is segmented based on Mode of Transportation, Services, End Use Industry, and Region.
The market is divided into Five categories based on Mode of Transportation: Roadways, Railways, Airways, Waterways, and Pipelines. Among that the roadways segment is anticipated in the chemical logistics market. The most common means of transportation in the chemical logistics sector has been the use of roadways, which include the use of trucks, tankers, and other road-based vehicles. the reason for this supremacy is that road transportation offers chemical product transportation with flexibility, accessibility, and vast coverage. Door-to-door delivery of chemical products is made possible via roadway transportation, and this is frequently a crucial need for chemical enterprises and their clients. Direct delivery to the intended site is possible thanks to the adaptability of truck-based transportation.
The market is divided into six categories based on service: Transportation & Distribution, Storage & Warehousing, Customs & Security, Green Logistics, Consulting & Management Services, and Others. In terms of service, Transportation & Distribution is anticipated to grow at an important rate during the forecast period. The chemical logistics market has been dominated by Transportation & The importance of timely delivery For chemical manufacturers and their clients, prompt and dependable delivery of chemical products is essential. The seamless and punctual supply of chemicals is contingent upon the availability of the Transportation & Distribution service type.
Chemical Logistics Market- Geographical Insights
Geographically, It is anticipated that the chemical logistics sector will be led by Asia Pacific. One of the main factors propelling market progress in this region is the existence of developing economies like China and India. The Asia Pacific region's epicentre for growing economies is all of Southeast Asia. India ranks seventh in imports and 14th in exports of chemicals, making it a global leader in both areas. Chemicals will continue to be a worldwide business, with China constituting its largest single market. The construction of a strong warehouse infrastructure and a persistent emphasis on the manufacturing sector by developing nations is anticipated to drive the growth of the chemical logistics sector. For instance, Rhenus India will increase its capacity to support the chemical industry by extending its warehouse space to 2.2 million square feet throughout India on October 4, 2021. The factory that has been certified by the PCB (Pollution Control Board) will serve as the main Rhenus distribution hub for chemical clients throughout South India. It has good access to Chennai's main ports as well as significant automotive and industrial hubs. Moreover, the continuous expansion of the industry demands the construction of additional transportation and warehousing infrastructure. According to Invest India, for instance, through 2025, the demand for chemical goods is expected to increase by about 9% annually.
The worldwide chemical logistics market is populated by numerous large and small companies. The industry is very dispersed. In recent years, the industry has witnessed several innovative and digital trends, such as the adoption of IoT and big data analytics to further propel the expansion of the chemical logistics sector. A&R Logistics, Agility Logistics, Al-Futurism Logistics, C.H. Robinson, and BDP International, Inc. are a few of the leading companies. Prominent companies like Agility Logistics and BASF are making significant investments to make a splash in this extremely competitive sector. For instance, Sinochem and ChemChina, two state-owned Chinese companies, combined in April 2021 with the State-owned Assets Supervision and Administration Commission's (SASAC) permission. A brand-new company that is fully owned by Sasac will be established, receiving two distinct subsidies from the Sinochem and ChemChina companies. To maximize margins in a competitive market, it allows the corporations the option to share their experience in oil trading and refining.
In December 2022, Mid-States Packaging was acquired by Quantix, a portfolio company of Wind Point Partners ("Wind Point") and the leading supplier of supply chain services to the chemical sector in North America. Located in Texas, the Northeast, and the Mid-Atlantic, Mid-States offers full-service dry bulk transportation, warehousing, and export services. Its 11 sites cover these regions. Quantix regional reach, warehouse operations, and trucking transportation activities are all expanded by Mid-States.
In April 2022, A strategic alliance was formed between C.H. Robinson and Waymo, an American autonomous driving technology company, to promote the development of autonomous trucks for supply chains. Over the next few years, C.H. Robinson customers will be transported by Waymo Via's autonomous trucks in many trial programs-sharing knowledge and expertise to support the long-term growth of driverless freight transportation for carriers and customers.
GLOBAL Chemical Logistics Market KEY PLAYERS- DETAILED COMPETITIVE INSIGHTS
A&R Logistics
Agility
BASF
BDP International, Inc.
BD trans
C.H. Robinson Worldwide Inc.
Deutsche Bahn (DB) Schenker
Deutsche Post AG (DHL)
Rhenus Logistics
Ryder System Inc.
Al-Futurism Logistics
BASF
Dow Inc.
Bayer AG
ExxonMobil Corporation
DuPont
INEOS Group
Covestro AG
Air Liquide
Total SE
Others
FIGUREProduct Type segment market share analysis, 2023 & 2032
FIGUREProduct Type segment market size forecast and trend analysis, 2019 to 2032 (USD Million)