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The chemical warehousing and storage market size is estimated to grow at a CAGR of 3.88% between 2022 and 2027. The size of the market is forecast to increase by USD 7,321.57 million. The growth of the market depends on several factors, including the rise in international trade, the shift toward efficient warehouses and storage systems, and the manufacturing industries driving the consumption of speciality chemicals.
This market report extensively covers market segmentation by application (commodity chemicals and speciality chemicals), type (general warehouse and specialized warehouse), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The rise in international trade is notably driving the chemical warehousing and storage market growth, although factors such as the high cost of operations and the capital-intensive nature of the business may impede the market growth. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the market's key drivers, trends, and challenges.
Key Chemical Warehousing and Storage Market Driver
The rise in international trade is notably driving the chemical warehousing and storage market growth. The global demand for chemicals, specifically specialty chemicals, and petrochemicals, has increased rapidly in the past few years and is mainly driven by the high consumption of the same in developing economies such as India and China. Countries need to have adequate storage facilities to stock these chemical raw materials to meet the rising demand from end-user industries. APAC is one of the leading geographic regions in terms of the production and consumption of chemical products due to the strong presence of chemical manufacturers and end-user industries.
The trade war between the US and China had a positive impact on the number of chemical products being exported to China, especially for the companies operating in the developing regions of the country. This enabled various chemical distributors to globalize their service portfolios and gain a strong presence in China. The increasing trade of chemical products globally requires logistics, distribution, and warehousing services. Therefore, all these factors are contributing to the trade of various types of chemical products around the globe, which is driving the demand for chemical warehousing and storage.
Key Chemical Warehousing and Storage Market Trends
The use of blockchain to improve traceability in logistics is a key trend in the market. A blockchain is a sequential series of information and comprises records of events that cannot be altered or tampered with. In other words, a blockchain system is a chain of cryptographically protected records. Multiple users can access or add data to the chain without being able to change or delete the information that is already present.
The use of blockchain technology eliminates the need for a centralized authority for maintaining records, which makes all the processes in a supply chain more efficient and cost-effective. In 2020, Sinochem, one of the major chemical producers in China, introduced the warehouse receipt blockchain. The new blockchain technology will offer more transparency in warehouse and storage operations. These factors will support market growth during the forecast period.
Key Chemical Warehousing and Storage Market Challenge
The high cost of operations and the capital-intensive nature of the business may impede market growth. The construction of a new chemical warehouse and storage facility is a highly capital-intensive task and requires complying with a wide range of specifications and obtaining certifications. In addition, the cost of operating and maintaining a warehouse is very high. The successful and optimized operation of warehouses is a critical task. Appropriate financial modeling, demand mapping, and infrastructure analyses are some of the key aspects required for a feasible and efficient warehouse and storage facility. Since the capital involved in the manufacturing and setting up of a warehouse is irreversible, the period required to receive the return on investment is long.
Setting up a chemical warehouse is a critical task, and the cost of investment varies with the specifications of the chemicals one can store. Different chemicals possess different properties and require diverse types of storage. Various other factors, such as legal and government regulations, the political scenario, and the competition in various regions, also impact the growth of the global chemical warehousing and storage market. Therefore, the high cost involved in setting up and operating a warehouse and managing inventory loss and SKU proliferation is expected to limit the growth of the market during the forecast period.
Key Chemical Warehousing and Storage Market Customer Landscape
Our analysis of the life cycle of the market indicates a movement from the innovator’s stage to the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries including the US, China, Japan, Germany, and the UK. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Chemical Warehousing and Storage Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market
Maersk- The company offers chemical warehousing and storage for hazardous materials, which are used in explosives and are flammable
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the commodity chemicals segment will be significant during the forecast period. The commodity chemicals segment includes petrochemicals, inorganic commodity chemicals, and fertilizers. The increasing demand for petrochemical products is a major factor driving the growth of the commodity chemicals segment.
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The commodity chemicals segment showed a gradual increase in market share with USD 21,267.03 million in 2017 and continued to grow by 2021. Petrochemicals are components derived from oil and gas and are used in the manufacturing of everyday products. Some of the products manufactured using petrochemicals include plastics, packaging materials, digital devices, medical equipment, and tires. Therefore, the growing demand from various end-user industries, including packaging, transportation, plastics, and healthcare, is expected to drive the growth of the petrochemical segment. Furthermore, our report provides a brief analysis of the historical and forecast market share and their segments along with their reasons for growth from 2017 to 2027.
The growth of this segment is primarily attributed to the increasing adoption of chemical warehousing and storage, which is driven by an increase in the global demand for chemical warehousing and storage.
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APAC is projected to contribute 41% of the market's growth by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market is expected to witness a significant growth rate during the forecast period due to an increase in the production and consumption of chemical products. The growing demand for commodity chemicals and specialty chemicals is expected to influence distribution and warehousing in various emerging economies in the region. Countries such as China, Japan, South Korea, India, and Australia are the major contributors to the growth of the market in the region. The high market potential due to the increasing spending power of the rising middle is one of the prime factors that attract investments from chemical warehousing and storage facilitators in the region.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. In 2020 and 2021, the COVID-19 pandemic had a positive impact on the regional chemical warehousing and storage market. E-commerce sales in countries such as China, India, Singapore, and Australia increased as consumers stayed at home and made purchases through e-commerce platforms, such as Amazon.com. Moreover, in 2021, owing to the mass vaccination drives and the lifting of lockdowns, the demand for warehousing and the storage of chemicals from end-user industries such as automotive and electronics is expected to revive slowly. Thus, the chemical warehousing and storage market in APAC is expected to grow during the forecast period.
Our market report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by type, application, and region.
Chemical Warehousing and Storage Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2022 |
Historical year |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.88% |
Market growth 2023-2027 |
USD 7,321.57 million |
Market structure |
Fragmented |
YoY growth (%) |
2.98 |
Regional analysis |
APAC, North America, Europe, South America, and the Middle East and Africa |
Performing market contribution |
APAC at 41% |
Key consumer countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
Key companies profiled |
ALFRED TALKE GmbH & Co. KG, AP Moller Maersk AS, Aramex International LLC, C.H. Robinson Worldwide Inc., Capital Resin Corp., CMA CGM SA, Deutsche Bahn AG, Deutsche Post AG, DSV Panalpina AS, FedEx Corp., Goodrich Maritime Services Pvt. Ltd., KEMITO, Kuehne + Nagel Management AG, Nippon Express Holdings Inc., Omni Logistics LLC, Rhenus SE & Co. KG, S.F. Holding Co. Ltd., Singapore Post Ltd., and SolvChem Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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