Chemical Logistics Market Analysis APAC, North America, Europe, Middle East and Africa, South America - China, US, Japan, Germany, South Korea - Size and Forecast 2024-2028

Chemical Logistics Market Size 2024-2028

The chemical logistics market size is forecast to increase by USD 67.7 billion, at a CAGR of 4.36% between 2023 and 2028.

• The market is driven by the expansion of the chemical industry, which continues to be a significant contributor to global economic growth. The increasing demand for chemicals in various sectors, including agriculture, pharmaceuticals, and manufacturing, fuels the need for efficient and reliable logistics solutions. A notable trend shaping the market is the integration of blockchain technology in chemical logistics. This innovation offers enhanced security, transparency, and traceability, addressing concerns related to product authenticity and supply chain efficiency. However, the market faces challenges, primarily the high cost of operations and the capital-intensive nature of the business. The chemical logistics sector requires substantial investment in infrastructure, technology, and compliance with stringent regulations.
• Companies must navigate these challenges to capitalize on opportunities in the market, which includes expanding their service offerings, improving operational efficiency, and collaborating with industry partners to share resources and expertise. By addressing these challenges, chemical logistics providers can effectively meet the growing demand for secure and efficient transportation and storage solutions in the chemical industry.

What will be the Size of the Chemical Logistics Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2018-2022 and forecasts 2024-2028 - in the full report.  
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The market continues to evolve, driven by the complexities and unique requirements of transporting hazardous materials across various sectors. Entities involved in this dynamic industry include driver management, dangerous goods packaging, packaging solutions, risk management, contract logistics, spill response, warehouse automation, data privacy, last-mile delivery, material handling equipment, hazardous materials handling, regulatory compliance, and road transport. These entities are interconnected, with each playing a crucial role in ensuring the safe and efficient transportation of chemicals. For instance, driver management is essential for maintaining compliance with regulations and ensuring the competency of personnel handling hazardous materials. Dangerous goods packaging and packaging solutions protect the materials during transport, while risk management mitigates potential hazards.

Contract logistics enables businesses to outsource their logistics operations, allowing them to focus on their core competencies. Spill response teams are on standby to address any accidents, while warehouse automation streamlines operations and enhances supply chain visibility. Data privacy is crucial in maintaining confidentiality, and last-mile delivery ensures timely and accurate delivery to customers. Material handling equipment, hazardous materials handling, and regulatory compliance are essential for ensuring the safe handling and transportation of chemicals. Regulatory compliance is a continuous process, with ongoing updates to safety standards and dangerous goods regulations. Road transport plays a significant role in chemical logistics, with route optimization and fleet management ensuring fuel efficiency and reducing carbon footprint.

Intermodal transportation, including sea, rail, and air transport, offers flexibility and cost savings. Sustainability initiatives, such as emissions reduction and temperature-controlled shipping, are increasingly important in the chemical logistics industry. Just-in-time (JIT) delivery and emergency response ensure that businesses have the materials they need when they need them. Logistics software and real-time monitoring enable efficient and effective operations, while third-party logistics (3PL) providers offer scalability and flexibility. Demand forecasting and order fulfillment are critical components of successful chemical logistics operations. Load securement and tracking systems ensure the safe transportation of hazardous materials, while safety standards and emergency response plans mitigate risks.

Overall, the market is a complex and evolving landscape, requiring continuous adaptation and innovation to meet the unique needs of the industry.

How is this Chemical Logistics Industry segmented?

The chemical logistics industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Service
  • Transportation
  • Warehousing
  • Others
• End-user
  • Chemical industry
  • Pharmaceutical industry
  • Speciality chemical industry
  • Others
• Mode of Transportation
  • Roadways
  • Railways
  • Airways
  • Waterways
  • Pipelines
  • Roadways
  • Railways
  • Airways
  • Waterways
  • Pipelines
• Geography
  • North America
    • US
  • Europe
    • Germany
  • APAC
    • China
    • Japan
    • South Korea
  • Rest of World (ROW)

By Service Insights

The transportation segment is estimated to witness significant growth during the forecast period.

The market is experiencing significant growth due to the increasing demand for transportation services resulting from the rise in intra-regional trades and the relocation of manufacturing facilities to countries with lower labor costs, such as Brazil, China, India, Mexico, and South Africa. Free trade agreements and the formation of trade blocs are further driving this demand for logistics solutions on a global scale. Value-added services, such as RFID tracking, inventory control, and customs brokerage, are essential components of chemical logistics, ensuring regulatory compliance, risk management, and supply chain visibility. Bulk shipping, sea transport, and intermodal transportation are key modes of transportation for the chemical industry, with air and rail transport playing a crucial role in delivering time-sensitive and high-value chemicals.

Safety standards, including load securement, driver management, and hazardous materials handling, are of utmost importance in chemical logistics. Real-time monitoring, data analytics, and route optimization are critical for efficient and cost-effective operations. Third-party logistics providers offer a range of services, including contract logistics, reverse logistics, and spill response, to help companies manage their chemical supply chains. Sustainability initiatives, such as emissions reduction and the use of temperature-controlled shipping, are becoming increasingly important in the chemical logistics industry. Logistics software, fleet management, and order fulfillment systems enable companies to optimize their operations and improve their overall efficiency. Regulatory compliance, including dangerous goods regulations and hazardous waste disposal, is a significant challenge for chemical logistics providers.

Effective risk management, theft prevention, and emergency response plans are essential for mitigating potential risks and ensuring the safe and secure transportation of chemicals. In conclusion, the market is witnessing significant growth due to the increasing demand for transportation services, driven by intra-regional trades and the relocation of manufacturing facilities. Value-added services, safety standards, sustainability initiatives, and regulatory compliance are key areas of focus for chemical logistics providers. The market is dynamic and complex, requiring innovative solutions to meet the unique challenges of the chemical industry.

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The Transportation segment was valued at USD 95.30 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 62% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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In the market, APAC is experiencing the fastest growth due to its low labor and manufacturing costs, vast consumer base, and increasing logistics infrastructure. The expansion of logistic parks and logistics space in this region is significantly contributing to the third-party logistics (3PL) market. The top seven economies in APAC collectively account for over 1.5 billion square meters of gross floor area. The advancement of cold chain warehouse infrastructure is particularly driving the growth of temperature-controlled warehousing in APAC. Chemicals necessitate efficient cold warehouse facilities to preserve their physical and chemical properties, thereby fueling the market's growth in the region.

Value-added services, such as inventory control, customs brokerage, and theft prevention, are essential components of the market. Bulk shipping, sea transport, and intermodal transportation are key modes of chemical transportation. Data analytics and real-time monitoring enable effective risk management and supply chain visibility. Reverse logistics and spill response are crucial for managing waste and addressing emergencies. Contract logistics, driver management, and dangerous goods packaging are essential value-added services for chemical companies. Regulatory compliance, safety standards, and sustainability initiatives are critical factors in the market. The market encompasses various modes of transportation, including road transport, rail transport, and air transport, each with unique challenges and requirements.

Logistics software, fuel efficiency, and route optimization are essential for optimizing operations and reducing emissions. Warehouse automation, material handling equipment, and hazardous materials handling are vital for efficient and safe warehouse operations. Data privacy and last-mile delivery are essential considerations for ensuring secure and timely delivery of chemicals. The market is dynamic, with ongoing trends shaping its evolution. Just-in-time (JIT) delivery, emergency response, and demand forecasting are essential for meeting customer needs and optimizing inventory levels. Fleet management, load securement, and tracking systems are crucial for ensuring efficient and secure transportation of chemicals. The market is subject to various regulations, including dangerous goods regulations, which require adherence to strict packaging and handling standards.

Hazardous waste disposal and carbon footprint reduction are essential sustainability initiatives for the chemical logistics industry.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in the adoption of Chemical Logistics Industry?

• The chemical industry's growth serves as the primary catalyst for market expansion. 

• The market is experiencing significant growth due to the expanding global chemical industry. According to recent research, the chemical industry's sales are projected to grow at a rate of 3.85% between 2016 and 2030. In 2019, global chemical production increased by 2.7% compared to the previous year. The decline in crude oil prices is a major factor fueling this growth, as most chemicals are derived from crude oil. In 2019, the average price of crude oil dropped from over USD 64.90 per barrel in 2018 to USD 57.05 per barrel. This price decrease led to an increase in demand for naphtha, which accounts for half of the feedstock in the petrochemical industry.
• Freight forwarding, RFID tracking, value-added services, and bulk shipping are essential components of chemical logistics. Sea transport plays a significant role in the industry due to the large volumes of chemicals transported via this mode. Data analytics is another critical aspect, enabling inventory control and optimizing supply chain operations. Reverse logistics and waste management are also important, as the chemical industry generates a substantial amount of waste. Customs brokerage and theft prevention are key considerations in the transportation of chemicals. Pipeline transportation is another method used for transporting large volumes of chemicals, ensuring their safe and efficient delivery. Chemical logistics providers offer a range of value-added services, including labeling, packaging, and repackaging, to meet the specific needs of their clients.

What are the market trends shaping the Chemical Logistics Industry?

• The introduction of blockchain technology is a significant market trend in the logistics industry. This innovative technology is set to revolutionize the sector by enhancing transparency, security, and efficiency in supply chain management.

• Blockchain technology, a digitalized platform with distributed transaction ledgers, is revolutionizing the logistics industry by enabling various stakeholders to maintain identical copies of transaction records on multiple computer systems. This eliminates the need for a central authority to maintain records, ensuring transparency, cost efficiency, and real-time information flow. Logistics companies are increasingly adopting this technology to enhance supply chain efficiency and data security. With blockchain, dangerous goods packaging and driver management become more secure and compliant with regulatory requirements. Warehouse automation and material handling equipment operations are optimized, reducing the risk of errors and improving productivity.
• Spill response and hazardous materials handling are also streamlined, ensuring swift and effective containment and cleanup. Data privacy is maintained through cryptographically protected records, ensuring the confidentiality and integrity of sensitive information. Last-mile delivery is made more efficient with real-time tracking and automated documentation, reducing delivery errors and enhancing customer satisfaction. Road transport operations benefit from improved regulatory compliance, reducing the risk of fines and penalties. In conclusion, blockchain technology is transforming the logistics industry by offering a secure, transparent, and efficient platform for managing complex supply chain operations. Its adoption is expected to continue growing as more companies recognize its potential to improve operational efficiency, reduce costs, and enhance data security.

What challenges does the Chemical Logistics Industry face during its growth?

• The high cost of operations and the capital-intensive nature of the industry pose significant challenges, impeding its growth. 

• The market is a significant sector that demands careful planning and optimization to ensure efficient and safe operations. Warehousing, a crucial component of this market, involves substantial capital investment and adherence to rigorous specifications for certification. Operational and maintenance costs are high, making the successful and effective operation of warehouses essential. Key aspects for a feasible and efficient warehouse and storage facility include accurate financial modeling, demand forecasting, and infrastructure analysis. With the increasing demand for warehousing solutions, investments are being made in this sector. However, the long-term nature of the investment necessitates a focus on optimizing operations to minimize costs and maximize returns.
• Route optimization, intermodal transportation, safety standards, just-in-time (JIT) delivery, emergency response, supply chain visibility, sustainability initiatives, inventory management, load securement, tracking systems, real-time monitoring, and third-party logistics (3PL) are all critical factors in the market. Ensuring compliance with these factors contributes to a harmonious and efficient supply chain. Safety standards are of utmost importance in the market due to the hazardous nature of the materials involved. Implementing safety measures, such as proper load securement and emergency response plans, is essential to mitigate risks and protect the workforce and the environment. Inventory management and demand forecasting are also crucial aspects of the market.
• Real-time monitoring and tracking systems enable accurate inventory levels and facilitate JIT delivery, reducing the need for excessive stock and minimizing waste. Sustainability initiatives, such as the use of renewable energy sources and eco-friendly practices, are becoming increasingly important in the market. Implementing these initiatives not only benefits the environment but also enhances a company's reputation and competitive edge. In conclusion, the market requires a comprehensive approach to ensure efficient and effective operations. Focusing on route optimization, intermodal transportation, safety standards, JIT delivery, emergency response, supply chain visibility, sustainability initiatives, inventory management, load securement, tracking systems, real-time monitoring, and third-party logistics (3PL) is essential for a successful and profitable business.

Exclusive Customer Landscape

The chemical logistics market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the chemical logistics market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, chemical logistics market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

Agility Public Warehousing Co. K.S.C.P - The company specializes in chemical logistics solutions through its Agility Logistics Parks, providing secure and efficient storage and transportation services for hazardous materials, ensuring regulatory compliance and optimizing supply chain operations for various industries.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Agility Public Warehousing Co. K.S.C.P
• BASF SE
• BRENNTAG SE
• C H Robinson Worldwide Inc.
• CMA CGM SA Group
• CSX Corp.
• CT Logistics
• Deutsche Bahn AG
• Deutsche Post AG
• Dow Chemical Co.
• DSV AS
• Dupre Logistics LLC
• FedEx Corp.
• Kintetsu Group Holdings Co. Ltd.
• North West Carrying Company LLP
• PSA International Pte Ltd.
• Saudi Basic Industries Corp.
• Schneider National Inc.
• Univar Solutions Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Recent Development and News in Chemical Logistics Market

• In January 2024, S.D.C. Logistics, a leading chemical logistics provider, announced the launch of its new specialized temperature-controlled chemical transport division, expanding its service offerings to meet the growing demand for temperature-sensitive chemical products (SDC Logistics Press Release).
• In March 2024, ChemLogistics and Dow Inc. signed a strategic partnership agreement to optimize Dow's chemical supply chain, integrating ChemLogistics' logistics solutions and Dow's chemical production capabilities (Dow Inc. Press Release).
• In May 2024, Kuehne + Nagel, a global logistics company, acquired a 70% stake in ChemLogistics India, marking its entry into the Indian market and strengthening its global network (Kuehne + Nagel Press Release).
• In April 2025, the European Chemicals Agency (ECHA) approved the use of a new, more sustainable chemical transport technology for hazardous materials, which is expected to significantly reduce the carbon footprint of the chemical logistics industry (ECHA Press Release).

Research Analyst Overview

• The market is characterized by intricate product lifecycles and global supply chains that demand effective company management and business intelligence for optimal performance. Performance reporting, sales forecasting, and predictive analytics are crucial for managing storage conditions and ensuring product traceability, adhering to shelf life and regulatory compliance. Carrier selection and regional distribution centers play a significant role in cost optimization and supply chain resilience, necessitating disruption management strategies. Moreover, the integration of IoT sensors, AI-powered logistics, and big data enables real-time monitoring and process optimization, enhancing efficiency improvements and quality control. Strategic partnerships and contract negotiation are essential for capacity planning, addressing chemical reactivity, and navigating regulatory changes.
• Blockchain technology and data visualization tools further bolster transparency, ensuring compliance auditing and cost savings. Pricing strategies must adapt to market dynamics, balancing cost optimization and competitive differentiation. Overall, the market continues to evolve, requiring continuous adaptation to technological advancements and industry trends.

Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Chemical Logistics Market insights. See full methodology.

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What are the Key Data Covered in this Chemical Logistics Market Research and Growth Report?

• CAGR of the Chemical Logistics industry during the forecast period
• Detailed information on factors that will drive the growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
• Accurate predictions about upcoming growth and trends and changes in consumer behaviour
• Growth of the market across APAC, North America, Europe, Middle East and Africa, and South America
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the chemical logistics market growth of industry companies

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