Chemical Logistics Market Analysis APAC,North America,Europe,Middle East and Africa,South America - US,China,Japan,South Korea,Germany - Size and Forecast 2023-2027

Chemical Logistics Market Forecast 2023-2027

The Global Chemical Logistics Market size is estimated to grow by USD 53.66 billion between 2022 and 2027 accelerating at a CAGR of 3.65% during the forecast period. The market growth is driven by factors such as the expanding chemical industry, the adoption of multimodal transportation, and investments in port infrastructure. This growth is further driven by the need for efficient transportation of raw materials and finished products. Additionally, the optimization of logistics operations enhances supply chain efficiency, contributing to the market's expansion. These developments ensure reliable, safe, and efficient transportation of chemical products globally, meeting the evolving demands of the industry.

 What will the Size of the Chemical Logistics Market be During the Forecast Period?

To learn more about this report, Request Free Sample

The market is witnessing significant growth driven by various industries and factors. Industries such as food production, pharmaceutical manufacturing, and vehicle manufacturing rely heavily on efficient logistics services to transport their products safely and securely. Collaborations between key players in the industry and the adoption of IoT devices and intelligent cloud platforms are enhancing the efficiency and effectiveness of logistics operations. Agility Logistics, along with other tech-driven logistics services, is playing a crucial role in meeting the evolving demands of industry verticals. However, challenges such as safety hazards, contamination risks, and spoilage concerns persist, necessitating compliance with stringent federal and state regulations to ensure the safe handling and transportation of chemical products. Despite these challenges, the market continues to expand, driven by innovation and the increasing demand for reliable logistics solutions across various industries.

Market Dynamics and Customer Landscape

The market operates at the intersection of liquid and solid states, catering to diverse sectors like shale gas, energy, and food production. With a focus on environmental sustainability, it navigates challenges like contamination and spoilage while meeting stringent federal and state regulations. Collaborations between industry giants like Agility Logistics and the American Chemistry Council drive innovation, integrating IoT devices and intelligent cloud platforms for enhanced efficiency. Warehousing emerges as a critical component, ensuring safety and mitigating safety hazards. Tech-driven logistics services further streamline operations, addressing the unique needs of industry verticals, including pharmaceuticals, cosmetics, and specialty chemicals. Our researchers analyzed the data with 2022 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.

Key Market Drivers

The demand is driven by the growth of the global chemical industry. During 2016-2030, sales of the chemical industry across the world are expected to register a growth rate of 3.85%. In 2019, global chemical production grew by 2.7% compared with 2018. The growth rate of the chemical industry is also driven by the fall in crude oil prices, as most chemicals are obtained from the refining of crude oil. The average price of crude oil fell from over USD 64.90 per barrel in 2018 to USD 57.05 per barrel in 2019, and the demand for naphtha increased as it accounted for 50% of the feedstock in the petrochemical industry.

The growth of the chemical industry across the globe will drive the market. The shift of the industry to emerging Asian countries is likely to propel market growth. For instance, the global sales of chemicals in Asia account for the largest share of chemical sales across the globe due to the presence of many emerging economies such as China, India, Singapore, Malaysia, and Vietnam. Chemical sales are expected to grow in Asia. By 2030, chemical sales in Asia will account for 64.60% of global chemical sales. This shift of chemical industries to Asian countries will strengthen the market during the forecast period.

Significant Market Trends

One of the key trends emerging in the global market is the increased demand for large-capacity sea vessels. High-end sea vessels are characterized by ample dock space, increased storage capacity, high engine capacity, and high bollard pull. These large-sized vessels use the latest technology, such as a controllable pitch propeller. These large-sized vessels use the latest technology and have a higher utilization rate. Their load handling capacity is also high; hence, they can transport larger quantities of chemicals in one go, which also reduces the logistics cost.

The capacity of container shipping grew by 3.5%-3.7% in 2018 due to the expansion project of the Panama Canal and Suez Canal. The increased demand for the 40 ft containers in the global chemical sea transportation market will also drive the market.

Major Market Challenges

The high cost of operations and capital-intensive business is the major challenge impeding 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 operational and maintenance costs of warehouses are very high. The warehousing sector is attracting various investments owing to the increasing demand for warehousing solutions. However, 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 efficacious 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. Therefore, the high cost involved in setting up and operating a warehouse and managing inventory loss is expected to limit the growth of the market during the forecast period.

Customer Landscape

The 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Market Customer Landscape

Market Segmentation

This market report extensively covers market segmentation by service (transportation, warehousing, and others), end-user (chemical industry, pharmaceutical industry, specialty chemical industry, and others), 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. In the service segment of the market, companies specialize in transporting chemicals in both liquid and solid states to various industries worldwide. With a focus on safety and efficiency, these logistics providers play a vital role in supporting industries such as shale gas, energy, pharmaceuticals, vehicle manufacturing, and engineering. They navigate complex regulatory landscapes, adhering to federal regulations set by organizations like the American Chemistry Council and governmental bodies such as the government of India. Additionally, these logistics services address environmental concerns associated with chemical transportation, employing innovative solutions and technologies such as intelligent cloud platforms to enhance operational sustainability. Moreover, they cater to diverse industries, including the cosmetic and specialty chemicals sectors, facilitating the efficient movement of raw materials and finished products. Amidst challenges like OEM shutdowns and fluctuating chemical demand, these logistics services remain agile, ensuring seamless supply chain operations for their clients across the globe.

By Service

Based on service, the market is segmented into transportation, warehousing, and others. The market share growth of the transportation segment will be significant during the forecast period. A rise in intra-regional trades and distribution of chemicals, as well as the relocation of manufacturing facilities to countries such as Brazil, China, India, Mexico, and South Africa, where labor costs are low, is spurring the demand for both domestic and international chemical transportation logistics. An increase in free trade agreements and the formation of a trade bloc between countries are also driving the demand for transportation services across the world.

Get a glance at the market contribution of various segments  Request a PDF Sample

The transportation segment was valued at USD 90.68 billion in 2017 and continued to grow until 2021. For the providers, road transportation offers advantages such as last-mile delivery and higher flexibility. The increased expenditure on road infrastructure will strengthen the use of the road for transporting chemicals. For instance, the national highway network in India is expected to grow to 50,000 km by 2019. The development of a road highway network between 32 Asian countries will also facilitate chemical transportation by road. Chemicals are transported by sea using tank containers, sea tankers, barges, intermediate bulk containers, and flex tanks. An increase in the global port and terminal handling operation due to an improved port capacity and increased efficiency at ports while reducing the turnaround time at the harbor will enhance the use of the sea as a mode to transport chemicals.

Key Regions

For more insights on the market share of various regions Request PDF Sample now!

APAC is projected to account for 64% of the global market share by 2023. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

APAC is growing at the fastest rate in the global market compared with other regions. Factors such as low cost of labor, manufacturing expenses, and high consumer base enable foreign and domestic investors to plan their future projects and investments in this region. The growth of the logistic parks and logistics space in APAC is driving the global third-party logistics (3PL) market in the region. The top seven economies cumulatively hold more than 1.5 billion square meters of gross floor area.

Who are the Major Market Companies?     

Companies 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.

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.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Agility Public Warehousing Co. K.S.C.P
• BASF SE
• BRENNTAG SE
• C H Robinson Worldwide Inc.
• CMA CGM SA
• CSX Corp.
• CT Logistics
• Deutsche Bahn AG
• Deutsche Post AG
• Dow Inc.
• DSV AS
• Dupre Logistics
• FedEx Corp.
• Kintetsu Group Holdings Co. Ltd.
• North West Carrying Company LLP

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 market 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.

Market Analyst Overview

The rise of shale gas has sparked significant changes in the energy industry, but it also brings environmental problems that demand attention. This has led to increased chemical demand for manufacturing processes across various sectors such as food production, pharmaceuticals, and vehicle manufacturing. Entities like the American Chemistry Council and the government of India are fostering collaborations to address these challenges, leveraging IoT devices and intelligent cloud platforms for efficient logistics solutions. Agility Logistics is at the forefront of providing tech-driven logistics services tailored to industry verticals like the cosmetic and specialty chemicals industries. However, challenges such as OEM shutdowns, safety hazards, and regulatory compliance loom, emphasizing the importance of robust systems to prevent contamination and spoilage.

The intricate process of chemical manufacturing spans diverse sectors, including pharmaceuticals, engineering, and the cosmetic industry. With the rise in chemical volumes, the integration of intelligent cloud platforms has become essential for efficient operations, especially in the specialty chemicals industry. This sector, along with automobile manufacturing, relies heavily on chemical logistics companies to navigate transportation and distribution challenges across various modes like airways, roadways, railways, waterways, and pipelines. Compliance with federal and state regulations ensures the safety of workers and the general public alike. Moreover, the proliferation of IoT-enabled connected devices has revolutionized tracking and monitoring capabilities, enhancing the overall efficiency and reliability.

 

The pharmaceutical manufacture stands as a cornerstone, driving the demand for efficient supply chain solutions. Leveraging an intelligent cloud platform, companies manage logistics operations seamlessly, ensuring the smooth flow of goods in both liquid state and solid state while complying with stringent federal regulations. Embracing sustainable business operations, the industry integrates Internet of Things (IoT), smart sensors, robotics, Artificial Intelligence (AI), and machine learning to optimize processes and enhance efficiency. Radio-frequency identification (RFID) and Bluetooth technologies enable precise tracking and monitoring, while drone delivery and driverless vehicles revolutionize last-mile logistics. Regulatory bodies like the Pollution Control Board (PCB) ensure environmental compliance, fostering a sustainable future.

Segment Overview

The market research and growth report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Service Outlook 
  • Transportation
  • Warehousing
  • Others

• End-user Outlook 
  • Chemical industry
  • Pharmaceutical industry
  • Specialty chemical industry
  • Others

• Region Outlook 
  • APAC
    • China
    • India
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Brazil
    • Argentina

Market Scope
Report Coverage	Details
Page number	182
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 3.65%
Market growth 2023-2027	USD 53.66 billion
Market structure	Fragmented
YoY growth (%)	3.39
Regional analysis	APAC, North America, Europe, Middle East and Africa, and South America
Performing market contribution	APAC at 64%
Key countries	US, China, Japan, South Korea, and Germany
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	Agility Public Warehousing Co. K.S.C.P, BASF SE, BRENNTAG SE, C H Robinson Worldwide Inc., CMA CGM SA, CSX Corp., CT Logistics, Deutsche Bahn AG, Deutsche Post AG, Dow Inc., DSV AS, Dupre Logistics, FedEx Corp., Kintetsu Group Holdings Co. Ltd., North West Carrying Company LLP, PSA International Pte Ltd., Saudi Basic Industries Corp., Schneider National Inc., and Univar Solutions 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 forecast 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.

Request PDF sample

What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period.
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2027
• Precise estimation of the market size and contribution of the market in focus on the parent market.
• Accurate predictions about upcoming trends and changes in consumer behavior.
• Market growth analysis across APAC, North America, Europe, the Middle East and Africa, and South America.
• A thorough analysis of the market’s competitive landscape and detailed information about companies.
• Market forecasting of factors that will challenge the growth of the key market companies.

We can help! Our analysts can customize this report to meet your requirements. Get in touch