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The chemical tanker market size is estimated to increase by USD 10.12 billion and grow at a CAGR of 5.58% between 2022 and 2027.Market growth hinges on various factors, such as the expansion of LNG (Liquefied Natural Gas) tanker transportation, enhancements in tanker propulsion systems, and shifts in the baltic dry index.
Conversely, market growth is impeded by the volatility of the baltic dry index, declining crude oil production, and fluctuations in operational and maintenance costs. Between March and early October 2021, there was a notable rise in natural gas prices, consequently boosting the demand for oil and gas products such as bunker fuel. This upward trend is anticipated to continue throughout the forecast period, thereby stimulating chemical tanker market growth. Additionally, the transportation of liquefied natural gas (LNG) can be facilitated through pipelines, but the superior benefits offered by LNG chemical tankers are fueling demand for the latter. It is projected that the global LNG fleet will continue to exceed demand in 2022, contributing to the expansion of the market in the foreseeable future.
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This chemical tanker market industry report extensively covers market segmentation by product (organic chemicals, vegetable fats and oils, inorganic chemicals, and others), type (inland, coastal, and deep sea), and geography (APAC, Middle East and Africa, North America, South America, and Europe). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the chemical tanker market research report includes historic market data from 2017 to 2021.
The market share growth by the organic chemicals segment will be significant during the forecast period. Organic chemicals are widely used in the food and beverages industry because of their preservatives and antioxidant. Also, the rapid rise of shale gas in China and North America has boosted the production of organic chemicals in these regions. Advanced technologies for preventing the growth of harmful bacteria are being introduced in chemical tankers. Thus, such factors drive the growth of the global market during the forecast period.
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The organic chemicals segment was valued at USD 11.45 billion in 2017 and continue to grow by 2021. The segment is expected to grow owing to the rising demand for pharmaceuticals, fertilizers, pesticides, crop protection, pesticides, food and beverages, personal care products and cosmetics, polymers, water treatment, and other products. Such factors will increase the segment growth in the market during the forecast period.
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APAC is estimated to contribute 42% 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. The market in focus in APAC is anticipated to increase as a result of factors like significant local production, significant expansion plans in China, and the widespread presence of key chemical producers in the region. It is anticipated that growing awareness of the health benefits offered by organic chemicals, along with lenient government regulations in the area, will enhance demand for organic chemicals in the area, which will, as a result, drive the demand in the region. APAC is anticipated to expand over the projected period as a result of the sizeable production bases of chemical companies and the existence of cutting-edge transportation technologies. Due to these factors, the market will grow during the forecast period.
The market is driven by the increasing demand for chemical transportation services worldwide. Tanker ships play a crucial role in the shipping industry, facilitating the bulk transport of hazardous materials and chemicals. As the global economy grows, there is a rising need for chemical logistics solutions to ensure the safe and efficient movement of these substances.
Tanker fleets are expanding to meet the growing demand for bulk liquid transport, with advancements in tanker capacity and construction enhancing efficiency and operational capabilities. Cargo handling technologies and chemical handling equipment are evolving to improve safety and streamline cargo operations.
Moreover, stringent regulations and standards for tanker maintenance, inspections, and certification are shaping market trends, driving investments in tanker safety equipment, emergency response systems, and environmental protection measures. Tanker fuel management solutions are also gaining prominence to enhance sustainability and reduce emissions, reflecting the industry's commitment to pollution control and environmental stewardship.
Overall, the market is witnessing a steady growth trajectory driven by increasing global trade and the critical role of tanker ships in transporting hazardous materials safely and efficiently.
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.
The increase in LNG tanker transportation is a key factor driving the growth of the global market. The supply growth of LNG tanker transportation in 2021 was supported by the increase in the commercial production of LNG, owing to the commissioning of LNG liquefication production plants in Eastern and Western Australia, Sabine Pass LNG facility, and revamping of LNG exports from Angola and Egypt.
Natural gas prices increased between March and early October 2021, which drove the demand for oil and gas products. This increase is expected during the forecast period and will drive the market. The logistics of LNG can also take place using the pipeline and LNG carriers. However, the advantages of LNG chemical tankers over pipeline transportation are driving the demand for the former. The global LNG fleet is set to remain in excess in 2022, which, in turn, will drive the growth of the market during the forecast period.
Advances in the propulsion system of tankers are the primary trend in the global market growth. Marine two-stroke diesel engines have largely replaced marine steam turbine engines as two-stroke diesel engines are more economical than steam turbine engines for commercial purposes. Technological advances have led to the development of cross-compound double-reduction steam turbines. These steam turbines are compact in size and take up less space in the ship engine room. In addition, the steam turbine has the advantage of easy astern movement, with up to just 50% astern output power. The introduction of the controllable pitch propeller (CPP) for running tanker ships in forward and astern directions without changing the direction of rotation of the engine leads to more power generation.
This, in turn, enables the transportation of more volume of goods using tankers. Historically, LNG tankers made use of moderately efficient steam turbine-driven propulsion systems. The innovation in the propulsion system can be attributed to the GDF SUEZ Global Energy and Provalys vessels. These vessels have the capacity to be driven by dual-fuel diesel-electric propulsion (DFDE) systems. The DFDE propulsion system is capable of utilizing diesel and oil as well as steam-boiled-off- gases, thus enhancing the vessels' efficiency by 25%-30% than conventional propulsion systems.
The fluctuation in the baltic dry index is a major challenge to the growth of the global market. The chemical tanker that encompasses the transportation of crude oil, chemicals, and refined petroleum products is witnessing fluctuations in the Baltic dry index, an economic indicator related to the average index of moving goods in the sea by considering 23 global shipping routes. A high Baltic dry index reflects that the demand for the tanker ship is more when compared with its supply.
Moreover, the building of new ships is creating an oversupply in the market, which is posing a challenge for vendors and reducing the shipping freight. The industry has been facing fluctuations in the Baltic dry index for both dirty tankers and clean tankers, owing to the increase in the tanker fleet size since 2008. Such factors will hinder chemical tanker market growth during the forecast period.
The chemical tanker market growth analysis 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 tanker market research and growth report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
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.
Ace-Tankers - The company offers a chemical tanker that helps in commercial asset management of chemicals and vegetable oils. Also, under this segment, the company specializes in tanker transportation with its multi-grade stainless steel chemical tankers.
The chemical tanker market trends report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, 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 chemical tanker market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2017 to 2021 for the following segments
The market is integral to the shipping industry, facilitating the safe and efficient transportation of hazardous materials and bulk liquids worldwide. Chemical logistics and storage are critical components, ensuring the seamless movement and secure containment of chemical cargo throughout the supply chain. Tanker vessel types vary to accommodate different cargo requirements, with construction tailored to meet stringent chemical shipping regulations and safety protocols. Cargo handling procedures are meticulously managed, from tanker loading and tanker unloading to tanker maintenance and tanker inspections, ensuring compliance and minimizing risks.
Safety equipment and emergency response protocols are paramount, with tanker crews trained to handle chemical spills and emergencies effectively. Tanker design incorporates advanced monitoring, communication, and navigation systems to enhance operational efficiency and environmental protection. Tanker routes and ports are strategically selected to optimize logistics, while fuel management systems contribute to sustainability and cost-effectiveness. Pollution control measures are rigorously enforced, emphasizing the importance of environmental protection in chemical transportation. Overall, the Chemical Tanker Market is characterized by its commitment to safety, regulatory compliance, and environmental stewardship, playing a vital role in global trade while safeguarding the integrity of hazardous material transport..
Chemical storage facilities are crucial for the safe handling and containment of various hazardous substances. These facilities often involve the use of specialized tanks and equipment to store chemicals securely and prevent environmental contamination. Tanker management encompasses the overall coordination and operation of tanker fleets involved in transporting chemicals. This includes scheduling, maintenance, and logistical planning to ensure efficient and safe transportation of chemical cargoes. Tanker emergency response protocols are essential for swiftly addressing any incidents or accidents involving chemical tankers. Comprehensive emergency plans and trained response teams are vital for mitigating risks and minimizing environmental and public health impacts. Tanker spill prevention measures are implemented to reduce the likelihood of chemical spills during transportation. This includes rigorous inspection and maintenance of tanker equipment, as well as adherence to strict loading and unloading procedures.
Tanker security measures aim to safeguard chemical tankers from potential security threats such as piracy or terrorism. Security protocols may include surveillance systems, onboard security personnel, and adherence to international security standards. Tanker monitoring systems utilize advanced technology to track the location, condition, and performance of chemical tankers in real-time. These systems provide valuable data for fleet management and ensure compliance with regulatory requirements. Tanker communication systems enable effective communication between onboard crew members, shore-based personnel, and relevant authorities. Clear and reliable communication channels are essential for coordinating operations and responding to emergencies.
In the realm of hazardous materials transport, ensuring the safe and efficient movement of goods is paramount. Tanker construction plays a pivotal role, with vessels meticulously designed and engineered to withstand the rigors of transporting potentially dangerous cargo. Equally crucial are tanker ports, strategically located and equipped to handle the loading and unloading of hazardous materials with precision and care. Cargo containment measures are rigorously enforced to prevent leaks or spills, safeguarding both the environment and public safety. Tanker certification standards ensure that vessels meet stringent safety criteria before embarking on their journeys. Once in operation, tanker crews adhere to strict protocols, employing advanced navigation systems to navigate challenging waters and adverse conditions. Environmental protection remains a top priority, with stringent measures in place to minimize the risk of pollution. Tanker operators employ sophisticated pollution control technologies and practices to mitigate any potential environmental impact swiftly and effectively. In this complex ecosystem of hazardous materials transport, the synergy between tanker construction, port infrastructure, cargo containment, certification, operations, navigation systems, environmental protection, and pollution control is vital to ensuring the safe and secure movement of goods across the globe.
Chemical Tanker Market Scope |
|
Report Coverage |
Details |
Page number |
150 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.58% |
Market growth 2023-2027 |
USD 10,122.22 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.97 |
Regional analysis |
APAC, Middle East and Africa, North America, South America, and Europe |
Performing market contribution |
APAC at 42% |
Key countries |
US, Saudi Arabia, China, Singapore, and Norway |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
AceTankers, Bahri, Fairfield Chemical Carriers, HANSA TANKERS MANAGEMENT AS, IINO KAIUN KAISHA Ltd., IMC Ship Management Pte Ltd., K Line Pte Ltd., KOYO KAIUN Co. Ltd., M.T.M. Ship Management Pte Ltd., MOL CHEMICAL TANKERS PTE. LTD., Navig8 Group, Odfjell SE, PT BERLIAN LAJU TANKER TBK, Sinochem Group Co. Ltd., Stena Bulk, Stolt Nielsen Ltd., Team Tankers International Ltd., UltraTank, Wilmar International Ltd., and Womar Pools Pte Ltd. |
Market dynamics |
Parent market analysis, Chemical tanker market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19, market growth analysis, market research and growth,market research report, market growth and forecasting, Market forecasting, impact and recovery analysis and future consumer dynamics, Chemical tanker market worth and condition analysis for forecast period. |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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