September 2024
The global chemical logistics market size was USD 270.92 billion in 2023, estimated at USD 281.21 billion in 2024 and is anticipated to reach around USD 406.28 billion by 2034, expanding at a CAGR of 3.75% from 2024 to 2034.
The global chemical logistics market size accounted for USD 281.21 billion in 2024 and is predicted to reach around USD 406.28 billion by 2034, growing at a CAGR of 3.75% from 2024 to 2034.
The Asia Pacific melanoma therapeutics market size was valued at USD 111.08 billion in 2023 and is estimated to reach around USD 166.57 billion by 2034, growing at a CAGR of 4% from 2024 to 2034.
Asia Pacific is expected to dominate the chemical logistics market in terms of highest market share in the world. The presence of developing economies such as India and China in this region is the major factor that is driving the market growth. The developing nations are continuously focusing in the manufacturing sector and developing robust warehouse infrastructure and these attributes are estimated to fuel the growth of the chemical logistics market. For instance, on 4th October 2021, RHENUS INDIA expands its warehousing space across India to 2.2 million square feet and strengthens its capabilities in supporting the chemical industries. It consists of good connectivity to Chennai’s major ports and to major industrial and automobile hubs, the PCB (Pollution Control Board) -approved facility will serve as the central Rhenus distribution hub for chemical customers throughout South India.
LAMEA is witnessing the significant growth in 2023 in terms of market share owing to the presence of oil wells in the region. Saudi Arabia is the largest producer of oil and chemicals in this region. For instance the energy giant “Aramco” is undertaking two massive projects in Saudi Arabia - a crude oil-to-chemicals (CTC) project in Yanbu to produce 9 million tonnes per year of chemicals and base oils by 2025 and the Amiral 1.5 million tonnes per year cracker joint venture project with France-based Total which is slated for start-up in 2024 in Jubail.The favoring Government regulation for the chemical industries in this region is estimated to contribute positively towards the market growth.
In the recent years there has been a significant rise in demand for the production of various chemicals. In the energy industry, the surge in demand for the shale gas to be used as a feed stock has increased the need for transportation of shale gas. For instance, in August 2020 as per the American Chemistry Council (ACC), the U.S. chemical industry has increased the production of chemicals by 0.8%, which increased as compared to 2016 and is expected to grow at 2.9% CAGR in the upcoming years. The transportation of chemical should be handled with care as any uncertain event may lead to serious environmental hazards. Therefore, the rise in demand for chemical and the need to safe transportation are some of the factors that is anticipated to drive the growth of the chemical logistics market.
With the advancement of technology, the manufacturers are owing to improve the safety standards for transporting the chemicals by the use of automation technologies and green warehousing. For instance, On 13th September 2021 Agility, a leader in supply chain services, innovation and investment, announced that the leading global provider of comprehensive logistics and transportation solutions, Aramex has selected the Agility Logistics Park (ALP) in Sulaibiya as the location for its new 16,000 SQM e-fulfillment center in Kuwait. This Aramex’s new facility will be housed in Agility’s recently completed multi-customer logistics warehouse, which was developed by ALP. The facility is the largest logistics warehouse in Kuwait, and was built to meet customer requirements. Also, the growing concerns over implementing the cost-effective warehousing solutions integrated with smart technologies such as Internet of Things (IoT), smart sensors and robotics are some of the attributes that is expected to drive the growth of the chemical logistics market.
The increasing demand for chemicals in diverse industry verticals such as chemical industry, pharmaceutical industry, cosmetic industry, oil & gas industry, specialty chemicals industry, food and others is estimated to fuel the market growth. Moreover, the complexity with which the manufacturers transport the chemicals to their destination using roads, rails, sea and others are handled with utmost care and this factor will contribute towards the market growth.
Furthermore, the Government across the world is investing heavily to innovate and develop advanced chemical logistics systems in order to avoid any mishaps. Therefore, all these factors will contribute positively towards the growth of the chemical logistics market.
Report Coverage | Details |
Market Size in 2023 | USD 270.92 Billion |
Market Size in 2024 | USD 281.21 Billion |
Market Size by 2034 | USD 406.28 Billion |
Growth Rate from 2024 to 2034 | CAGR of 3.75% |
Largest Market | Asia Pacific |
Base Year | 2023 |
Forecast Period | 2024 to 2034 |
Segments Covered | Mode of Transportation, Services, End User, Region |
Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Based on the mode of transportation, the chemical logistics Market is divided into roadways, railways, airways, waterways and pipelines. The sea and road transport witness the largest market share and is expected to grow significantly during the forecast period. Also, the hybrid mode of logistics transport consisting of sea, rail, road and others are facilitated by the mergers and acquisition of different chemical logistics companies and this factor boost the market growth.
Furthermore, the surge in clustering of chemical industry has led to change in the global trade pattern and opened new opportunities for supply chain management through suppliers via manufacturer to consumers. This development in the cross functional supply chain management is estimated to provide new opportunities for the growth of the chemical logistics market.
Based on the services, the market is divided into transportation & distribution, storage & warehousing, customs & security, green logistics, consulting & management services and others. The transportation and warehousing segment in the service sector is expected to lead the market by revenue share of the chemical logistics market.
The transportation of the chemicals is required to be handled with care as any kind of mishaps may lead to environmental hazards therefore stringent safety norms are being followed. Moreover, with the development of technology green warehouses are produced so that the chemicals stored will not have any significant impact to the environment. Additionally, the factors such as thesurge in free trade agreements among countries and the development of a trade bloc between countries played a significant role in positively impacting the market growth.
Based on end use, the oil and gas industry is estimated to lead the chemical logistics market owing to surge in demand for oil and gas across the world. In the recent years, the oil production countries are transporting gallons of crude oil to the developing of nations such as India, China and others. This factor is expected to drive the growth of the chemical logistics market.
Segments Covered in the Report
By Mode of Transportation
By Services
By End User
By Geography
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