Published Date : 11 May 2023
The global chemical logistics market is anticipated at USD 285.24 billion in 2023 and is expected to attain around USD 377.35 billion by 2030, poised to grow at a CAGR of 4% from 2022 to 2030.
The chemical sector has had a substantial expansion, which largely drives the global market. Another important element driving the market's growth is the expanding urbanization, infrastructure construction, and rising industrialization.
A complicated and significant component of the global economy and supply chain network is the chemicals sector. Chemicals are created by transforming basic resources like water, minerals, metals, fossil fuels, and others into tens of thousands of items essential to contemporary life as we know it. The chemical logistics industry is primarily divided into three service areas: delivery, warehousing, and other value-added services. Chemical goods are employed in practically all industrial sectors, but in some, like the pharmaceutical or automotive industries, they are essential and, more importantly, time-critical. Hence, suppliers, producers, and consumers all place high importance on having a functional chemical logistics system. In the worst scenario, production halts and delivery issues to clients result from even the tiniest adjustments, delays, or variations in the supply chain. And customers would notice this in their day-to-day activities, such as if pertinent consumer products were unavailable or arrived too late.
Transporting and storing chemical products safely for both humans and the environment is of utmost importance. The chemical business may require specialized storage services for dangerous items and the transportation of liquid and bulk raw materials throughout the whole production, distribution, and commercialization process. We uncover specific legal limitations for chemical goods in all phases. For instance, permitted modes of transportation for bulk goods are governed by tight laws.
The chemical logistics industry is anticipated to be dominated by Asia Pacific, which will have the largest global market share. The main element fueling market expansion in this area is the presence of growing nations like China and India. For instance, RHENUS INDIA will increase its capacity to assist the chemical industry by 2.2 million square feet on October 4, 2021, by expanding its storage space across India. The PCB (Pollution Control Board)-the approved plant will act as the primary Rhenus distribution hub for chemical clients throughout South India since it has strong access to key industrial and automobile centers as well as to Chennai's main ports.
Due to the existence of oil wells in the area, LAMEA is expected to have a considerable market share increase in 2022. The biggest producer of chemicals and oil in this region is Saudi Arabia. For instance, the energy giant "Aramco" is working on two sizable projects in Saudi Arabia: the Amiral 1.5 million tonnes per year cracker joint venture project with France-based Total, which is slated to start up in 2024 in Jubail, and the crude oil to chemicals (CTC) project in Yanbu, which will produce 9 million tonnes per year of chemicals and base oils by 2025.
Chemical Logistics Market Report Scope:
|Market Revenue in 2023||USD 285.24 Billion|
|Projected Forecast Revenue in 2030||USD 377.35 Billion|
|Growth Rate from 2022 to 2030||CAGR of 4%|
|Largest Market||Asia Pacific|
|Forecast Period||2022 to 2030|
|Regions Covered||North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa|
Market Drivers: Digitization and the use of technology in chemical logistics
Digitalization and the use of technology in logistics are unquestionably huge trends that extend beyond the chemical sector. In the upcoming years, this will continue to be true. Years ago, talks about digitization were dominated by hazy conceptions; today, technological solutions, concepts, and approaches are distinguished based on their potential. Unlike other industrial sectors, the chemical industry does not outsource its logistical operations heavily in order to adapt to the continually changing environment. Supply chain management that is nimble and adaptable that provides solutions tailored to certain markets and customers is becoming more and more popular. The ability to respond more swiftly to changes and stabilize the supply chain over time is made possible by enhanced transparency through higher digitization as well as tighter cooperation.
Market Restraints: Economic situations and lack of raw materials
The state of the world's politics and economy will always affect logistics. Embargos, crisis zones, but also trade tariffs, provide uncertain conditions and frequently make the supply chain's dependability and timeliness more difficult. There are several facets to delivery capabilities. On the one hand, the global chemical market is experiencing a shortage of raw materials, and there are delivery issues in manufacturing owing to capacity or a lack of technology. The capacity to deliver or convey, on the other hand. Consumers are increasingly looking for customized and personalized logistics solutions. This is where a comprehensive and service-focused chemical logistics system excels.
Market Opportunities: Rapid investment in cost-effective warehousing solutions
The need for chemical logistics is rising as a result of increased chemical production and safety concerns about the transportation, storage, and distribution of hazardous chemicals. Moreover, the development in IoT-enabled linked device usage and the emergence of tech-driven logistics services provide amazing potential prospects for market participants. Chemical producers are rapidly investing in cost-effective warehousing solutions that combine green practices with smart technology, such as the Internet of Things (IoT), smart sensors, and robots, in response to growing concerns about energy saving and environmental preservation.
Mode of transportation Insights:
The chemical logistics market is segmented into roads, railroads, airways, waterways, and pipelines based on the mode of transportation. Sea and road transport witness the highest market share and is predicted to expand considerably throughout the projection period. Also, the increased concentration of the chemical sector has changed the structure of international commerce and created new opportunities for supply chain management from suppliers to manufacturers to consumers. It is predicted that this advancement in cross-functional supply chain management would open up new prospects for the expansion of the chemical logistics industry.
The Customs and Security, Green Logistics, Storage and Warehousing, Transportation and Distribution, and Other segments of the market are divided based on services. Chemical logistics are in greater demand as a result of rising chemical output as well as growing safety concerns about the transportation, storage, and distribution of hazardous chemicals.
According to end use, the oil and gas sector is anticipated to dominate the chemical logistics market because of the rising need for these commodities globally. In recent years, crude oil has been transported in gallons by oil-producing countries to emerging countries like China, India, and others. The chemical logistics market is predicted to increase as a result of this reason.
Major Key Players:
By Mode of Transportation
By End User
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