Chemical Logistics Market Size to grow by USD 67.7 billion between 2024-2028
According to a research report “ Chemical Logistics Market” by Service (Transportation, Warehousing, Others) End-user (Chemical industry, Pharmaceutical industry, Speciality chemical industry, Others) Geography (APAC, North America, Europe, Middle East and Africa, South America)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 67.7 billion, at a CAGR of over 4.36% during the forecast period. The chemical logistics market is experiencing significant growth due to the expanding global chemical industry. According to industry projections, the chemical sector's sales are anticipated to increase at a compound annual growth rate of 3.85% between 2016 and 2030. In 2019, global chemical production grew by 2.7% compared to the previous year, driven in part by the decline in crude oil prices. With crude oil being the primary source for most chemicals, the average price decrease from USD64.90 per barrel in 2018 to USD57.05 per barrel in 2019 led to an increased demand for naphtha as a feedstock in the petrochemical industry, accounting for approximately 50% of its usage.
Browse market data tables, figures, and in-depth TOC on “Chemical Logistics Market” by Service (Transportation, Warehousing, Others) End-user (Chemical industry, Pharmaceutical industry, Speciality chemical industry, Others) Geography (APAC, North America, Europe, Middle East and Africa, South America) Global Forecast to 2028. Download Free Sample
By Service, the Transportation segment is projected to dominate the market size in 2024
The Chemical Logistics Market encompasses the transportation, storage, and handling of chemicals from manufacturers to end-users. This critical supply chain segment ensures the timely and secure delivery of chemicals, adhering to regulatory compliance and safety standards. Market growth is driven by increasing industrialization, stringent regulations, and the rising demand for just-in-time delivery solutions. Companies are investing in advanced technologies, such as real-time tracking systems and automated warehouses, to enhance efficiency and reduce costs.
By End-user, Chemical industry segment is expected to hold the largest market size for the year 2024
The Chemical Logistics Market encompasses the transportation, storage, and handling of chemicals from manufacturers to end-users. This critical business sector ensures the timely and safe delivery of chemicals, adhering to regulatory compliance and industry standards. Market growth is driven by increasing demand for chemicals in various industries, particularly in pharmaceuticals, agriculture, and food processing. Strategic partnerships, technological advancements, and government regulations are key market trends shaping the chemical logistics landscape.
APAC is forecasted to hold the largest market size by region in 2024
The Chemical Logistics Market encompasses the transportation, storage, and handling of hazardous and non-hazardous chemicals. This sector is crucial for various industries, including pharmaceuticals, agriculture, and manufacturing. Key players in this market focus on enhancing their supply chain efficiency, ensuring regulatory compliance, and implementing advanced technologies to streamline operations. Growth is driven by increasing global trade, stringent regulations, and the rising demand for specialized logistics services.
The Chemical Logistics Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
The Chemical Logistics Market is experiencing significant growth due to the increasing demand for tech-driven logistics services in various industry verticals, including the specialty chemicals industry and cosmetics. However, state and federal regulations regarding the transportation and warehousing of chemicals pose challenges. Spoilage, contamination, and safety hazards are major concerns, especially for chemicals in both solid and liquid states. Tech-driven solutions, such as Agility Logistics' intelligent cloud platform and IoT devices, are helping to mitigate these risks. Collaborations between industry players and government bodies, like the American Chemistry Council and the government of India, are also driving innovation in chemical logistics. OEM shutdowns in engineering, vehicle manufacturing, pharmaceutical manufacture, food production, and chemical manufacturing can significantly impact chemical demand and transportation. The energy industry, particularly the shale gas sector, is also a significant player in the chemical logistics market. However, environmental problems and energy consumption remain challenges that must be addressed to ensure sustainable growth. Federal and state regulations play a crucial role in ensuring safety and compliance in the chemical logistics industry. These regulations cover various aspects, including transportation, warehousing, and disposal, and are essential for mitigating risks associated with chemical spills, contamination, and safety hazards. In conclusion, the chemical logistics market is a complex and dynamic industry that requires a deep understanding of regulations, technology, and industry trends. With the increasing demand for tech-driven logistics services, collaboration between industry players and government bodies, and a focus on sustainability, the future of chemical logistics looks promising.
Market Research Overview
The Chemical Logistics Market is experiencing a technological revolution, driven by the adoption of advanced technologies such as driverless vehicles, drone delivery, and tech-driven logistics services. These innovations are being integrated with smart sensors, machine learning, and artificial intelligence (AI) to optimize operations and enhance efficiency. Key players in the market, including Ryder System Inc., Rhenus Logistics, BASF, Agility, and A&R Logistics, are investing in green business operations, with a focus on sustainable warehouses and automation. The use of Bluetooth, radio-frequency identification (RFID), and IoT devices is becoming increasingly common for non-asset logistics management. However, the complexities of the chemical logistics industry, including pilferage, road quality, uncertain transit time, and rail network, present challenges. The process industries, such as oil & gas, finished chemical products, raw materials, and dangerous chemicals, are major consumers of chemical logistics services. End use industries, including automobile manufacturing, food production, and pharmaceutical manufacture, also rely on these services. The energy industry, particularly shale gas, is a significant contributor to the market's growth. Collaborations between chemical logistics companies and government organizations, such as the American Chemistry Council, are essential for addressing the complexities of the market and ensuring safety hazards are minimized. Sustainability, environmental problems, and regulations are key concerns for the industry. Green logistics, including the use of pipelines, waterways, railways, roadways, and airways, are becoming increasingly important. The general public and workers must be educated on the safe handling of chemicals to mitigate risks. The market's future growth is expected to be driven by the diverse sectors' increasing demand for chemical volumes and the engineering of solid state and liquid state chemicals. The market's complexity requires consulting and management services to optimize operations and meet regulatory requirements.
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