The global Chemical Logistics market size is projected to reach approximately $ 326.93 Billion by 2030, at a CAGR of 3.22% from 2022 to 2030. Chemical Logistics deals with the supply chain operation of products that contain chemicals. Companies that operate in this business provide services such as transportation and handling, and warehousing, in addition, to sourcing raw materials. The logistics service provider also needs to handle the transportation of these products through various means—such as road and rail—as well as make sure they arrive at their destination in one piece. This requires a lot of knowledge on how each chemical behaves inside a container or how it should be handled. A Chemical Logistics service provider may also help evaluate other logistics options such as sea- or air-freight exportation, or even recommend a combination of both methods depending on specific attributes like time and cost-efficiency.
COVID-19 Impact Analysis
The rapid spread of COVID-19 has presented multiple unforeseen challenges affecting all levels of a company’s supply chain, including disruptions to a manufacturer’s operations due to insufficient labor, output reduction, and raw material shortage. These difficulties have been overcome by innovating new ways to manage issues related to manufacturing yields and workforces, among other things. The effects of the virus manipulating entire infrastructures in various industries across the world is yet another symptom of its presence in a supply chain. Several events have hampered the chemical logistics market, such as the prolonged crude oil slump. It led to either suspension or closure of production activities in various industries across the world, which has significantly impacted various industries across the country.
The demand for Chemical Logistics is on the rise because of an increase in chemical production and safety concerns for dangerous chemicals. This growth is anticipated to contribute considerably to the total market size. However, complexities in chemical logistics, such as safety concerns, and poor infrastructure can limit the growth of this market. The growth of tech-driven logistics services and IoT-enabled connected devices have provided significant growth opportunities for players operating in this market.
⮚ Increased Uses of Chemicals Across Various Sectors
In recent years, the increased production of chemicals has led to their usage in other industries. Increased usage of shale gas as a feedstock in an energy industry has increased the demand for the transportation of shale gas. According to the American Chemistry Council (ACC), chemical production increased by 0.8% in August 2020, compared to 2016, and it is anticipated that it will rise by 3% next year at a faster rate than previously projected. As a result, demand for chemical logistics is expected to increase over the forecast period and also continue to see shifts in demand. More output will be needed to keep up with globalized markets.
- Lack of Adequate Infrastructure and Risk of Safety
Chemical logistics organizations transport chemicals via railways, highways, airways, and seaways. As a result, various challenges hamper the development of the chemical logistics sector. These challenges include oversaturated rail networks, unclear transit times, and insufficient flexibility when transporting chemicals that have varying specifications. The road quality is also poor making transport difficult on certain routes. For example, freight transportation by train can take up to 8 days for travel of about 2,000 kilometers. Due to the fluctuating trends in transit times, many logistical companies usually carry excess inventory with insufficient safety measures to prevent lost sales due to insufficient stock availability throughout production. This impeded their key market’s growth.
⮚ Penetration of IoT-Enabled Connected Equipment and the Rise of Tech-Driven Logistical Services
Demand for automation and green warehouse renovation has increased in the chemical industry as the result of an increase in overall market growth. Environmental concerns are becoming more and more of a concern for Chemical Logistics businesses, and consequently, there is rapid adoption of warehousing methods that save money on materials and production costs. Wide-Scale use of Internet-connected systems is being done to open up the possibilities of green solutions. Vendors are increasingly offering digital solutions to automate chemical logistics and processing data, which creates faster production, greater efficiency, and saves time. AI, RFID, and Bluetooth are some of the emerging technologies that logistics companies are turning to for better service. With drone deliveries on the horizon and self-driving cars coming soon, these companies need to stay competitive in today’s market. As a result, the chemical logistics market is likely to benefit from improved technology in the logistics industry.
By Mode of Transportation
Based on the Mode of Transportation, the Chemical Logistics market is segmented based on Roadways, Railways, Airways, Waterways, and Pipelines. The Roadways and Waterways Segment is anticipated to account for the large market share.
Based on Services, the global Chemical Logistics market has been divided into Transportation & Distribution, Storage & Warehousing, Customs & Security, Green Logistics, and Consulting & Management Services. The Storage & Warehousing segment is expected to hold the largest market share. The growth in the Storage & Warehousing segment is mainly attributed to the evolution of technological developments in the Chemical Logistics market. For instance, the evolution of cloud computing infrastructure and the adoption of SCM solutions have led to the introduction of network-based storage and customization of services for users.
By End-Use Industry
Based on End-Use Industry, the global Chemical Logistics market has been divided into Chemical Industry, Pharmaceutical Industry, Cosmetics Industry, Oil & Gas Industry, Specialty Chemicals Industry, and Food. The Oil & Gas Industry segment is expected to hold the largest market share. Oil production has been increasing in recent years and oil-producing countries are now transporting crude oil to developing nations like India, China, and others. This factor is contributing to the growth of the chemical transport market
Global Chemical Logistics Market Share, by Segmentation
Based on region, the global Chemical Logistics market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. North America is projected to dominate the use of the Chemical Logistics market followed by the Asia-Pacific and Europe regions.
North America Market
North America contributed the largest share to the global chemical logistics market. This is due to its large and industrialized chemical production, consumption, and export industry, as well as the widespread presence of globally-renowned international logistics service providers. Additionally, the discovery of significant oil and shale gas deposits in the United States has positively impacted many different manufacturing and support industries. It has created opportunities for logistics, and these opportunities have allowed those involved to create even more reasons to thrive.
The presence of the top emerging industries in the region such as India and China is what’s currently driving the growth of the market. The rising nations are focused on making advancements in the industrial sector and building up robust warehousing infrastructures, which are estimated to fuel the growth of the chemical logistics industry. For example, as reported by Rheinünus India, on October 4th, 2021, they’re expanding their warehousing capabilities throughout India by over 200% from 756k square feet to a whopping 2.2 million square feet.
The market comprises tier-1, tier-2, and local players. With their wide product portfolios, tier-1 and tier-2 players have a global reach. Because of their strategic innovations and broad regional presence, companies such as BDP International, Agility, Montreal Chemical Logistics, CT Logistics, BD Trans, C.H. Robinson Worldwide Inc, Deutsche Bahn Schenker, Deutsche Post AG, Rhenus Logistics, Ryder System Inc., A&R Logistics, CEVA Logistics AG, FedEx Corp., Odyssey Logistics, and Broekman Logistics, lead the global Chemical Logistics business. To increase their market position and attract a wide consumer base, the businesses are employing various strategies, such as growth, product releases, and alliances.
- BDP International
- Montreal Chemical Logistics
- CT Logistics
- BD Trans
- H. Robinson Worldwide Inc
- Deutsche Bahn Schenker
- Deutsche Post AG
- Rhenus Logistics
- Ryder System Inc.
- A&R Logistics
- CEVA Logistics AG
- FedEx Corp.
- Odyssey Logistics
- Broekman Logistics
In February 2021, Agility, a leading global logistics provider, along with its digital innovation arm, Shipa launched a bonded, express road freight network for connecting businesses and consumers across the globe.
Scope of the Report
Global Chemical Logistics Market, by Mode of Transportation
Global Chemical Logistics Market, by Services
- Transportation & Distribution
- Storage & Warehousing
- Customs & Security
- Green Logistics
- Consulting & Management Services
Global Chemical Logistics Market, by End-Use Industry
- Chemical industry
- Pharmaceutical Industry
- Cosmetic Industry
- Oil & Gas Industry
- Specialty Chemicals Industry
Global Chemical Logistics Market, by Region
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Rest of the World
|Market Size||2030: $ 326.93 Billion|
|CAGR||3.22% CAGR (2022-2030)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Key Segmentations||Mode of Transportation, Services, End-Use Industry|
|Geographies Covered||North America, Europe, Asia-Pacific, Latin America, Middle East, Africa|
|Key Vendors||BDP International, Agility, Montreal Chemical Logistics, CT Logistics, BD Trans, C.H. Robinson Worldwide Inc, Deutsche Bahn Schenker, Deutsche Post AG, Rhenus Logistics, Ryder System Inc., A&R Logistics, CEVA Logistics AG, FedEx Corp., Odyssey Logistics, and Broekman Logistics|
|Key Market Opportunities||Penetration of IoT-Enabled Connected Equipment and the Rise of Tech-Driven Logistical Services|
|Key Market Drivers||Increased Uses of Chemicals Across Various Sectors|
REPORT CONTENT BRIEF:
- High-level analysis of the current and future Chemical Logistics market trends and opportunities
- Detailed analysis of current market drivers, restraining factors, and opportunities in the future
- Chemical Logistics market historical market size for the year 2020, and forecast from 2021 to 2028
- Chemical Logistics market share analysis at each product level
- Competitor analysis with a detailed insight into its product segment, financial strength, and strategies adopted.
- Identifies key strategies adopted including product launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
- To identify and understand the various factors involved in the global Chemical Logistics market affected by the pandemic
- To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.
Global Chemical Logistics Market FAQs
1. What is the study period of this market?
● The study period of the global Chemical Logistics market is 2020 – 2030
2. What is the growth rate of the global Chemical Logistics market?
● The global Chemical Logistics market is growing at a CAGR of ~ 3.22% over the next 7 years
3. Which region has the highest growth rate in the global Chemical Logistics market?
● Asia Pacific is expected to register the highest CAGR during 2022-2030
4. Which region has the largest share in the global Chemical Logistics market?
● North America holds the largest share in 2021
5. Who are the key players in the global Chemical Logistics market?
● BDP International, Agility, Montreal Chemical Logistics, CT Logistics, BD Trans, C.H. Robinson Worldwide Inc, Deutsche Bahn Schenker, Deutsche Post AG, Rhenus Logistics, Ryder System Inc., A&R Logistics, CEVA Logistics AG, FedEx Corp., Odyssey Logistics, and Broekman Logistics are the major companies operating in the global Chemical Logistics market.
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● Yes, we offer 16 hours of analyst support to solve the queries
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