NEW
YORK, July 10, 2024 /PRNewswire/ -- The
global chemical logistics market size is estimated to grow by
USD 67.7 billion from 2024-2028,
according to Technavio. The market is estimated to grow at a
CAGR of over 4.36% during the forecast period. The global chemical
logistics market is poised to grow significantly, driven by the
expanding chemical industry and adoption of blockchain technology
in logistics. However, challenges such as high operational costs
and the capital-intensive nature of the business hinder market
growth. Key players like Agility Public Warehousing Co. K.S.C.P,
BASF SE, and C H Robinson Worldwide Inc. are pivotal in shaping
this dynamic sector's future.
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Chemical Logistics
Market Scope
|
Report
Coverage
|
Details
|
Base year
|
2023
|
Historic
period
|
2018 - 2022
|
Forecast
period
|
2024-2028
|
Growth momentum &
CAGR
|
Accelerate at a CAGR of
4.36%
|
Market growth
2024-2028
|
USD 67.7
billion
|
Market
structure
|
Fragmented
|
YoY growth 2022-2023
(%)
|
4.11
|
Regional
analysis
|
APAC, North America,
Europe, Middle East and Africa, and South America
|
Performing market
contribution
|
APAC at 62%
|
Key
countries
|
China, US, Japan,
Germany, and South Korea
|
Key companies
profiled
|
Agility Public
Warehousing Co. K.S.C.P, BASF SE, BRENNTAG SE, C H Robinson
Worldwide Inc., CMA CGM SA Group, CSX Corp., CT Logistics, Deutsche
Bahn AG, Deutsche Post AG, Dow Chemical Co., DSV AS, Dupre
Logistics LLC, FedEx Corp., Kintetsu Group Holdings Co. Ltd., North
West Carrying Company LLP, PSA International Pte Ltd., Saudi Basic
Industries Corp., Schneider National Inc., and Univar Solutions
Inc.
|
Market Driver
Blockchain technology is revolutionizing the logistics industry
by providing a secure, transparent, and cost-efficient solution for
maintaining and sharing supply chain data. This digitalized
platform uses a distributed transaction ledger, allowing various
stakeholders to maintain identical copies of records on multiple
computer systems. Each transaction is cryptographically protected
and validated by an independent third party, ensuring security and
preventing fraud. The benefits of blockchain
technology are numerous, including increased transparency, reduced
paperwork, and improved traceability and trackability. In the
context of chemical logistics, this technology is particularly
valuable due to the criticality and confidentiality of the
information involved. With an estimated USD30 billion in annual cargo theft losses in the
logistics industry, blockchain technology offers a promising
solution for minimizing risk and streamlining operations. Major
logistics companies, such as International Business Machines Corp.
And A.P. Moller - Maersk, have already implemented blockchain
technology to create more secure and efficient digital shipping
platforms. Similarly, 3PL service providers like ITS Logistics are
partnering with blockchain technology providers to develop common
standards and frameworks for the industry. Overall, the use of
blockchain technology in chemical logistics is expected to enhance
data security, automate processes, and create transparency in the
sharing of critical and confidential records.
The Chemical Logistics Market is experiencing significant trends
in various process industries. Three-party logistics (3PL)
providers are increasingly managing non-asset chemical logistics,
addressing complexities in rail networks and uncertain transit
times. Road quality and pilferage remain challenges, driving
automation in warehouses. Green warehouses and sustainable business
operations are prioritized for environmental concerns. Advancements
include smart sensors, robotics, artificial intelligence (AI),
machine learning, radio-frequency identification (RFID), Bluetooth,
drone delivery, and driverless vehicles. Shale gas and the energy
industry are major consumers, but chemical demand varies across
diverse sectors like food production, pharmaceutical manufacture,
vehicle manufacturing, and engineering. Collaborations between the
American Chemistry Council and the government of India, and other industry partnerships, are
crucial for addressing chemical volumes and ensuring safe,
efficient transportation. Addressing environmental problems and
maintaining chemical manufacturing standards remain key
priorities.
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Market Challenges
- The chemical warehousing and storage market involves
significant investment for setting up facilities that adhere to
specifications and obtain necessary certifications. Different
chemicals require unique storage solutions, and various factors
such as regulations, political climate, and competition impact
market growth. Warehouse location is strategic, with considerations
including price of land, connectivity, and infrastructure. Rising
land costs and warehouse rents challenge operators to either rent
or buy. Optimizing warehouse capacity and minimizing operational
costs are essential to prevent financial losses from oversized or
poorly utilized spaces. The slow adoption of advanced inventory
tracking technology and inventory loss through damage, pilferage,
and misplacement are ongoing challenges for the industry. These
factors contribute to the high cost of investment and operation in
the chemical logistics market, potentially limiting its
growth.
- Chemical logistics is a critical business sector that ensures
the safe and efficient transportation and warehousing of chemicals.
The use of IoT devices and intelligent cloud platforms enhances
agility and improves supply chain visibility. However, chemical
logistics faces challenges in various industry verticals, including
the cosmetic and specialty chemicals industries, food production,
and automobile manufacturing. OEM shutdowns, safety hazards,
contamination, and spoilage are common issues. Federal and state
regulations add complexity, affecting workers and the general
public. Tech-driven logistics services offer solutions through
airways, roadways, railways, waterways, pipelines, and
transportation & distribution. Companies like A&R
Logistics, Agility, BASF, Rhenus Logistics, and Ryder System Inc.
Provide storage & warehousing, customs & security, green
logistics, consulting & management services. Dangerous
chemicals, raw materials, and finished chemical products require
specialized handling in the oil & gas industry and end use
industries.
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challenges - Request a sample report!
Segment Overview
This chemical logistics market report extensively covers market
segmentation by
- Service
- 1.1 Transportation
- 1.2 Warehousing
- 1.3 Others
- End-user
- 2.1 Chemical industry
- 2.2 Pharmaceutical industry
- 2.3 Speciality chemical industry
- 2.4 Others
- Geography
- 3.1 APAC
- 3.2 North America
- 3.3 Europe
- 3.4 Middle East and
Africa
- 3.5 South America
1.1 Transportation- The Chemical Logistics Market
involves the transportation, storage, and handling of chemicals
from one place to another. Companies in this sector ensure safe and
efficient movement of chemicals through various modes of transport
like road, rail, and sea. They offer value-added services such as
temperature control, packaging, and inventory management to meet
the specific requirements of chemical manufacturers and consumers.
The market is driven by factors like increasing demand for
chemicals in various industries, stringent regulations, and growing
focus on supply chain efficiency.
For more information on market segmentation with
geographical analysis including forecast (2024-2028) and historic
data (2017-2021) - Download a Sample Report
Research Analysis
The Chemical Logistics Market is experiencing significant growth
due to the surge in chemical demand from various industry verticals
such as energy, shale gas, and the environmental problems that
necessitate the use of chemicals for mitigation. The chemical
manufacturing and transportation sectors are at the forefront of
this trend, supplying essential raw materials for food production,
pharmaceutical manufacture, vehicle manufacturing, and engineering.
The energy industry's shift towards cleaner sources and the
increasing use of IoT devices and intelligent cloud platforms in
chemical logistics are driving innovation. Agility Logistics and
other tech-driven logistics services are collaborating to provide
efficient and safe transportation of chemicals in both liquid and
solid states. However, the industry faces challenges such as safety
hazards, contamination, and spoilage during transportation and
warehousing. Federal and state regulations are stringent to ensure
safety and compliance. OEM shutdowns can also impact the market,
making flexibility and adaptability crucial. The specialty
chemicals industry and cosmetics sector are also significant
contributors to the market's growth.
Market Research Overview
The Chemical Logistics Market is a critical component of the
energy industry, particularly in the context of shale gas
production. With the surge in chemical demand from diverse sectors
such as food production, pharmaceutical manufacture, vehicle
manufacturing, engineering, and more, the market for chemical
transportation and manufacturing has grown significantly. However,
this growth comes with challenges, including environmental
problems, safety hazards, and regulatory compliance. Chemical
logistics companies provide services for the transportation and
distribution of chemicals in various states - liquid and solid.
They cater to end use industries, including the oil & gas
industry, process industries, and 3PL providers. The market is
complex, with factors such as federal and state regulations,
workers' safety, and the general public's safety being of utmost
importance. The chemical logistics industry is undergoing a
tech-driven transformation, with IoT devices, intelligent cloud
platforms, and automation playing a key role. Collaborations
between industry players, such as Agility Logistics and BASF,
Rhenus Logistics and Ryder System Inc., are driving innovation in
the sector. The market is diverse, with industry verticals
including the cosmetic industry, specialty chemicals industry, and
food industry. OEM shutdowns, contamination, spoilage, and safety
hazards are some of the challenges that chemical logistics
companies face. Green logistics, consulting & management
services, and sustainable business operations are becoming
increasingly important in the sector. Transportation &
distribution, storage & warehousing, customs & security,
and consulting & management services are the key offerings of
chemical logistics companies. The market is served by various modes
of transportation, including airways, roadways, railways,
waterways, and pipelines. Safety hazards, such as contamination and
spoilage, are significant concerns in the chemical logistics
industry. Federal and state regulations, as well as the general
public's safety, are of utmost importance. Tech-driven logistics
services, such as smart sensors, robotics, artificial intelligence
(AI), machine learning, radio-frequency identification (RFID),
Bluetooth, drone delivery, and driverless vehicles, are being
adopted to mitigate these risks and improve efficiency. The
chemical logistics market is expected to continue growing, driven
by increasing demand for chemicals in various industries and the
need for efficient, tech-driven logistics solutions. However,
challenges such as complexities in the rail network, uncertain
transit time, road quality, pilferage, and automation will need to
be addressed to ensure the industry's continued growth and
success.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- 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
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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