Chemical Logistics Market: Global Technological Trends and Forecast Vision (2024-2030)

The Chemical Logistics Market is expected to reach US $359.52 billion by 2030, thanks to growth in the transportation and distribution segment. The report analyzes Chemical Logistics market dynamics by region, services, transportation mode, and end-use.
Chemical Logistics Market Overview:
The Chemical Logistics Market was valued at US $287.99 Bn. in 2023, and it is expected to reach US $359.52 Bn. by 2030 with a CAGR of 3.22% during the forecast period.

The chemical market relies heavily on logistics because production and consumption are typically separated. As a result, efficient, competitive, and long-term logistics are critical to its future growth. Logistics is often highly nimble, versatile, and adaptable, and as a result, it allows companies to respond rapidly and effectively to market developments.

Chemical logistics is the transfer of chemicals commodities with a supply chain with the use of logistics organizations services like warehousing and transportation. Chemicals are an important aspect of practically every industry, including plastics processing, pharmaceuticals, food manufacturing, and vehicle manufacturing. The chemical industry provides products for the majority of industries. Chemicals, whether liquid or solid, are used to make pharmaceuticals, food, and other everyday items.

To avoid any safety dangers like contamination and spoiling, these chemicals must be transported, handled, and stored with extreme caution. Chemical logistics service companies must also follow changing federal and state standards to keep workers and the general public safe.To know about the Research Methodology :- Request Free Sample Report
Chemical Logistics Market Dynamics:
Requirement For Chemical Logistics is on the Rise:

Since recent years, the production of countless chemicals has increased. The increased usage of shale gas as a feedstock in the energy corporate has increased the demand for shale gas transportation in the industry. For example, according to the American Chemistry Council (ACC), the chemical sector in the United States raised chemical production by 0.8 percent in August 2020, compared to 2016, and is anticipated to grow by 3% in 2020.

As a result, manufactured chemicals must be delivered properly, which is expected to increase demand for global chemical logistics over the forecast period. As a result, the chemical logistics market is expected to rise at a CAGR of xx% thanks to an increase in chemical production for various end-use sectors.
The Requirement To Handle And Deliver Hazardous Chemicals Is Rising:
Chemical logistics organizations carry raw materials and manufactured chemical products for a variety of industries, including oil and gas, pharmaceuticals, and process industries. To reduce the risk of hazardous goods transportation, manufacturers and third-party logistics suppliers are following federal and state safety rules. For example, 3PL corporations provide chemical shipments that include non-asset logistics management, which lets shippers select carriers and better manage their commodities.

As a result, the chemical logistics sector is expected to grow at a CAGR of xx% as the demand for handling and distribution of hazardous chemical products grows.
Chemical Logistics Is Challenging:
Transport of chemicals via railways, highways, airways, and seaways is provided by chemical logistical organizations. As a result, various challenges hamper the development of the chemical logistics sector, such as an oversaturated rail network, unclear transit times, insufficient flexibility in transporting chemicals with diverse specifications, poor road quality, and leakages. For example, freight transportation by train can take up to 8 days for travel of about 2000 kilometers.

As a result of the unpredictability in transit times, many logistical corporations end up carrying excess stock with inadequate safety to prevent losing sales related to insufficient stock availability during production, hampered market growth.
Penetration of IoT-Enabled Connected Equipment Is Soaring, As Is The Rise of Tech-Driven Logistical Services:
The market is growing thanks to an increase in demand for automation and renovated green warehouses in the chemical industry for sustainable company operations. Chemical companies are rapidly engaging in cost-effective warehousing solutions that integrate green standards with smart technology, such as the Internet of Things (IoT), smart sensors, and robotics, as concerns about energy saving and environmental protection grow. Vendors also offer digital technologies for automating chemical logistics and processing data, resulting in increased production, efficiency, and convenience.

The usage of AI, machine learning, radio-frequency identification (RFID), and Bluetooth, as well as other newly emerging technologies like drone deliveries and self-driving cars, is growing in logistics services. As a result, the chemical logistics market is likely to benefit from increased technical improvements in the logistics industry.
Impact on Chemical Logistics Based on The Production Shift in The Global Chemical Industry:
• Supply Chain Complexity Has Increased:

Increased imports from the Middle East and the resulting flows from European seaports to clusters and end consumers complicate chemical firms' supply chains (e.g., planning, logistics management, and coordination). This is worsened by an emphasis on reducing working capital, which leads to reduced inventory levels and, as a result, more supply chain mobility.

• The Concentration of Volume In The Region:

The combination of flat European production growth and clustered European facilities results in a larger regional volume concentration within these grouped regions. This opens up possibilities for ports that aren't often associated with shipping.

• Extension of The Supply Chain:

The shift in manufacturing alters the international trade balance and lengthens the supply network from suppliers to manufacturers to customers. As a result, logistical flows are altered, and inbound material lead times are extended.
Key Trends:

Capacity Limitations:

After emerging from the economic downturn, Shippers are hesitant or unable to invest adequately in extra logistics capacity. Transportation is considered a commodity. The transportation industry continues to be a highly fragmented, low-margin sector. The skilled truck drivers shortage is getting worse.

Shippers Are Becoming More Consolidated and Sophisticated:

Mergers and acquisitions enable logistics companies to manage a larger geographic and functional supply chain scope. Logistics outsourcing is used by shippers to enhance cost freedom and responsiveness. Shippers are shifting away from tactical transactional services and toward more strategic solutions backed by modern technology and systems.

Security and safety concerns:

To avoid disruptions related to causes such as significant transportation accidents, labour concerns, theft, and terrorist threats, supply chain security and risk management may be a critical component within logistics.

A widespread geographical reach:

The expansion of the Eastern Europe and the Middle East and Africa markets demands deliveries over longer distances with less-than-ideal infrastructure, resulting in higher distribution costs and a higher risk of supply chain interruption. Suppliers of logistics services must extend and adjust their networks, as well as develop new subcontractors and/or invest in expansion plans.

The Advancement of Technology:

Rapid advancements in supply chain technology provide more capability across multiple sites and regions, as well as a larger possibility to improve supply chain performance (e.g., IT providing real-time tracking and tracing, complicated multi-echelon planning tools, cloud computing).
Chemical Logistics Market Segment Analysis:
Based on Services, the chemical logistics market is segmented as, Transportation & Distribution, Storage & Warehousing, Customs & Security, Green Logistics, Consulting & Management Services, and Others. In 2023, the storage & warehousing segment was dominant and held almost xx% of the overall market share in terms of revenue. Based on the COVID-19 pandemic strict lockdowns were announced across the globe which, also affected the transportation business and made them halt. Thus, halting in the transportation business manufacturers prefers storage and warehousing. Detailed information about each segment is also covered in the MMR’s report.

Based on End-Use, the chemical logistics market is segmented as follows, chemical industry, pharmaceutical industry, cosmetic industry, oil & gas industry, food industry, and others. In 2023, the pharmaceutical industry segment was dominant and held almost xx% of the overall market in terms of revenue. This may be related to the global increase in the demand for drugs because of the spread of the COVID-19 pandemic which, made the major pharmaceutical industry players research and develop drugs to avoid virus infection. Thus, the surged production of drugs across the globe raised the supply of essential chemicals required as raw material for drug production. Detailed information about each segment is also covered in the MMR’s report.

Based on Transportation Mode, the chemical logistics market is segmented as, airways, roadways, railways, waterways, and pipelines. In 2023, the railways segment was dominant and held almost xx% of the overall market in terms of revenue. This may be related to the cheap, safe, and time-saving source of transport particularly during the COVID-19 pandemic. Detailed information about each segment is also covered in the MMR’s report.
Chemical Logistics Market Regional Insights:
The Asia Pacific led the market in 2023, accounting for nearly xx% of global revenue, thanks to the presence of major chemical manufactures in the region. Logistics demand in the region is expected to rise as a result of increased production of essential chemicals to meet growing consumer demand for customized products.

Europe accounted for a large portion of the market in 2023, and it is anticipated to increase at a CAGR of xx% over the forecast period. This is related to the presence of well-established logistics business in the region, which uses sustainable green logistics, increasing the demand for chemical logistics.

The objective of the report is to present a comprehensive analysis of the market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The report also helps in understanding the global market dynamics, structure by analyzing the market segments and projecting the global market size. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the global market makes the report investor's guide.
Chemical Logistics Market Scope: Inquire before buying



Chemical Logistics Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US $ 287.99 Bn.


Forecast Period 2024 to 2030 CAGR:
3.22%
Market Size in 2030:
US $ 359.52 Bn.


 Segments Covered:
by Services
• Transportation & Distribution
• Storage & Warehousing
• Customs & Security
• Green Logistics
• Consulting & Management Services
• Others


by End-Use
• Chemical Industry
• Pharmaceutical Industry
• Cosmetic Industry
• Oil & Gas Industry
• Food Industry
• Others


by Transportation Mode
• Airways
• Roadways
• Railways
• Waterways
• Pipelines



Chemical Logistics Market, by Region
• North America (United States, Canada and Mexico)
• Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
• Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
• Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
• South America (Brazil, Argentina Rest of South America)
Chemical Logistics Market Key Players
• 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
• Broekman Logistics
• Others

Frequently Asked Questions:

1. Which region has the largest share in Global Chemical Logistics Market?
Ans: Asia Pacific region held the highest share in 2023.

2. What is the growth rate of Global Chemical Logistics Market?
Ans: The Global Chemical Logistics Market is growing at a CAGR of 3.22% during forecasting period 2024-2030.

3. What is scope of the Global Chemical Logistics Market report?
Ans: Global Chemical Logistics Market report helps with the PESTEL, PORTER, COVID-19 Impact analysis, Recommendations for Investors & Leaders, and market estimation of the forecast period.

4. Who are the key players in Global Chemical Logistics Market?
Ans: The important key players in the Global Chemical Logistics Market are – 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, Broekman Logistics, and Others

5. What is the study period of this Market?
Ans: The Global Chemical Logistics Market is studied from 2023 to 2030.