Chemical Logistics Market Analysis

Global Chemical Logistics Market Overview

Chemical Logistics Market Size valued at USD 262.5 Billion in 2022. The Chemical Logistics industry is projected to grow from USD 273.5 Billion in 2023 to USD 380.1 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.20% during the forecast period (2023 - 2032). Increased globalization of the chemical industry and rising emphasis on regulatory compliance and safety standards are the key market drivers enhancing growth of the market.

Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review

Chemical Logistics Market Trends

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  Growing globalization of the chemical industry is driving the market growth

  
  

Market CAGR for chemical logistics is being driven by the rising globalization of the chemical industry. As chemical manufacturing companies expand their operations beyond domestic borders, the complexities associated with the movement of raw materials, intermediates, and finished chemical products necessitate a sophisticated and responsive logistics infrastructure. This expansion is driven by several key factors, and the ensuing demand for specialized chemical logistics services is instrumental in shaping the industry landscape.

The quest for cost optimization and enhanced efficiency motivates chemical companies to source raw materials and manufacture products in regions where operational expenses are more favourable. The globalization of the chemical supply chain allows companies to tap into cost-effective resources, such as raw materials and skilled labour, in various parts of the world. As a result, the transportation of chemicals across borders becomes a critical aspect, driving the need for specialized logistics providers capable of navigating the intricacies associated with international trade. Further, access to diverse markets and the pursuit of new business opportunities are significant drivers of the expansion of the chemical industry. Companies seek to capitalize on emerging markets where there is a growing demand for chemicals in various applications, from agriculture to manufacturing. This geographical diversification of markets necessitates efficient transportation and logistics solutions to reach customers globally. Chemical logistics providers play a pivotal role in establishing and maintaining supply chain connections that span continents.

The third factor is the strategic positioning of manufacturing facilities to be closer to end-users or key markets. This strategic localization ensures timely deliveries, reduces lead times, and enhances overall supply chain responsiveness. As chemical companies establish production facilities in different regions, the transportation of raw materials to these facilities and the distribution of the finished products to markets around the world become central components of the chemical logistics landscape. Furthermore, the globalization of chemical regulations and standards necessitates a heightened focus on compliance and safety in transportation. Different regions have distinct regulatory frameworks governing the transportation, handling, and storage of chemicals. Chemical logistics providers with expertise in navigating these regulations and ensuring compliance with safety standards become indispensable partners for chemical companies expanding globally. Thus driving the Chemical Logistics market revenue.

Chemical Logistics Market Segment Insights

Chemical Logistics Mode of Transportation Insights

The Chemical Logistics market segmentation, based on mode of transportation, includes roads, railways, airlines, waterways, and pipelines. The roadways segment dominated the market, accounting for the largest market revenue due to the flexibility and accessibility it offers for the transportation of chemical products. Many chemicals require specialized handling, and road transportation provides a versatile solution for both short and long-distance movements. The extensive road networks in many regions enable last-mile delivery to be efficiently executed, reaching even remote locations. Additionally, the ability to use various types of vehicles, such as tanker trucks equipped for liquid chemicals or dry van trailers for solid products, makes road transport a preferred mode of transport for the chemical industry, ensuring the safe and timely delivery of diverse chemical shipments.

Figure 1: Chemical Logistics Market by Mode of Transportation, 2022 & 2032 (USD Billion) 

Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review

Chemical Logistics Service Insights

The Chemical Logistics market segmentation, based on service, includes Transportation and distribution, Storage and warehousing, Customs and security, Green Logistics, Consulting and management Services and Others. The transportation & distribution category dominates the market due to the flexibility and accessibility it provides for the transportation of chemical products. Many chemicals require specialized handling, and road transportation provides a versatile solution for both short and long-distance movements. The extensive road networks in many regions enable last-mile delivery to be efficiently executed, reaching even remote locations. Additionally, the ability to use various types of vehicles, such as tanker trucks equipped for liquid chemicals or dry van trailers for solid products, makes road transport a preferred mode of transport for the chemical industry, ensuring the safe and timely delivery of diverse chemical shipments.

Chemical Logistics End User Insights

The Chemical Logistics market segmentation, based on end users, includes the Chemical Industry, Pharmaceutical Industry, Cosmetic Industry, Specialty Chemicals Industry, Oil and gas Industry, Food and Others. The chemical industry category dominates the market due to the highly specialized and regulated nature of transporting and handling chemicals. Chemical logistics services are tailored to the unique requirements and safety standards of the chemical sector, encompassing the transportation of hazardous materials, compliance with regulatory frameworks, and adherence to stringent safety protocols. The sheer diversity of chemical products, ranging from raw materials to finished goods, necessitates specialized logistics solutions that cater to various handling and storage needs, reinforcing the dominance of the chemical industry as the primary end user. Further, the Pharmaceutical Industry is experiencing the fastest growth in the chemical logistics market.

Chemical Logistics Regional Insights

By region, the study gives market insights into the North America, Europe, Asia-Pacific and the Rest of the World. The North American Chemical Logistics market area dominates this market due to its robust chemical manufacturing sector, extensive network of chemical producers, and advanced logistics infrastructure. The region's stringent safety and regulatory standards, coupled with a well-established framework for handling hazardous materials, position North America as a leader.

Further, the prime countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, Japan, China, India, Australia, South Korea, and Brazil.

Figure 2: CHEMICAL LOGISTICS MARKET SHARE BY REGION 2022 (USD Billion) 

Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's Chemical Logistics market accounts for the second-largest market share due to the robust chemical manufacturing sector, stringent regulatory requirements, and the increasing need for safe, efficient, and environmentally sustainable transportation and storage solutions. Further, the German Chemical Logistics market held the largest market share, and the UK Chemical Logistics market was the fastest-growing market in European region.

The Asia-Pacific Chemical Logistics Market is expected to rise at the fastest CAGR from 2023 to 2032. This is due to the robust chemical manufacturing sector, increasing trade activities, and the growing demand for specialized logistics solutions. Moreover, China’s Chemical Logistics market held the largest market share, and the Indian Chemical Logistics market was the fastest-growing market in Asia-Pacific region.

Chemical Logistics Key Market Players & Competitive Insights

Leading market players are investing heavily in the research and development in order to spread their product lines, which will help the Chemical Logistics market grow even more. Market players are also undertaking various strategic activities to sprread their footprint, with important market developments including higher investments, new product launches, contractual agreements, mergers and acquisitions, and collaboration with other organizations. To spread and survive in the more competitive and rising market climate, the Chemical Logistics industry must offer cost-effective items.

Manufacturing locally to minimize the operational costs is one of the key business tactics used by the manufacturers in the Chemical Logistics industry to benefit the clients and grow the market sector. In recent years, the Chemical Logistics industry has offered some of the most significant advantages to the supply chain industry. Major players in the Chemical Logistics market, including A&R Logistics, Agility, BASF, BDP International, BDtrans, C.H. Robinson Worldwide Inc., Deutsche Bahn (DB) Schenker, Deutsche Post AG (DHL), Rhenus Logistics and Ryder System Inc, and others, are trying to raise market demand by investing in the research and development operations.

DHL, part of the larger Deutsche Post DHL Group, is a logistics and express delivery company headquartered in Bonn, Germany. With origins dating back to 1969, DHL has grown to become one of the world's largest and most recognized logistics providers. The company operates in more than 220 countries and the territories, offering a broad range of services, including express parcel delivery, freight transportation, supply chain management, and e-commerce solutions. DHL is renowned for its international shipping expertise and innovative logistics solutions, serving a diverse clientele across various industries. In December 2023, logistics giant DHL announced that it acquired Agility Integrated Logistics, a leading provider of integrated logistics solutions, including specialized services for the chemical industry. This acquisition strengthens DHL's presence in emerging markets and expands its chemical logistics capabilities.

XPO Logistics, headquartered in Greenwich, Connecticut, is a provider of supply chain solutions, offering a diverse range of services in logistics, transportation, and e-commerce. Founded in 1989, the company has evolved into a major player in the logistics industry, with a presence in over 30 countries. XPO operates a vast network of transportation and logistics facilities, providing services such as freight brokerage, last-mile delivery, contract logistics, and intermodal transportation. The company is known for its innovative approach, leveraging advanced technologies to optimize supply chains and enhance operational efficiency. Announced in October 2023, XPO Logistics, a leading provider of contract logistics services, acquired the contract logistics business of Kuehne+Nagel, including its chemical logistics operations. This acquisition strengthens XPO's network and expands its expertise in handling hazardous materials.

Key Companies in the Chemical Logistics market include

• A&R Logistics


• Agility


• BASF


• BDP International


• BDtrans


• H. Robinson Worldwide Inc.


• Deutsche Bahn (DB) Schenker


• Deutsche Post AG (DHL)


• Rhenus Logistics


• Ryder System Inc

Chemical Logistics Industry Developments

November 2023: chemical giant BASF and railway operator DB Cargo partnered to develop and implement sustainable logistics solutions for the chemical industry. This partnership aims to reduce the environmental impact of chemical transportation through innovative rail and intermodal transport options.

September 2023: Dow, a major chemical company and logistics provider, Ryder, partnered to improve the efficiency and visibility of Dow's chemical transportation network. This collaboration utilizes Ryder's logistics expertise and technology to optimize transportation planning and execution.

March 2023: Brenntag, a leader in chemical distribution, acquired Univar Solutions, another major chemical distributor. This consolidation strengthens Brenntag's market position and expands its reach in the chemical logistics market.

Chemical Logistics Market Segmentation

Chemical Logistics Mode of Transportation Outlook

• Roadways


• Railways


• Airways


• Waterways


• Pipelines

Chemical Logistics Service Outlook

• Transportation & Distribution


• Storage & Warehousing


• Customs & Security


• Green Logistics


• Consulting & Management Services


• Others

Chemical Logistics End User Outlook

• Chemical Industry


• Pharmaceutical Industry


• Cosmetic Industry


• Oil & Gas Industry


• Specialty Chemicals Industry


• Food


• Others

Chemical Logistics Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America