Dangerous Hazardous Goods Logistics Market Analysis

Global Dangerous/hazardous Goods Logistics Market Overview

The dangerous/hazardous goods logistics market size was valued at USD 200.97 billion in 2021. The dangerous/hazardous goods logistics industry is projected to grow from USD 212.87 billion in 2022 to USD 351.09 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 6.45% during the forecast period (2024 - 2030). Chemically regulated materials pose a threat to people, property, and the environment when they are carried in the form of hazardous commodities. Some of the most frequently shipped items in the world are classified as "hazardous," including batteries and fuel. Therefore, additional safety measures, cautious handling, and adequate packing are required while transporting hazardous items. For the safe transfer of hazardous materials through the pipeline, rail, highway, air, and sea, there are also stringent laws and standards in place.

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

Dangerous/hazardous goods logistics Market Trends

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  The transport and storage of hazardous materials are governed by strict restrictions.

  
  

In order to safely carry and store dangerous materials including explosives, radioactive materials, flammables, and biohazardous waste, workers must undergo extensive training. Therefore, additional safety measures, cautious handling, and adequate packing are required while transporting hazardous items. The pipeline, rail, highway, air, and marine transport of hazardous items are subject to additional safety requirements and standards. New strict policies have been adopted by international organizations, domestic institutions, aviation and shipping divisions, and others to improve the handling of dangerous cargo.

Strict recommendations for safer dangerous product management have been issued by international and domestic organizations, institutions, and aviation and shipping departments, for safer movement of dangerous goods in shipping. The implementation of these policies is anticipated to propel the expansion of the hazardous products logistics market over the forecast period. Fueling the market expansion are factors such as the growing oil and gas industry, more government rules and regulations regarding the transit of hazardous items, and an uptick in the shipping of nuclear medications, virus samples, and related products during the COVID-19 pandemic.

To give just one example, the International Maritime Dangerous Goods (IMDG) Code was created by the International Maritime Organization (IMO). To improve and standardize the safe transportation of dangerous products and avoid environmental damage, the International Marine Dangerous Goods Regulation (IMDG Code) has been designed as an international code for the maritime transport of packed dangerous goods and hazardous cargo handling.

The market for hazardous goods logistics is expanding as a result of an uptick in the necessity of hazardous waste management for ecological preservation. Additionally, governments in several nations have enacted tough regulations against the improper handling, storage, and transportation of toxic waste.

For these reasons, the hazardous waste management and, by extension, hazardous goods logistics, market is expected to expand at a rapid rate. During the forecast period, the hazardous goods logistics market is expected to grow due to factors like strict rules and regulations for transporting and storing hazardous goods, a rise in digitization, an increase in the use of drones for delivering hazardous goods, and a rise in the oil and gas industry. The hazardous products logistics sector is also poised to benefit from the rising demand for medical waste management and the growing popularity of nuclear power. Owing to these aforementioned reasons, and market drivers dangerous/hazardous goods logistics industry is poised to grow at a market CAGR of 6.45% during 2022-2030.

Dangerous/hazardous goods logistics market Segment Insights

Dangerous/hazardous goods logistics Market: Type of Goods Insights

 dangerous/hazardous goods logistics market segmentation based on the type of goods consists of flammable liquids, compressed gases, corrosives, oxidizing substances and others. The market is being propelled by an uptick in the transport of combustible liquids.

Because of the booming chemical industry, recent market statistics indicate that the proportion of hazardous materials in total freight is increasing rapidly. Two-thirds of all hazardous goods carriers also transport flammable petroleum liquids including kerosene, gasoline, LPG, naphtha, etc. Accidents involving the shipping of such substances are more common than with other types of goods. Fire, explosion, injury, loss of property, and damage to the environment are just some of the terrible outcomes that can come from being involved in a traffic accident. Most of the need is attributable to the transportation of flammable liquids. In Europe, for instance, flammable liquids will account for more than half of risky goods transportation by road in 2021, followed by compressed gasses and corrosives.

In 2021, 57% of all Class 3 flammable liquid-carrying rail tank cars in the United States were built by the new DOT-117 or DOT-117R standards. There were no phase-out dates in 2021. In 2023, ethanol transport restrictions will apply to all DOT-111 and CPC-1232 tank vehicles, which is the next major deadline. This is poised to keep the US dangerous/hazardous goods logistics market poised for revenue growth opportunities in the future.

Figure 2:  dangerous/hazardous goods logistics market, by Type of Goods, 2022 & 2030 (USD Billion)

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

Dangerous/hazardous goods logistics Service Type: Market Insights

The dangerous/hazardous goods logistics market data is segmented into three subsets based on service type: transportation, warehousing & distribution and value-added services. By far the most popular service category is transportation logistics which is valued at USD 123.08 billion in 2022. Medical, nuclear power, oil and gas, and the petrochemical industries are only a few examples of the widespread usage of hazardous materials in a developing or advanced economy. used. Transporting dangerous commodities safely requires the right vehicles, the right equipment, and the right people.

Transport companies transporting hazardous materials must adhere to standard practices for the security of their vehicles and ships. Other federal agencies' rules on hazardous products, workplace safety, and environmental protection are also included. During the market forecast period, the hazardous products logistics market stands to benefit enormously from increasingly stringent government restrictions. The US Department of Transportation's (DOT) Pipeline and Hazardous Materials Safety Administration (PHMSA) is in charge of formulating and implementing national standards for the safe transportation of hazardous materials. When transporting dangerous commodities to, from, or within the United States, it is imperative that you adhere to the Hazardous Materials Regulations (HMR: 49 CFR Part 100–185).

To ease trade and ensure the safe and efficient movement of dangerous products, the United Nations Model Regulations on the Carriage of Dangerous Goods serve as a basis for the development of standardized regulations for all forms of transport. Every two years, there is a brand new edition. Labels or marks designed specifically for transporting dangerous commodities on cargo ships must be affixed to the harmful items. More importantly, it helps make transportation safer.

Figure 2:  dangerous/hazardous goods logistics market, by Service Type, 2022 & 2030 (USD Billion)

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

Dangerous/hazardous goods logistics End-Use Industry: Market Insights

The dangerous/hazardous goods logistics Market may be divided into three types of end-users: industrial, medical and others. Out of these medical accounts for the largest market share out of all the three end-users. Worldwide, hospitals and other healthcare facilities produce considerable amounts of potentially infectious and dangerous waste daily. Biomedical waste and hospital waste pose substantial risks to both human and environmental health if disposed of or exposed to them without proper precautions being taken. Become. An increase in medical waste was also produced because of the pandemic's effects on the manufacturing of testing kits, transportation, testing, and waste disposal.

The World Health Organization (WHO) estimated in February 2022 that between March 2020 and November 2021, 87,000 tons of personal protective equipment (PPE) was purchased and transported to support countries' urgent COVID-19 response needs through a joint UN emergency operation. The logistics of transport are crucial in the management of biomedical waste. To get rid of their trash, hospitals often use outside companies. Whether by train, tanker, truck, barge, or any other means, biomedical waste transportation entails moving the material from one location to another. There has been a rise in the need for hazardous waste transportation as people become more aware of the dangers that toxic waste poses to both the environment and human health. As a result, the increasing need for biological waste treatment creates promising new avenues for the development of the hazardous products logistics industry.

The Nagaland Health Project (NHP), for instance, convened a conference at the district level in September 2022 to discuss the rollout of universal biomedical waste management (BMWM) at the Kifia District Hospital.

Dangerous/hazardous goods logistics Regional Market Outlook

By Region, the study segments the market into North America, Europe, Asia-Pacific and the Rest of the World. The North America dangerous/hazardous goods logistics market accounted for USD 69.50 billion in 2022 and is expected to exhibit a 6.45% market CAGR during the study period.

Figure 3:  DANGEROUS/HAZARDOUS GOODS LOGISTICS MARKET SHARE BY REGION 2022 (%)

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

In 2022, the Asia Pacific dangerous/hazardous goods logistics market was valued at USD 69.50 billion, with China’s dangerous/hazardous goods logistics market taking up more than half of the total. In the wake of a dramatic shift in the United States, oil consumption around the world has risen. Large-scale petrochemical developments lessen the gasoline demand. For instance, due to rising domestic demand for petrochemicals, more hazardous goods like oil and gas are being shipped throughout the country via trucking services.

The U.S. is expected to be the world's biggest oil producer within the next five years, according to the International Energy Agency, surpassing both Russia and Saudi Arabia in that time. In the end, shipping companies are what the oil and gas sector needs to get its goods to customers all over the world. The market for hazardous goods logistics should expand as a result of these market trends. When transporting hazardous materials, it is important to use a label or other identifying indicator on the cargo carriers. In addition, this would greatly improve transit security. Dangerous materials must be packaged by applicable laws and guidelines.  Thereby, US dangerous/hazardous goods logistics market is poised to remain one of the most attractive regions for manufacturers to target.

Approximately 23,700 companies and generators produced 34.9 million tons of hazardous waste in the United States in 2019, as reported by the Environmental Protection Agency (EPA). Industrialization's rising waste output poses a serious problem. Toxic, chemical and combustible materials are all examples of hazardous waste. In addition, when exposed to other components, chemically reactive components can release toxic vapours. Due to their significant impact on the environment, appropriate disposal of these items is essential.

Europe dangerous/hazardous goods logistics market is valued at USD 53.35 billion, with Germany dangerous/hazardous goods logistics market accounting for nearly one-fifth of the total market. As a result, the expansion of the market should be spurred by the increased demand for transporting dangerous commodities by these standards. The high price of transportation and the presence of possible dangers are seen as threats that will slow the expansion of the market. In addition, new market participants entering the hazardous goods logistics sector and transitioning to nuclear energy necessitate a vehicle, which creates an opening for expansion.

Dangerous/hazardous goods logistics Key Market Players & Market Competitive Landscape

Companies like Linde plc, Yara International, CATL, Panasonic, Saudi Aramco, BASF SE, Shell plc, LG Chem, etc. are among the most important providers of hazardous materials. There are many major and minor international and domestic participants in the market for risky goods. Bolloré Logistics, DHL, CEVA Logistics, DSV, and Hellmann are just a few of the reputable names in the dangerous products logistics industry. Many different services are offered by these businesses.

Dangerous and Harmful Items Logistics markets are utilized by several industries like oil & gas, healthcare, automobile, petrochemical, and many more. The need for lithium batteries is expected to rise as the number of electric vehicles increases. The demand for gasoline, diesel, petroleum distillates, etc., is projected to rise as a result of rising energy demands across a variety of industries. A second factor that is anticipated to increase demand for chemical raw materials is the rising demand for diverse chemical products.

The latest market report from Market Research Future portrays the market players in the Dangerous/hazardous goods logistics industry, which are Ceva Logistics, Bollore Logistics, DHL, DSV, DB Schenker, Hellmann Worldwide Logistics, DGD Transport, Toll Group, YRC Worldwide Inc., United Parcel Service, GEODIS, Rhenus Logistics, Agility Logistics, Kuehne + Nagel and XPO Logistics. Market major players have been working on environmentally friendly containers for their wares.

Key Companies in the dangerous/hazardous goods logistics market include

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  Ceva Logistics (Switzerland)


• Bollore Logistics (France)


• DHL (Germany)


• DSV (Denmark)


• DB Schenker (Germany)


• Hellmann Worldwide Logistics (Germany)


• DGD Transport (US)


• Toll Group (Australia)


• YRC Worldwide Inc. (US)


• United Parcel Service (US)


• GEODIS (France)


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  Rhenus Logistics (Germany)


• Agility Logistics (Kuwait)


• Kuehne + Nagel (Switzerland)


• XPO Logistics (US)

Dangerous/hazardous goods Logistics Industry: Market Development

On a twice-weekly basis beginning in April 2022, a Hellman-chartered Boeing 747-400 freighter will fly the distance between Liège, Belgium and Hong Kong, bridging the time difference between Europe and Hong Kong. The delivery of dangerous goods, cargo, big and heavy items, and special deliveries are all services that can be requested by customers.

Due to the increasing demand from French customers, Hellmann Worldwide Logistics has proposed opening a Direct Load location there in June 2021.

For shipping batteries by air, sea, rail, and road, DB Schenker introduced a new service in July 2020. Increases in the market are being made to accommodate the ever-increasing need for lithium batteries in electric cars.

Azelis UK and Suttons Tankers entered into a three-year contract for the shipping of bulk nitrogen chemical liquids and gases in July 2020/March 2021.

Dangerous/hazardous goods logistics Market Segmentation

Dangerous/hazardous goods logistics Type of Goods Outlook

• Flammable Liquids


• Compressed Gases


• Corrosives


• Oxidizing Substances


• Others

Dangerous/hazardous goods logistics Service Type Outlook

• Transportation


• Warehousing & Distribution


• Value Added Services

Dangerous/hazardous goods logistics Destination Outlook

• Domestic


• International

Dangerous/hazardous goods logistics End-use Industry Outlook

• Industrial


• Healthcare/Medical


• Others

Dangerous/hazardous goods logistics Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


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


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


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