The chemical logistics market involves the transportation and storage of chemical and pharmaceutical products, raw materials and finished goods, within as well as across countries. It involves transporting liquid, solid and gas chemicals and hazardous and flammable materials through various modes of transportation such as road, rail, maritime and pipeline. This involves careful handling and storage of chemicals in specialized temperature controlled containerized transport, bulk liquid or gas tankers as well as dedicated silos and tanks.
The global chemical logistics market is estimated to be valued at US$ 397.48 Bn in 2024 and is expected to exhibit a CAGR of 5% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the chemical logistics market are A&R Logistics, Agility Logistics, Al-Futtaim Logistics, BASF, BDP International, Inc., BDtrans, C.H. Robinson Worldwide Inc., CEVA Logistics, Deutsche Bahn (DB) Schenker, Deutsche Post AG (DHL), DHL, Montreal Chemical Logistics, Petochem Middle East, Rhenus Logistics, Ryder System Inc. The growth in the chemical industry and increasing outsourcing of logistic activities by chemical manufacturers is fueling the demand for specialized chemical logistics services globally. Chemical logistics companies are expanding their geographical reach and service offerings to emerging markets in Asia Pacific and Latin America to tap the growth opportunities in these regions.
The global chemical industry has been witnessing consistent growth over the past few years driven by factors such as growing populations, higher standards of living, rapid industrialization and increased usage of raw materials and specialty chemicals across industries such as automotive, consumer goods, healthcare and construction. This rising demand from end-use industries in turn is propelling the need for safe, reliable and timely transportation and warehousing of chemicals worldwide.
Chemical Logistics Market Size companies are expanding their global footprint to maintain proximity to growing customer base and resource bases. Emerging economies such as India and countries in Southeast Asia, Middle East and Latin America are witnessing increased investment in chemical industries, which is attracting global chemical logistics providers to expand their networks in these regions.
Market Drivers
The primary driver boosting the growth of the chemical logistics market is the rising demand from core chemical industries. Growth in end-user industries such as automotive, consumer goods, manufacturing, healthcare, and others where chemicals and raw materials have widespread usage is directly influencing the demand for chemical logistics services. Chemical logistics players are focusing on reducing logistics costs and enhancing supply chain efficiencies for chemical manufacturers by optimizing transportation networks and leveraging technological advancements in fleet and warehouse management. Stringent safety and quality regulations regarding the handling and transportation of chemicals is also driving the need for specialized skills and services in this market.
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