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2020

Chemical Logistics Market

Chemical Logistics Market Size, Share, Competitive Landscape and Trend Analysis Report by Mode of Transportation (Roadways, Railways, Airways, Waterways, and Pipelines), Services (Transportation & Distribution, Storage & Warehousing, Customs & Security, Green Logistics, Consulting & Management Services, and Others), and End Use Industry (Chemical Industry, Pharmaceutical Industry, Cosmetics Industry, Oil & Gas Industry, Specialty Chemicals Industry, Food, and Others): Global Opportunity Analysis and Industry Forecast, 2020-2027

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Author's: Anvay Sonpimple | Lalit Janardhan Katare
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Chemical Logistics Market Statistics - 2027

The global chemical logistics market size was valued at $253.71 billion in 2019, and is projected to reach $322.54 billion by 2027, registering a CAGR of 3.9% from 2020 to 2027. Asia-Pacific accounted for the highest share in the global chemical logistics market in 2019, in terms of revenue, and LAMEA is anticipated to exhibit remarkable growth rate during the forecast period. 

Chemical logistics can be defined as the movement of chemicals along a supply chain with the help of services such as transportation and warehousing provided by chemical logistics companies. The chemicals sector can be considered as an essential part of business for almost all industries such as processing plastics, pharmaceuticals, food production, and automobile manufacturing. Majority of industries depend on products made by the chemical industry. Chemicals, either in liquid or solid state, act as essential basis for pharmaceutical products, food products, and other everyday products. Transportation of these chemicals requires special care in transportation, handling, and storage to prevent any safety hazards such as contamination and spoilage. In addition, chemical logistics service providers must adhere to changing federal and state regulations to minimize hazards for workers and general public.

Chemical-Logistics-Market,-2020-2027

COVID Impact Analysis:

Rapid spread of COVID-19 has left the complete supply chain with unpredictable challenges and issues such as OEM shutdowns, insufficient labor, output reduction, and raw material shortage, which, in turn, has affected the chemical logistics market. In addition, it has led to either suspension or closure of production activities in various industries across the world, which has significantly impacted the chemical logistics industry as well.

Increase in demand for chemical logistics, owing to rise in chemical production and safety concerns for transportation, storage, and distribution of dangerous chemicals drives growth of the chemical logistics market. However, complexities in chemical logistics, safety concerns, and poor infrastructure hinders growth of the market. Further, rise of tech-driven logistics services, coupled with growth in adoption of IoT enabled connected devices provide remarkable growth opportunities for players operating in the market.

Chemical Logistics Market
By Mode Of Transportation
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Airways segment is projected as the most lucrative segments

The global chemical logistics market is segmented into mode of transportation, services, end use industry, and region. On the basis of mode of transportation, the chemical logistics market is divided into roadways, railways, airways, waterways, and pipelines. By services, it is categorized into transportation & distribution, storage & warehousing, customs & security, green logistics, consulting & management services, and others. By end use industry, it is classified into chemical industry, pharmaceutical industry, cosmetics industry, oil & gas industry, specialty chemicals industry, food industry, and others. Region wise, the chemical logistics market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Key players profiled in the chemical logistics market report include A&R Logistics, Agility, BASF, BDP International, BDtrans, C.H. Robinson Worldwide Inc., Deutsche Bahn (DB) Schenker, Deutsche Post AG (DHL), Rhenus Logistics, Ryder System Inc., and others.

Chemical Logistics Market
By Services
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Green Logistics segment is projected as the most lucrative segments

Rise in demand for chemical logistics 

Production of various chemicals is on the rise since recent years. Rise in use of shale gas as a feed stock in the energy industry has enhanced need for transportation of shale gas the industry. For instance, in August 2020, according to the American Chemistry Council (ACC), the U.S. chemical industry has improved production of chemicals by 0.8%, which increased as compared to 2016 and is expected to account for 3% rise in the year 2020. Thus, manufactured chemicals need to be safely transported, which, in turn, is anticipated to boost the demand of global chemical logistics market in the future. Thus, increase in chemical production for various  end use industries is anticipated to propel growth of the chemical logistics market.

Rise in need to handle and distribute dangerous chemicals

Several chemical logistics companies include transport of raw materials and finished chemical products that are used in several industries such as oil & gas, pharmaceuticals, and process industries. Manufacturers and third party logistics companies are adopting federal and state safety regulations during transport of dangerous goods to minimize the risk involved. For instance, 3PL providers offer chemical shipments that include services such as non-asset logistics management, which allows shippers to choose carriers and manage their goods in enhanced manner. Thus, rise in need for handling and distribution of dangerous chemical products drives growth of the chemical logistics market.

Chemical Logistics Market
By End Use Industry
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Food segment is projected as the most lucrative segments

Complexities in chemical logistics

Chemical logistical companies include transport of goods through railways, roads, airways, and seaways. Thus, there are several complexities involved during transportation of goods such as oversaturated rail network, uncertain transit time, improper flexibility in transport of chemicals with different specifications, road quality, and pilferage, which hamper the chemical logistics market growth. For instance, freight transport by railway can take up to 8 days for a journey that includes approximately 2000 km. Thus, owing to uncertainty in transit time, many logistical companies end up carrying excess stock with improper safety to avoid losing sales, owing to improper stock availability during production, which, in turn, hampers the market growth.

Rise of tech-driven logistics services and growth in adoption of IoT enabled connected devices

Rise in demand for automation and modernized green warehouses in the chemical industry for sustainable business operations propels the market growth. With rise in concerns regarding energy conservation and environment protection, chemical manufacturers are increasingly investing in cost-effective warehousing solutions that combine green practices and smart technology, such as the Internet of Things (IoT), smart sensors, and robotics. In addition, vendors also provide digital tools to automate chemical logistics and process data with enhanced productivity, efficiency, and convenience. Moreover, growth in use of Artificial Intelligence (AI), machine learning, radio-frequency identification (RFID), and Bluetooth, coupled with other newly introduced technologies such as drone delivery and driverless vehicles is witnessed in logistics services. Therefore, growth in technological advancements in the logistics industry offer lucrative growth opportunities for the chemical logistics market. 

Chemical Logistics Market
By Region
2027
Asia-pacific 
North America
Europe
LAMEA

LAMEA region is projected as the most lucrative segments

Key Benefits For Stakeholders

  • This study presents analytical depiction of the global chemical logistics market analysis along with current trends and future estimations to depict the imminent investment pockets.
  • The overall market opportunity is determined by understanding the profitable trends to gain a stronger foothold.
  • The report presents information related to the key drivers, restraints, and opportunities of the market with a detailed impact analysis.
  • The current market is quantitatively analyzed from 2019 to 2027 to benchmark the financial competency.
  • Porter’s five forces analysis illustrates the potency of buyers and suppliers in the industry.

Key Market Segments

By Mode of Transportation

  • Roadways
  • Railways
  • Airways
  • Waterways
  • Pipelines

By Services

  • Transportation & Distribution
  • Storage & Warehousing
  • Customs & Security
  • Green Logistics
  • Consulting & Management Services
  • Others

By End Use Industry

  • Chemical industry
  • Pharmaceutical Industry
  • Cosmetic Industry
  • Oil & Gas Industry
  • Specialty Chemicals Industry
  • Food
  • Others

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Rest of Europe
  • Asia-Pacific
    • China
    • Japan
    • India
    • Australia
    • Rest of Asia-Pacific
  • LAMEA
    • Latin America
    • Middle East
    • Africa

Key Market Players

  • A&R Logistics
  • Agility
  • BASF
  • BDP International
  • BDtrans
  • C.H. Robinson Worldwide Inc.
  • Deutsche Bahn (DB) Schenker
  • Deutsche Post AG (DHL)
  • Rhenus Logistics
  • Ryder System Inc.

Chemical Logistics Market Report Highlights

Aspects Details
Chemical Logistics Market By MODE OF TRANSPORTATION
By MODE OF TRANSPORTATION
  • Roadways
  • Railways
  • Airways
  • Waterways
  • Pipelines
Chemical Logistics Market By SERVICES
By SERVICES
  • Transportation and Distribution
  • .Storage and Warehousing
  • Customs and Security
  • Green Logistics
  • Consulting and Management Services
  • Others
Chemical Logistics Market By END USE INDUSTRY
By END USE INDUSTRY
  • Chemical industry
  • Pharmaceutical Industry
  • Cosmetic Industry
  • Oil and Gas Industry
  • Specialty Chemicals Industry
  • Food
  • Others
Chemical Logistics Market By Region
By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (France, Germany, Italy, Spain, UK, Russia, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, South Korea, Australia, Thailand, Malaysia, Indonesia, Rest of Asia-Pacific)
  • LAMEA  (Brazil, South Africa, Saudi Arabia, UAE, Argentina, Rest of LAMEA)
Key Market Players
Key Market Players

.C.H. Robinson Worldwide Inc., Deutsche Post AG (DHL), BDtrans, Rhenus Logistics, Agility, BDP International, BASF, A&R Logistics, Ryder System Inc., Deutsche Bahn (DB) Schenker

Analyst Review

According to the insights of CXOs of leading companies, the global chemical logistics market is expected to grow at a remarkable rate in the future, owing to rise in demand for chemicals from various end use industries such as pharmaceuticals and food industries.

Rise in need for handling and distribution of dangerous chemicals is the major factor that boosts growth of the chemical logistics market. In addition, growth in demand for chemical logistics, owing to rise in chemical production also boosts the market growth. However, safety concerns, poor infrastructure, and complexities in chemical logistics hampers growth of the market. Further, focus of governments on domestic production of chemicals and rise of tech-driven logistics services, coupled with rise in adoption of IoT enabled connected devices provides remarkable opportunities for players operating in the chemical logistics market.

Among the analyzed regions, Asia-Pacific is expected to account for the highest revenue in the global market during the forecast period, followed by North America, Europe, and LAMEA. Moreover, LAMEA is anticipated to exhibit remarkable growth rate during the forecast period.

Author Name(s) : Anvay Sonpimple | Lalit Janardhan Katare

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Chemical Logistics Market

Global Opportunity Analysis and Industry Forecast, 2020-2027