Global Chemical Logistics Market Size

Chemical Logistics Market Analysis

The Global Chemical Logistics Market is expected to register a CAGR of greater than 4% during the forecast period.

The Global Chemical Logistics Market market is expected to register a CAGR of over 4% during the forecast period of 2023-2028.

• There has been a huge increase in demand for the manufacture of different chemicals in recent years. The growth in demand for shale gas to be utilized as a feedstock in the energy industry has raised the requirement for shale gas transportation. Chemical transportation should be handled with caution since any unforeseeable incident might result in major environmental problems. As a result, rising chemical demand and the requirement for safe transportation are some of the factors expected to fuel the growth of the chemical logistics market.
• The surge in chemical manufacturing is projected to move the chemical logistics industry forward. An expansion in chemical production to feed diverse sectors like food production, pharmaceutical manufacture, vehicle manufacturing, and engineering leads to an increase in the demand for safe areas of transportation and distribution services. Chemical volumes in the United States, for example, climbed by 1.4% in 2021 and 3.2% in 2022, according to the American Chemistry Council, while shipments increased by 8.1% in 2021 and 8.2% in 2022. Furthermore, the government of India estimates that India's chemical sector (including fertilizers and pharmaceuticals) would rise by 18-23% in FY2022.
• Partnerships and collaborations are being formed by major companies in the chemical logistics industry in order to generate novel and technologically improved goods. For example, Arkema S.A., a specialized chemicals and advanced materials firm, will collaborate with Swiss trade tech pioneer Nexxiot in July 2021 to digitize Arkema's Isotank (Tank Container) and rail freight wagon fleets utilizing Nexxiot's cutting-edge IoT devices and intelligent cloud platform. This collaboration would offer Arkema clients with end-to-end insight, allowing them to raise quality standards and change the entire service experience. Furthermore, Agility Logistics, a Kuwait-based logistics company, will join with Shipa, a US-based digital logistics platform, to build a bonded, expedited road freight network that will link companies and consumers across the GCC in February 2021. This collaboration would result in a new service offering customers less-than-truckload (LTL) and full truckload (FTL) alternatives and a rapid, cost-effective way to export parcels, pallets, or goods containers.
• The rising need for chemicals in various industry verticals such as the chemical industry, pharmaceutical industry, cosmetic industry, oil & gas industry, specialty chemicals industry, food, and others is expected to drive market expansion. Furthermore, the intricacy with which the makers convey the chemicals to their target via roads, railroads, sea, and others is managed with greatest care, and this feature will help to market growth. Furthermore, governments throughout the world are investing considerably in innovative and modern chemical logistics systems in order to avert catastrophes. As a result, all of these variables will contribute favorably to the growth of the chemical logistics industry.