Hazardous Goods Logistics Market Size

Hazardous Goods Logistics Market Analysis

The Hazardous Goods Logistics Market size is estimated at USD 259.05 billion in 2024, and is expected to reach USD 347.97 billion by 2029, growing at a CAGR of 6.08% during the forecast period (2024-2029).

• Risky materials make up the bulk of international cargo, as they contain a wide range of commonly used products and items. A large portion of this cargo is said to be made up of petrol and petroleum products. Thanks to hydraulic fracturing and a government that has fostered a more conducive environment for fuel production, the current oil boom may be the result of unprecedented growth over the past few years. The United States currently produces the bulk of the world’s oil.
• The requirement to ship dangerous goods is anticipated to increase yearly, in addition to the numerous dangerous goods rules being updated annually. The need for UN packaging, training, labels, and placards will rise as a result of the growing requirement to move lithium batteries and the region's well-established gas and oil businesses, which are both driving the dangerous goods market to record highs.
• Deregulation of environmental regulations and the loosening of numerous rules restricting access to sensitive habitats and emissions has led to a boom in the oil and gas industry. Offshore drilling has also increased in our country. The US currently exports more gas than it imports, and production of gas is expected to grow in the coming year. The oil and gas market is expected to continue to grow as the US increases its external oil and gas exports.
• Additionally, all forms of transportation must be used to convey radioactive medication, virus samples, healthcare hazardous chemicals, and clinical waste such as surgical equipment. The oil and gas industry, for example, might have an impact on this expected expansion in the globe of dangerous goods. The oil and gas sector, which is still lucrative, is anticipated to receive investments totaling 237 billion dollars over the next ten years, or 25% of the entire estimated worldwide investment in this sector.
• The key to successfully transporting hazardous goods is digitization. A digital supply network serves as a technology platform for supply chain linkages and cross-business processes in transportation operations. It links suppliers, customers, shippers, and third-party logistics providers so they can work together more effectively and conduct business. Automated systems translate paper or email into the proper forms so that the document can be shared electronically with other people. This includes manual operations like completing a purchase order, recognizing the receipt of the order, and shipping confirmation.
• The lockdown during the COVID-19 pandemic created impediments to transporting chemicals and other dangerous goods, thereby hampering the growth of the hazardous goods logistics market. However, the demand from the pharmaceutical sector during COVID-19 had a positive impact on the market.