Chemical Warehousing Market to Witness a Significant Jump in Valuation to Reach USD 47.2 Billion: Astute Analytica
Sustained by surging chemical production, e-commerce growth, and stricter regulations, the global chemical warehousing market is thriving. Third-party logistics are playing a major role, with Asia Pacific emerging as a leader due to its strong manufacturing base and high demand for agrochemicals.
New Delhi, April 24, 2024 (GLOBE NEWSWIRE) -- The global chemical warehousing market attain a valuation of US$38.2 billion in 2023 and is projected to reach US$47.2 billion by 2032, at a CAGR of 2.36% (2024-2032).
The future of the chemical warehousing market looks promising, fueled by several key trends. The global chemical industry is experiencing a boom, with shipments projected to grow by 34% to $5.5 trillion by 2030. This translates to a surge in international trade, with cross-border chemical transportation expected to rise by 7% annually through 2025. This increased trade activity will drive demand for robust logistics and warehousing solutions.
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E-commerce is also playing a significant role in the chemical warehousing market. Sales of chemicals online are expected to reach $80 billion globally by 2025, up from $45 billion in 2020. This shift to online sales necessitates additional warehousing capacity to meet customer demands efficiently. Chemical companies are recognizing the importance of optimizing their supply chains. 80% plan to invest in digital technologies within the next three years to achieve faster and safer logistics. Sustainability is another key focus, with 82% of warehouse operators in North America prioritizing sustainable practices.
While the global picture of market is positive, there are some regional variations to consider. Chemical demand in China and India is forecast for strong growth, at 4.4% and 8.2% annually respectively through 2025. However, economic headwinds caused a decline in global production in 2022, with the Eurozone, US, and even China experiencing dips in demand. These regional fluctuations highlight the need for adaptability in the market.
*Key Findings in Chemical Warehousing Market *
Market Forecast (2032) US$ 47.2 billion
CAGR (2024-2032) 2.36%
Largest Region (2023) Asia Pacific (45.9%)
By Type General Warehousing (51.2%)
By Product Agrochemicals (24.0%)
By Chemical Class Flammable Liquids and Solids (25.8%)
By Service Providers Third Party (66.0%)
By Application Installation (23.0%)
By Industry Agriculture (25.6%)
Top Trends · E-commerce boom drives warehouse demand.
· 3PLs rise with efficient chemical storage solutions.
· Warehouses embrace technology for efficiency and safety.
Top Drivers · Global chemical production and shipments surge.
· Stricter regulations for safe chemical handling.
· Rising demand for agrochemicals in developing markets.
Top Challenges · Regional economic fluctuations impact production and demand.
· Securing storage and handling of flammable chemicals.
· Navigating the evolving regulatory landscape.
*Third-Party Service Providers Dominate Chemical Warehousing Market with Projected Revenue of Over USD 31 Billion by 2032*
The third-party logistics (3PL) market is booming, with the global market size valued at over $25 trillion in 2023 and expected to grow at a healthy rate of nearly 10% annually. This trend is mirrored in the chemical warehousing sector, where 3PL service providers are asserting their dominance. Their revenue contribution is projected to surpass $31.15 billion by 2032, driven by several key factors. Companies across industries are increasingly recognizing the benefits of outsourcing logistics and supply chain functions to 3PLs. In fact, over 80% of Fortune 500 companies and a staggering 96% of Fortune 100 companies rely on 3PL services. This shift can be attributed to the efficiency gains achieved through factors like warehousing expertise, flexibility, and information sharing, which studies show can explain over two-thirds of the variance in 3PL performance.
For the chemical industry specifically, 3PLs offer a vital service: specialist storage for chemicals and other goods requiring particular environmental controls. This ensures the safe and compliant handling of these materials. The expertise of 3PLs extends beyond storage; over 90% provide value-added services like kitting, packaging, and labeling, streamlining operations for chemical companies.
Technology adoption is another driver of growth in the 3PL market. Over half of 3PLs are actively investing in warehouse automation to improve efficiency and accuracy. Additionally, big data analytics is on the rise, with usage growing from 27% to 41% in just five years. This data-driven approach empowers 3PLs to make better decisions and optimize their services. The Internet of Things (IoT) is also making its mark, with adoption in 3PL warehouses expected to reach 70% by 2025, up from 30% in 2020. Customer satisfaction is paramount, and 3PLs are demonstrably delivering. A significant 88% of 3PL users report improved customer service as a result of outsourcing their logistics. Faster order fulfillment through 3PLs translates to happier customers compared to drop shipping models. Furthermore, 3PLs efficiently process an average of 95% of returns, contributing to better inventory management and overall customer satisfaction.
*Agrochemicals Drive Growth in Chemical Warehousing Market*
The chemical warehousing market is seeing a surge in the dominance of agrochemicals. The global market volume of agrochemicals is projected to reach a staggering 296.6 million metric tons by 2030, a significant increase from 275.4 million metric tons in 2021. This growth is particularly pronounced in developing markets compared to established regions like North America, the EU15, and Japan. Several factors are fueling this rise in agrochemicals. Government support plays a key role, with subsidies and favorable policies creating fertile ground for market expansion. In Canada alone, the sheer volume of pesticides necessitates storage in roughly 1,300 specialized facilities nationwide.
To ensure the safe storage of these essential yet potentially hazardous materials, a collaborative effort led to the development of the Agrichemical Warehousing Standards Association Certified Warehousing Standards. This program signifies a commitment to safety and best practices within the agrochemical warehousing sector. The dominance of agrochemicals in chemical warehousing is undeniable. The projected market growth, coupled with the specific storage requirements of these products, highlights the increasing importance of specialized warehousing solutions for the agrochemical industry.
*Flammable Liquids and Solids Reigning Supreme in Chemical Warehousing Market with Market Share of 25.8%*
Flammable liquids and solids reign supreme in the chemical warehousing market, with a projected market share exceeding 25.8% and the highest Compound Annual Growth Rate (CAGR) of 2.64% amongst all chemical classes. This dominance stems from a confluence of factors that create a constant demand for specialized storage solutions. One key driver is the high demand for these materials across various industries. Manufacturing consumes 42% of global chemicals, with construction (12%) and energy (10%) following closely behind. Flammable liquids and solids are essential components in numerous products and processes, necessitating their safe and secure storage. This growth trajectory signifies a significant rise in the production of flammable materials, further fueling the need for specialized warehousing capacity.
Some of the key examples of commonly warehoused flammable liquids and solids include gasoline, acetone, ethanol, magnesium, cellulose, and sulfur. Their widespread use, coupled with the safety concerns and regulations surrounding them, solidify the dominance of flammable liquids and solids in the chemical warehousing market. The hazardous nature of these chemicals necessitates stringent regulations for storage and transportation. Regulations like the Globally Harmonized System (GHS) of Classification and Labelling of Chemicals set strict protocols to ensure safety. Chemical warehouses that comply with these regulations are in high demand to house these flammable materials.
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*Asia Pacific is Powerhouse of Global Chemical Warehousing Market, Control Over 45.90% Revenue Share *
The Asia Pacific region dominate the chemical warehousing market, driven by a powerful confluence of factors. At the core lies the sheer presence of chemical production giants within its borders. The Asia-Pacific Economic Cooperation (APEC) Chemical Dialogue, representing over 45% of global chemical production, underscores the region's dominance. Some of the world's largest plastic producers call Asia Pacific home, further solidifying its position as a manufacturing powerhouse. Notably, Southeast Asia is rapidly emerging as a global chemical hub. This isn't surprising when considered that in 2023, a staggering 61.3% of global chemical industry revenue stemmed from Asia.
Demand for chemical products is another key driver of warehousing growth in the region. The agriculture sector, particularly across the globe, relies heavily on agrochemicals like fertilizers, pesticides, and herbicides. This robust demand translates to a thriving market for agrochemical warehousing, which held a dominant 25.0% share in Asia Pacific as of 2021. Specialty chemicals warehousing is also a regional leader, reflecting the diverse chemical production landscape.
The regulatory environment in Asia Pacific chemical warehousing market is constantly evolving, presenting both challenges and opportunities for chemical companies. The APEC Chemical Dialogue's strategic framework actively facilitates trade and promotes sound chemical management practices through regional cooperation and regulatory alignment. This framework reflects the industry's commitment to safety and environmental responsibility, recently evident in their support for combating COVID-19 through essential material supplies. As regulations continue to shift in 2023, expert guidance proves invaluable for businesses navigating the chemical registration and notification process.
Technological innovation is another area where Asia Pacific is making significant strides. Southeast Asian operators are actively investing in predictive maintenance and AI solutions to optimize plant operations and reduce maintenance costs within their petrochemical complexes. Additionally, regional companies are at the forefront of implementing data analytics tools to manage information and improve business performance. Technological advancements are further exemplified by automated cylinder filling plants, like the one launched by Linde in Banting in 2017.
The Asia-Pacific region boasts a diverse range of countries, each with varying infrastructure and logistics capabilities, including powerhouses like South Korea, China, India, and Indonesia. Investments in state-of-the-art manufacturing facilities, like Bühler India's color sorter plant in Bengaluru, are fueling regional growth of the market. Collaborative efforts between global packaging leaders and local converters are fostering innovative solutions, such as fully recyclable paper packaging. With the Asia-Pacific region poised to be the next frontier for cold chain logistics, improvements in infrastructure and logistics will undeniably continue to propel the chemical warehousing market forward.
*Global Chemical Warehousing Market Key Players*
· Agility Chemical Logistics
· ALFRED TALKE GmbH and Co. KG
· Allcargo Logistics Ltd.
· AP Moller Maersk AS
· Aramex International LLC
· BDP International
· Bertschi AG
· Bulk Liquid Solutions
· Bulkhaul Limited
· C.H. Robinson Worldwide Inc.
· Capital Resin Corp.
· CEVA Logistics
· CMA CGM SA
· CT Logistics
· Den Hartogh Logistics
· Deutsche Bahn AG
· Deutsche Post AG
· DSV Panalpina AS
· FedEx Corp.
· Goodrich Maritime Services Pvt. Ltd.
· Gruber Logistics
· HAZGO Chemical Logistics
· Howard Tenens
· HOYER GmbH
· HOYER Petrolog - Hoyer Group
· IBC Limited
· InterBulk Group
· KEMITO
· Kuehne Nagel Management AG
· LBC Tank Terminals
· Leschaco Group
· Nijhof-Wassink
· Nippon Express Holdings Inc.
· Omni Logistics LLC
· Rhenus SE and Co. KG
· S.F. Holding Co. Ltd.
· Singapore Post Ltd.
· SolvChem Inc
· Stolt-Nielsen Limited
· Suttons Group
· Tricon Energy Inc.
· Van den Bosch Transporten B.V.
· Van Oordt PortionPack Solutions B.V.
· VTG AG
· Other Prominent Players
*Key Segmentation Overview:*
*By Type*
· Specialized Warehouse
· General Warehouse
*By Product*
· Petrochemical
· Consumer Chemicals
· Synthetic Rubber
· Agrochemicals
· Polymer and Plastic
· Construction Chemicals
· Textile Chemicals
· Other Chemical Types
*By Chemical Class*
· Explosives
· Flammable liquids and solids
· Gases
· Oxidizers
· Poisons
· Corrosives
*By Service Provider*
· Third Party
· In House
*By Application*
· Designing
· Remodeling
· Equipping
· Installation
· Documentation
*By Industry*
· Pharmaceutical Industry
· Agriculture Industry
· Food Industry
· Chemical Industry
· Others
*By Region*
· North America
· Europe
· Asia Pacific
· Middle East & Africa (MEA)
· South America
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CONTACT: Vipin Singh
Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World)
Email: sales@astuteanalytica.com
Website: https://www.astuteanalytica.com/