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The chemical warehousing and storage market size size of the market is forecast to increase by USD 6.09 billion, at a CAGR of 3.18% between 2023 and 2028. The market is experiencing significant growth due to several key factors. The increasing volume of international trade is driving demand for efficient warehousing and storage solutions to facilitate the seamless transfer of chemicals across borders. Additionally, the manufacturing sector's shift towards more specialized and complex chemical products necessitates advanced storage systems to maintain product integrity and safety. The consumption of specialty chemicals is on the rise, particularly in industries such as pharmaceuticals, agriculture, and electronics, further fueling market growth. Overall, the market's expansion is underpinned by the need for secure, efficient, and cost-effective warehousing and storage solutions for the chemical industry.
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The specialty chemicals warehouse operates within e-commerce frameworks, collaborating with third-party logistics providers to manage and distribute agrochemicals and other chemical classes. It specializes in handling non-hazardous materials and focuses on continuous facility development to enhance operational efficiency. Stringent safety standards protocols are implemented throughout all processes, from chemical production to storage, ensuring compliance with government regulations and fostering a safe working environment. The government's focus on regulatory adherence underscores the importance of meticulous warehouse management practices to mitigate risks associated with the handling of chemicals. This integrated approach across the chemical supply chain supports sustainable operations and reinforces the warehouse's commitment to safety and regulatory compliance in the industry.
The rise in international trade is notably driving the chemical warehousing and storage market growth. The global demand for chemicals, specifically specialty chemicals, and petrochemicals, has increased rapidly in the past few years and is mainly driven by the high consumption of the same in developing economies such as India and China. Countries need to have adequate storage facilities to stock these chemical raw materials to meet the rising demand from end-user industries. APAC is one of the leading geographic regions in terms of the production and consumption of chemical products due to the strong presence of chemical manufacturers and end-user industries.
Moreover. the trade war between the US and China had a positive impact on the number of chemical products being exported to China, especially for the companies operating in the developing regions of the country. This enabled various chemical distributors to globalize their service portfolios and gain a strong presence in China. The increasing trade of chemical products globally requires logistics, distribution, and warehousing services. Therefore, all these factors are contributing to the trade of various types of chemical products around the globe, which is driving the demand for chemical warehousing and storage.
The use of blockchain to improve traceability in logistics is a key trend in the market. A blockchain is a sequential series of information and comprises records of events that cannot be altered or tampered with. In other words, a blockchain system is a chain of cryptographically protected records. Multiple users can access or add data to the chain without being able to change or delete the information that is already present.
Moreover, the use of blockchain technology eliminates the need for a centralized authority for maintaining records, which makes all the processes in a supply chain more efficient and cost-effective. In 2020, Sinochem, one of the major chemical producers in China, introduced the warehouse receipt blockchain. The new blockchain technology will offer more transparency in warehouse and storage operations. These factors will support market growth during the forecast period.
The high cost of operations and the capital-intensive nature of the business may impede market growth. The construction of a new chemical warehouse and storage facility is a highly capital-intensive task and requires complying with a wide range of specifications and obtaining certifications. In addition, the cost of operating and maintaining a warehouse is very high. The successful and optimized operation of warehouses is a critical task. Appropriate financial modeling, demand mapping, and infrastructure analyses are some of the key aspects required for a feasible and efficient warehouse and storage facility. Since the capital involved in the manufacturing and setting up of a warehouse is irreversible, the period required to receive the return on investment is long.
However, setting up a chemical warehouse is a critical task, and the cost of investment varies with the specifications of the chemicals one can store. Different chemicals possess different properties and require diverse types of storage. Various other factors, such as legal and government regulations, the political scenario, and the competition in various regions, also impact the growth of the global chemical warehousing and storage market. Therefore, the high cost involved in setting up and operating a warehouse and managing inventory loss and SKU proliferation is expected to limit the growth of the market during the forecast period.
Our analysis of the life cycle of the market indicates a movement from the innovator’s stage to the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries including the US, China, Japan, Germany, and the UK. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Chemical Warehousing and Storage Market Customer Landscape
companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market
AP Moller Maersk AS - The company offers chemical warehousing and storage for hazardous materials, which are used in explosives and are flammable
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the commodity chemicals segment will be significant during the forecast period. The commodity chemicals segment includes petrochemicals, inorganic commodity chemicals, and fertilizers. The increasing demand for petrochemical products is a major factor driving the growth of the commodity chemicals segment.
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The commodity chemicals segment showed a gradual increase in market share with USD 21.60 billion in 2018. Petrochemicals are components derived from oil and gas and are used in the manufacturing of everyday products. Some of the products manufactured using petrochemicals include plastics, packaging materials, digital devices, medical equipment, and tires. Therefore, the growing demand from various end-user industries, including packaging, transportation, plastics, and healthcare, is expected to drive the growth of the petrochemical segment. Furthermore, our report provides a brief analysis of the historical and forecast market share and their segments along with their reasons for growth from 2018 to 2028.
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APAC is projected to contribute 42% of the market's growth by 2028. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market is expected to witness a significant growth rate during the forecast period due to an increase in the production and consumption of chemical products. The growing demand for commodity chemicals and specialty chemicals is expected to influence distribution and warehousing in various emerging economies in the region. Countries such as China, Japan, South Korea, India, and Australia are the major contributors to the growth of the market in the region. The high market potential due to the increasing spending power of the rising middle is one of the prime factors that attract investments from chemical warehousing and storage facilitators in the region.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
In the realm of e-commerce and supply chain management, leveraging third-party logistics providers is essential for handling diverse products such as agrochemicals, flammable liquids and solids, and various chemical classes critical to food and agriculture, while ensuring safe storage of non-hazardous materials. Efficient inventory management services and adherence to Paperwork requirements, including the Material Safety Data Sheet and Globally Harmonized System, are paramount in chemical warehouse facilities. Utilizing Warehouse Management System (WMS) and IT-driven solutions enables specialized handling of specialty chemical storage alongside general products in flammable liquids and flammable gases categories, maintaining workplace safety standards.
Moreover, the government's focus on regulations impacts operations, including labor wages and environmental concerns, crucial in sectors like FMCGs, commodity chemicals warehousing, and additives for industries such as agriculture, textiles, and technology. Integrating smart warehousing, automation, and Green warehouses promotes sustainable business practices through energy conservation and environment protection, driven by the Internet of Things (IoT), robotics, AI, and machine learning, supported by digital tools like RFID, Bluetooth, and smart sensors. This comprehensive approach facilitates global trade reach via railways, roadways, airways, and seaways, impacting sectors from clothing to medications and healthcare to construction and polymer production.
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Market Scope |
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Report Coverage |
Details |
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Page number |
173 |
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Base year |
2023 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 3.18% |
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Market growth 2023-2027 |
USD 6.09 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
3.04 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 42% |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ALFRED TALKE GmbH and Co. KG, AP Moller Maersk AS, Aramex International LLC, C.H. Robinson Worldwide Inc., Capital Resin Corp., CMA CGM SA, Deutsche Bahn AG, Deutsche Post AG, DSV Panalpina AS, FedEx Corp., Goodrich Maritime Services Pvt. Ltd., KEMITO, Kuehne Nagel Management AG, Nippon Express Holdings Inc., Omni Logistics LLC, Rhenus SE and Co. KG, S.F. Holding Co. Ltd., Singapore Post Ltd., and SolvChem Inc. |
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Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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