Chemical Logistics Market size is set to grow by USD 67.7 billion from 2024-2028, Growth of chemical industry boost the market, Technavio

Press Releases

Jul 10, 2024

NEW YORK, July 10, 2024 /PRNewswire/ — The global chemical logistics market size is estimated to grow by USD 67.7 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 4.36% during the forecast period. The global chemical logistics market is poised to grow significantly, driven by the expanding chemical industry and adoption of blockchain technology in logistics. However, challenges such as high operational costs and the capital-intensive nature of the business hinder market growth. Key players like Agility Public Warehousing Co. K.S.C.P, BASF SE, and C H Robinson Worldwide Inc. are pivotal in shaping this dynamic sector’s future.

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Chemical Logistics Market Scope

Report Coverage


Base year


Historic period

2018 – 2022

Forecast period


Growth momentum & CAGR

Accelerate at a CAGR of 4.36%

Market growth 2024-2028

USD 67.7 billion

Market structure


YoY growth 2022-2023 (%)


Regional analysis

APAC, North America, Europe, Middle East and Africa, and South America

Performing market contribution

APAC at 62%

Key countries

China, US, Japan, Germany, and South Korea

Key companies profiled

Agility Public Warehousing Co. K.S.C.P, BASF SE, BRENNTAG SE, C H Robinson Worldwide Inc., CMA CGM SA Group, CSX Corp., CT Logistics, Deutsche Bahn AG, Deutsche Post AG, Dow Chemical Co., DSV AS, Dupre Logistics LLC, FedEx Corp., Kintetsu Group Holdings Co. Ltd., North West Carrying Company LLP, PSA International Pte Ltd., Saudi Basic Industries Corp., Schneider National Inc., and Univar Solutions Inc.

Market Driver

Blockchain technology is revolutionizing the logistics industry by providing a secure, transparent, and cost-efficient solution for maintaining and sharing supply chain data. This digitalized platform uses a distributed transaction ledger, allowing various stakeholders to maintain identical copies of records on multiple computer systems. Each transaction is cryptographically protected and validated by an independent third party, ensuring security and preventing fraud. The benefits of blockchain technology are numerous, including increased transparency, reduced paperwork, and improved traceability and trackability. In the context of chemical logistics, this technology is particularly valuable due to the criticality and confidentiality of the information involved. With an estimated USD30 billion in annual cargo theft losses in the logistics industry, blockchain technology offers a promising solution for minimizing risk and streamlining operations. Major logistics companies, such as International Business Machines Corp. And A.P. Moller – Maersk, have already implemented blockchain technology to create more secure and efficient digital shipping platforms. Similarly, 3PL service providers like ITS Logistics are partnering with blockchain technology providers to develop common standards and frameworks for the industry. Overall, the use of blockchain technology in chemical logistics is expected to enhance data security, automate processes, and create transparency in the sharing of critical and confidential records. 

The Chemical Logistics Market is experiencing significant trends in various process industries. Three-party logistics (3PL) providers are increasingly managing non-asset chemical logistics, addressing complexities in rail networks and uncertain transit times. Road quality and pilferage remain challenges, driving automation in warehouses. Green warehouses and sustainable business operations are prioritized for environmental concerns. Advancements include smart sensors, robotics, artificial intelligence (AI), machine learning, radio-frequency identification (RFID), Bluetooth, drone delivery, and driverless vehicles. Shale gas and the energy industry are major consumers, but chemical demand varies across diverse sectors like food production, pharmaceutical manufacture, vehicle manufacturing, and engineering. Collaborations between the American Chemistry Council and the government of India, and other industry partnerships, are crucial for addressing chemical volumes and ensuring safe, efficient transportation. Addressing environmental problems and maintaining chemical manufacturing standards remain key priorities. 

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Market Challenges

  • The chemical warehousing and storage market involves significant investment for setting up facilities that adhere to specifications and obtain necessary certifications. Different chemicals require unique storage solutions, and various factors such as regulations, political climate, and competition impact market growth. Warehouse location is strategic, with considerations including price of land, connectivity, and infrastructure. Rising land costs and warehouse rents challenge operators to either rent or buy. Optimizing warehouse capacity and minimizing operational costs are essential to prevent financial losses from oversized or poorly utilized spaces. The slow adoption of advanced inventory tracking technology and inventory loss through damage, pilferage, and misplacement are ongoing challenges for the industry. These factors contribute to the high cost of investment and operation in the chemical logistics market, potentially limiting its growth.
  • Chemical logistics is a critical business sector that ensures the safe and efficient transportation and warehousing of chemicals. The use of IoT devices and intelligent cloud platforms enhances agility and improves supply chain visibility. However, chemical logistics faces challenges in various industry verticals, including the cosmetic and specialty chemicals industries, food production, and automobile manufacturing. OEM shutdowns, safety hazards, contamination, and spoilage are common issues. Federal and state regulations add complexity, affecting workers and the general public. Tech-driven logistics services offer solutions through airways, roadways, railways, waterways, pipelines, and transportation & distribution. Companies like A&R Logistics, Agility, BASF, Rhenus Logistics, and Ryder System Inc. Provide storage & warehousing, customs & security, green logistics, consulting & management services. Dangerous chemicals, raw materials, and finished chemical products require specialized handling in the oil & gas industry and end use industries.

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Segment Overview 

This chemical logistics market report extensively covers market segmentation by  

  1. Service 
    • 1.1 Transportation
    • 1.2 Warehousing
    • 1.3 Others
  2. End-user 
    • 2.1 Chemical industry
    • 2.2 Pharmaceutical industry
    • 2.3 Speciality chemical industry
    • 2.4 Others
  3. Geography 
    • 3.1 APAC
    • 3.2 North America
    • 3.3 Europe
    • 3.4 Middle East and Africa
    • 3.5 South America

1.1 Transportation- The Chemical Logistics Market involves the transportation, storage, and handling of chemicals from one place to another. Companies in this sector ensure safe and efficient movement of chemicals through various modes of transport like road, rail, and sea. They offer value-added services such as temperature control, packaging, and inventory management to meet the specific requirements of chemical manufacturers and consumers. The market is driven by factors like increasing demand for chemicals in various industries, stringent regulations, and growing focus on supply chain efficiency.

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Research Analysis

The Chemical Logistics Market is experiencing significant growth due to the surge in chemical demand from various industry verticals such as energy, shale gas, and the environmental problems that necessitate the use of chemicals for mitigation. The chemical manufacturing and transportation sectors are at the forefront of this trend, supplying essential raw materials for food production, pharmaceutical manufacture, vehicle manufacturing, and engineering. The energy industry’s shift towards cleaner sources and the increasing use of IoT devices and intelligent cloud platforms in chemical logistics are driving innovation. Agility Logistics and other tech-driven logistics services are collaborating to provide efficient and safe transportation of chemicals in both liquid and solid states. However, the industry faces challenges such as safety hazards, contamination, and spoilage during transportation and warehousing. Federal and state regulations are stringent to ensure safety and compliance. OEM shutdowns can also impact the market, making flexibility and adaptability crucial. The specialty chemicals industry and cosmetics sector are also significant contributors to the market’s growth.

Market Research Overview

The Chemical Logistics Market is a critical component of the energy industry, particularly in the context of shale gas production. With the surge in chemical demand from diverse sectors such as food production, pharmaceutical manufacture, vehicle manufacturing, engineering, and more, the market for chemical transportation and manufacturing has grown significantly. However, this growth comes with challenges, including environmental problems, safety hazards, and regulatory compliance. Chemical logistics companies provide services for the transportation and distribution of chemicals in various states – liquid and solid. They cater to end use industries, including the oil & gas industry, process industries, and 3PL providers. The market is complex, with factors such as federal and state regulations, workers’ safety, and the general public’s safety being of utmost importance. The chemical logistics industry is undergoing a tech-driven transformation, with IoT devices, intelligent cloud platforms, and automation playing a key role. Collaborations between industry players, such as Agility Logistics and BASF, Rhenus Logistics and Ryder System Inc., are driving innovation in the sector. The market is diverse, with industry verticals including the cosmetic industry, specialty chemicals industry, and food industry. OEM shutdowns, contamination, spoilage, and safety hazards are some of the challenges that chemical logistics companies face. Green logistics, consulting & management services, and sustainable business operations are becoming increasingly important in the sector. Transportation & distribution, storage & warehousing, customs & security, and consulting & management services are the key offerings of chemical logistics companies. The market is served by various modes of transportation, including airways, roadways, railways, waterways, and pipelines. Safety hazards, such as contamination and spoilage, are significant concerns in the chemical logistics industry. Federal and state regulations, as well as the general public’s safety, are of utmost importance. Tech-driven logistics services, such as smart sensors, robotics, artificial intelligence (AI), machine learning, radio-frequency identification (RFID), Bluetooth, drone delivery, and driverless vehicles, are being adopted to mitigate these risks and improve efficiency. The chemical logistics market is expected to continue growing, driven by increasing demand for chemicals in various industries and the need for efficient, tech-driven logistics solutions. However, challenges such as complexities in the rail network, uncertain transit time, road quality, pilferage, and automation will need to be addressed to ensure the industry’s continued growth and success.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

  • Service
    • Transportation
    • Warehousing
    • Others
  • End-user
    • Chemical Industry
    • Pharmaceutical Industry
    • Speciality Chemical Industry
    • Others
  • Geography
    • APAC
    • North America
    • Europe
    • Middle East And Africa
    • South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.


Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200

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SOURCE Technavio


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