Chemical Warehousing Market Size, Share, Analysis, Trends, Growth, 2032

Chemical Warehousing Industry Prospective:

The global chemical warehousing market size was worth around USD 16.48 billion in 2023 and is predicted to grow to around USD 23.01 billion by 2032 with a compound annual growth rate (CAGR) of roughly 3.78% between 2024 and 2032.

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Chemical Warehousing Market: Overview

Chemical warehousing refers to the process of safely storing chemicals and hazardous materials in specially designed and highly controlled settings. The industry of chemical warehousing not only stores but also participates in the secure transportation of chemicals in large quantities. They are mostly shipped in tanks, barrels, and drums. Some of the most common chemicals and materials that are a part of chemical warehousing include diesel, gasoline, oil, ammonia, and propane among many other solutions. Chemical warehousing focuses on designing storage and transportation protocols depending on the individual properties of the chemicals being stored. Chemicals can pose physical or health hazards and hence companies operating in chemical warehousing must ensure 100% compliance with safety and storage regulations or protocols. Each type of chemical calls for specific requirements. For instance, corrosive materials must be placed in separate rooms and workers are required to wear gloves, goggles, and closed-toe shoes at all times when handling the material. The high cost of investment associated with chemical warehousing is a leading market growth inhibitor.

Key Insights:

• As per the analysis shared by our research analyst, the global chemical warehousing market is estimated to grow annually at a CAGR of around 3.78% over the forecast period (2024-2032)
• In terms of revenue, the global chemical warehousing market size was valued at around USD 16.48 billion in 2023 and is projected to reach USD 23.01 billion, by 2032.
• The chemical warehousing market is projected to grow at a significant rate due to the growing investments in the global chemical industry
• Based on the chemical type, the petrochemicals segment is growing at a high rate and will continue to dominate the global market as per industry projection
• Based on the type, the specialty chemicals warehouse segment is anticipated to command the largest market share
• Based on region, Asia-Pacific is projected to dominate the global market during the forecast period

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Chemical Warehousing Market: Growth Drivers

Growing investments in the global chemical industry will drive demand for chemical warehousing

The global chemical warehousing market is projected to grow due to the rising investments in the development of the chemicals & materials industry across the globe. Chemicals are an essential component of the modern world since the wide range of chemicals have applications across all other industries including construction, food & beverages, oil & gas, pharmaceutical, and other high-revenue sectors. In addition to this, the steady rise in demand for end products driven by industrialization, globalization, increased population, and overall global economic growth has caused nations to invest heavily in developing a more robust chemical industry that can deal with the steep rise in the end demand. In August 2023, India’s Aarti Industries announced that it plans to invest INR 2500 to INR 3000 crore in the financial year 2024-2025 since the Indian chemical market is showing positive signs of growth. In October 2023, Haldia Petrochemicals Ltd (HPL), India, announced an investment of INR 3000 for setting up a new chemical plant in the West Bengal region of the country. In January 2024, Solenia, a dominant supplier of specialty chemicals with a special focus on water-intensive industries, announced an investment of USD 193 million for its operational expansion by building an 80,000-square-foot production facility in Virginia. Such investments are likely to fuel higher demand for chemical warehousing.

Surging focus on occupational safety globally will lead to higher adoption of chemical warehousing

Occupational safety has become a matter of concern for employees worldwide as workers are demanding a safer work environment. Additionally, international worker welfare agencies and regional governments are also investing in drawing out new policies and implementing programs to reduce the risk of health or physical hazards associated with workplace conditions. For instance, the US region is regulated by the Occupational Safety and Health Act which deals with preventing workplace death or harm. The global chemical warehousing market will generate more revenue due to the growth in the number of such worker health prevention measures.

Chemical Warehousing Market: Restraints

Extensive cost of operations will limit the market’s growth rate

The global industry for chemical warehousing will be restricted due to the higher cost of operations associated with the chemicals storage sector. The industry is highly specialized and requires the use of high-end storage systems such as drums and barrels that can securely store harsh and hazardous chemicals. Moreover, the stringent protocols designed for the prevention of environmental or human exposure to chemicals further lead to an increase in overall expenses.

Chemical Warehousing Market: Opportunities

Introduction of new chemical warehousing applications will generate massive expansion possibilities

The global chemical warehousing market is projected to generate significant growth opportunities during the projection period. The rising introduction of new applications and programs designed to assist chemical warehousing companies will play a considerable role in further revenue generation. For instance, via the store, a Toyota Automated Logistics company has launched the Warehouse Management System viaduct that offers services related to optimal handling of temperature-sensitive and highly sensitive goods including sterile and hazardous materials. The company offers highly coordinated processes for the growing pharmaceutical sector. In May 2020, Softeon, a leading provider of supply chain applications, announced the expansion of its Warehouse of the Future Innovation Lab. The company has invested in the facility to continuously invest in extensive research & development (R&D) for innovation in warehouse execution and warehouse management systems. The integration of artificial intelligence (AI), machine learning (ML), Internet of Things (IoT), and other advanced technologies with warehouse management software will further improve the chances of steady market growth during the projection period.

Chemical Warehousing Market: Challenges

High risk of mishaps and accidents associated with the industry will challenge the market expansion rate

Chemical warehousing companies deal with some of the most potent and hazardous chemicals. Although there are defined protocols that ensure worker and environment safety, there is always a risk of human or system error. However, the slightest negligence in adhering to safety protocols can have a drastic impact on the health of the workers as well as the environment. Chemical warehousing is one of the most occupationally dangerous industries which continues to challenge the global chemical warehousing industry growth rate.

Chemical Warehousing Market: Segmentation

The global chemical warehousing market is segmented based on chemical type, type, and region.

Based on the chemical type, the global market segments are synthetic rubber, petrochemicals, construction chemicals, agrochemicals, textile chemicals, and others. In 2023, the highest growth was witnessed in the petrochemicals segment. These products are a part of the oil & gas sector and they have several end applications. The growing production of petrochemicals and rising demand globally including remote locations will drive the segmental demand during the projection period. In 2023, the global petrochemical production capacity reached over 2.3 billion metric tons and is expected to rise in the coming years. The agrochemicals segment was a significant contributor to the overall revenue due to the growing use of agrochemicals in the crop cultivation sector.

Based on the type, the chemical warehousing industry segments are specialty chemicals warehouses and general warehouses. In 2023, the highest growth rate was registered in the specialty chemicals warehouse segment as it held control over 67% of the total market share. During the projection period, it is expected to grow at a CAGR of more than 3.5%. The growing emphasis on adhering to safety protocols defined by international and domestic regulatory bodies is driving the use of specialty chemicals warehouses since they provide chemical-specific solutions.

Chemical Warehousing Market: Report Scope

Chemical Warehousing Market: Regional Analysis

Asia-Pacific to dominate the market growth rate during the forecast period

The global chemical warehousing market will be dominated by Asia-Pacific during the projection period led by China, India, and other Asian countries. In 2023, around 39% of the global market share was held by Asia-Pacific and it is expected to expand at a CAGR of over 3.9% during the forecast period. China is the world’s strongest region in terms of chemical production, storage, and transportation. In 2022, over 44% of the global chemical production was registered in China. It also invested nearly 46% of the total capital investment. In June 2024, Sika, a leading chemicals giant, announced the launch of its new plant in China in the Liaoning region. The facility will be used for producing essential chemicals and materials including tile adhesives, mortars, and waterproofing solutions. In November 2023, Orion, a specialty chemicals company inaugurated its greenfield project in the form of an advanced carbon black plant in China. The unit will produce carbon black in considerable quantities for further applications.

North America will be led by the US driven by the presence of strong guidelines regulating the storage and transportation of harsh chemicals. The rising construction of new chemical warehousing facilities in the US and Canada will also contribute to the regional chemical warehousing industry growth rate.

Chemical Warehousing Market: Competitive Analysis

The global chemical warehousing market is led by players like:

• Norbert Dentressangle
• Univar Solutions
• Van den Bosch Transporten
• Bertschi AG
• BDP International
• Stolt-Nielsen Limited
• Odyssey Logistics & Technology Corporation
• Barentz
• Brenntag
• Tanner Industries
• Caldic
• CLH Group
• Katoen Natie
• Helm AG
• Odfjell SE.

The global chemical warehousing market is segmented as follows:

By Chemical Type

• Synthetic Rubber
• Petrochemical
• Construction Chemicals
• Agrochemicals
• Textile Chemicals

By Type

• Specialty Chemicals Warehouse
• General Warehouse

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa