Chemical Warehouse and Storage Market Size, Share, Growth, and Industry Growth, By Type (Explosive, Inflammable Substance, Corrosive, and Others), By Application (Pharmaceutical Industry, Pesticide Industry, Chemical Industry, and Others), Regional Forecast By 2031

Updated On: 22 April 2024

Chemical Warehouse and Storage Market Report Overview

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The global chemical warehouse and storage market size is expected to be USD 44.12 billion in 2022, as per our research, the market is projected to touch USD 58.83 billion by 2031, exhibiting a CAGR of 3.3% during the forecast period.

The global COVID-19 pandemic has been unprecedented and staggering, with chemical warehouse and storage experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden spike in CAGR is attributable to demand returning to pre-pandemic levels once the pandemic is over.

Chemical warehouse and storage facilities are highly regulated, with an investment in both rigorous adherence and facility development to link practices, protocols, and paperwork required for ensuring compliance and safety. Many businesses have outsourced the storage of their goods to professionals, such as third-party logistics (3PL) providers who are experts in chemical and hazardous operations. Services for distribution, transportation, warehousing, and inventory management are provided by companies that provide chemical warehousing and storage.

For chemicals that require specialist handling, shipping, and storage, 3PL offers chemical warehouse facilities. The efficient operation of 3PL is ensured by the use of the Globally Harmonized System (GHS) hazard class, Warehouse Management System (WMS), Material Safety Data Sheet (MSDS), and other IT-driven solutions. In strategic locations, chemical storage facilities with safe access and adherence to industry rules are available from 3PL Warehouse.

COVID-19 Impact:  Adoption Of E-Commerce Surged Market Growth

The regional chemical warehousing and storage market benefited from the COVID-19 epidemic. Consumers stayed at home and made purchases through e-commerce sites like Amazon.com, which increased e-commerce sales in nations like China, Singapore, India, and Australia. Additionally, end-user industries like automotive and electronics are predicted to slowly increase their demand for warehousing and chemical storage in 2021 due to widespread vaccination campaigns and the lifting of lockdowns. As a result, it is anticipated that the APAC chemical warehousing and storage market will expand over the forecast period.

LATEST TRENDS

"Rising Use Of Chemicals To Boost Growth In The Market"

A sharp rise in the demand for chemicals on a global scale, particularly specialty chemicals and petrochemicals, is mainly due to the rising consumption of these substances in developing nations like China and India. To meet the growing demand from end-user industries, countries must have sufficient storage facilities to hold these raw chemical materials. Due to the significant presence of chemical producers and end-user industries, APAC is one of the top geographic areas for producing and consuming chemical goods. The chemicals are widely used in explosives, corrosive, flammable substances, and others. 

Chemical Warehouse and Storage Market Segmentation

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• By Type Analysis

By type, the market is segmented into explosive, inflammable substance, corrosive, and others.

• By Application Analysis

Based on application, the market is classified into pharmaceutical, pesticide, chemical, and others.

DRIVING FACTORS

"Use Of Blockchain To Enhance Traceability In Logistics To Boost "

A blockchain contains records of events that cannot be changed or tampered with and is a sequential stream of information. A chain of records that has been cryptographically safeguarded makes up a blockchain system. Multiple users can access the chain and contribute data but cannot modify or remove any already-present data. All supply chain activities are made more efficient and cost-effective by implementing blockchain technology, which does away with the necessity for a centralized authority to maintain records. These factors are anticipated to propel the chemical warehouse and storage market growth.

"Expanding International Trade Of Chemicals To Augment Market Growth"

Commodity chemicals warehousing is anticipated to increase with the rise in demand for FMCGs such as hygiene, personal care, and home cleaning goods. The manufacture of fast-moving consumer goods involves the use of specialty chemicals and additives. Additionally, the textile, pharmaceutical, and agricultural industries employ chemicals. As a result, the chemical industry has an effect on all areas of the economy. This is projected to present global chemical warehousing market participants with numerous chances for profitable growth. The rising international chemicals trade is anticipated to aid chemical warehouse and storage market growth. Moreover, the demand for this service is increasing due to the rising demand for agrochemicals. 

RESTRAINING FACTORS

"High Service Cost To Hinder Market Expansion"

Building a new chemical warehouse and storage facility is a very expensive operation that necessitates getting certifications and adhering to several strict standards. A warehouse also has very high operating and maintenance costs. It is crucial to operating warehouses efficiently and successfully. Some of the essential components needed for a practical and effective warehouse and storage facility are appropriate financial modeling, demand mapping, and infrastructure evaluations.

Chemical Warehouse and Storage Market Regional Insights

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"Asia Pacific To Dominate The Market Due To The Presence Of Key Market Players"

Asia Pacific is forecasted to lead the chemical warehouse and storage market share owing to the presence of major market players in the region. The companies need adequate chemical warehouse and storage facilities coupled with the growing demand for end-user industries.

North America is forecasted to hold a significant market share due to the rising number of textile, plastic, agrochemical, polymer, and chemical industries. 

KEY INDUSTRY PLAYERS

"Key Players Focusing On Innovative Technology Development To Grow In Market"

Businesses are working on developing new technology to offer more easy ways to increase product portfolio. Companies also use innovative practices and techniques to create new technologies. Companies are focused on acquisitions and investments to increase sales. The marketplace is competitive as a result of the existence of numerous huge firms. An extensive worldwide consumer base and the execution of operations through specialized distribution networks are other characteristics. The key companies strive to gain a higher market share by launching new products. 

List of Market Players Profiled

• BDP International (U.S.)
• Agility (Kuwait)
• Americold (Georgia)
• DB SCHENKER (Germany)
• DHL (Germany)
• Ahlers (Belgium)
• Alfred Talke Logistic Services (India)

INDUSTRY DEVELOPMENT

• October 2021- Rhenus launched a 100,000 sq. ft. multi-user warehouse for chemicals in Chennai, India. 

REPORT COVERAGE

The market research study offers thorough information on numerous market aspects. The growth drivers, restraints, geographical analysis, competitive environment, and challenges are a few of them. Additionally, it provides an analytical analysis of market trends and projections for stem cells to show potential investment areas. From 2017 through 2031, the market is objectively assessed to determine its financial viability. The report's data was compiled using various primary and secondary sources.