The chemical tankers market is evaluated at US$25.084 billion for the year 2022 and is projected to grow at a CAGR of 4.57% to reach a market size of US$34.315 billion by the year 2029.
Chemical Tankers are specialized vessels, or ships carrying liquid or chemical cargo that may be hazardous to the environment, flammable, or highly reactive. They are created and run according to unique regulations and have built-in stainless-steel tanks with molybdenum. They constitute a sizable market for molybdenum and duplex stainless steel. Furthermore, these tankers are used to transport bulk liquid chemicals and are designed to carry a range of the number of different chemical products. These chemical tankers are highly sophisticated ships with the most complex vessels and they can carry different types of chemicals according to their conditions.
Moreover, these tankers have their own piping and pumping systems. The rising transportation of chemicals and related products is the prime factor driving the chemical tankers market during the forecast period. However, factors such as slow growth in crude oil production and stringent oil bunkering regulations are hindering the growth of the chemical tankers market.
MARKET TRENDS:
Several major factors, which are indicative of the changing nature of international commerce and the chemical industry, are driving the market for chemical tankers. The expanding global need for chemicals as a result of population growth, urbanization, and industrialization in emerging nations is one important factor.
The need for specialized chemical tankers that can safely carry a variety of chemical cargoes has increased due to the growth in demand, which calls for effective and dependable transportation solutions. In addition, newer, more technologically sophisticated boats that meet international safety and environmental requirements are replacing older ones because of strict laws controlling the transportation of hazardous chemicals which boosts the chemical tanker market globally.
MARKET DRIVERS:
Increasing demand for oilseeds, vegetable oils, and fats is also contributing to the growth of the chemical tankers market. For instance, as per the United States Department of Agriculture, the total oil seed domestic production grew from 611.78 million metric tonnes in 2021/22 to 637.21 million metric tonnes in the year 2022/23 globally. Further, the report also highlights a similar growth in the total consumption of oilseeds globally. Additionally, the rising production of oilseeds in developing regions, especially APAC, will provide a great opportunity for the growth of the chemical tankers market in the coming years.
The chemical tankers market is greatly impacted by the growing chemical industry, which raises demand for transportation services. Transporting a wide variety of chemical products, hazardous and non-hazardous becomes more necessary as the world's chemical output and consumption continue to expand. In areas that are rapidly industrializing and urbanizing, where infrastructure development and manufacturing operations fuel the need for raw materials and intermediate chemicals, there is an especially high need for transportation.
Furthermore, adherence to strict safety, security, and environmental rules controlling the transportation of hazardous goods is becoming increasingly important as the chemical sector grows. This makes using specialized chemical tankers necessary, as they are made to comply with regulations and guarantee the safe handling and transportation of chemicals.
MARKET RESTRAINTS:
Numerous limitations might prevent the chemical tanker business from expanding and being profitable. The chemical industry's cyclical nature, which is impacted by events like commodity price swings, geopolitical unrest, and economic downturns, is one major constraint. The need for chemical transportation services may decrease in times of economic recession or decreased industrial activity, which might result in oversupply in the market and a drop in freight rates.
Furthermore, the capital-intensive character of the chemical tanker business creates an entrance barrier for new firms, which reduces competition and fosters innovation. Furthermore, operations become more difficult and expensive because of the strict regulatory standards regulating the design, building, and operation of vessels, notably concerning safety, environmental protection, and cargo handling.
The IMO 2 fleet type is expected to grow at a notable rate during the forecast period.
The market is divided into IMO 1, IMO 2, and IMO 3 categories according to fleet type. In terms of value and volume throughout the predicted period, the Chemical Tanker Market's IMO 2 fleet type segment is anticipated to grow. The use of IMO 2 Chemical Tankers for shipping vegetable oils & fats along with various types of chemicals including alcohols, alkanes, and alkyl amides can be used to explain the rise of the IMO 2 fleet type segment of the Chemical Tanker Market.
Asia Pacific is anticipated to be the major regional market.
The APAC region is expected to grow rapidly during the projected period due to the rising chemical production in the region. For instance, the APEC’s Chemical Dialogue is a forum for regulatory and trade officials and industry representatives that aims to find solutions to challenges faced by the chemical industry in this region. Such initiatives and active organizations working for the growth of the chemical industry are the prime reasons behind the growth of the chemical industry in the Asia-Pacific region which in turn boosts the chemical tankers market.
Furthermore, chemical tankers are in high demand because North America's vast network of refineries and chemical industrial plants requires a dependable and adaptable transportation system. Modern and ecologically friendly chemical tanker fleets are being invested in as a result of the region's growing emphasis on environmental sustainability and regulatory compliance, which also imposes strict safety standards for the transportation of dangerous commodities.
Key Developments:
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Market Size Value in 2022 | US$25.084 billion |
| Market Size Value in 2029 | US$34.315 billion |
| Growth Rate | CAGR of 4.57% from 2022 to 2029 |
| Study Period | 2019 to 2029 |
| Historical Data | 2019 to 2022 |
| Base Year | 2023 |
| Forecast Period | 2024 – 2029 |
| Forecast Unit (Value) | USD Billion |
| Segments Covered |
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| Companies Covered |
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| Regions Covered | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| Customization Scope | Free report customization with purchase |
Segmentation: