Chemical Warehousing Market Size, Share, Opportunities, And Trends By Type (General Warehouse, Specialty Chemicals Warehouse), By Chemical Type (Synthetic Rubber, Petrochemicals, Agrochemicals, Consumer Chemicals, Construction Chemicals, Polymer And Plastic, Textile Chemicals, Others), By Industry (Pharmaceutical Industry, Pesticide Industry, Chemical Industry, Others), And By Geography - Forecasts From 2023 To 2028

The chemical warehousing market is expected to grow at a CAGR of 3.19% from US$29.14 billion in 2021 to US$36.292 billion in 2028.

Specialty chemical storage has distinct requirements from regular warehouses. Liquids or gases that can catch fire are hazardous substances. They pose a serious hazard to the health and safety of a workplace because they are explosive or combustible. Due to the nature of these compounds, they must be stored safely in specialized chemical warehouses. Hazardous substance production and transportation are increasing. Many businesses frequently contract out hazardous warehousing and other tasks to third-party logistics because of safety and environmental issues with the storage. The role of third-party logistics has been established in the chemical sector and has become indispensable.

Increasing international trade

In recent years, there has been a sharp rise in the demand for chemicals on a global scale, particularly speciality chemicals and petrochemicals, which is mostly due to the rising consumption of these substances in emerging markets like China and India. To meet the growing demand from end-user industries, countries must have sufficient storage facilities to hold these chemical raw materials. Due to the significant presence of chemical producers and end-user industries, logistics, distribution, and warehousing services are needed due to the growing global trade in chemical goods which is increasing the chemical warehousing market size.

Use of blockchain to enhance traceability in logistics.

A blockchain contains records of events that cannot be changed or tampered with and is a sequential stream of information. A blockchain system is a series of records that have been cryptographically protected. All supply chain activities are made more efficient and cost-effective by the implementation of blockchain technology, which eliminates the requirement for a single source to keep records. One of China's largest chemical manufacturers, Sinochem, unveiled the blockchain for warehouse receipts in 2020. More transparency will be available in warehouse and storage operations thanks to the new blockchain technology. These elements will encourage the warehousing chemicals market expansion over the projected period

Rising technological advancements

It is projected that the manufacturing of bio-based insecticides and fertilizers would open up new market opportunities. In addition, several activities and technical developments in real-time temperature monitoring, autonomous handling, and inventory tracking are promoting market growth. However, the market will grow throughout the projected period due to a shift in consumer preferences toward processed foods brought on by rising disposable income, enhanced convenience, and rising living standards in emerging economies.

Increasing chemical manufacturing

The chemical warehousing market size is expected to rise due to the rise in chemical manufacturing. A rise in the requirement for safe regions of transportation and distribution services results from an expansion in chemical production to provide different industries such as food production, pharmaceutical manufacturing, car manufacturing, and engineering. According to the American Chemistry Council, chemical volumes in the United States increased by 1.4% in 2021 and 3.2% in 2022, while shipments jumped by 8.1% in 2021 and 8.2% in 2022. In addition, the Indian government predicts that the chemical industry in India (which includes medicines and fertilizers) will grow by 18 to 23% in FY2022.

High demand for chemical warehouses in agrochemical industries

the chemicals employed in agriculture to support the growth and well-being of living things may also have the potential to be harmful to people and the environment. Dizziness, chemical burns, and other symptoms are possible in humans after exposure to pesticides or fertilizers.  Proper chemical storage intended for agricultural application improves production beyond merely adhering to rules. The warehouses are made with the knowledge of skilled engineers to meet strict industry standards while maintaining the chemicals secure, safe, and still available when needed. For instance, U.S. Chemical Storage provides a range of hazardous materials storage to meet the demands of your business, with adaptable fire-rated or non-fire-rated buildings to house the chemicals needed for agricultural management.

Asia Pacific is projected to dominate the Chemical warehousing market

During the projected period, the Asia Pacific region is anticipated to lead the Chemical warehousing market. The Asia Pacific's centre for emerging economies is the entire region of Southeast Asia. Additionally, India leads the world in both chemical imports and exports, ranking eighth in imports and fourteenth in exports. Although China is its largest single market, the chemical industry will continue to be a global one. The construction of a strong warehouse infrastructure in developing nations, which is constantly prioritized, is anticipated to fuel the growth of the chemical logistics sector. For instance, in October 2021, Rhenus India increased the size of its warehouses throughout the country to 2.2 million square feet, enhancing its capacity to support the chemical industry.

Market key launches

• In October 2022, A brand-new chemical warehouse for Rinchem, situated in Malaysia, is almost finished and expected to be operational in Q2 of 2023. This will be Rinchem's first warehouse in Malaysia, even though the company currently operates two other warehouses in the Asia Pacific region (in Taiwan and South Korea). The 45,000 square foot dangerous products warehouse will have 3100 pallet spots available for storage. The warehouses of Rinchem are specifically designed to accommodate several temperature zones and adequate classification of different hazard classifications.
• In September 2022, A division of V-Trans (India), V-Logis announced the opening of CHEMSTORE, a super-specialized facility for chemical storage solutions, in Bhiwandi, Maharashtra. The infrastructure is state-of-the-art and has tight compatibility requirements for storing different chemicals from various hazardous classes. The facility is situated near NH-3 Mankoli-Bhiwandi away from the highway, residential properties school, and river body by the regulations. The building has a total space of 2,18,350 square feet that can be used to safely store priceless hazardous chemicals.
• In January 2022, Leschaco unveiled a new 120.000 ft, two-story chemical and dangerous commodities facility in Port Klang, Malaysia. Up to 13,000 pallets of chemical items and hazardous materials can be properly housed in this new facility. In Malaysia, the market for contract logistics, particularly for chemicals, is expanding quickly. As a result, there is a need for warehousing firms that can be trusted to move and store hazardous materials and chemicals. Leschaco (Malaysia) Sdn Bhd has developed into a significant player in the logistics and warehousing of chemical substances in the APAC area as a result of its growth with its customers.

Segmentation:

• By Type
  • General Warehouse
  • Specialty Chemicals Warehouse
• By Chemical Type
  • Synthetic Rubber
  • Petrochemicals
  • Agrochemicals
  • Consumer Chemicals
  • Construction Chemicals
  • Polymer and Plastic
  • Textile Chemicals
  • Others
• By Industry
  • Pharmaceutical Industry
  • Pesticide Industry
  • Chemical Industry
  • Others
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Indonesia
    • Thailand
    • Others