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 2024 To 2029

The chemical warehousing market is projected to witness a CAGR of 3.38% during the forecast period to reach a total market size of US$38.098 billion by 2029, up from US$30.196 billion in 2022. 

Specialty chemical storage has distinct requirements from regular warehouses. Liquids or gasses that can capture fire are dangerous substances. They present a genuine risk to the well-being and safety of a working environment since they are hazardous or combustible. In addition, due to the nature of these compounds, they must be put away securely in specialized chemical warehouse facilities.

Hazardous substance generation and transportation are expanding. Numerous businesses habitually contract out hazardous warehousing and other errands to third-party logistics because of safety and environmental issues with the storage. The work of third-party logistics has been set up within the chemical division and has become crucial.

Market Drivers:

• Increasing international trade will bolster the chemical warehousing market growth.

In recent years, there has been a sharp rise in the demand for chemicals on a worldwide scale, especially forte chemicals and petrochemicals, which is generally due to the rising utilization of these substances in rising markets like China and India. To meet the developing demand from end-user businesses, nations must have adequate storage facilities to hold these chemical crude materials.

 According to recent data by OEC, in 2022, the leading chemical item exporters were Germany ($249 billion), China ($248 billion), the United States ($237 billion), Ireland ($147 billion), and Switzerland ($134 billion).  Additionally, for the imports in 2022, the biggest chemical products importers were the United States ($324 billion), Germany ($172 billion), China ($161 billion), Belgium ($104 billion), and the Netherlands ($92.6 billion).

Further, 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 is anticipated to propel the chemical warehousing demand.

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.

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 is expected to boost the market expansion.

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 will contribute to the growth of the market.

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.

• High demand for chemical warehouses in agrochemical industries

The chemicals utilized in agriculture to bolster the expansion and well-being of living things may moreover have the potential to be destructive to an individual's health and the environment. Dizziness, chemical burns, and other indications are conceivable in people 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 center 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 August 2022, Rhenus Warehousing Solutions India opened an economical chemical warehouse near New Delhi, a reaction to the increasing requirement in the chemical and dangerous substances industry, taking after its expansion procedure by building up a multi-user facility in Gurgaon.

Key Developments:

• February 2024- Rinchem opened a massive custom-built hazmat (chemical) warehouse in Surprise, Arizona, spanning 123,516 square feet and offering 16,000 pallet positions, to support the booming semiconductor industry in the Phoenix Metro Area.
• 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.
• 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.

Market Segmentation:

The chemical warehousing market is segmented and analyzed as below:

• 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