Hazardous Goods Logistics Market Expected to Reach $382.9 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Hazardous Goods Logistics Market," The hazardous goods logistics market was valued at $200 billion in 2021, and is estimated to reach $382.9 billion by 2031, growing at a CAGR of 7% from 2022 to 2031.

In 2021, Asia-Pacific region is dominating the market in terms of revenue, followed by North America, Europe, and LAMEA. U.S. and China dominated the hazardous goods logistics market during the forecast period. Increased adoption of outsourced logistics services in the region is driving the growth of the market in Asia-Pacific. Moreover, high government support for development of logistics infrastructure in the region is boosting the market growth.

There are prominent key factors that drive the growth of the hazardous goods logistics market, such as stringent rules and regulations for hazardous goods transportation & storage, surge in digitization, increase in use of drones for delivering hazardous goods and rise in oil & gas industry. The global logistics has experienced tremendous transformation in the past few years. The COVID-19 pandemic is making the shippers are focusing on using faster and cost-effective method of shipping the cargo which is expected to fuel the market for hazardous goods logistics. Moreover, several chemical companies requires transport of raw materials and finished chemical products that are used in several industries such as oil & gas, pharmaceuticals, process industries, and others. Manufacturers and 3PL logistical companies are adopting federal and state safety regulations while transporting dangerous goods to minimize the risk involved during transportation. For instance, 3PL providers offer chemical shipment that includes services such as non-asset logistics management that includes shippers to choose carriers and manage their goods in enhanced manner. Thus, rise in need for handling and distributing dangerous chemical products drives the growth of the hazardous goods logistics market.

The hazardous goods logistics market is segmented basis of operation, business type, product, application, and region. By operation, it is divided into seaways, roadways, railways, airways, and storage & services. By business type, it is divided into transportation, warehousing, and value added services. By product, it is divided into flammable, explosive, radioactive, bio-hazardous, and others. By application, it is segmented into industrial, healthcare, agriculture, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific and LAMEA.

COVID-19 Impact Analysis

• Since the beginning of 2020, several countries across the globe shut down their borders and limited transportation & travel to contain the coronavirus (COVID-19) outbreak, thereby creating impediments for international trade & transportation. As a consequence of the coronavirus outbreak, important supply chains in the logistics and transportation industry are hampered, though differently across air, freight, and sea sectors.
• Moreover, changes in consumers purchase behavior due to pandemic uncertainties could significantly impact the growth of the hazardous goods logistics solutions market. The COVID-19 pandemic is boosting the growth of the hazardous goods logistics market. The increasing demand for medical oxygen in hospitals has increased the need for transportation. Additionally, clinical waste such as pathological waste & human or animal tissue, viral samples, drug or medicines, like creams, pills, antibiotics and surgical instruments must be transported. The lockdown due to the COVID-19 pandemic has made transporting dangerous goods easier and faster.  The transport of dangerous goods remained essential as the fight against COVID-19 required the handling and transport of some key products classified as dangerous goods. This concerns medical gases such as medical oxygen, healthcare, and others Hazardous or clinical waste were also moving despite the pandemic, requiring transportation and logistics companies to continue their work.
•  In addition to the fact that various regulations related to dangerous goods are updated year by year, the need for transporting dangerous goods is expected to increase significantly. The increasing need to ship lithium batteries and the region's already established gas and oil industries is expected to grow the hazardous goods logistics market.

KEY FINDINGS OF THE STUDY

• By operation, the seaways segment is projected to lead the global hazardous goods logistics market
• By business type, the transportation segment is expected to register a significant growth during the forecast period.
• By product, the Bio-hazardous segment is projected to lead the global hazardous goods logistics market
• By application, the healthcare segment is projected to lead the global hazardous goods logistics market
• Region-wise, Asia-Pacific is anticipated to register the highest CAGR during the forecast period.

The key players that operate in this hazardous goods logistics market are Agility, Bollore Logistics, Ceva Logistics, DB Schenker, DGD Transports, DHL Supply Chain, DSV, GEODIS, Hellmann Worldwide Logistics, Kuehne + Nagel, Rhenus Logistics, Toll Holdings Ltd., United Parcel Service of America, Inc., XPO Logistics, Inc., Yellow Corporation, Ych Group, and Yusen Logistics Co., Ltd.