UAE Chemical Logistics Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Market Size (2024) | USD 10.63 Billion |
| Market Size (2029) | USD 14.26 Billion |
| CAGR (2024 - 2029) | 6.00 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
UAE Chemical Logistics Market Analysis
The UAE Chemical Logistics Market size is estimated at USD 10.63 billion in 2024, and is expected to reach USD 14.26 billion by 2029, growing at a CAGR of 6% during the forecast period (2024-2029).
The United Arab Emirates economy rose 7.6% in 2022, nearly double the increase in GDP recorded in 2021 as the Gulf state recovered swiftly from the COVID-19 pandemic. The UAE's foreign trade hit 2.2 trillion dirhams (USD 599 billion) in 2022, up 17% year on year, and it has signed bilateral trade agreements with global partners spanning India, Israel, and Indonesia.
The UAE aims to double the size of its economy by 2031 and diversify away from hydrocarbons. Overall, chemical output in the GCC increased by 2.7% in 2021, reaching 154.1 million tons capacity, owing to a comeback in global demand. With a nine-year compound annual growth rate (CAGR) of 45.1% and 17.8%, respectively, inorganic chemicals and performance polymers and rubbers have led regional historical growth. The good total capacity growth pace will slow to 2.5% in 2022.
Despite the fact that the GCC chemical sector is export-oriented, with 68.8 million tons exported in 2021-22, the area bought 20 million tons, resulting in a positive trade balance of 48.6 million tonnes, up 12% year on year. China and India continue to be the major destinations for GCC chemical exports, accounting for 26% and 14% of overall exports, respectively. Petrochemicals and polymers account for most GCC chemical exports, whereas value-added chemicals are the most often imported chemicals entering the area.
UAE Chemical Logistics Market Trends
Requirement For Specialty Chemical Industry is on the Rise
The manufacture of several chemicals has surged in recent years. The rising use of shale gas as a feedstock in the energy industry has raised the industry's need for shale gas transportation.
Technological advancements, diversified applications, and increased demand from the end-user industries are pushing the growth of the specialty chemical industry. Specialty chemicals are added to paint and coating formulations to make applied films functional. Direct-to-metal (DTM) coatings, for example, are becoming more popular for industrial applications because they reduce labor costs and energy intensity by minimizing time and complexity.
This industry is very important to the Gulf Cooperation Council. The growth of smart cities and expanded building projects in Saudi Arabia and the UAE are likely to drive demand for specialty chemicals. Given the anticipated need, the local government is offering significant incentives to parties interested in establishing a specialty chemical business.
Penetration of IoT-Enabled Connected Equipment Is Soaring, As Is The Rise of Tech-Driven Logistical Services:
The market is expanding as a result of rising demand for automation and refurbished green warehouses in the chemical sector for more sustainable business operations. As worries about energy savings and environmental protection rise, chemical firms are fast investing in cost-effective warehousing solutions that mix green standards with smart technology, such as the Internet of Things (IoT), smart sensors, and robots. Additionally, vendors provide digital technology for automating chemical logistics and data processing, resulting in greater productivity, efficiency, and convenience.
In logistics services, the use of AI, machine learning, radio-frequency identification (RFID), and Bluetooth, as well as other rapidly developing technologies such as drone deliveries and self-driving automobiles, is increasing. As a result, the chemical logistics market is likely to benefit from increased technical improvements in the logistics industry.
UAE Chemical Logistics Industry Overview
There are multiple big and small players in the United Arab Emirates Chemical Logistics market. The sector is highly fragmented. Given the region's visibility of long-term feedstock supply from national oil companies and competitive feedstock pricing in the lowest cost quartile, which provides margin support and mitigates volatility amid higher input costs globally, regional chemical companies are emerging as better positioned. Some of the major players are A&R Logistics, Agility Logistics, C.H. Robinson, and BDP International, Inc.
UAE Chemical Logistics Market Leaders
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Servochem L.L.C.
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RSA Global
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Petrocheme
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DHL
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CEVA Logistics
*Disclaimer: Major Players sorted in no particular order
UAE Chemical Logistics Market News
October 2023: RSA Cold Chain celebrated a groundbreaking ceremony for the highly anticipated phase 2 expansion of its state-of-the-art facility in Dubai. The ceremony was attended by the leadership team of RSA Cold Chain and Group AMANA, who broke ground on a 12,000-pallet position facility. This development marks a milestone in the company's journey towards enhancing its capacity and service offerings to meet the escalating demands of the market in the region.
February 2023: UAE-based AquaChemie Group looked to generate additional revenue of USD 300 million as a new petrochemical facility opens at DP World’s flagship Jebel Ali Port in Dubai. Chemical sales and services company AquaChemie Middle East opened on Thursday its USD 50 million terminal, which will serve as a vital gateway to facilitate and boost petrochemical trade in the Middle East and globally. The facility occupies an area of 20,000 square meters and is located around 500 meters from Chemical Berth 4 in Jebel Ali Port.
UAE Chemical LogisticsMarket Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rise in need to handle and distribute dangerous chemicals
4.2.2 Increasing demand for chemical logistics due to rising chemical production
4.3 Market Restraints
4.3.1 Complexities involved during transportation of goods
4.4 Market Oppurtunity
4.4.1 Introduction of automated material handling equipment, the popularity of global positioning system (GPS)-enabled and radio frequency identification (RFID) based devices
4.5 Value Chain / Supply Chain Analysis
4.6 Porter's Five Forces Analysis
4.6.1 Bargaining Power of Suppliers
4.6.2 Bargaining Power of Buyers/Consumers
4.6.3 Threat of New Entrants
4.6.4 Threat of Substitute Products
4.6.5 Intensity of Competitive Rivalry
4.7 Technological Innovations in the industry
4.8 Government Initiatives to Attract Investment in the Industry
4.9 Insights into the 3PL Market (Market Size and Forecast)
4.10 Impact of COVID - 19 on the Industry
5. MARKET SEGMENTATION
5.1 By Service
5.1.1 Transportation
5.1.2 Warehousing, Distribution, and Inventory Management
5.1.3 Other Services
5.2 By Mode of Transportation
5.2.1 Roadways
5.2.2 Railways
5.2.3 Airways
5.2.4 Waterways
5.2.5 Pipelines
5.3 By End User
5.3.1 Pharmaceutical Industry
5.3.2 Cosmetic Industry
5.3.3 Oil and Gas Industry
5.3.4 Specialty Chemicals Industry
5.3.5 Other End Users
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Bahri Chemicals
6.2.2 S.A. TALKE
6.2.3 Servochem L.L.C.
6.2.4 RSA Global
6.2.5 International Chemical Logistics
6.2.6 DHL
6.2.7 CEVA Logistics
6.2.8 Petrocheme
6.2.9 Agility Logistics
6.2.10 Al-Futtaim Logistics
6.2.11 AAA Freight Services LLC
6.2.12 Bertschi AG*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. APPENDIX
UAE Chemical Logistics Industry Segmentation
Logistics deals with planning, procurement, and implementation of different activities in the overall supply chain. Chemical logistics refers to transportation, delivery solutions, and distribution of chemicals, which also manage the way resources are stored and as well as delivered to end-users. The mode of chemical logistics includes transportation through the sea, road, rail, or airways. The chemical industry provides products for the majority of industries. Liquid or solid chemicals are used to make pharmaceuticals, food, and other everyday items.
A comprehensive background analysis of the United Arab Emirates Chemical Logistics Market, covering the current market trends, restraints, technological updates, and detailed information on various segments and the competitive landscape of the industry. The impact of COVID-19 has also been incorporated and considered during the study.
The United Arab Emirates chemical logistics market is segmented by service (transportation, warehousing, and other services), by end-users (chemical industry, pharmaceutical industry, specialty chemical industry, oil and gas industry, cosmetic industry, and other end users), and by mode of transportation (roadways, railways, airlines, waterways, and pipelines).
The report offers market size and forecasts for the United Arab Emirates chemical logistics market in value (USD) for all the above segments.
| By Service | |
| Transportation | |
| Warehousing, Distribution, and Inventory Management | |
| Other Services |
| By Mode of Transportation | |
| Roadways | |
| Railways | |
| Airways | |
| Waterways | |
| Pipelines |
| By End User | |
| Pharmaceutical Industry | |
| Cosmetic Industry | |
| Oil and Gas Industry | |
| Specialty Chemicals Industry | |
| Other End Users |
UAE Chemical LogisticsMarket Research FAQs
How big is the UAE Chemical Logistics Market?
The UAE Chemical Logistics Market size is expected to reach USD 10.63 billion in 2024 and grow at a CAGR of 6% to reach USD 14.26 billion by 2029.
What is the current UAE Chemical Logistics Market size?
In 2024, the UAE Chemical Logistics Market size is expected to reach USD 10.63 billion.
Who are the key players in UAE Chemical Logistics Market?
Servochem L.L.C., RSA Global, Petrocheme, DHL and CEVA Logistics are the major companies operating in the UAE Chemical Logistics Market.
What years does this UAE Chemical Logistics Market cover, and what was the market size in 2023?
In 2023, the UAE Chemical Logistics Market size was estimated at USD 10.03 billion. The report covers the UAE Chemical Logistics Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the UAE Chemical Logistics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
UAE Chemical LogisticsIndustry Report
Statistics for the 2024 UAE Chemical Logistics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UAE Chemical Logistics analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
UAE Chemical Logistics Market Report Snapshots
