Chemical Tanker Market

Chemical Tanker Market Growth Outlook for 2023 to 2033

The global chemical tanker market is valued at US$ 15 billion in 2023 and is predicted to reach a market size of US$ 31 billion by the end of 2033. The market is forecasted to increase at a CAGR of 7.5% from 2023 to 2033.

• Worldwide demand for organic chemicals is expected to rise faster at a CAGR of 8% over the next ten years. The segment already enjoys a leading market share of 60%.
• Growing need for medicines, food & drinks, water treatment, personal care products, and cosmetics is driving up the demand for organic chemicals.

A cargo ship specifically constructed for the transportation of chemicals is known as a "chemical tanker." Several kinds of chemicals are transported by these tankers. Since chemicals are being transported throughout the world, chemical tankers assist in maintaining their consistency. The primary driver propelling market expansion is the ongoing development of the chemical industry.

The variety of chemicals that are now transported in bulk has greatly expanded, and specialist ships have been created to satisfy the needs of chemical tankers. Bulk chemical transportation by water necessitates not only specialist ships and equipment but also specialized crew training that includes both theoretical and practical components to fully grasp the peculiarities of the various chemicals.

Several cargo ships exist that are designed specifically to transport chemicals across the oceans. The global market for chemical tankers is expanding as a result of the expanding usage of chemicals across several end-use sectors. Increasing overall seaborne trade and a rising overall fleet of key operators are boosting market value. An increase in chemical production industries and growing demand for industrial-grade chemicals around the world are some of the main reasons for the development of the market.

The development of shale gas is one of the key variables that has had a positive impact on the growth of the market. Organic chemicals such as alcohol, propene, acetic acid, benzene, benzyl acetate, methanol, and phenol are some of the essential chemicals that are being shipped through chemical tankers all around the world.

Increasing rules and regulations relating to safe delivery, expanding industrial activities, rising consumer concerns about wholesome and hygienic products, expanding trade operations, and the low price of crude oil are other variables that are projected to fuel the development.

Report Attributes	Details
Chemical Tanker Market Size in 2023	US$ 15 Billion
Projected Market Value (2033)	US$ 31 Billion
Global Market Growth Rate (2023 to 2033)	7.5% CAGR
Market Share of Organic Chemicals (2023)	60%
Key Companies Profiled	Odfjell Stolt-Nielsen Limited Navig8 Limited Team Tankers Maersk Tankers JO Tankers Eitzen Chemical Berlian Laju Tanker Seatrans Chemical Tankers Lomar Shipping

Which are the Key Aspects Generating Novel Growth Opportunities for Chemical Tanker Manufacturers?

“Rapid Integration of Software-based Control Systems”

Digitalization in the marine industry is having a significant influence on chemical tankers. Software-based control systems that are linked to land via fast satellite communications are becoming increasingly important for ships.

Transportation businesses are creating advanced technological solutions to facilitate the delivery of chemical tankers globally. Innovative capacity additions in the industry, which will also be used for exports, are expected to boost the global demand for chemical tankers during the forecast period. The market for chemical tankers is also expanding as a result of increased regulations aimed at ensuring the safe transport of hazardous chemicals.

Large-scale chemical production is a result of the growing chemical industry. The market will subsequently benefit from these prospects throughout the forecast period. Chemical tanker companies are attempting to modernize with more giant and advanced tankers to offset unsafe and ineffective functioning.

Modifying products to meet a specific application is the newest trend in the chemical tanker shipping sector. Businesses are integrating digitally linked processes, focusing on organizational performance, diversifying their supplier sources, and keeping costs under control to explore development potential in the market.

“Increasing Need for Secure Transportation of Various Chemical Products”

There has been more research and development in the global market for chemical tankers as a result of the increasing attention on market-driving factors. The field of chemical tankers has improved with the development of industry best practice guidelines, which verify the safety of everyone involved in the shipping process. As a result, there have been notable improvements in the global market for specialized ships built, modified, or designed specifically for the purpose.

Shippers are choosing more fuel-efficient vessels, including chemical tankers, as a result of strict environmental restrictions governing emissions from ships, which is propelling market expansion. The primary factor driving market growth is the increasing need for secure transportation of various chemical goods. Moreover, development in the chemical sector is anticipated to support product demand.

The need for chemical tankers may be fueled by new developments in existing products. Future product demand may be increased by government initiatives and policies that highlight the advantages of employing chemical tankers to carry goods. Worldwide demand for chemical tankers is driven by the expanding capacities of chemical factories and the booming chemical industry. Increasing demand for vegetable oils is boosting market expansion.

How is Industry Growth Being Restrained to Some Extent?

“Lack of Experienced Professionals”

The market for chemical tankers is being hampered by fewer fleet additions and the projected scrapping of older ships. The market is restricted by a lack of experienced professionals and severe rules. Large capital investments and high public risk are expected to hamper market expansion over the projection period.

How Can Start-ups Strengthen Their Market Position?

“New Market Players Should Focus on Implementation of AI-based Devices”

Technological advancements are shaping the chemical tanker market. New companies are making investments in the creation of chemical tankers to improve the lives of their consumers by making them more accessible, convenient, and affordable.

New entrants should concentrate on using artificial intelligence (AI) in chemical tankers to improve operational effectiveness, improve route planning, and lower fuel consumption. Chemical tanker operators can monitor cargo conditions and spot any irregularities with the use of AI-powered devices. Emerging market players can analyze the whole chemical unloading process and spot unusual events before human error leads to accidents by using AI-enabled machine vision systems in chemical tankers.

Which Region is Dominating the Global Chemical Tanker Market?

“Rapid Increase in Shipbuilders and Fleet Owners in North America”

• North America accounts for 50% share of the global market in 2023.

North America is expected to attract new competitors to the market due to the rapid growth in the shale gas industry. The region is expected to have a positive impact on the production of ethylene, which is also expected to boost the supply of organic chemicals worldwide. An increase in shipbuilders and fleet owners and rising demand for cosmetic chemicals are driving market growth in the region.

Country-wise Insights

What is Attracting Chemical Tanker Providers to the United States?

“Rapid Expansion of Petrochemical Industry in the Country”

The market in the United States is anticipated to experience significant expansion over the projection period due to less stringent safety standards and the booming petrochemical industry. The market in the United States is likely to develop at a high pace owing to the wide availability of raw materials and increasing demand for barge transportation facilities.

Why are the Sales of Chemical Tankers Expected to Surge in Germany?

“Increasing Investments in Construction of Sea Transportation Infrastructure”

Germany is one of the main exporters of chemicals and is anticipated to promote global trade through chemical tankers, which will give the chemical tanker market an impetus over the coming years. Market expansion in Germany is attributed to increasing investments in the construction of sea transportation infrastructure.

Why is Japan Seeing High Demand for Chemical Tankers?

“Noticeable Rise in Refinery Expansion Projects”

Market growth in Japan is driven by surging demand for different hazardous liquefied substances. A rise in refinery expansion projects is anticipated to be the primary driver of market expansion. The need for chemical tankers in the country is increasing as a result of several factors, including the expanding population and improving living standards, which have increased consumer spending on household products such as paints & coatings.

Category-wise Insights

Which Type of Chemical Tanker is Spearheading Market Expansion?

“Organic Chemicals Gaining Traction Due to Their Potential Industrial Applications”

By type, the market is segmented into organic chemicals, inorganic chemicals, and vegetable oils & fats.

• Organic chemicals account for 60% share of the global market in 2023.

Organic chemicals are gaining traction due to their potential industrial applications. Natural gas and oil are two sources of hydrocarbons that are used to make organic chemicals. They are widely employed as raw ingredients in the production of other chemicals or for the creation of products, including rubber, plastic, fiber, and insecticides. The production of organic chemicals has been sparked by the shale gas boom, with ethylene serving as the primary feedstock.

Why are IMO 1 Tankers Highly Demanded?

“IMO 1 Tankers Widely Used to Transport High-end Products”

The market is classified into IMO 1, IMO 2, and IMO 3 based on the grade. IMO 1 tankers are generally used in the transportation of products such as crude oil. IMO 1 tankers are designed specifically to transport high-end goods.

IMO 1 tankers are designed to convey products that pose serious risks to safety and the environment. Preventative steps must be taken before transporting these items. Because of the unique method for transporting these items, the need for IMO 1 tankers is predicted to rise with technological advancements.

Competitive Landscape

Leading companies are implementing tactics, including product standards, collaborations, pricing trends, quality control, and supply chain management, to increase their share in the market for chemical tankers. Due to strict rules, top industry players are introducing novel techniques while following safety regulations to reduce the environmental impact.

Key market participants are also emphasizing safe transportation practices and quality management. They are focusing on research and development efforts to meet the growing demand for chemical tankers used for shipping chemicals and chemical goods.

• Eastern Pacific bought thirteen 19,000 DWT stainless steel chemical tankers from the BW Group. These chemical tankers will be operated by Ace Quantum, which will manage the large fleet of stainless steel ships of this size in the future with a total of 33 chemical tankers in the water.
• In 2020, Odfjell, a Norwegian shipping business, introduced a new tanker in partnership with Navigo Tankers.

Key Segments of Chemical Tanker Industry Research

• By Type :

  • Organic Chemicals
  • Inorganic Chemicals
  • Vegetable Oils & Fats

• By Material :

  • Stainless Steel
  • Epoxy
  • Others

• By Grade :

  • IMO 1
  • IMO 2
  • IMO 3

• By Tanker Capacity :

  • Less Than 10,000 DWT
  • 10,000 to 19,999 DWT
  • More Than 20,000 DWT

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa