The increasing need for chemical tankers to carry organic chemicals, inorganic chemicals, vegetable oils & fats, and other items is likely to fuel market expansion. Additionally, rising investments in new fleet capacity are anticipated to propel the global chemical tanker market growth. Moreover, technological advancements such as automation systems, sensors, computers, and communication software are expected to have a positive impact on the market.
The need for the chemical tanker market is driven by the increasing demand for safe and efficient transportation of chemicals across the globe. Chemical tankers are required to transport hazardous materials, organic chemicals, inorganic chemicals, vegetable oils & fats, and others from one location to another. Moreover, with technological advancements in the safety standards and efficiency of these vessels, more companies are preferring to use them.
The advantages of the chemical tanker market include increased safety and efficiency in transporting chemicals. Additionally, technological advancements have enabled these vessels to be more efficient and reliable. Moreover, new regulations designed to reduce emissions from ships are expected to benefit the market in both the short and long term. Furthermore, government initiatives such as encouraging shipbuilding activities by providing incentives are also likely to benefit the chemical tanker market.
A chemical tanker is a ship that transports both hazardous and non-hazardous liquids and gases. Chemical tankers are larger than general-purpose cargo ships, and they are typically equipped with safety features such as sealed tanks, double hulls, and inert gas systems. Organic chemicals, inorganic chemicals, vegetable oils and fats, and other items are transported on these vessels.
The services offered by the chemical tanker market include, but are not limited to, transporting chemicals from one location to another, storing and handling of chemicals, and cleaning. Additionally, some companies also provide maintenance services for these vessels. The increasing demand for safe and efficient transportation of chemicals is likely to further increase the need for such services in the near future.
The global chemical tanker market is projected to grow from USD 13.06 Billion in 2021 to USD 38.38 Billion by 2031, at a CAGR of 7.1%, during the forecast period.
The increasing cost of these vessels is one of the major restraining factors for the chemical tanker market. Additionally, stringent regulatory policies regarding emission control for these vessels also restrain the market growth. Moreover, the limited availability of skilled personnel and high maintenance cost are some other factors that could hamper the market growth. The major propelling factors for the chemical tanker market are technological advancements in automation systems, sensors, computers, and communication software. Additionally, government initiatives such as providing incentives to shipbuilders and promoting the use of advanced technologies are increasing the demand for chemical tankers, thereby driving the growth of the market.
The key players in the chemical tanker market are A.P. Moller–Maersk (Denmark), BP Plc (UK), Euronav NV (Belgium), MOL Chemical Tankers Pte. Ltd. (Singapore), Stolt-Nielsen Limited (Norway), Pacific Basin Shipping Limited (Hong Kong), Heidmar Inc. (US), United Arab Chemical Carriers Co. LLC (UAE), and Team Tankers International Ltd. (Switzerland). To enhance their market share, these organizations have used various techniques such as collaborations, mergers and acquisitions, and expansions. Furthermore, they are also investing in research & development to stay ahead of the competition. The major trends in the chemical tanker market include increasing demand for eco-friendly ships, a growing focus on automation and digitalization of marine operations, and the use of advanced technologies such as artificial intelligence (AI) and the Internet of Things (IoT).
The deep-sea chemical tankers to Account for the Largest Market Size
During the projected period, the deep-sea chemical tankers sector is predicted to develop at the fastest CAGR. This growth can be attributed to the increasing need for safe and efficient transportation of chemicals from one location to another. Additionally, the cost-effectiveness and eco-friendly nature of these vessels are also driving the demand for deep-sea chemical tankers.
The organic chemicals segment to Remain Atop
During the projection period, the organic chemicals sector is expected to develop at the fastest CAGR. This growth can be attributed to the increasing demand for organic chemicals in food and beverage, personal care products, pharmaceuticals, and agriculture Furthermore, the rising demand for biodegradable products is propelling this category forward. During the forecast period. and development activities are also augmenting the demand for organic chemicals, thus driving the growth of this segment.
North America Region to Render Ample Investment Avenues
During the projection period, North America is expected to develop at the fastest CAGR. This expansion may be ascribed to increased product innovation investments, the presence of large businesses in the region, and favorable government regulations. Additionally, the rising need for efficient transportation is propelling this segment's growth throughout the projection period. During the forecast period. Additionally, strong economic growth in the region is also propelling the demand for chemical tanker services.
COVID-19 Impact and Market Status
The chemical tanker market has been affected by the COVID-19 pandemic, primarily due to the disruption in the supply of raw materials and equipment. Furthermore, the decline in crude oil prices and stringent government regulations have added to the woes. However, with economies slowly recovering from the pandemic-induced crisis, it is expected that the market will recover in 2021.
Recent Developments in the “Chemical Tanker” Market
• In April 2021, Eagle Bulk Shipping announced the delivery of two eco-friendly Supramax vessels, following their acquisition in 2020. These vessels are designed to meet the highest fuel efficiency standards and reduce carbon emissions.
• In February 2021, Hyundai Heavy Industries Co., Ltd. announced that it had been awarded a contract to build four chemical tankers. These tankers will be equipped with advanced digital solutions and automation technologies, such as AI-based ship automation systems, to improve efficiency.
• In December 2020, Vopak announced the start-up of its new chemical tanker facility at the Port of Fujairah, UAE. The facility will serve as a strategic hub for chemical tanker services in the region.
Chemical Tankers Market Scope
|Revenue forecast in 2031
|USD 38.38 Billion
|CAGR of 7.1% during 2021-2031
|Type, Application, Regions
|North America, Europe, Asia Pacific, South America, Middle East and Africa
|Key Players Profiled
|A.P. Moller–Maersk (Denmark), BP Plc (UK), Euronav NV (Belgium), MOL Chemical Tankers Pte. Ltd. (Singapore), Stolt-Nielsen Limited (Norway), Pacific Basin Shipping Limited (Hong Kong), Heidmar Inc. (US), United Arab Chemical Carriers Co. LLC (UAE), and Team Tankers International Ltd. (Switzerland).
Key Segment of Global Chemical Tanker Market
By Type Overview 2021-2031, (USD Billion)
• Inland Chemical Tankers (1,000-4,999 DWT)
• Coastal Chemical Tankers (5,000-9,999 DWT)
• Deep-Sea Chemical Tankers (10,000-50,000 DWT)
By Application Overview 2021-2031, (USD Billion)
• Organic Chemicals
• Inorganic Chemicals
• Vegetable Oils & Fats
By Region Overview 2021-2031, (USD Billion)
• Rest of Asia Pacific
• Rest of North America
• Rest of Europe
Middle East and Africa