Chemical Tankers Market size is expected to reach USD 45 billion by the end of 2035, growing at a CAGR of 5% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of chemical tankers was over USD 31 billion. The growth of the market can be attributed to the rising demand for vegetable oils. In the international trade, vegetable/palm oil is typically transported in segmented packages on board chemical tankers with stainless steel or coated tanks. India is the world's largest importer of edible oil, with import amounts ranging from 6,600 to 14,100 million. The country's edible oil demand would rise from around 27 million tons in 2021-22 to 30 million tons in 2030-31. However, edible oil production in India is likely to increase from nearly 13 million tons to around 23 million tons during the same time period, leaving around 7 million tons deficit.
In addition to these, factors that are believed to fuel the market growth of chemical tankers include the rise in global trade, there has been a greater need for chemical tankers to transport chemicals between regions. This has been particularly significant in the region, such as Asia and Europe, where chemical production and demand are growing rapidly. Besides this, the ageing of the existing fleet is also attributed to the market growth. With the rising age, the need for replacing the old fleets with new ones has increased the demand for advanced chemical tankers that are much safer, and efficient.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~5% |
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Base Year Market Size (2022) |
~ USD 31 Billion |
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Forecast Year Market Size (2035) |
~ USD 45 Billion |
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Regional Scope |
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Product Type (Organic Chemicals, Inorganic Chemicals, Vegetable Oils & Fats)
The global chemical tankers market is segmented and analyzed for demand and supply by product type into organic chemicals, inorganic chemicals, and vegetable oils & fats. Out of the three product types carried in chemical tankers, the vegetable oils & fats segment is estimated to gain the largest market share of about ~55% in the year 2035. The growth of the segment can be attributed to the rising demand for vegetable oils, such as virgin coconut oil, palm oil, mustard oil, and others. In the crop year 2021/22, global vegetable oil output hit around 200 million metric tons. Palm oil has the biggest volume of production among the various categories of vegetable oil, with nearly 73 million metric tons produced during that time period. In addition to this, soybean oil is the most popular type of edible oil in the United States. It's common in fried dishes, tinned fish, salad dressings, and margarine. In 2022, Americans consumed approximately 12 million metric tons of soybean oil. Moreover, the rising consumption of healthy oil is also expected to drive the growth of the segment.
Fleet Type (IMO 1, IMO 2, IMO 3)
The global market is also segmented and analyzed for demand and supply by fleet type into IMO 1, IMO 2, and IMO 3. Amongst these three segments, the IMO 2 segment is expected to garner a significant share of around ~46% in the year 2035. IMO 2 chemical tankers provide better safety than other two tankers, as they are designed to carry moderately hazardous chemicals. IMO 2 has multiple cargo tanks, that allows the segregation of different types of chemical and thus many chemicals can be carried together without any risk of contamination. IMO 2 chemical tankers have specialized tank coatings that provide resistance to corrosion and chemical attack, ensuring that the cargo remains intact during transport. The safety of chemicals and fleet in the IMO 2 tanker is the primary reason for the segment growth.
Our in-depth analysis of the global market includes the following segments:
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By Product Type |
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By Fleet Type |
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By Fleet Material |
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North American Market Forecast
The market share of chemical tankers in North America, amongst the market in all the other regions, is projected to be the largest with a share of about ~32% by the end of 2035. The growth of the market can be attributed majorly to the rising export and import of oils. Crude oil imports into the United States grew by around 235,000 barrels per day in 2021, reaching over 6.1 million barrels per day. In 2021, net crude oil imports were estimated to be around 3.1 million b/d. Imports of petroleum products (excluding crude oil) in the United States climbed by 19% in 2021, while exports increased by 7%. On the other hand, the rising production of chemicals is also expected to drive the market growth in the region. The United States is one of the world's largest national producers of chemical products, with about 770 billion US dollars in chemical shipments in 2021, and over 438 billion US dollars in value added by U.S. chemistry in that same year.
Europe Market Forecast
The European market for chemical tankers is estimated to be the second largest, registering a share of about ~28% by the end of 2035. The growth of the market can be attributed majorly to the rising export of chemicals. Europe is home to a large and growing chemical industry which is boosting the need for chemical tankers for transporting chemicals between countries and other nations. In 2022, Germany was the top exporter of chemicals in the European Union, which made an export worth USD 157 billion, followed by Belgium, which exported chemicals worth USD 90 billion. Moreover, the European Union has some of the strictest regulations when it comes to the trade of hazardous substances. This factor is increasing the demand for specialized chemical tankers that comply with transport safety regulations.
APAC Market Statistics
Further, the market in the Asia Pacific, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the significant increase in demand for chemicals, driven by urbanization, industrialization, and a growing population. This demand is creating a need for chemical tankers to transport chemicals to meet the demand. Moreover, the Asia Pacific region has become a major producer of chemicals, with Japan, India, and China being one of the top three producers of the chemicals which is likely to drive market growth in the region.
Author Credits: Smruti Ranjan, Rajrani Baghel
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