This would mean that global sales of dangerous goods in the logistics market would grow from USD 237.3 billion to USD 374 billion during this period.

Dangerous goods logistics is growing in line with global trade and the requirements for safety and environmental protection

Market researchers believe that the main reasons for this rapid growth are the expansion of global trade and the extension of global supply chains.
This trend, which has already been observed in recent years, will continue in the coming years.
According to UN trade and development statistics, global trade in the service sector will have increased by 8% in 2023.
As industries such as pharmaceuticals, chemicals and energy continue to expand, end users’ demand for customized logistics solutions that meet strict safety and regulatory standards will continue to grow.

At the same time, the complexity of logistics requirements is growing due to ever new international regulations, customs requirements and increasing safety requirements, particularly in the dangerous goods sector.
Compliance with the regulations of national and international regulatory authorities such as the US Department of Transportation, the ADR of the European Union or the International Maritime Organization (IMO) is essential for logistics providers.
These growing requirements are also increasing turnover in dangerous goods logistics.
Companies must invest in the training of their employees, but also in special equipment, modern safety IT and preventive emergency plans.

Strong growth in sea freight

Particularly strong growth is expected in the sea freight sector. Market researchers estimate that this logistics segment will be worth around USD 155 billion in 2023. The prospering global trade continues to drive sea freight traffic. After all, sea freight is by far the cheapest means of transportation over long distances and usually also the safest for dangerous goods. Growth is particularly pronounced in sectors such as the chemical, oil and gas and pharmaceutical industries, which frequently handle dangerous goods. In their study, the market researchers point out that, according to UNCTAD (United Nations Conference for Trade and Development), around 11 billion tons of goods were transported by sea in 2021.

Regional trends in the global market

In 2023, North America dominated the dangerous goods logistics market with a market share of around 34%. However, countries such as China, India and Japan are showing significant growth in manufacturing and industrial activities, leading to an increase in the production and transportation of hazardous materials. “The expansion of the chemical, pharmaceutical, and energy sectors in these countries necessitates robust logistics solutions to handle hazardous goods safely and efficiently. … Further, European companies are at the forefront of integrating advanced technologies into logistics operations. Innovations such as real-time tracking, IoT, and blockchain enhance the safety and transparency of hazardous goods transportation. These technologies allow for better monitoring of hazardous materials, ensuring they are handled correctly throughout the supply chain. … This technological edge not only meets regulatory requirements but also builds trust with customers and stakeholders, driving market growth.” (Source: Global Market Insights: Hazardous Goods Logistics Market 2024)

The complete study can be ordered from Global Markets Insights.