1 Global Dangerous Goods Logistics Market Size (Value) and CAGR (2024-2033)
In 2024, the global Dangerous Goods Logistics market was valued at USD 520,681 million, with a CAGR of 4.38% from 2024 to 2033.
Dangerous goods, abbreviated as DG, are substances that when transported are a risk to health, property, safety, or the environment. Certain dangerous goods that pose risks even when not being transported are known as hazardous materials. Hazardous materials are often subject to chemical regulations. Hazardous material teams are personnel specially trained to handle dangerous goods, which include materials that are explosive, radioactive, flammable, oxidizing, corrosive, biohazardous, pathogenic, asphyxiating, toxic, or allergenic. Dangerous goods make up a significant portion of the global freight because they include many widely used commodities and products.
Figure Global Dangerous Goods Logistics Market Size (M USD) and CAGR 2024-2033
2 Dangerous Goods Logistics Market Drivers
The expansion of various industries, such as chemical, pharmaceutical, and energy, drives the demand for dangerous goods logistics. These industries rely on the efficient movement of dangerous substances for production, distribution, and supply chain operations. For example, the chemical industry requires the safe transportation of chemicals for the manufacturing of consumer products, while the pharmaceutical industry needs to transport drugs and medical supplies across borders.
Global trade has been growing steadily, leading to an increase in the movement of dangerous goods across countries. As businesses expand their operations globally, they need reliable logistics partners to handle the transportation of hazardous materials. This includes the transportation of dangerous chemicals, radioactive materials, and explosive substances used in various industries. The growth of e-commerce has also contributed to the increase in the volume of small package dangerous goods being shipped.
The continuous advancement of technology has had a significant impact on the dangerous goods logistics industry. The use of advanced tracking and monitoring systems, such as GPS and RFID, allows for real-time tracking and management of dangerous goods shipments. This helps to ensure the safety of the goods during transportation and enables logistics companies to respond quickly in case of any emergencies. Additionally, the development of specialized packaging materials and container designs has improved the safety and stability of dangerous goods during transportation.
3 Dangerous Goods Logistics Market Challenges
One of the major challenges in the dangerous goods logistics market is the complexity of regulations. Different countries and regions have their own set of regulations and standards for the transportation of dangerous goods, which can vary significantly. Logistics companies need to be familiar with these regulations and ensure compliance for each shipment. This requires significant time and resources for training and documentation, which can increase the cost of doing business.
The transportation of dangerous goods poses inherent safety risks, such as the risk of explosions, fires, and chemical spills. These risks can have severe consequences for human life, property, and the environment. Logistics companies need to implement strict safety measures and protocols to minimize these risks. This includes proper packaging, labeling, storage, and transportation methods, as well as the training of personnel on safety procedures. However, despite these efforts, accidents can still occur, which can damage the reputation of logistics companies and lead to financial losses.
Dangerous goods logistics is a complex process that involves multiple stakeholders, including shippers, carriers, forwarders, customs authorities, and end-users. Coordinating the movement of dangerous goods through this complex supply chain can be challenging, especially when dealing with international shipments. There are often language and cultural barriers, as well as differences in regulatory requirements and logistics practices. This can lead to delays, errors, and inefficiencies in the logistics process, increasing the cost and complexity of transporting dangerous goods.
4 Global Dangerous Goods Logistics Market Size by Type in 2024
In 2024, the market size for radioactive material logistics is estimated to be 6,073 M USD. Radioactive materials are substances that emit ionizing radiation and pose a significant risk to human health and the environment. The transportation of radioactive materials requires strict compliance with international and national regulations to ensure the safety of workers and the public. Special packaging, labeling, and transportation methods are used to minimize the risk of radiation exposure. For example, radioactive materials may be transported in lead containers or shielded vehicles to prevent radiation from escaping.
Chemical logistics is the largest segment of the dangerous goods logistics market, with a projected market size of 43,7974 M USD in 2024. Chemicals play a crucial role in various industries, including pharmaceuticals, agriculture, and manufacturing. However, many chemicals are hazardous and require careful handling and transportation. Chemical logistics involves the movement of chemicals along the supply chain, from manufacturers to distributors to end-users. This includes the transportation of liquid chemicals, solid chemicals, and gaseous chemicals using specialized vessels and transportation equipment. For instance, dangerous chemicals may be transported by tanker trucks, chemical barges, or air cargo.
The market size for inflammable and explosive logistics is expected to be 30,237 M USD in 2024. Inflammable and explosive goods are highly dangerous and require special precautions during transportation. These goods include explosives, flammable liquids, and gases. The transportation of such goods is regulated by strict safety standards to prevent accidents such as explosions and fires. Special packaging, storage facilities, and transportation routes are used to ensure the safety of these goods. For example, explosives may be transported in armored vehicles or in specially designed containers.
Table Global Dangerous Goods Logistics Market Size and Share by Type in 2024
Type | Market Size (M USD) 2024 | Market Share 2024 |
Radioactive Material Logistics | 6073 | 1.17% |
Chemical Logistics | 437974 | 84.12% |
Inflammable and Explosive Logistics | 30237 | 5.81% |
Other | 46397 | 8.91% |
5 Global Dangerous Goods Logistics Market Size and Share by Application in 2024
The healthcare sector is a significant consumer of dangerous goods logistics services. In 2024, the market size for healthcare is estimated to be 63,091 M USD. This includes the transportation of pharmaceuticals, vaccines, medical devices, and other healthcare products that are often classified as dangerous goods due to their potential impact on human health. For example, chemotherapy drugs, which are highly toxic, require specialized packaging and transportation conditions to ensure their safety during transit.
The industrial sector is another major application area for dangerous goods logistics. With the growth of various industries such as chemicals, manufacturing, and energy, the demand for the transportation of dangerous goods has increased significantly. In 2024, the industrial segment is projected to have a market size of 37,8723 M USD. This includes the movement of raw materials, intermediate products, and finished goods that may be hazardous, such as corrosive chemicals, flammable gases, and radioactive substances. Industrial companies rely on efficient dangerous goods logistics services to ensure the smooth supply chain operation and minimize the risk of accidents.
The agriculture sector also requires the transportation of dangerous goods, such as pesticides, fertilizers, and agrochemicals. In 2024, the market size for agriculture is expected to be 38,340 M USD. These substances are essential for increasing agricultural productivity but can also pose a threat to human health and the environment if not transported properly. For instance, some pesticides are highly toxic and require strict handling and storage conditions to prevent accidental exposure.
Table Global Dangerous Goods Logistics Market Size and Share by Application in 2024
Application | Market Size (M USD) 2024 | Market Share 2024 |
Healthcare | 63091 | 12.12% |
Industrial | 378723 | 72.74% |
Agriculture | 38340 | 7.36% |
Others | 40526 | 7.78% |
6 Global Dangerous Goods Logistics Market Size by Region in 2024
North America is one of the largest markets for dangerous goods logistics, with a projected market size of 83,241 M USD. The region has a well-developed transportation infrastructure and a high demand for the transportation of dangerous goods, particularly in the chemical and pharmaceutical industries. The United States and Canada have strict regulations governing the transportation of dangerous goods to ensure public safety and environmental protection. For example, the United States Department of Transportation (DOT) has established detailed regulations for the packaging, labeling, and transportation of dangerous goods.
Europe is another significant market for dangerous goods logistics, with a market size of 102,590 M USD in 2024. The region has a dense network of transportation routes and a high level of regulatory compliance. European countries have implemented strict regulations to ensure the safe transportation of dangerous goods, such as the European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR). The chemical and petrochemical industries in Europe are major consumers of dangerous goods logistics services, and the region also has a significant demand for the transportation of agricultural chemicals.
China is emerging as an important market for dangerous goods logistics, with a projected market size of 20,4406 M USD in 2024. The country’s rapid economic growth and increasing industrialization have led to a significant increase in the demand for the transportation of dangerous goods. China has established a comprehensive regulatory system for the transportation of dangerous goods, and the logistics industry is experiencing rapid growth, with the development of advanced transportation technologies and logistics services. The chemical, pharmaceutical, and automotive industries are the main drivers of the demand for dangerous goods logistics in China.
Figure Global Dangerous Goods Logistics Market Size by Region in 2024
7 Major Players in Global Dangerous Goods Logistics Market
7.1 DHL
Company Profile
DHL is an international logistics company with a rich history and a global presence. Headquartered in Germany, it was founded in 1969 and has since grown to become one of the leading players in the global logistics industry. DHL offers a wide range of logistics services, including express delivery, air freight, sea freight, and logistics management.
Business Overview
The company has established a strong reputation for its reliable and efficient logistics services. DHL’s extensive network of facilities and partners allows it to provide seamless logistics solutions to customers around the world. It focuses on providing customized logistics services to meet the specific needs of different industries and customers. In addition to its core logistics business, DHL also invests in emerging technologies such as automation and digitalization to improve its operational efficiency and enhance the customer experience.
Dangerous Goods Logistics Introduction
DHL is a well-known provider of dangerous goods logistics services. It has the expertise and resources to handle a wide range of dangerous goods, including chemicals, pharmaceuticals, and radioactive materials. DHL’s dangerous goods logistics services include proper packaging, labeling, and transportation of goods in accordance with international and national regulations. The company also provides specialized training to its employees to ensure their safety and the safety of the goods during transportation.
Financial Performance
In the latest financial year, DHL reported a revenue of 3816 M USD. The company’s gross margin was 21.89%.
7.2 United Parcel Service (UPS)
Company Profile
UPS is a global shipping and logistics company based in the United States. It was founded in 1907 and has since grown to become one of the largest logistics companies in the world. UPS offers a wide range of logistics services, including express delivery, ground shipping, air freight, and supply chain management.
Business Overview
The company has a strong focus on customer service and has established a reputation for its reliable and efficient logistics solutions. UPS’s extensive network of facilities and transportation assets allows it to provide fast and cost-effective logistics services to customers around the world. It also invests in advanced technologies such as robotics and artificial intelligence to improve its operational efficiency and enhance the customer experience. In addition to its core logistics business, UPS also offers value-added services such as customs clearance and freight forwarding.
Dangerous Goods Logistics Introduction
UPS is a leading provider of dangerous goods logistics services. It has the expertise and resources to handle a wide range of dangerous goods, including explosives, flammable liquids, and radioactive materials. UPS’s dangerous goods logistics services include proper packaging, labeling, and transportation of goods in accordance with international and national regulations. The company also provides real-time tracking and monitoring services to ensure the safety and security of the goods during transportation.
Financial Performance
In the latest financial year, UPS reported a revenue of 2210 M USD. The company’s gross margin was 22.98%.