Chemical Distribution System (CDS) Market is projected to account of revenue of around US$ 265 Mn in 2028 and is anticipated to grow at a CAGR of 6.5% from 2021-2028.

LONDON, Sept. 30, 2021 (GLOBE NEWSWIRE) -- Deployment of efficient distribution system from end use industries and high investment for product development is expected to augment the global chemical distribution system (CDS) market growth.

North America is expected to account for major revenue share in the global chemical distribution system (CDS) market due to increasing demand for chemical distribution systems from various end-use industries. Demand for CDS is highly witnessed in the chemical and semiconductor industries. The flourishing chemical sector in the US and rapid advancements in dispensing equipment are impacting the target market growth. The US revenue in the global chemical distribution system (CDS) market in 2020 was US$ 42.3 Mn acquiring a major share as compared to other regions. The US is a world pioneer in the manufacturing and exporting of chemical materials, responsible for 18% of worldwide chemical exports. More than 13,000 firms produce more than 70,000 goods in the market. In 2017, the US chemical industry reported total revenue in excess of US$ 765 billion, hiring more than 529,000 employees and providers with more than 1.8 million potential indirect workers.

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In 2017, the industry's total foreign direct investment (FDI) increased by US$ 700 billion. The chemical industry pays for a large portion of the patents issued in the United States, spending US$ 99 billion in research and development in 2017 and reporting good compliance rights of intellectual property. The US is a desirable market for chemical companies globally, with its good recognition and consistency of materials, proximity to low prices natural resources, a highly skilled workforce, world-class research centers, intellectual property rights, and rigorous regulatory frameworks.

The market in Asia Pacific is expected to witness faster growth in the target market due to the flourishing electrical and chemical sector in countries such as China and India. The government of developing countries is spending high on the development of these sectors. Their approach towards strengthening the regional manufacturing capabilities is impacting the growth of chemical distribution system (CDS) market. A country such as India has a highly diversified chemical sector that covers the production of chemicals such as bulk chemicals, specialty chemicals, agrochemicals, etc. India’s contribution in the global production of dyestuffs and dye intermediates was ~16% attracting major manufacturers across the globe. The government is investing a huge amount of money in the development of the sector. In 2020, the Indian government allocated US$ 32.2 million for the development of the department of chemicals and petrochemicals. Favorable business policies by the government and availability of low-cost labor & easy raw material access are resulting in major players shifting their production units to developing countries. These factors are expected to boost the growth of the chemical distribution system (CDS) market.

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China's chemicals industry is the world’s biggest, and its growth represents half the world's development. Local firms are steadily extending their lead in knowing the needs of consumers in China, designing goods and technologies tailored for its home market, and providing their exposure to quality technical expertise at more competitive prices. The preferred country for top local firms was once international market; but these companies are opting to work increasingly with Chinese consumers. Despite its experience with the market and its players, local businesses often take greater advantage of China's vast advanced ecosystems in e-commerce. China's accelerated urbanization and growing middle-class population are projected to boost long-term demand for specialty chemicals and commodities amid mid-term headwinds such as trade tension and stagnation in economic growth.

Increasing demand from various end-use industries for an enhanced distribution system that supplies liquid chemicals throughout the factory to various wet process tools is a major factor expected to drive the growth of global chemical distribution system (CDS) market. In addition, extensive investment in the chemical industry and government focus on enhancing the production infrastructure will also support market growth. Enterprises are investing high in product development activities; their focus on delivering efficient products to increase operational efficiency is expected to impact the growth of chemical distribution system (CDS) market. Players are focused on enhancing the business presence through the establishment of the new organizations and strategic acquisitions.

  • In 2018, Kinetic Systems, Inc., a global manufacturer of turnkey process systems opened new office in Livermore, California. The new location is a larger facility that allows the company to combine its process and product engineering services under one roof. This helped the company to enhance the business and increase the customer base.
  • In 2021, Parker Hannifin Corporation, a global service provider of motion and control technologies, acquired Meggitt. The acquisition is expected to help the company enhance its business and increase its revenue share.

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Factors such as the high cost of devices & maintenance and lack of developed infrastructure in order to support the adoption of advanced devices are expected to hamper the growth of the global chemical distribution system (CDS) market. The cost associated with the maintenance of the CDS equipment is high. This is lowering the adoption rate among small & mid-size enterprises limiting the growth of products. In addition, high cost is involved in changing the present distribution system with a new distribution system supporting the production line is also expected to challenge the market growth. However, increasing investment by major players for product development activities and inclination towards emerging economies in order to track the untapped market are factors expected to create new opportunities for players operating in the chemical distribution system (CDS) market over the forecast period. In addition, an increasing partnership between regional and international players is expected to support the revenue transaction of the target market.

The global chemical distribution system (CDS) market is segmented into type and application. The type segment is divided into small consumption distribution and large consumption distribution. Among types, the large consumption distribution segment generated revenue of US$ 80.4 Mn in 2020 in the global market. The large consumption distribution is mainly used to transfer chemicals from lorry to point-of-use. The large consumption distribution segment held a major market share of the chemical distribution system due to customers increasing their purchasing power. Players profiled in the global chemical distribution system (CDS) market are Frames, Mitsubishi Chemical Engineering Corporation, RENA Technologies GmbH, Mega Kinetics Fluid Systems, Saint-Gobain, PARKER HANNIFIN CORP, Versum Materials, Eliar Elektronik, Wright Process Systems, Diversified Fluid Solutions, and AP&S International GmbH. The global chemical distribution system (CDS) market is highly competitive due to the presence of a large number of players operating in the market. The establishment of new production sites and business acquisition activities is expected to create cut-throat competition among players.

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