June 25, 2024
Artificial Intelligence (AI) in Chemical Market

The Artificial Intelligence (AI) in Chemical Market is poised to grow tremendously by digitization.

Artificial intelligence (AI) refers to the simulation of human intelligence in machines that are programmed to think like humans and mimic their actions. The technology can be applied across various tasks carried out in the chemical industry including research and development, quality control, safety and security, production planning, supply chain management, and marketing. AI helps chemical companies improve operational efficiency, optimize processes, drive productivity, and enhance worker safety. It analyzes massive datasets and detects useful patterns invisible to the human eye to enable faster and better decision making.

The Global Artificial Intelligence (AI) in Chemical Market Demand is estimated to be valued at US$ 1.40 BN in 2024 and is expected to exhibit a CAGR of 31% over the forecast period from 2024 to 2031.

Key Takeaways
Key players operating in the Artificial Intelligence (AI) in Chemical market are Manuchar N.V, IMCD N.V., Univar Solutions Inc., Brenntag S.E., Sojitz Corporation, ICC Industries Inc., Azelis Group NV, Tricon Energy Inc., Biesterfeld AG, Omya AG, HELM AG, Sinochem Corporation, and Petrochem Middle East. The growing usage of AI in research and development activities to accelerate materials discovery and design is one of the major factors driving the demand for AI in the chemical industry. Many companies are expanding their AI capabilities globally to enhance operational efficiency and productivity across international facilities.

Major chemical companies are increasingly adopting AI technologies to optimize processes, improve plant performance, and drive productivity. AI helps chemical manufacturers automate tasks, analyze complex data in real-time for anomalies, predict maintenance needs, and monitor product quality more efficiently. The technology is finding applications in various areas including predictive maintenance, supply chain optimization, risk management, and process optimization.

With the ability to analyze huge volumes of data from plants and machines, AI is enabling remote monitoring of chemical production facilities. It helps achieve real-time visibility of operations and detects issues instantaneously. Many players are exploring opportunities in global markets like Asia Pacific and Europe using AI-based digital solutions to manage geographically distributed operations and supply chains.

Market key trends
The use of machine learning and deep learning techniques for materials design and discovery is a major trend in the AI chemical market. AI and machine learning are catalysts for faster development of novel polymers, catalysts, specialty chemicals and drugs. They can evaluate molecular formulas and reaction pathways on a much larger scale than human capabilities alone. This is accelerating R&D processes and bringing new products to the market at a faster pace.

Porter’s Analysis
Threat of new entrants: AI startups can enter the chemical industry with new technologies and disrupt existing players easily. However, chemical companies have significant resources to acquire startups.

Bargaining power of buyers: Larger chemical buyers can negotiate on price and demand customized products. However, specialized AI solutions limit buyer options.

Bargaining power of suppliers: Key software and sensor providers can influence prices, but most chemical companies invest in developing own AI capabilities.

Threat of new substitutes: New materials and production methods may replace existing chemicals.

Competitive rivalry: Companies competitively invest in AI to improve processes, products and gain efficiency advantages over others.

Geographical Regions
North America currently holds the largest share of the global AI in chemical market in terms of value, owing to presence of major chemicals producers and developers of AI technologies in the region. The U.S. is expected to remain the key revenue generator.

Asia Pacific is poised to witness the fastest growth during the forecast period. This can be attributed to rising chemical production and investments by global players in developing economies such as China and India for utilizing AI for enhancing productivity and efficiency.