IoT in Chemical Industry Market Expected to Reach $193.9 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “IoT in Chemical Industry Market," The iot in chemical industry market size was valued at $57.4 billion in 2021, and is estimated to reach $193.9 billion by 2031, growing at a CAGR of 13.3% from 2022 to 2031.

IoT in chemical industry is employed to enhance manufacturing of chemicals. IoT uses embedded solutions with software integrity sensors to connect the IoT system. IoT-enabled mobile robotics is also used by the chemical industry. IoT employs a network of sensors in order to collect crucial production data, which is then transformed into useful insights about the effectiveness of industrial processes.

Emergence of various data analytics and data processing tools, such as data science, big data analytics, and Hadoop is propelling the implementation of IoT in chemical industry. Big data consists of huge volume of heterogeneous data in structured, semi-structured, and unstructured forms. In case of IoT, connected devices are vital components in IoT platform, which generate a tremendous amount of data that need tracking in real-time. To achieve this goal, the usage of data analytics and data processing has grown considerably. Besides, big data analytics tools leverage IoT for easy functioning. When the complete IoT system acts as a data generated source, the role of big data in IoT becomes critical. Big data analytics is an emerging tool for analyzing data created by connected devices in IoT that aids take the lead to enhance decision-making. Big Data and next-generation analytics are nowadays being employed by key chemical players to improve manufacturing, fine-tune pricing, improve marketing, and support innovation. Also, rise in awareness about real-time data and product lifecycle data in chemical businesses is growing, which is predicted to boost the demand for IoT in chemical industry in coming years.

The growth of the global IoT in chemical industry market is majorly attributed to its growing use in various applications such as petrochemicals & polymers, specialty chemicals, fertilizers & agrochemicals, consumer chemicals, industrial gases, water management, and others. Also, surge in adoption of industrial robots in the chemical industry is expected to drive the market growth during the forecast period. IoT in the chemical sector is using robots in ways that no one could have predicted in terms of safety assessments. Drones are being used by chemical facilities to check areas that are too high to deploy people. Drones can conduct airborne inspections of stacks while the facility is still operational using autonomous cameras and sensors. IoT in industrial robotics can also be used to automate packaging and shipping as items travel through the manufacturing process, with the last phases being packing, labelling, and shipping. Robots can also be used to clean chemical tanks and work in difficult environments near material processing furnaces. With thermal imaging cameras and configurable sensors, IoT in industrial robots can continually monitor critical sections of chemical facilities and inform staff of any potential hazard.

However, high initial data privacy concern and high initial investment are projected to hinder the expansion of the market. Further, lack of information about the benefits of IoT in the chemical industry and process automation technologies among small and medium-sized businesses are also likely to hinder the market growth. On the contrary, upsurge in chemical production in developed and developing countries is expected to offer ample growth opportunities for the IoT in chemical industry market. The growing chemical production in China, India, Indonesia, and Thailand, along with increasing urbanization and industrialization is driving the market in the region. Rise in the number of mining and metals companies in the region is expected to further drive the IoT in chemicals industry market. Growing concern about risk reduction in the chemical and metal sectors, rising environmental issues due to chemical release from facilities, and growing emphasis on circular economy are boosting demand for digital transformation, which is driving the IoT in chemical industry market.

The IoT in chemical industry market is segmented into technology type, application, and region. On the basis of technology type, the market is categorized into industrial, big data, artificial intelligence, AR and VR, machine vision, 3D printing, digital twin, plant asset management, manufacturing execution system, distributed control system, and others. On the basis of application, the market is categorized into petrochemicals & polymers, fertilizers & agrochemicals, and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific-Pacific, and LAMEA. The IoT in chemical industry market share is analyzed across all significant regions and countries. 

The major players operating in the global IoT in chemical industry market include, ABB Ltd; Altizon, Inc; Atos SE; Cisco Systems, Inc.; Emerson Electric Co; Endress+Hauser AG; Fanuc Corporation; General Electric; Honeywell International Inc; Microsoft Corporation; Mitsubishi Electric Corporation; Rockwell Automation, Inc.; Schneider Electric SE; Siemens AG; and Yokogawa Electric Corporation.

COVID-19 Analysis:

The COVID-19 pandemic has severely impacted the global economy owing to stringent lockdowns and business shutdowns. The lockdown of different chemical plants and factories in leading regions are influencing the international supply chains and negatively influencing the chemical production, delivery schedules as well as product sales. However, growing demand for cloud-based IoT solutions has supported the chemical businesses to sustain during the pandemic. The IoT solution is playing a vital role in keeping the entire business processes operating efficiently during the COVID-19 crisis. IoT also maintain better connectivity between connected devices during lockdown. This was achieved through various features of internet of things solution, such as digital data exchange, real-time data analytics, remote access, and real-time work floor control.

Key findings of the study: 

• The report outlines the current IoT in chemical industry market trends and future scenario of the market from 2022 to 2031 to understand the prevailing opportunities and potential investment pockets.
• The IoT in chemical industry market size is provided in terms of revenue.
• By technology type, the others segment was the highest revenue contributor to the market, growing with a CAGR of 13.7%.
• By application, the petrochemicals and polymers segment holds the highest CAGR of 14.1%.
• By region, Asia-Pacific was the highest revenue contributor in 2021.
• China was the highest revenue contributor, growing with a CAGR of 15.3%.
• South Korea and Japan are expected to witness considerable CAGRs of 13.9%, and 12.6% respectively, during the forecast period.