AI in Chemicals Market Size, Share, Trends, Growth and Forecast 2032

AI in Chemicals Industry Prospective:

The global AI in chemicals market size was worth around USD 942 million in 2023 and is predicted to grow to around USD 8388 million by 2032, with a compound annual growth rate (CAGR) of roughly 27.5% between 2024 and 2032. 

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AI in Chemicals Market: Overview

Artificial intelligence (AI) in the chemical sector is the application of AI technologies, including automation, big data analytics, and machine learning, to improve operations, increase output, and inspire invention. Among its uses are predictive maintenance, supply chain management, quality assurance, chemical synthesis optimization, and the manufacture of sustainable materials.

Artificial intelligence in chemicals has a promising future as breakthroughs in AI-driven drug research, environmentally friendly formulations, and digital twin technologies are predicted to transform the sector trademark. Growing investments, legislative backing for sustainability, and an increasing need for efficiency will all help to drive the chemical industry's AI use.

Key Insights

• As per the analysis shared by our research analyst, the global AI in Chemicals market is estimated to grow annually at a CAGR of around 27.5% over the forecast period (2024-2032).
• In terms of revenue, the global AI in Chemicals market size was valued at around USD 942 million in 2023 and is projected to reach USD 8388 million by 2032.
• The increasing investment in innovative technology is expected to drive the AI in Chemicals market over the forecast period.
• Based on the type, the software segment is expected to hold the largest market share over the forecast period.
• Based on the application, the production optimization segment is expected to dominate the market expansion over the projected period.
• Based on the end-use, the base chemicals & petrochemicals segment is expected to capture the largest market share over the projected period.
• Based on region, North America is expected to dominate the market during the forecast period.

AI in Chemicals Market: Growth Drivers

Increasing benefits of AI in the chemical sector drive market growth

It is feasible to forecast the amount of raw material required for chemical synthesis and identify the extra amount needed using sophisticated analytics and models that integrate machine learning (ML) and artificial intelligence (AI). Every stage of the molecule's synthesis process can be altered because of AI prediction. Future material costs can also be predicted by artificial intelligence (AI). This significantly reduces the company's losses and permits the industry to adopt the production process more quickly. When compared to human forecasting, AI in the chemical industry can reduce prediction inaccuracy by 50%.

Businesses may avoid having too much inventory and optimize their supply chain by using artificial intelligence to predict demand. Similarly, large amounts of trash that must be disposed of and eliminated are usually the consequence of an unanticipated event during the chemical production process. Chemical companies frequently use tactics to reduce inefficiencies and guarantee steady commodity production. The development of machine learning and artificial intelligence (AI) has led to the complete automation of the industrial process.

Additionally, this technical advancement improves the items' uniformity and standardization. This lessens the environmental impact of carbon by increasing efficiency and decreasing chemical waste, thereby driving the AI in chemicals industry growth.

AI in Chemicals Market: Restraints

High initial implementation costs and integration challenges hinder market growth

Although artificial intelligence (AI) holds enormous potential for the chemical sector, challenges, including high initial installation costs and integration problems, could restrict its general acceptance. Using AI solutions in the chemical industry usually requires a large initial outlay for knowledge, infrastructure, and software. Highly specialized individuals with chemistry and machine learning expertise are needed to create and use AI models tailored for certain chemical processes, which generally increases implementation costs. Furthermore, it is difficult and time-consuming to add AI technologies into out-of-date infrastructure and processes.

Many times, chemical factories and labs feature a wide spectrum of systems, which makes it challenging to integrate artificial intelligence technologies seamlessly. Problems with interoperability, data segregation, and compatibility could make it harder for artificial intelligence systems to be used and operate as intended.

Furthermore, the chemical sector has rigorous regulatory approval and validation processes for AI-driven applications that require a lot of testing and verification to ensure reliability, safety, industry standards, and legal compliance adherence. The deployment process thus becomes rather more costly and complex.

AI in Chemicals Market: Opportunities

Increasing product launches offers a lucrative opportunity for market growth

The increasing product launch offers a lucrative opportunity for AI in chemicals market growth over the forecast period. For instance, in December 2024, Mitsui Chemicals, Inc. declared that it had created a platform with a proprietary generative AI conversation system and started testing the platform in its R&D Center and other divisions. Reading experiment data tables, comprehending chemical structures, and other highly specialized needs of the chemical industry are all expected to be met by the platform.

Through this project, Mitsui Chemicals hopes to promote digital transformation (DX) throughout its business sectors. This will help generate ideas for new product development and boost market share and product top lines (sales income). The initiative is anticipated to create new value by fusing generative AI with the chemical knowledge of Mitsui Chemicals' engineers and researchers, something that would not be possible with traditional techniques.

AI in Chemicals Market: Challenges

The lack of skilled professionals poses a major challenge to market expansion

The lack of qualified workers and AI talent is one of the major obstacles to AI in the chemical industry. The chemical sector is going through a digital revolution, but adoption is being slowed down by a dearth of domain-specific AI, ML, and data science professionals.

Experts who comprehend both AI technologies and intricate chemical processes are needed for AI applications in chemicals. AI specialists frequently have little understanding of chemistry, whereas many chemical engineers lack AI training. Additionally, AI in chemicals necessitates knowledge of fields like predictive modeling, process automation, and computational chemistry. Professionals who can connect AI algorithms to practical chemical applications are hard to come by in the business.

AI in Chemicals Market: Report Scope

AI in Chemicals Market: Segmentation

The global AI in Chemicals industry is segmented based on type, application, end-use, and region.

Based on the type, the global AI in Chemicals market is bifurcated into hardware, software, and services. The software segment is expected to hold the largest market share over the forecast period. This growth is attributed to factors such as increasing investment and innovative product launches.

Based on the application, the global AI in Chemicals industry is bifurcated into production optimization, new material innovation, operational process management, pricing optimization, raw material demand forecasting, and others. The production optimization segment is expected to dominate the market expansion over the projected period. By increasing productivity, cutting expenses, and improving product quality, the chemical industry's use of AI-driven production optimization is dramatically increasing revenue growth. Chemical firms are using AI technologies like digital twins, process automation, and predictive analytics to increase productivity while reducing waste.

Based on the end-use, the global AI in Chemicals market is bifurcated into base chemicals & petrochemicals, agricultural chemicals, and specialty chemicals. The base chemicals & petrochemicals segment is expected to capture the largest market share over the projected period. By streamlining manufacturing procedures, cutting expenses, boosting sustainability, and improving safety, artificial intelligence is revolutionizing the base chemicals and petrochemicals industries. Manufacturers are increasing productivity and revenue growth through the use of AI-driven technologies like digital twins, process automation, predictive analytics, and advanced robotics.

AI in Chemicals Market: Regional Analysis

North America dominates the market over the projected period

North America is expected to dominate the global AI in chemicals market during the forecast period. The market is fueled by large expenditures in innovation and technology developments. Leading chemical firms and IT giants that invest in AI research and development are well-represented in the area. AI is being used by North American businesses to increase supply chain efficiency and streamline intricate industrial processes. The area also prioritizes sustainability, utilizing AI to improve waste reduction and environmental compliance.

Besides, the Asia Pacific is expected to grow at the highest CAGR over the forecast period. AI usage in the chemicals market is growing quickly in the Asia Pacific area as a result of strong industrial expansion and rising technological investments.

AI in Chemicals Market: Competitive Analysis

The global AI in Chemicals market is dominated by players like:

• Accenture
• BASF
• Google LLC
• Honeywell International Inc.
• IBM Corporation
• Insilico Medicine
• Microsoft
• NVIDIA Corporation
• Siemens
• SLB

The global AI in Chemicals market is segmented as follows:

By Type

• Hardware
• Software
• Services

By Application

• Production Optimization
• New Material Innovation
• Operational Process Management
• Pricing Optimization
• Raw Material Demand Forecasting
• Others

By End-use

• Base Chemicals & Petrochemicals

• Agricultural Chemicals
• Specialty Chemicals

By Region

• North America

  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa