The global internet of things (IoT) in chemical market size was reached at USD 65.81 billion in 2022 and is expected to hit around USD 232.66 billion by 2032, poised to grow at a CAGR of 13.46% between 2023 and 2032.
IoT application in the chemical market uses IoT sensors for real-time monitoring of chemical processes. This allows for greater control and optimization of production processes, improving quality, increased efficiency, and reduced costs. For instance, IoT sensors can monitor variables such as temperature, pressure, and pH levels in chemical reactors. By collecting and analyzing this data in real-time, operators adjust the process parameters to ensure optimal conditions and prevent deviations that can lead to production issues.
Report Scope of the Internet of Things (IoT) in Chemical Market:
|Market Size in 2023||USD 74.66 Billion|
|Market Size by 2032||USD 232.66 Billion|
|Growth Rate from 2023 to 2032||CAGR of 13.46%|
|Largest Market||North America|
|Forecast Period||2023 to 2032|
|Segments Covered||By Technology, By Chemical Verticals|
|Regions Covered||North America, Europe, Asia-Pacific, Latin America and Middle East & Africa|
Driver: The rising need for predictive maintenance in the chemical industry
As chemical plants have grown older and become more complex, the cost of equipment failure and downtime has increased significantly. To ensure equipment reliability and minimize downtime, chemical companies have turned to predictive maintenance, which involves using real-time data to predict when equipment is likely to fail and proactively taking steps to prevent that failure from occurring.
IoT solutions are crucial in enabling predictive maintenance in the chemical industry. Using IoT sensors to collect real-time data on equipment health, operators can identify potential issues before they occur and take corrective action to prevent downtime and reduce maintenance costs. For instance, IoT sensors can monitor vibration levels in pumps and motors, detect leaks in pipelines, and track temperature and pressure in chemical reactors.
In addition to reducing downtime and maintenance costs, predictive maintenance can improve safety by detecting potential equipment failures before they become a hazard. This is especially important in the chemical industry, where a reactor or storage tank failure could have severe consequences. Thus, the rising need for predictive maintenance is expected to be a key driver of IoT adoption in the chemical industry as companies look for ways to improve equipment reliability, minimize downtime, and reduce maintenance costs.
Restraint: Cybersecurity concerns
IoT solutions can be vulnerable to cyberattacks because they rely on transferring and storing large amounts of data. In the chemical industry, where the consequences of a breach can be severe, cybersecurity concerns can be a significant barrier to adopting IoT solutions. The chemical industry is particularly vulnerable to cyberattacks, as it is a high-value target for hackers due to the sensitive nature of its operations and the potential impact of a breach.
The cyberattack compromises sensitive information disrupts operations and poses a safety risk to personnel and the surrounding community. To address these concerns, chemical companies must ensure that their IoT solutions are designed with security. This includes implementing secure data transfer protocols, encrypting sensitive data, and implementing robust access controls to prevent unauthorized access to IoT devices and data.
In addition to these technical measures, companies must ensure that their employees are trained in cybersecurity best practices and aware of the risks associated with IoT devices. This includes regular security awareness training, limiting access to sensitive data, and implementing multi-factor authentication for all IoT devices. Thus, cybersecurity concerns are expected to continue significantly restraining IoT adoption in the chemical industry. Companies must take a proactive approach to address these concerns to successfully implement IoT solutions in their operations.
Opportunity: Improved predictive maintenance
Predictive maintenance uses data collected from sensors and other IoT devices to predict when maintenance is needed on chemical plant equipment. By detecting early signs of equipment failure, maintenance can be scheduled before the equipment breaks down, reducing the risk of costly downtime.
Predictive maintenance can be applied to various chemical plant equipment, including pumps, valves, motors, and pipelines. By monitoring these assets in real time, IoT devices can detect changes in performance that may indicate a potential issue. For instance, vibration levels, temperature, or pressure changes can indicate impending equipment failure.
Predictive maintenance can also help reduce maintenance costs by enabling companies to schedule maintenance when needed rather than on a fixed schedule. This can reduce the frequency of unnecessary maintenance and reduce the cost of spare parts and labour. Implementing predictive maintenance requires the installation of sensors and other IoT devices on equipment throughout the chemical plant.
These devices collect data on the performance of the equipment, which is analyzed using machine learning algorithms to detect patterns and anomalies that may indicate potential issues. Using predictive maintenance, chemical companies can improve equipment reliability, reduce downtime, and lower maintenance costs. This increases overall operational efficiency and improves profitability in the chemical market.
The COVID-19 pandemic has significantly impacted the IoT in chemical market. On the one hand, the pandemic has led to disruptions in supply chains and manufacturing operations, which has negatively affected the demand for IoT solutions in the chemical industry. On the other hand, the pandemic has also accelerated the adoption of IoT technologies in the chemical industry as companies look to digitize their operations and make them more resilient in future disruptions.
One of the significant impacts of the pandemic has been the shift towards remote working, which has led to an increased demand for IoT solutions that enable remote monitoring and control of chemical manufacturing processes. The pandemic has also highlighted the need for real-time tracking of supply chains to ensure continuity of operations, which has led to an increased demand for IoT solutions that provide end-to-end supply chain visibility.
The IoT in the chemical market is segmented on technology into machine vision, 3D printing, digital Twin, plant asset management, manufacturing execution systems, distributed control systems, Industrial Robotics, big data, artificial intelligence, augmented reality and virtual reality, and Others. In 2022, the artificial intelligence technology segment dominated the market, generated for the highest market share. AI technology uses machine learning algorithms to analyse data, make predictions, and automate decision-making. AI can optimize production processes, improve product quality, and reduce costs in the chemical industry.
For instance, predictive maintenance- By analyzing data from sensors and other IoT devices, AI algorithms can predict equipment failures before they occur. This allows chemical companies to schedule maintenance activities proactively, reducing downtime and increasing equipment lifespan. Quality Control- AI algorithms can analyse data from various sources, including sensors and production logs, to identify patterns and detect anomalies in the production process.
This allows chemical companies to identify quality issues early and take corrective action before products leave the factory. Thus, AI technology has the potential to significantly improve the efficiency, productivity, and sustainability of the chemical industry. As more chemical companies adopt AI technology, there is increased optimization of production processes, reduced downtime, and improved product quality.
Chemical Verticals Insights:
Based on the chemical verticals, the IoT in the chemical market is segmented into mining & metals, food & beverages, chemicals, pharmaceuticals, paper & pulp. In 2022, the chemicals vertical dominated the market and captured the maximum market share. Chemical production involves a complex process that requires precise monitoring and control to ensure quality, safety, and efficiency.
IoT technology can help chemical companies optimize production processes by providing real-time temperature, pressure, and chemical composition data. This information can be used to optimize the production process, reducing waste and improving efficiency. In addition, the chemical industry is subject to strict regulatory requirements to ensure the safety and quality of the products produced. IoT technology can monitor environmental conditions and chemical production processes, ensuring compliance with regulatory requirements.
North America dominated the market and accounted for the highest market share in 2022. The region has many chemical manufacturing companies and is known for its early adoption of advanced technologies, making it a key market for IoT solutions in the chemical industry. The United States is the leading country in this region, accounting for the largest share of the market.
The growth is attributed to chemical companies' increasing adoption of IoT solutions to enhance their operations' overall efficiency and productivity. However, it's important to note that the market is dynamic and subject to changes in the future due to various factors such as regulatory policies, technological advancements, and economic conditions.
Moreover, Asia Pacific is expected to grow during the forecast period. The region has many chemical manufacturing companies and is expected to witness significant growth in adopting IoT solutions in the coming years. Countries like China, India, Japan, and South Korea are driving this growth due to the increasing demand for chemical products and the need to improve their manufacturing processes. The growing adoption of Industry 4.0 technologies, coupled with government initiatives to promote the digitalization of the manufacturing industry, is also expected to boost market growth in this region.
Company Profiles and Competitive Intelligence:
Market players attempt to increase their market share through investments, partnerships, acquisitions, and mergers. Businesses are also investing in the development of new products. Furthermore, they are concentrating on maintaining competitive pricing. Some of the prominent market players include:
Segments Covered in the Report:
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By Chemical Verticals
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