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Internet Of Things (IoT) In Chemical Market Size, Share, and Trends 2024 to 2034

The global internet of things (IoT) in chemical market size accounted for USD 84.72 billion in 2024, grew to USD 96.12 billion in 2025, and is expected to be worth around USD 299.51 billion by 2034, poised to grow at a CAGR of 13.46% between 2024 and 2034.

  • Last Updated : 11 Nov 2024
  • Report Code : 2764
  • Category : Chemical and Material

Internet of Things (IoT) in Chemical Market Size and Forecast 2024 to 2034

The global internet of things (IoT) in chemical market size is expected to be valued at USD 84.72 billion in 2024 and is anticipated to reach around USD 299.51 billion by 2034, expanding at a CAGR of 13.46% over the forecast period from 2024 to 2034.

Internet of things (IoT) in the Chemical Market Size 2024 to 2034

Internet Of Things (IoT) In Chemical Market Key Takeaways

  • North America led the market and contributed to the maximum market share in 2023.
  • By Technology, the artificial intelligence segment contributed to the largest market share in 2023. 
  • By Chemical Verticals, the chemicals segment dominated the market and generated the highest market share in 2023.

Market Overview

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.

Market Scope

Report Coverage Details
Market Size in 2024 USD 84.72 Billion
Market Size by 2034 USD 299.51 Billion
Growth Rate from 2024 to 2034 CAGR of 13.46%
Largest Market North America
Base Year 2023
Forecast Period 2024 to 2034
Segments Covered By Technology, By Chemical Verticals
Regions Covered North America, Europe, Asia-Pacific, Latin America and Middle East & Africa

Market Dynamics

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.

Technology Insights

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 2023, 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 2023, 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.

Regional Insights

North America dominated the market and accounted for the highest market share in 2023. 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.

Internet of Things (IoT) in Chemical Market Companies

  • Siemens AG
  • General Electric Company (GE)
  • Honeywell International Inc.
  • Cisco Systems, Inc.
  • Intel Corporation
  • SAP SE
  • IBM Corporation
  • Schneider Electric SE
  • Rockwell Automation, Inc.
  • Yokogawa Electric Corporation

Recent Developments

  • In March 2021, BASF, a leading chemical company, partnered with Litmus Automation, an IoT platform provider, to develop a digitalization solution for chemical production. The solution will enable real-time monitoring of production processes and improve operational efficiency.
  • In Feb 2021, Honeywell, a multinational conglomerate, launched its Sentience Industrial Internet of Things (IIoT) platform for the chemical industry. The platform enables real-time monitoring and predictive analytics to optimize production processes and reduce downtime.
  • In Oct 2022, Siemens, a global technology company, has introduced a range of IoT solutions for the chemical industry, including the Siemens Digital Enterprise Suite for Chemicals. The suite enables the digitalization of the entire value chain, from production planning to maintenance and service.

Segments Covered in the Report

By Technology

  • Machine Vision
  • 3D printing
  • Digital Twin
  • Plant Asset Management
  • Manufacturing Execution System
  • Distributed Control Systems
  • Industrial Robotics
  • Big Data
  • Artificial Intelligence
  • AR and VR
  • Others

By Chemical Verticals

  • Mining & Metals
  • Food & Beverages
  • Chemicals
  • Pharmaceuticals
  • Paper & Pulp

By Geography

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • The Middle East and Africa

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Frequently Asked Questions

The global internet of things (IoT) in chemical market size is expected to increase USD 299.51 billion by 2034 from USD 84.72 billion in 2024.

The global internet of things (IoT) in chemical market will registered growth rate of 13.46% between 2024 and 2034.

The major players operating in the internet of things (IoT) in chemical market are Siemens AG, General Electric Company (GE), Honeywell International Inc., Cisco Systems, Inc., Intel Corporation, SAP SE, IBM Corporation, Schneider Electric SE, Rockwell Automation, Inc., Yokogawa Electric Corporation and Others.

The driving factors of the internet of things (IoT) in chemical market are the rising need for predictive maintenance in the chemical industry and the increasing focus on sustainability.

North America region will lead the global internet of things (IoT) in chemical market during the forecast period 2024 to 2034.

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