IoT in Chemical Industry Market Report Scope & Overview:

IoT in the Chemical Industry Market Size was valued at USD 72.44 Billion in 2023 and is expected to reach USD 178.67 Billion by 2032 and grow at a CAGR of 10.67% over the forecast period 2024-2032.

The Internet of Things is revolutionizing the chemical industry with real-time monitoring, increased efficiency, and better safety across operations. The industry is being powered by the necessity for digitalization, predictive maintenance, and intelligent data analytics for process optimization. IoT in the chemical industry yields advantages such as energy savings, operational insights, and better asset management. With increasing adoption, the industry sees a rise in demand for IoT-capable devices, cloud platforms, and connected systems.

The U.S. IoT in Chemical Industry Market was valued at USD 20.07 Billion in 2023 and is expected to reach USD 46.41 Billion by 2032, growing at a CAGR of 9.88% from 2024 to 2032. In the United States, the use of IoT in the chemical sector is growing at a fast pace due to the demands of operational efficiency, cost-cutting, and safety. IoT technologies allow chemical processes to be monitored in real-time, predict maintenance, and optimize energy usage, which is vital for the sustainability of the industry. U.S. chemical producers are utilizing IoT solutions to develop greater supply chain insights and optimize asset performance.

IoT in Chemical Industry Market Dynamics

Key Drivers:

• Rising Demand for Process Optimization and Operational Efficiency Drives IoT Adoption in the Chemical Industry

The growing requirement for enhanced process efficiency, operation optimization, and cost reduction is one of the primary drivers of IoT adoption within the chemical industry. IoT technologies facilitate real-time monitoring of manufacturing lines, monitoring performance, and anticipating equipment failures, leading to increased productivity. By offering chemical processes with minute insights, IoT solutions assist manufacturers in optimizing operations, minimizing downtime, and preventing waste. With the rising need for sustainability and cost-saving, chemical industries are increasingly adopting IoT to keep themselves competitive and in line with changing industry requirements, fueling high market growth.

Restraint:

• High Initial Investment and Implementation Complexity Limit Widespread IoT Adoption in the Chemical Industry

One of the major restraints in the adoption of IoT within the chemical industry is the high initial investment that comes with the implementation of IoT infrastructure. These are investments in sophisticated sensors, cloud platforms, and integrations to existing systems. Furthermore, the intricacy of rolling out IoT solutions on top of legacy systems and the ability to communicate effectively among devices present challenges. Smaller chemical companies, especially, might struggle to incur such extensive costs, slowing down the rate of adoption. This expense combined with the requirement for such specific expertise forms the central hindrance to wider IoT deployment across the industry.

Opportunity:

• Emerging Focus on Predictive Maintenance and Asset Management Enhances IoT Adoption in the Chemical Sector

The increasing emphasis on predictive maintenance and asset management offers a huge opportunity for IoT in the chemical sector. Through the use of IoT sensors and analytics, businesses can track the condition of machinery and infrastructure in real time, anticipating failures before they happen. This translates into cost savings, longer equipment life, and less downtime. With chemical plants being subject to greater demands for cost-efficient operation and minimal downtime, the incorporation of IoT-powered predictive maintenance technology is increasingly becoming appealing. This can further provide new opportunities for IoT solution providers to gain more market share.

Challenge:

• Cybersecurity Concerns and Data Privacy Issues Hinder Widespread IoT Implementation in the Chemical Industry

One of the key concerns for IoT uptake in the chemical sector is the increased risk of cybersecurity breaches and data privacy issues. The networked nature of IoT devices makes them more susceptible to cyber-attacks, and sensitive operational data and intellectual property may be at risk of exposure. Maintaining the integrity and security of IoT systems demands considerable investment in cybersecurity, which may act as a deterrent to organizations. Apart from this, the chemical industry works with sensitive information about dangerous substances and manufacturing processes, necessitating strong security measures. Resolving these issues is imperative to ensuring the safe and sustainable adoption of the Internet of Things in the sector.

IoT in Chemical Industry Market Segment Analysis

By Technology Type

The Enabling Technology segment has the largest market share of the IoT in the chemical industry market, accounting for 59.49% of the revenue in 2023. This is fueled by the development of IoT devices, sensors, cloud computing, and data analytics, which are essential to enable real-time data collection and analysis in chemical plants. Players such as Siemens and Honeywell have been setting the pace through product offerings including IoT-integrated sensors and smart control systems for improved process automation and lower downtime. Such enablement technologies facilitate essential insight into operations, yielding increased efficiency, safety, and sustainability for chemical manufacturing processes.

The Operational Technology segment will witness the highest CAGR of 11.16% through the forecast period, as it offers significant benefits to industrial operations by automating and monitoring in real-time. The segment specializes in the integration of IoT systems with existing industrial machinery and equipment to make operations more streamlined and efficient overall. Firms such as ABB and Rockwell Automation have introduced sophisticated IoT-based operational technology solutions, including predictive maintenance platforms and smart manufacturing systems.

By Chemical Verticals  

The Pharmaceuticals segment dominates the chemical industry market for IoT with the highest revenue share of 32.16% in 2023. This is fueled by the mounting need for precision manufacturing, regulatory compliance, and quality control of drugs. Pharmaceutical giants such as Pfizer and Novartis have come up with IoT-based solutions for live monitoring of production lines and temperature-controlled storage of drugs. The use of IoT facilitates pharmaceutical firms to increase the efficiency of production, maintain regulatory compliance, and enhance the quality and safety of drugs.

The Paper & Pulp segment is observing the maximum CAGR of 14.05% during the forecast period, mainly because of the growing use of IoT for process optimization and sustainability. Valmet and Andritz have launched new IoT-based solutions for real-time monitoring of production processes and predictive maintenance. By combining sensors and analytics on data, such solutions enable paper producers to minimize waste, optimize energy use, and improve raw material utilization. Increasing demand for cost savings and eco-friendliness is driving IoT penetration within the Paper & Pulp sector, rendering it a market driver in the broader IoT in the chemical industry market.

Regional Analysis

North America leads the IoT in the chemical industry market with the highest revenue share of 40.46% in 2023. This is driven by the industrialized infrastructure of the region and a high emphasis on digitalization. Major players like Honeywell and Rockwell Automation have introduced IoT-based solutions that allow real-time monitoring, predictive maintenance, and process optimization for chemical plants. The American chemical industry, especially pharmaceuticals and petrochemicals, continues to adopt IoT to enhance operational efficiency, sustainability, and safety.

The Asia Pacific is witnessing the highest CAGR of 13.59% during the forecast period, fueled by high industrialization, automation, and digitalization in chemical production. Siemens and Mitsubishi Electric are among the companies that have launched IoT-based solutions with an emphasis on energy efficiency, predictive maintenance, and process optimization, which are specifically designed to meet the needs of the region's manufacturing sector. With chemical ingredients in China, India, and Japan embracing IoT to efficiently manage resources and enhance production, the region is apt for high market growth.

Key Players

• Siemens AG - (MindSphere, SIMATIC IoT2000)

• General Electric Company - (Predix, Proficy)

• ABB Ltd - (ABB Ability, 800xA)

• Rockwell Automation, Inc. - (FactoryTalk, PlantPAx)

• Emerson Electric Co. - (Plantweb, DeltaV)

• Yokogawa Electric Corporation - (Exaquantum, Centum VP)

• Honeywell International Inc. - (Honeywell Connected Plant, Experion PKS)

• Mitsubishi Electric Corporation - (Mechatronics IoT Solutions, MELSOFT)

• Schneider Electric SE - (EcoStruxure, Modicon)

• Accenture - (concerto, Industry X)

• Microsoft - (Azure IoT, Azure Digital Twins)

• IBM - (IBM Watson IoT, IBM Maximo)

• Port of Rotterdam - (Portbase, Smart Port Solutions)

• Royal Haskoning - (HaskoningDHV IoT, Smart Industry Solutions)

Recent Trends

• February 2023– Yokogawa developed the FKDPP sensor for measuring oxygen concentration in industrial processes, offering high accuracy and stability in harsh environments.

• January 2023 – Schneider Electric partnered with Ryse Energy to design and implement a standardized control system for integrating small wind turbines with the National Grid, aiming to enhance renewable energy usage.