Artificial Intelligence (AI) in Chemical Market driven by Adoption of AI in R&D and Engineering Applications
The artificial intelligence (AI) in chemical market has been gaining traction over the years owing to the rising adoption of AI-based techniques such as machine learning and deep learning. AI helps in optimizing chemical engineering processes and aiding in research and development activities. AI tools assist in analyzing large databases to identify patterns and insights in manufacturing processes. They also have the ability to mimic human cognition for reasoning, learning, problem-solving, and planning. Some key capabilities offered by AI in chemical include reaction prediction, molecular property prediction, material design and discovery. Artificial intelligence powered systems can analyze chemical reactions at a faster pace and scale compared to humans. The adoption of AI is also beneficial in minimizing errors and saving development time and cost.
Global AI in Chemical Market is estimated to be valued at US$ 1.40 Bn in 2024 and is expected to exhibit a CAGR of 36.7% over the forecast period 2024 to 2031.
Key Takeaways
- Key players operating in the artificial intelligence (AI) in chemical market are Cadwell Industries Inc., Diagnosys LLC, LKC Technologies, Inc., Diopsys, Inc., Konan Medical USA, Inc., and Electro-Diagnostic Imaging, Inc. CSOITALIA.IT, Metrovision, Roland-consult, Neurosoft, Ocular Instruments, Haag-Streit Group, Opto-Medic Co Pte Ltd, Stereo Optical, and M&S Technologies.
- There is a growing Artificial Intelligence (AI) in Chemical Market Demand to streamline processes such as polymer design, catalyst engineering, and predictive manufacturing. AI can evaluate billions of potential catalyst designs and narrow candidates for synthesis and testing.
- Major players are focusing on expanding their geographical presence by strengthening their distribution networks across global markets. For instance, Cadwell Industries Inc. has distribution partners in over 100 countries worldwide.
Market Drivers
- Increasing adoption of AI in research and development activities in the chemical industry is a major market driver. AI helps accelerate drug discovery and new material design by discovering insights and patterns in large complex datasets. It reduces chemical development cycle times and costs.
- Growing need to optimize manufacturing processes and enhance productivity is propelling the demand for AI. AI tools are helping companies achieve predictive maintenance, reduce downtime, minimize waste, and improve overall equipment effectiveness.
Impact of geopolitical situation on the growth of Artificial Intelligence (AI) in Chemical Market
The current geopolitical uncertainties are impacting the growth of the AI in chemical market. The ongoing Russia-Ukraine war has disrupted global supply chains and increased costs of raw materials including chemicals. This has constrained the investment capabilities of chemical companies in developing and adopting new AI-powered technologies. Meanwhile, the rising political tensions between China and western countries are limiting collaborative research in AI between key Artificial Intelligence (AI) in Chemical Companies. Given AI's dependence on data, restrictions on cross-border data flows pose challenges. However, governments across regions are supporting local AI innovation through funding to reduce import dependence. The market is also witnessing development of regional AI hubs and startups. To ensure steady growth, companies must diversify their supply networks, pursue open-source collaborations, and focus on developing generalizable AI tools that can be customized for local needs across markets.
Geographical regions where the AI in Chemical Market in concentrated in terms of value
Currently, North America accounts for the largest share of the global AI in chemical market in terms of value, followed by Western Europe and East Asia. This is due to the heavy investments from major players in the US and presence of established AI infrastructure and talent pool in these regions. Countries like the US, Germany, Japan, South Korea are global leaders in chemical production and early adopters of Industry 4.0 technologies. With an aim to enhance efficiency, safety and sustainability of operations, chemical giants from these regions are investing heavily in deploying AI-based solutions for applications like predictive maintenance, demand forecasting, digital twins etc. However, with growing industrialization and focus on local manufacturing, the market is expected to witness faster growth in emerging regions of Asia Pacific and Latin America over the coming years.
Fastest growing region for the Artificial Intelligence (AI) in Chemical Market
The Asia Pacific region is expected to experience the fastest growth in the global AI in chemical market during the forecast period. This can be attributed to rapid industrialization and growing chemical production in major economies like China and India. There is a strong focus by governments to promote domestic manufacturing of chemicals to reduce import dependence. This has prompted initiatives to foster innovation and adoption of advanced process technologies like AI to enhance competitiveness of local chemical industry. Additionally, availability of large talent pool and relatively lower costs are encouraging global players to establish R&D centers and manufacturing plants in the region. This will help drive the commercialization of AI-based solutions. Countries in Southeast Asia are also investing in smart chemical parks and hubs to attract investments.
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About Author-
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.
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