The chemical industry has undergone a massive upheaval recently, thanks to the global pandemic and the ongoing geopolitical tensions that encapsulated the world. However, the industry is starting to show great signs of recovery with a report from Deloitte predicting the global industry growth rate of 3.5% in 2025. As we move into 2025, the global Chemical industry is poised for an overhaul driven by evolving customer preferences, global regulation change, and ongoing geopolitical shifts.
In this blog, we will look at some of the megatrends driving this overhaul for the Chemical sector and how the industry leaders can leverage business intelligence to unearth qualitative insights for their businesses and achieve sustained growth. But before we hop on to 2025 industry megatrends for the Chemical sector, let’s have a closer look at the role of business intelligence in the transformation of the Chemical sector.
Select an element to maximize. Press ESC to cancel.Market Research as a Strategic Growth Enabler for Chemical Industry
In one of their recent studies, McKinsey said, “Advanced analytics is instrumental in raising the level of understanding of the entire manufacturing operation in a Chemical plant; this helps Chemical companies attain unmatched insights that they never would have found otherwise. With those insights by their sides, chemical companies finally will be able to eradicate any possible bottlenecks or unprofitable production lines.”
This makes market research such as a powerful strategic growth enabler. Market research encompass various tools and technologies that help companies get actionable data-driven insights, predictive analytics, and market intelligence for making informed decisions.
If you’re in the chemical space, partnering with a strategic business intelligence and market research service provider can unlock an unmatched source of qualitative insights for your TAM expansion, new product launch, accelerate your R&D and innovation, boost regulatory compliance & risk mitigation, optimize supply chain and procurement strategies, and even to test for your product market fit.
As a chemical business owner if you’re looking to emerge triumphant in the year 2025, you need to harness the power of qualitative research by partnering with a market research and business intelligence service provider.
Key 2025 Industry Megatrends Shaping the Chemical Sector
The chemical industry is on the cusp of a revolutionary transformation driven by technological advancements, sustainability mandates, regulatory changes, and evolving market dynamics. In 2025, we will witness some megatrends that will have a pivotal role in the evolution of the next-gen supply chain, chemical R&D, and operations for the chemical industry. Let’s have a closer look at some of those megatrends
Green Chemistry & Sustainability to Take Center Stage
With every organization making carbon neutrality and circular economy practices mainstays of their CSR and corporate policies, sustainability has become a business necessity rather than just a socio-economic commitment. For chemical businesses, the focus will primarily be on renewable chemicals/green chemistry, with the emergence of more low-carbon alternatives and bio-based chemicals.
We also will see global economic superpowers introducing global policies such as the EU Green Deal and U.S. TSCA reforms to systematically phase out the usage of hazardous chemicals and boost ESG compliance. There also will be a huge impetus put on reusing and recycling chemicals to boost and minimize environmental footprints.
AI and RPA to Transform Chemical Manufacturing Process
With technological advancements in robotic process automation (RPA) and artificial intelligence (AI), the manufacturing space across industries has been transformed for good. It’s the same for the chemical industry; the overall manufacturing and supply chain management space for the industry has become much more efficient, data-driven, and automated.
The vast computational power of advanced AI-powered systems has significantly accelerated the formulation and discovery of green chemistry solutions and high-performance materials. Furthermore, to make the overall production line more efficient by minimizing downtime chemical manufacturing firms are leveraging advanced sensors and real-time data analytics.
Evolution of Regulatory Compliance in Chemical Sector
The chemical industry has always been strictly governed by regulatory authorities. However, after the recent unrest, authorities worldwide are putting stricter regulations in place to reshape their product portfolios and operational strategies. Businesses are constantly asked to report their carbon emissions and the steps they are taking towards achieving sustainable operations.
Regulations such as the European Green Deal and Reach also force chemical manufacturers to phase out hazardous materials such as PFAS, VOCs, and other high-risk substances. Furthermore, the chemical manufacturers are also expected to conduct rigorous risk assessment and due diligence, to make sure that their suppliers are not supplying any hazardous or banned materials.
Market Research Takes Center Stage
Market research has always played a vital role in enabling informed decision-making through industry insights, consumer behavior trends, and potential growth opportunities. A recent study by MarketsandMarkets projects the industry to reach USD 6,324 billion by 2025, growing at 2.3% CAGR from 2024 to 2025, so businesses are expected to invest heavily in market research and analysis.
With the data-driven insights that market research firms have to offer, chemical manufacturers will be able to innovate, grow, and navigate regulatory landscapes with greater ease. In addition, with specialized services such as patent & technology landscape analysis, these market research service providers will help the chemical manufacturing industry identify white spaces with increased efficiency and protect themselves from any potential IP conflicts.
Increased Focus Towards Development of Specialty and High-Value Chemicals
The chemical manufacturing space is highly volatile, with global competition. This is also the primary driver for innovation in the space, and as global leaders look to increase their profit margins, we are experiencing an increased focus on developing specialty and high-value chemicals.
Some sectors where this trend is evident include the pharma and biotech space, where global manufacturers are catering to the increasing demand for biopharmaceutical materials alongside customized excipients and active ingredients. Another segment is electric vehicle manufacturing and battery development, which has significantly fueled the R&D and innovation in lithium, nickel, and electrolyte chemicals. While these are just some of the glaring examples, many such examples can easily be found upon closer inspection of other industry segments.
Closing Arguments
There’s no denying the fact that the chemical industry’s resurgence and path ahead will be driven by sustainability mandates, digital transformation, regulatory shifts, and market diversification in 2025 and beyond. However, with a dedicated market research and analysis partner, you can harness the power of advanced business intelligence and qualitative insights, which can set you on course to resilience and profitability in the evolving global market.
We at Datamatics Business Solutions work alongside several global chemical leaders, giving us direct access and an opportunity to speak with industry experts and insiders to tailor our market research and analysis services accurately. Should you be interested in exploring the chemical industry and the mega trends shaping the space in detail, write to us at [email protected], and we will enable that for you.
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Somnath Banerjee
