Four key areas of digital transformation in chemical industry

In recent decades, most of the chemical and material industries have seen only gradual innovation, with growth mainly due to the expansion of new geographic markets, and rarely from product innovation. At the same time, the industry is also facing additional pressure due to higher consumer requirements for personalization, sustainability and efficiency, which forces the chemical and material industries to innovate their business practices.

Lux research outlines the cases that have been used in the chemical and material industry in its latest report, the digital transformation of chemicals and materials, and looks forward to how digital technology will reshape the pattern of chemicals and materials in the coming decades.

"Business process driven innovation in the era is a tight competition, not just the characteristics of the product itself - chemicals and materials companies compete for customer experience and ability to keep low prices up their operations," explains Katrina Westerhof, research director leks. "Digital transformation can not only strengthen the company's position in product, customer experience and profitability, but also open up new capabilities to completely change the nature and behavior of chemical companies."

In the next 20 years, more than $500billion of the $28 trillion chemical and material market will move to results based business models. Digital technologies such as sensors, computer vision, analysis and robots will be the key to this transformation.

"Four key areas of digital transformation in the chemical industry will be the focus: product development, supply chain, manufacturing, sales or after-sales support," said Dr. Shriram Ramanathan, research director and lead contributor to lux

"Use cases in product development include identifying innovation trends, designing new materials or synthetic pathways, and laboratory automation," Ramanathan added "For example, AI can be used to design new material formulations or chemical structures to accelerate product development, or to identify new synthesis pathways to enhance the sustainability of materials. Automation simplifies and accelerates research, all of which help increase revenue and profit growth in this competitive industry. "

"We expect that the digital transformation of the material and chemical industry will accelerate rapidly in the coming years, leading to a significant increase in use cases. In the short term, these use cases will be scattered, focusing on improving operational efficiency, such as through lab automation, production optimization, asset tracking and digital sales platforms. " Ramanathan said.

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