Inside this Article

• PCI Editors weigh in on how market research is framing AI as an operating lever for chemical producers and downstream sectors like paint and coatings.
• A Credence Research Inc. report projects rapid growth in AI adoption tied to process optimization, productivity and sustainability goals.
• The analysis highlights R&D, production, supply chain management and strategy management as major business applications for AI.
• High upfront costs, talent requirements and cybersecurity concerns remain key adoption barriers cited in the report.
• Regional momentum centers on North America and Europe, with fast-growing adoption trends cited for Asia Pacific markets.

In a report by Credence Research Inc., the firm estimates the AI in chemicals market at $1.465 billion in 2024 and forecasts it reaching $11.891 billion by 2032, reflecting a 29.92% CAGR from 2024 to 2032.

Credence attributes growth to rising demand for process optimization, cost reduction and productivity gains in chemical manufacturing. The report says AI use cases including machine learning, predictive analytics and process automation are being adopted to streamline operations, reduce waste and improve efficiency across complex chemical processes.

The report also points to expanding R&D applications, saying AI is helping accelerate discovery of new materials, improve product formulations and shorten time-to-market by analyzing patterns in complex chemical reactions and supporting safer decision-making in manufacturing environments.

Sustainability pressures and tightening environmental regulations are described as additional catalysts. Credence says AI enables real-time monitoring and control that can optimize energy use, cut raw material waste, reduce emissions and support regulatory compliance. The report cites continued focus on greener manufacturing practices as a factor making AI tools more central to operational road maps.

What The Report Tracks Credence segments the market by component across hardware, software and services. Hardware coverage includes accelerators, processors, memory and networking used to support AI workloads. Software coverage spans analytics dashboards, process simulation, chemical modeling and laboratory management, with technology categories including machine learning, deep learning, generative AI, natural language processing, computer vision and advanced analytics. Deployment modes include cloud and on-premises, with services spanning consulting, integration and ongoing support.

By business application, the report highlights R&D, production, supply chain management and strategy management as core adoption areas, with downstream end users including basic chemicals, advanced materials, active ingredients, green and bio-chemicals, paint and coatings, adhesives and sealants, water treatment and services and other end users.

Challenges And Constraints Credence identifies high initial investment costs as a primary barrier, particularly for small and midsize organizations facing infrastructure upgrades, software costs and workforce training needs. The report also flags data privacy and cybersecurity risks tied to collecting and processing sensitive operational data, including proprietary processes and intellectual property.

Regional View Credence projects North America and Europe as leading regions for adoption, citing investment in technology and innovation alongside regulatory and sustainability drivers. The report also describes Asia Pacific as a fast-growing region, citing industrial expansion, accelerating digitalization and government support for modernization.

Access the full report here.

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