AI in Chemicals Market is predicted to reach USD 17.06 billion at a CAGR of 4.50% during the forecast period 2023-2032

Market Research Future (MRFR) has published on the “Global AI in Chemicals Market”.

The AI in Chemicals Market is estimated to register a CAGR of 40.50% during the forecast period of 2024 to 2032.

MRFR recognizes the following companies as the key players in the global AI in Chemicals Market— IBM (US), Schneider Electric (France), Google (US), Microsoft (US), SAP (Germany), AWS (US), NVIDIA (US), C3.ai (US), GE Vernova (US), Siemens (Germany).

Market Highlights

The global AI in Chemicals Market accounts for a CAGR of 40.50% during the forecast period and is estimated to reach USD 17.06 billion by 2032.

The rising uptake of advanced technologies such as IoT, 3D printing, and VR is anticipated to stimulate R&D initiatives, thereby driving the demand for AI across various industries.

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Segment Analysis

The global AI in Chemicals Market has been segmented based on Component, Business Application, and End User.

Based on the Components, the market is segmented into Hardware (Accelerators, Processors, Memory, Network), Software, and Services (Professional Services and Managed Services). The Software segment was attributed to holding the largest market share in 2023. Chemical modeling software represents a cutting-edge advancement in the chemicals market, providing sophisticated tools for molecular design, simulation, and analysis. These solutions utilize AI technologies, such as machine learning and deep learning, to model complex chemical structures, predict molecular properties, and simulate chemical reactions with high accuracy. By leveraging extensive chemical databases and computational algorithms, chemical modeling software enables researchers and engineers to explore new materials, optimize formulations, and design molecules for specific applications, including pharmaceuticals, polymers, catalysts, and specialty chemicals. Key features include structure-based design, property prediction, virtual screening, and molecular dynamics simulations, which allow users to accelerate R&D cycles, reduce experimentation costs, and discover breakthrough innovations.

Based on the Business Application, the AI in Chemicals Market has been segmented into R&D, Production, Supply Chain Management, and Strategy Management. The Production segment was expected to hold the largest market share in 2023. The chemical industry is currently undergoing a significant transformation due to the widespread adoption of artificial intelligence (AI). This revolutionary technology is enhancing efficiency, fostering innovation, and streamlining production processes within the sector. By leveraging AI-powered solutions such as machine learning algorithms, advanced analytics, and real-time data analysis, chemical companies are optimizing their manufacturing operations to unprecedented levels. AI improves production planning and quality control, enhances product quality, maximizes yields, reduces costs, and boosts productivity.

Based on the End User, the AI in Chemicals Market has been segmented into Basic Chemicals, Advance Materials, Active Ingredients, Green & Biochemicals, Paints & Coatings, Adhesives & Sealants, Water Treatment & Services, and Other End Users. The Active Ingredients segment was expected to hold the largest market share in 2023. Active ingredients are specific substances that provide therapeutic or functional properties to products, such as agrochemicals, personal care items, and household chemicals. These ingredients are crucial for the effectiveness and performance of end products, including medicines, pesticides, skincare products, and cleaning agents. AI is increasingly utilized across various sectors to develop, optimize, and apply active ingredients.

Regional Analysis

The global AI in Chemicals Market, based on region, has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. North America consists of the US and Canada. The European AI in Chemicals Market comprises Germany, France, the UK, Italy, Spain, and the rest of Europe. The AI in Chemicals Market in Asia-Pacific has been segmented into China, India, Japan, Australia, South Korea, and the rest of Asia-Pacific. The Rest of the World AI in Chemicals Market comprises the Middle East, Africa, and Latin America.

The largest market share for AI in Chemicals Market was maintained by the North American regional sector. North America, particularly the United States, has a highly developed digital infrastructure. The real gross output of the digital economy increased by 7.1 percent in 2022 and maintained an average annual growth rate of 6.3 percent from 2017 to 2022. In 2022, infrastructure real gross output experienced the fastest growth at 9.8 percent, followed by priced digital services at 6.9 percent and e-commerce at 4.3 percent. However, federal nondefense digital services saw a decline of 1.0 percent in 2022. This advanced infrastructure, characterized by widespread high-speed internet access, cutting-edge computing resources, and significant investments in cloud technologies, is essential for implementing and scaling AI solutions.

Moreover, the Europe market has been persistently growing over the forecast period. The European Union (EU) has established a robust regulatory framework that fosters the development and implementation of AI technologies. In 2023, 8% of EU enterprises adopted AI technologies, with 30.4% of large EU enterprises utilizing AI. The information and communication sector saw the highest AI usage among enterprises in 2023. Policies like the European AI Strategy and the European Green Deal encourage the integration of AI to enhance efficiency and sustainability in the chemical industry.

Governments across the APAC region actively promote AI adoption through strategic initiatives and policies. For instance, China's "New Generation Artificial Intelligence Development Plan" targets establishing global AI leadership by 2030, advocating for AI integration across industries, including chemicals. The IDC projects that global AI spending will surpass USD 512 billion by 2027, more than doubling its size from 2024. According to Stanford University's "2024 AI Index Report," China accounted for 61% of global AI patents in 2022. Government-backed financial incentives, such as grants, subsidies, and tax benefits, bolster research and development in AI technologies, making it more viable for chemical firms to invest in AI solutions. Meanwhile, India's National AI Strategy aims to position the country as a global AI leader by 2030 through initiatives focused on R&D, workforce skilling and reskilling, and fostering a supportive ecosystem for startups and entrepreneurs. The 'AI for All' program, launched by the government, aims to equip individuals and organizations nationwide with the training and resources needed to adopt and implement AI-driven solutions.

Furthermore, the rest of the world's AI in Chemicals Market is divided into the Middle East, Africa, and Latin America. MEA & LATAM regions are undergoing rapid industrialization and urbanization, which is driving the expansion of chemical manufacturing. Brazil, for example, hosts the world's 6th largest chemical industry, supporting 2 million direct and indirect jobs and contributing 11% to the industrial GDP. It ranks as the 3rd largest industrial sector by GDP, with net sales totaling US$ 187 billion. Known for its leadership in renewable chemistry, the sector also leads federal tax contributions, accounting for 13.1% of the industry’s total, approximately US$ 5.8 billion. The increasing demand for chemicals across sectors like construction, automotive, and agriculture underscores the necessity of adopting AI to boost production efficiency and meet market demands.

Key Findings of the Study

• The global AI in Chemicals Market is expected to reach USD 17.06 billion by 2032, at a CAGR of 40.50% during the forecast period.


• The Asia-Pacific region accounted for the fastest-growing global market because of the increased awareness of digitization approaches and increased R&D funding by chemical firms for overall production process advancements.


• Based on Components, the Software segment was attributed to holding the largest market in 2023, with an approximate market share of 55–60%.


• IBM (US), Schneider Electric (France), Google (US), Microsoft (US), SAP (Germany), AWS (US), NVIDIA (US), C3.ai (US), GE Vernova (US), and Siemens (Germany) are the key market players.