IoT in Chemical Industry Market Poised for Significant Growth by 2031
The global IoT in Chemical Industry Market is projected to surge from $57.4 billion in 2021 to $193.9 billion by 2031, growing at a 13.3% CAGR. This expansion is driven by increasing IoT integration in chemical operations, asset monitoring, and quality management, alongside rising adoption of AI and robotics. While facing challenges like high costs and cybersecurity risks, opportunities arise from market expansion in Asia-Pacific and cloud-based IoT solutions. Plant Asset Management and Petrochemicals & Polymers segments are expected to lead growth, with Asia-Pacific dominating regionally.
The Internet of Things (IoT) in the Chemical Industry Market is experiencing robust growth, with a new report from Allied Market Research forecasting a rise from $57.4 billion in 2021 to an impressive $193.9 billion by 2031, at a compound annual growth rate (CAGR) of 13.3% from 2022 to 2031. This significant expansion is fueled by the increasing integration of IoT across various chemical verticals, including petrochemicals, specialty chemicals, fertilizers, and water management. Key growth drivers include enhanced IoT applications in chemical production, asset monitoring, quality management, and supply chain operations, coupled with the growing adoption of industrial robotics, AI, and machine vision for complex processes and real-time plant monitoring.However, the market also faces challenges such as high deployment and installation costs, along with rising concerns over data privacy and cybersecurity in connected industrial environments. Despite these hurdles, substantial opportunities exist, particularly with the expansion of chemical production in emerging Asian and Middle Eastern markets, and a growing shift towards cloud-based IoT platforms and digital twins for optimized operational efficiency.Segment-wise, Plant Asset Management (PAM) is anticipated to record the highest CAGR of 14.1% due to increasing focus on predictive maintenance and reliability. In applications, the Petrochemicals & Polymers segment is set to dominate, capturing over two-fifths of the market by 2031 and registering a 14.1% CAGR, driven by heavy IoT use for data acquisition and plant safety. Geographically, Asia-Pacific remains the leading region, holding nearly 60% of the global market share in 2021 and projected to maintain its dominance with the fastest CAGR of 14.1% through 2031, supported by strong manufacturing hubs and digital transformation investments. Key players shaping this market include ABB, Siemens, Honeywell, and Microsoft, among others.
