Editorial June-2019 Chemical Industry Vision Ahead
08 Jun 2019
Since the mid 1980's the global chemical industry has grown by 7 percent annually, reaching Euro 2.4 Trillion in 2010 as per one of the reports in Europe. Most of the growth in the past 25 years has been driven by Asia, which now owns almost half of the global chemical sales. Also according to that report rising consumer purchasing power will translate into more chemicals people can afford to buy, which drives the demand for chemicals across Asia. Thus, as the global economy gravitates eastward, at least half of the top 10 chemical companies in the world will be Asian or Middle Eastern.
According to one report in the Digitalist, these are the four trends that will define the chemical industry's future: Rapid globalization which gives emphasis on new market entrants from emerging countries. The circular economy which is scarcity of raw materials and government and environment regulations. The third is digitalization which is highly emphasized as there is a massive wave of digital innovations from unlimited storage technologies to the internet of things (IoT) and lastly the new business models caused by the digitalization. Technology innovations and digitalization of process and systems enhance the outflow of production.
According to a report published by GE Digital, there are four chemical industry trends to watch which starts with
- Mergers and acquisitions: The last couple of years saw notable consolidation in the form of multiple mergers and acquisitions.
- New regulatory environment: Governments and regulatory bodies around the world are overhauling chemical regulations for the first time in decades.
- Investments: After decades of taking a back seat to emerging markets, North America saw a significant wave of investments in new multi-billion-dollar production facilities from a number of chemical manufacturers and lastly
- Digital transformation: Rising demand and growing competition have increased the pressure on all chemical manufacturers to adopt advanced technologies and transform their operations and structures. Rising standards of living and a growing middle class in emerging markets will drive ongoing strong demand for chemicals, as more end-users purchase appliances, consumer goods, automobiles, and other products that require the use of chemicals and plastics.
But to capitalize on the growth opportunities, the trend toward digital transformation has become an urgent need that will enable chemical companies to modernize their development, planning, and production processes.
As the chemical industry looks for ways to differentiate and excel in a fiercely competitive consolidated environment, leading companies will accelerate their digital transformations– via technology, processes, and people. The most successful companies may be those willing to take the most disruptive, challenge-the-conventional-industry-wisdom approaches to their business models.
Now coming back to our own product, we are almost there to launch our new digital platform for the chemical market. It is an innovative platform for people and companies in the chemical industry to focus on sales, purchases caused by buy and sell leads. We have introduced Product Catalog, Buy Leads, Sell Leads and Priority Leads which is a simple portal for people and companies in the chemical industry. You will also find our magazine available on the portal along with events and conferences, latest news, interviews, featured stories, abstract reports and chemical prices subscription models. Do visit our new portal ChemicalMarket.net and please provide your feedback.
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