Challenges does the future hold in Digitalization in the Chemical Industry

1. Economic Challenges

There are interwoven and sometimes subtle factors that drive the chemical industry’s position within the economy. Despite recent infusion of capital investment to boost global capacity, the focus is largely on local markets.

Global growth in demand for chemical supplies has decreased, something that is indirectly connected to countries creating self-sufficient energy. Just two examples of this are the fading advantage of the Middle East in terms of oil production and the increasing self-sufficiency of China exerting significant pressure on the chemical industry.

Some level of uncertainty is also faced from end-users. Declining car production, for example, could result in lower demand for specialised automotive chemicals.

2. Regulatory Challenges

Another serious challenge to the chemical industry is to do with regulations. To illustrate this point, let’s think about the many countries that are (rightly) either banning or reducing the use of plastic bags. The process of manufacturing plastics involves chemicals, so this has a knock-on effect on the chemical industry as the overall demand for chemical products such as catalysts or reagents for polymerisation and polycondensation decrease. We’re not saying we should reintroduce plastic bags, by the way! Merely that it will affect the chemical industry.

Digitalization can address the industry’s largest challenges in several ways:

• Cost-cutting – cut operational costs by automating complex manufacturing processes
• Efficiency – machines and workers will become more productive. We’ll save time, effort, energy, and resources
• Quality control – work processes will be more precise and accurate. Errors are minimised or eliminated while high-quality products are produced
• Safety – accidents and injuries can be prevented through continuous monitoring of the various stages of manufacturing. Parameters such as pressure, temperature, and chemical proportions are maintained at safe levels
• Security – monitor the movement of personnel within the facility. Any unauthorised person can easily be detected
• Research and development – data and analytics helps researchers develop new products
• Waste management – toxic materials or hazardous waste can be more easily handled, stored, and disposed of by digitally assessing the ratio of final product to waste
• Customer and end-user analytics – chemical companies will gain new insights to help them better respond to customer demand