Global Chemical Industry Market By Product Type (Basic Chemicals, Specialty Chemicals), Raw Materials (Petrochemicals, Renewable Chemicals), End-User (Agriculture, Automotive), & Region for 2024-2031
Report ID: 278969|No. of Pages: 202
Global Chemical Industry Market By Product Type (Basic Chemicals, Specialty Chemicals), Raw Materials (Petrochemicals, Renewable Chemicals), End-User (Agriculture, Automotive), & Region for 2024-2031
Global Chemical Industry Market Valuation – 2024-2031
The expansion of the global economy, particularly in emerging markets is driving the demand for chemicals in various industries. The interconnectedness of the global economy fosters international trade in chemicals, creating new market opportunities. Innovations in chemical technology led to the development of new and improved products, expanding market opportunities, surpassing USD 839 Billion valued in 2024 to reach a valuation of around USD 1220.82 Billion by 2031.
In addition to this, innovations in materials science, process engineering, and digital technologies are driving the development of novel chemical products and processes, enhancing efficiency and sustainability, thus enabling the niche market grow at a CAGR of 4.8% from 2024 to 2031.
Global Chemical Industry Market: Definition/ Overview
The chemical industry encompasses a vast array of activities involved in the production, processing, and distribution of chemical substances. It serves as a cornerstone of modern society, providing essential inputs for a wide range of industries, including manufacturing, agriculture, pharmaceuticals, and consumer products.
Chemical products are employed in diverse applications, such as the production of plastics, synthetic fibers, paints, detergents, fertilizers, and pharmaceuticals. They play a crucial role in improving living standards, enhancing productivity, and addressing societal challenges.
The future of the chemical industry is promising, driven by technological advancements, increasing demand for sustainable and innovative products, and the growing importance of chemical-based solutions in addressing global challenges such as climate change, resource scarcity, and healthcare needs. As the industry continues to evolve, it will be essential to focus on sustainability, innovation, and regulatory compliance to ensure its long-term success.
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How are the Supply Chain Optimization and Raw Material Security Fueling the Development of Global Chemical Industry Market?
The chemical industry’s trajectory is heavily influenced by supply chain resilience and raw material security. According to the U.S. Energy Information Administration (March 2024), natural gas prices averaging $2.85/MMBtu in 2023 have given U.S. chemical manufacturers a competitive advantage, particularly in ethylene production. BASF announced in February 2024 its $1.5 billion investment in expanding its Verbund site in Zhanjiang, China, to strengthen its regional supply chain network amid ongoing geopolitical tensions.
Sustainability and regulatory compliance are reshaping the industry landscape. The European Chemical Industry Council reports that EU chemical companies invested €12.3 billion in environmental protection in 2023, a 15% increase from 2022. In March 2024, Dow Chemical unveiled its plan to reduce Scope 1 and 2 emissions by 40% by 2030, committing $5 billion to green technologies and circular economy initiatives.
Digital transformation and Industry 4.0 adoption are accelerating operational efficiency. The U.S. Bureau of Labor Statistics indicates a 7.2% productivity increase in chemical manufacturing in 2023 due to automation and AI implementation. DuPont’s January 2024 rollout of its smart manufacturing platform across 20 global sites has demonstrated a 25% reduction in production costs and a 30% improvement in yield optimization through predictive analytics.
How are the Impacts of Geopolitical Events on Logistics Hampering the Global Chemical Industry Market Growth?
The global chemical industry is facing the persistent supply chain challenges in 2023-2024, with the US Chemical Council reporting a 12% increase in logistics costs compared to 2022. The Red Sea crisis in early 2024 forced BASF to reroute several shipments around Africa, increasing transit times by up to 14 days and costs by approximately 20%. Rising energy prices, particularly in Europe where natural gas costs surged 15% in Q4 2023, have squeezed profit margins across the sector. The American Chemistry Council estimates that total chemical production will grow by only 2.1% in 2024, down from 3.4% in 2023.
Regulatory pressures continue to reshape the chemical landscape, with the EU’s implementation of stricter REACH regulations affecting over 12,000 substances as of January 2024. Dow Chemical announced a $1.5 billion investment in March 2024 to upgrade facilities for compliance with new environmental standards. China’s Ministry of Ecology and Environment reported that 85% of chemical manufacturers faced additional compliance costs in 2023, averaging 8% of their operational expenses. The US EPA’s proposed amendments to the Toxic Substances Control Act are expected to impact nearly 60% of chemical products by 2025.
Digital transformation and sustainability demands are driving significant industry changes, with the International Chemical Industry Association reporting that 78% of companies increased their digitalization budgets in 2023. LyondellBasell launched its AI-powered production optimization platform in February 2024, projecting a 15% reduction in energy consumption. The German Chemical Industry Association (VCI) reported that sustainable chemical products now represent 23% of total industry revenue in Europe, marking a 5% increase from 2022. Global chemical companies are projected to invest $215 billion in green technologies by 2025.
Category-Wise Acumens
What are the Features Bolstering the Demand of Basic Chemicals Segment?
The basic chemicals segment is dominating the global chemical industry market, due to its foundational role in manufacturing essential industrial products. The European Chemical Industry Council revealed that basic chemical production volumes increased by 8.3% in Q4 2023, primarily driven by rising demand for petrochemicals and inorganic chemicals. This segment’s strength stems from its critical role in producing fundamental building blocks like ethylene, propylene, and methanol, which are essential for downstream chemical production.
The dominance of basic chemicals is further reinforced by their extensive application across diverse industries, from agriculture to electronics, with the American Chemistry Council reporting that capacity utilization rates for basic chemicals reached 85.2% in March 2024, the highest level since 2019.
What Factors are Responsible to Project the Market Growth of Agriculture Segment?
The energy and weight management segment has maintained a dominating position in the global chemical industry testing market, driven by the increasing food security concerns and population growth, with the UN Food and Agriculture Organization reporting a 16% rise in global fertilizer demand in 2023. The US Department of Agriculture data shows agricultural chemical usage increased by 8.2% in 2023, with particular growth in bio-based and sustainable solutions.
The sector’s growth is further amplified by emerging precision farming technologies and sustainable agriculture practices, with the European Commission reporting that smart farming solutions increased agricultural chemical efficiency by 23% in 2023. These advancements have solidified agriculture’s position as the leading segment in the chemical industry market.
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Country/Region-wise Acumens
How are the Technological Innovation and Sustainable Manufacturing Fueling the Demand in the North America region?
The North American chemical industry maintains its global dominance through robust technological innovation and significant investments in sustainable manufacturing processes. According to the U.S. Environmental Protection Agency’s February 2024 industry report, chemical production in North America grew by 12.3% year-over-year, with green chemistry initiatives accounting for 28% of total production value. This growth was exemplified by Dow Chemical’s March 2024 announcement of a $2.5 billion investment in advanced recycling facilities across Texas and Louisiana, aimed at increasing circular economy solutions.
The region’s leadership is further strengthened by its advanced R&D capabilities and strategic focus on specialty chemicals. The U.S. Department of Commerce’s January 2024 data revealed that North American specialty chemical exports increased by 18.5% compared to 2023, reaching $89 billion. DuPont’s February 2024 launch of their innovative bio-based polymer production facility in Michigan, representing a $1.8 billion investment, underscores the region’s commitment to high-value chemical manufacturing, with the facility already achieving 40% higher production efficiency than traditional methods.
How are the Increasing Investments in Sustainable Chemical Production Fueling the Europe Chemical Industry Growth?
Europe is poised for rapid growth in the global chemical industry testing market, with projections indicating a substantial CAGR in the coming years, driven by aggressive green chemistry initiatives and digital innovation, with the European Chemical Industry Council (Cefic) reporting a 14.5% increase in sustainable chemical investments for 2023. BASF’s landmark €3.5 billion investment in March 2024 for green hydrogen production facilities in Germany underscores this commitment.
The region’s growth is further accelerated by robust R&D infrastructure and supportive regulatory frameworks, with Eurostat reporting that European chemical companies increased R&D spending by 18% in 2023 compared to the previous year. Evonik Industries’ January 2024 announcement of a €2.2 billion investment in specialty chemicals research centers across Europe highlights this trend.
Competitive Landscape
The global chemical industry market is a dynamic and competitive landscape, with a mix of established players and emerging challengers vying for market share. These players are actively working to strengthen their presence by implementing strategic plans such as collaborations, mergers, acquisitions, and political support. The organizations are dedicated to continuously improving their product line to meet the needs of a wide range of customers in different regions.
Some of the key players operating in the global chemical industry market include:
- BASF SE
- Dow Inc.
- DuPont de Nemours, Inc.
- SABIC (Saudi Basic Industries Corporation)
- ExxonMobil Corporation
- LyondellBasell Industries N.V.
- Mitsubishi Chemical Corporation
- Bayer AG
- INEOS Group Holdings S.A.
- Air Liquide S.A.
Latest Developments
- In October 2024, the UK-based Stephenson and Brenntag, a world leader in the delivery of chemicals and materials, have extended their collaboration to the US and Canadian markets. Stephenson is well-known for manufacturing unique compounds for cosmetics and personal care products.
- In October 2024, a significant Thai petrochemical business, PTT GC, announced the issuing of subordinated debentures, a financial instrument that resembles equity. This is significant since it is the first time the corporation has issued this kind of statement in ten years, demonstrating confidence in its financial standing..
Report Scope
| REPORT ATTRIBUTES | DETAILS |
|---|---|
| Study Period | 2021-2031 |
| Growth Rate | CAGR of ~4.8% from 2024 to 2031 |
| Base Year for Valuation | 2024 |
| Historical Period | 2021-2023 |
| Forecast Period | 2024-2031 |
| Quantitative Units | Value (USD Billion) |
| Report Coverage | Historical and Forecast Revenue Forecast, Historical and Forecast Volume, Growth Factors, Trends, Competitive Landscape, Key Players, Segmentation Analysis |
| Segments Covered |
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| Regions Covered |
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| Key Players | BASF SE, Dow Inc., DuPont de Nemours, Inc., SABIC (Saudi Basic Industries Corporation), ExxonMobil Corporation, LyondellBasell Industries N.V. |
| Customization | Report customization along with purchase available upon request |
Chemical Industry Market, By Category
Product Type:
- Basic Chemicals
- Specialty Chemicals
- Fine Chemicals
Raw Materials:
- Petrochemicals
- Renewable Chemicals
- Inorganic Chemicals
- Specialty Gases
- Others
End-User:
- Pharmaceuticals
- Agriculture
- Automotive
- Construction
- Electronics
- Others
Region:
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa
Research Methodology of Verified Market Research:
To know more about the Research Methodology and other aspects of the research study, kindly get in touch with our sales team at Verified Market Research.
Reasons to Purchase this Report:
• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors
• Provision of market value (USD Billion) data for each segment and sub-segment
• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market
• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region
• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions and acquisitions in the past five years of companies profiled
• Extensive company profiles comprising of company overview, company insights, product benchmarking and SWOT analysis for the major market players
• The current as well as the future market outlook of the industry with respect to recent developments (which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions
• Includes an in-depth analysis of the market of various perspectives through Porter’s five forces analysis
• Provides insight into the market through Value Chain
• Market dynamics scenario, along with growth opportunities of the market in the years to come
• 6-month post-sales analyst support
Customization of the Report
• In case of any Queries or Customization Requirements please connect with our sales team, who will ensure that your requirements are met.
Frequently Asked Questions
1. Introduction
• Market Definition
• Market Segmentation
• Research Methodology
2. Executive Summary
• Key Findings
• Market Overview
• Market Highlights
3. Market Overview
• Market Size and Growth Potential
• Market Trends
• Market Drivers
• Market Restraints
• Market Opportunities
• Porter’s Five Forces Analysis
4. Chemical Industry Market, By Product Type
• Basic Chemicals
• Specialty Chemicals
• Fine Chemicals
5. Chemical Industry Market, By End-User
• Pharmaceuticals
• Agriculture
• Automotive
• Construction
• Electronics
6. Chemical Industry Market, By Raw Materials
• Petrochemicals
• Renewable Chemicals
• Inorganic Chemicals
• Specialty Gases
7. Regional Analysis
• North America
• United States
• Canada
• Mexico
• Europe
• United Kingdom
• Germany
• France
• Italy
• Asia-Pacific
• China
• Japan
• India
• Australia
• Latin America
• Brazil
• Argentina
• Chile
• Middle East and Africa
• South Africa
• Saudi Arabia
• UAE
8. Market Dynamics
• Market Drivers
• Market Restraints
• Market Opportunities
• Impact of COVID-19 on the Market
9. Competitive Landscape
• Key Players
• Market Share Analysis
10. Company Profiles
• BASF SE
• Dow Inc.
• DuPont de Nemours, Inc.
• SABIC (Saudi Basic Industries Corporation)
• ExxonMobil Corporation
• LyondellBasell Industries N.V.
• Mitsubishi Chemical Corporation
• Bayer AG
• INEOS Group Holdings S.A.
• Air Liquide S.A.
11. Market Outlook and Opportunities
• Emerging Technologies
• Future Market Trends
• Investment Opportunities
12. Appendix
• List of Abbreviations
• Sources and References
Report Research Methodology
Verified Market Research uses the latest researching tools to offer accurate data insights. Our experts deliver the best research reports that have revenue generating recommendations. Analysts carry out extensive research using both top-down and bottom up methods. This helps in exploring the market from different dimensions.
This additionally supports the market researchers in segmenting different segments of the market for analysing them individually.
We appoint data triangulation strategies to explore different areas of the market. This way, we ensure that all our clients get reliable insights associated with the market. Different elements of research methodology appointed by our experts include:
Exploratory data mining
Market is filled with data. All the data is collected in raw format that undergoes a strict filtering system to ensure that only the required data is left behind. The leftover data is properly validated and its authenticity (of source) is checked before using it further. We also collect and mix the data from our previous market research reports.
All the previous reports are stored in our large in-house data repository. Also, the experts gather reliable information from the paid databases.
For understanding the entire market landscape, we need to get details about the past and ongoing trends also. To achieve this, we collect data from different members of the market (distributors and suppliers) along with government websites.
Last piece of the ‘market research’ puzzle is done by going through the data collected from questionnaires, journals and surveys. VMR analysts also give emphasis to different industry dynamics such as market drivers, restraints and monetary trends. As a result, the final set of collected data is a combination of different forms of raw statistics. All of this data is carved into usable information by putting it through authentication procedures and by using best in-class cross-validation techniques.
Data Collection Matrix
| Perspective | Primary Research | Secondary Research |
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Econometrics and data visualization model
Our analysts offer market evaluations and forecasts using the industry-first simulation models. They utilize the BI-enabled dashboard to deliver real-time market statistics. With the help of embedded analytics, the clients can get details associated with brand analysis. They can also use the online reporting software to understand the different key performance indicators.
All the research models are customized to the prerequisites shared by the global clients.
The collected data includes market dynamics, technology landscape, application development and pricing trends. All of this is fed to the research model which then churns out the relevant data for market study.
Our market research experts offer both short-term (econometric models) and long-term analysis (technology market model) of the market in the same report. This way, the clients can achieve all their goals along with jumping on the emerging opportunities. Technological advancements, new product launches and money flow of the market is compared in different cases to showcase their impacts over the forecasted period.
Analysts use correlation, regression and time series analysis to deliver reliable business insights. Our experienced team of professionals diffuse the technology landscape, regulatory frameworks, economic outlook and business principles to share the details of external factors on the market under investigation.
Different demographics are analyzed individually to give appropriate details about the market. After this, all the region-wise data is joined together to serve the clients with glo-cal perspective. We ensure that all the data is accurate and all the actionable recommendations can be achieved in record time. We work with our clients in every step of the work, from exploring the market to implementing business plans. We largely focus on the following parameters for forecasting about the market under lens:
- Market drivers and restraints, along with their current and expected impact
- Raw material scenario and supply v/s price trends
- Regulatory scenario and expected developments
- Current capacity and expected capacity additions up to 2027
We assign different weights to the above parameters. This way, we are empowered to quantify their impact on the market’s momentum. Further, it helps us in delivering the evidence related to market growth rates.
Primary validation
The last step of the report making revolves around forecasting of the market. Exhaustive interviews of the industry experts and decision makers of the esteemed organizations are taken to validate the findings of our experts.
The assumptions that are made to obtain the statistics and data elements are cross-checked by interviewing managers over F2F discussions as well as over phone calls.
Different members of the market’s value chain such as suppliers, distributors, vendors and end consumers are also approached to deliver an unbiased market picture. All the interviews are conducted across the globe. There is no language barrier due to our experienced and multi-lingual team of professionals. Interviews have the capability to offer critical insights about the market. Current business scenarios and future market expectations escalate the quality of our five-star rated market research reports. Our highly trained team use the primary research with Key Industry Participants (KIPs) for validating the market forecasts:
- Established market players
- Raw data suppliers
- Network participants such as distributors
- End consumers
The aims of doing primary research are:
- Verifying the collected data in terms of accuracy and reliability.
- To understand the ongoing market trends and to foresee the future market growth patterns.
Industry Analysis Matrix
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