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The chemical software market size is forecast to increase by USD 364.1 million at a CAGR of 8.45% between 2023 and 2028. The market is witnessing significant growth due to several key trends and drivers. Chemical companies are increasingly focusing on performing big data analytics to optimize their operations and improve productivity. Additionally, the adoption of Industry 4.0 technologies, such as the Internet of Things (IoT), artificial intelligence (AI), and machine learning (ML), is gaining momentum in the chemical industry. These advanced technologies enable real-time monitoring and predictive maintenance, leading to increased efficiency and cost savings. Furthermore, stringent norms associated with the use of chemicals are driving the demand for software solutions that help companies comply with regulations and ensure safety. These factors are expected to fuel the growth of the market in the coming years.
The chemical enterprise landscape is undergoing significant digital modernization, with an increasing focus on smart manufacturing and innovative solutions driven by advanced technologies. The market plays a pivotal role in this transformation, providing industry professionals with tools for molecular modeling, molecular dynamics, inventory management, ISO management, SFSchemicalsafety, and regulatory compliance. The market is segmented based on the type of software, including process automation, regulatory compliance, inventory management, and molecular modeling and simulation. The market is stimulated by the need for operational efficiency, regulatory factors, and legal requirements. Advanced technologies such as artificial intelligence, machine learning, and the Internet of Things (IoT) are driving the development of new and innovative solutions.
Furthermore, the competitive scenario is intense, with companies investing in promotional activities to gain market share. Regulatory factors, legal requirements, and environmental regulations impose legal boundaries that chemical enterprises must adhere to, making the implementation of chemical software essential for operational processes and ensuring compliance. The chemical process industry continues to be a significant contributor to the global economy, and the adoption of chemical software is a key driver of growth and competitiveness.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The on-premise segment is estimated to witness significant growth during the forecast period. The market landscape caters to the unique requirements of chemical enterprises through segmentation into various types, including on-premises and cloud-based solutions. On-premises chemical software is preferred by organizations with intricate workflows and specific needs, such as those dealing with sensitive or proprietary data, or those subject to stringent regulatory requirements in industries like pharmaceuticals and chemicals. These enterprises value the direct control over data access, storage, and compliance that on-premises software provides. Advanced technologies like Molecular modeling, Molecular dynamics, Quantum chemistry, and Cloud computing are integrated into innovative solutions to enhance operational processes, improve operational efficiency, and ensure regulatory compliance with ISO management, inventory management, SFsChemicalSafety, and other legal factors.
Furthermore, competition in the market is driven by promotional activities, investment in R&D, and the implementation of advanced technologies to offer predictive asset performance, process control, scheduling, capacity planning, batch management, and purchasing capabilities. Regulatory factors, legal requirements, and environmental regulations impose legal boundaries on chemical processes, necessitating automation and digital modernization through smart manufacturing and innovative chemical software solutions.
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The on-premise segment was valued at USD 445.67 million in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market in North America is witnessing significant growth due to the increasing adoption by major chemical companies. Firms such as The Dow Chemical Company, Exxon Mobil, DuPont, Praxair Technology, Teknor Apex, and Mitsui Chemicals are investing heavily in technology to enhance their operations. These organizations utilize chemical software to optimize their order fulfillment, quality control, lot traceability, and SDS compliance processes. The software's ability to streamline planning, warehousing, and adapt to evolving value chains leads to increased productivity and innovation. The digitalization trend in the chemical industry is further fueling the demand for chemical software, creating new opportunities for market growth.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Chemical companies need to perform big data analytics is the key driver of the market. The chemical industry is undergoing digital modernization, with a focus on smart manufacturing and innovative solutions driven by advanced technologies. Big data plays a significant role in this transformation, particularly in chemical enterprises seeking to enhance operational efficiency and productivity. Segmentation of the chemical software landscape includes solutions for Molecular modeling, Molecular dynamics, Quantum chemistry, Chemistry, Petrochemicals, Specialty chemicals, and more. Big data analytical software is utilized extensively in areas such as inventory management, SFsChemicalSafety, regulatory compliance, and process automation. Industry professionals employ data analysis for cost optimization in supply chain management, examining factors like raw material prices, freight, procurement schedules, and storage costs.
Furthermore, competition in the market is fierce, with companies investing in promotional activities to gain an edge. Legal and regulatory factors, including environmental regulations and legal requirements, impose legal boundaries that chemical enterprises must navigate. Predictive asset performance, process control, scheduling, capacity planning, and batch management are other areas where big data analytics is making an impact. ISO management systems are also being integrated with chemical software to ensure regulatory compliance and continuous improvement.
The increased adoption of Industry 4.0 across the chemical industry is the upcoming trend in the market. The chemical industry is undergoing digital modernization with the adoption of Industry 4.0, which integrates physical and cyber systems in manufacturing processes. This technological shift is driving the demand for advanced chemical software solutions among chemical enterprises. Smart manufacturing, automation, and operational efficiency are key benefits of Industry 4.0, enabling predictive asset performance, process control, scheduling, capacity planning, and batch management.
Furthermore, molecular modeling, molecular dynamics, quantum chemistry, and cloud computing are innovative solutions transforming the chemical landscape. ISO management, inventory management, SF Chemical Safety, regulatory factors, legal factors, environmental regulations, and legal requirements are essential considerations for chemical organizations. Competition among industry professionals is intensifying, necessitating investment in competitive scenario-enhancing solutions. Key operational processes, such as purchasing, are also being automated to ensure compliance and streamline workflows.
The stringent norms associated with use of chemicals is a key challenge affecting market growth. The chemical industry landscape is undergoing digital modernization with the adoption of advanced technologies and innovative solutions in chemical software. Smart manufacturing, automation, and operational efficiency are key focus areas for chemical enterprises to enhance their competitive scenario.
Furthermore, segmentation of the market includes applications in Molecular modeling, Molecular dynamics, Quantum chemistry, Cloud computing, Petrochemicals, and Specialty chemicals. Regulatory and legal factors are significant market stimulants, driving the demand for ISO management, inventory management, Chemical Safety (SFsChemicalSafety), and compliance with environmental regulations and legal requirements. Operational processes such as process control, scheduling, capacity planning, batch management, and purchasing are also critical areas of investment for chemical companies to adhere to legal boundaries and ensure a chemical process's predictive asset and regulatory compliance.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alterity Inc.: The company offers chemical software that centralizes inventory, purchasing, sales, and order fulfillment.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is segmented based on the needs of chemical enterprises, including molecular modeling, molecular dynamics, quantum chemistry, and other advanced technologies. Digital modernization and smart manufacturing are key market stimulants, driving the adoption of chemical software for process automation, operational efficiency, and predictive asset maintenance. The competitive landscape is characterized by innovative solutions that offer features such as ISO management, inventory management, SFS chemical safety, regulatory compliance, and legal requirements.
Furthermore, advanced technologies like cloud computing enable remote access to data and real-time collaboration among industry professionals. Petrochemicals and specialty chemicals are major industries utilizing chemical software for process control, scheduling, capacity planning, batch management, and purchasing. Regulatory factors, legal requirements, and environmental regulations impose legal boundaries on chemical processes, necessitating investment in software solutions for compliance. Recommendations for chemical enterprises include prioritizing software solutions that offer advanced functionalities, seamless integration with existing systems, and scalability for future growth.
Market Scope |
|
Report Coverage |
Details |
Page number |
169 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.45% |
Market growth 2024-2028 |
USD 364.1 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.94 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 35% |
Key countries |
US, China, Japan, Russia, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alterity Inc., ANSYS Inc., Antipodes Scientific Ltd., Aspen Technology Inc., BatchMaster Software Inc., ChemAxon Ltd., Chemstations Inc., COMSOL AB, Cority Software Inc., Dassault Systemes SE, Datacor Inc., Dataworks Development Inc., Deacom Inc., Frontline Data Solutions, HCL Technologies Ltd., Oracle Corp., SAP SE, Schneider Electric SE, SFS Chemical Safety Inc., and Industrial Scientific Corp. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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