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The chemical software market is forecast to increase by USD 364.1 million at a CAGR of 8.45% between 2023 and 2028. The market is experiencing significant expansion due to several key drivers. Firstly, chemical companies are increasingly focusing on big data analytics to optimize production processes and enhance product development. This trend is being fueled by the availability of advanced analytics tools and the growing volume of data generated within the industry. Secondly, digitalization is transforming the chemical industry, leading to increased adoption of software solutions for various applications such as supply chain management, quality control, and regulatory compliance. This shift towards digital processes is expected to continue, driven by the need for greater efficiency and agility in an increasingly competitive market.
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The market is experiencing significant digital modernization, with industry professionals embracing smart manufacturing solutions to enhance operational efficiency. Advanced technologies such as Molecular modeling and Molecular dynamics play a crucial role in the development of innovative chemical processes. Chemical enterprises are investing in ISO management systems and inventory management software to adhere to regulatory factors and legal requirements. Chemical Safety (SFsChemicalSafety) is a critical aspect of the industry, and software solutions are essential for ensuring compliance with environmental regulations and legal boundaries. Automation of operational processes is a key trend in the market, with competition intensifying among enterprises to offer the most advanced solutions. Promotional activities and investment in R&D are essential for staying competitive in the chemical software landscape. The competitive scenario is shaped by regulatory factors and legal requirements, which can impact the market's growth trajectory. Advanced technologies and innovative solutions are market stimulants, driving the demand for chemical software in the industry. Chemistry, inventory management, and ISO management are some of the key areas where chemical software solutions are making a significant impact.
The increasing establishment of new chemical plants worldwide is the key factor driving market growth. The chemical industry is growing due to the rising demand for chemicals. The opening of new chemical manufacturing plants will give rise to the need for chemical software for better inventory management, more streamlined operations, optimized chemical operation processes, and assistance in implementing automation.
For instance, in August 2017, BASF collaborated with SAP to optimize the former engineering and maintenance processes using SAPs SAP HANA Cloud platform. Thus, the opening of new manufacturing facilities will drive the use of chemical software at these new plants. This will drive the growth of the global market during the forecast period.
Increased adoption of Industry 4.0 across the chemical industry is the primary trend shaping market growth. Industry 4.0 refers to the integration of physical systems and cyber systems into industrial manufacturing industries. As an increasing number of factories are especially adopting automation, the demand for chemical software to ease the manufacturing process will continue to increase among manufacturers. This will help them gain a competitive advantage, minimizing downtime, and ensuring high operational efficiency.
Furthermore, the chemical software supports industry-specific production processes, including predictive asset management, process management and control, scheduling, and capacity planning through detailed batch management, hazardous materials management, and others. Likewise, it enables organizations in the chemical industry to manage their supply chains better. Thus, such factors will drive the growth of the market during the forecast period.
The increase in the use of pirated software is a challenge that affects market growth. Software piracy directs to downloading commercial software online from unauthorized websites without payment or by paying for duplicated copies of software. Sharing software with other users is also considered piracy. This is because installing a program or software on multiple computers often violates the license agreement. Hence, using unlicensed or improperly licensed programs can lead to civil or criminal cases for copyright violations.
In addition, software piracy directly affects the overall profitability of the software industry. Consequently, software publishers, developers, and market players are increasing the price of their software to protect their revenues. Software piracy is one of the primary factors impeding the growth of the global market during the forecast period.
The market share growth by the on-premise segment will be significant during the forecast period. On-premise solutions are customized and integrated more easily with existing infrastructure and systems. This is important for organizations with complex workflows and specific requirements. On-premise software allows for greater control over data access and storage. Industries with strict regulatory requirements, such as pharmaceuticals and chemicals, often need to adhere to specific data handling and storage regulations.
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The on-premise segment showed a gradual increase in the market share of USD 445.67 million in 2018. On-premise solutions offer more direct control over compliance and data management. Despite the increasing popularity of cloud-based solutions, on-premise chemical software continues to have a strong presence, particularly in industries and organizations with specific needs related to data control, security, compliance, and performance, which may have a positive impact on the growth of the global market during the forecast period.
Chemical process simulation helps in developing the whole life cycle of a manufacturing process, from R&D to conceptual designing and plant operations. Process simulation enables chemical manufacturers to predict the potential outcome of a process change. This eliminates manual checks on repetitive tasks. The chemical process simulation software also enables manufacturers to estimate costs and ensure that systems maintain a steady-state heat. Furthermore, the process simulation software is used for chemical mixing, simulation and recycling, content and temperature management, and other applications. Process simulation mainly focuses on the manufacturing of execution systems. Thus, such factors will drive the growth of the segment during the forecast period.
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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. The demand for chemical software in North America has increased. The presence of global chemical companies such as The Dow Chemical Company, Exxon Mobil, DuPont, Praxair Technology, Teknor Apex, Mitsui Chemicals, and others, which make high investments in technology, is driving the growth of the market in North Americas.
In addition, the rising trend of digitalization in chemical companies is boosting the use of chemical software. Chemical companies are adopting digitalization to improve plant productivity, operational efficiency, and profit margins. Furthermore, another reason for the increasing use of chemical software in North America is the stringent laws associated with the industry. Hence, such factors will drive the growth of the market in the region during the forecast period.
The Market 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 growth strategies.
Market 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.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market 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 research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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The market is undergoing a profound transformation driven by the imperative for digital modernization and smart manufacturing practices. Chemical enterprises are increasingly adopting advanced technologies to enhance their competitive scenario and deliver innovative solutions that meet the evolving needs of the industry. Key areas of focus include chemistry, molecular modeling, molecular dynamics, and quantum chemistry, facilitated by advancements in cloud computing infrastructure. The market landscape depends on the market stimulant, investment, legal factors. This enables seamless integration of process control and operational processes, optimizing efficiency and productivity across the value chain.
As petrochemicals and specialty chemicals continue to play a pivotal role in various sectors, software solutions tailored to their specific requirements are in high demand. Industry professionals rely on these tools to navigate regulatory factors, legal requirements, and environmental regulations while ensuring compliance within legal boundaries. The market is characterized by intense competition, prompting companies to invest in promotional activities and recommendations to gain a competitive edge. Chemical safety remains a top priority, driving the adoption of solutions like SFsChemicalSafety to mitigate risks and ensure workplace safety. Innovation and adaptability are key drivers shaping the future of the market, empowering organizations to navigate complexities and unlock new opportunities for growth. As the industry continues to evolve, software solutions will play a pivotal role in driving efficiency, sustainability, and competitiveness in the chemical sector.
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 analysis, market growth and forecasting, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
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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