According to a research report "GlobalChemical Industry Outlook 2024 - Navigating the sustainable and disruptive Horizon
of Tomorrow", published by MarketsandMarkets, the Top 7 Chemical
sub-industries will grow from USD 2265 billion in 2023 to USD 2411 billion by
2024 at a YoY increase of 8%. These segments will offer new opportunities worth
USD 165 billion in 2024 in the form of new technologies, sustainable solutions,
new material, and energy transition.
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The global chemical industry is entering
2024 with a positive outlook. Despite the challenging years 2022 and 2023, the
chemical industry is set to rebound with moderate growth in 2024. While
challenges remain, the combined effect of rising demand, favorable regulations,
and industry focus on sustainability & decarbonization, digitalization, and
innovation is creating a strong foundation for growth and success in the years
ahead.
The chemical industry anticipates a
transformative journey from 2023 to 2024, with a focus on sustainable
practices, energy transition, the rise of digital initiatives, innovative
technologies, changing geopolitical scenario, customization and deglobalization.
To remain successful, companies will have to adopt dramatic step-changes that
are likely to include deglobalization and supply chain localization. Increased
health and geopolitical concerns will result in risk mitigation and business
continuity, just-in-time delivery, and precise plant footprint and supply chain
strategy. The chemical industry must confront diverging standards in supply
chains and other economic activities or business lines. However, most chemicals
are intrinsically multiregional rather than truly global products, and
intercontinental trade is still significant for many players.
Chemical industry
developments in 2023 and upcoming 2024
In 2023, Recessionary effects in Europe,
inflation in the United States, and slower growth in Asia Pacific are some of
the key contributors to the bearish global demand for chemicals in 2022 and
2023. Many chemical companies around the globe posted negative growth in
chemical sales during the first three quarters of the year 2023. However, the
companies have a positive outlook for the 4th quarter ending December 2023 and
are expecting to subdue the overall decline. Employment in this industry has
fallen over a couple of 10,000 with overall chemical industry output growing by
1.2% compared to 2022. During the same period, industry witnessed multiple
operational closures such, Trinseo, a US-based chemical company, has initiated
the closure of its styrene plant in the Netherlands due to declining sales and
earnings. Another leading player, Chemours has experienced industry struggles
leading to plant closures, due to 14% dip in sales and a 45% drop in profits.
In the United States, the demand for
chemicals during the first nine months (Jan-Sept 2024) have been sluggish due
to recessionary and inflationary effect in the country, which in the fourth
quarter started to ease, and demand is expected to see a modest rebound. The American Chemistry Council expects that
the growth in the US chemical industry will be at a single-digit year on year
till 2026. Another leading player Huntsman reported segments decreased in sales
for Polyurethanes, Performance Products, and Advanced Materials in 2023 due to
various factors such as lower sales volumes and decreased average selling
prices.
In Europe, there has been a considerable
fall in demand for chemicals in 2023 due to weaker demand from all the key
end-use industries, high energy cost, high raw materials cost, the
Russian-Ukraine war, intensifying recessionary effect with rising interest
rates, and inflation continues to affect the European chemical industry. The
industry is rethinking its supply chain strategies to balance costs, carbon
footprint, and resilience, while navigating disruptions
APAC has once again proved to be a key
growth driver and became a sign of relief for major chemical companies, posting
moderate growth, though not as expected during the start of the year 2023. APAC
will continue to hold two-thirds of the chemical market in 2024.
2024
Chemical companies around the globe are
likely to enter the new year with utmost caution, keeping their focus more on
reducing overall costs and improving process efficiencies to offset the losses
incurred during the past years.
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MNM captured some of the key trends that
are likely to drive growth in 2024 and beyond:
Decarbonization, Digitalization, Sustainability,
Circularity, and Energy Transition are some of the key trends expected to drive
the global chemical industry in 2024 and beyond.
Top Key Companies in Global chemical
Industry Outlook:
·
In the rapidly disruptive landscape of the chemical industry,
key companies are spearheading transformative initiatives across various
sectors.
·
In the battery industry segment, Emersys (US), Clarios
(Germany), Hitachi (Japan), LC Chem (Korea), and Tesla (US). Chinese Companies
such as GS Yuasa, BAK Power, BYD are other front runner player in the high
growth battery innovations segment.
·
The Composite and lightweight segment, Light Weight segment sees
global leaders such as Owens Corning (US), Toray Industries (Japan), Mitsubishi
Chemical Holdings (Japan), and Solvay (Belgium).
·
Key players such as 3M (US), Avery Dennison (US), BASF
(Germany), Hutamaki Group (Finland), and Ball Corporation (US). Other player
harnessing potential in this technology segment are International Papers, Crown
Corporation, Stora Enso harnessing smart technologies potential to enhance revenues.
·
For ensuring opportunity capitalization in Green Hydrogen
segment, Linde Plc (Ireland), Air Liquid (US), Siemens Energy (Germany),
Toshiba Energy Systems (Japan), Air Products (US), and Energie (France) are at
the forefront, providing advanced solutions for market development and
sustainable transition.
·
Lubricant segment is advancing by players like Shell (US), BP
(UK), Exxon Mobil (US), Total (France), and Petro China (China).
·
In the coating and adhesives sector, companies like Akzo
Nobel (Netherland), PPG Industries (US), Sherwin- Williams (US), Axalta Coating
(US), Jotun (Norway), and Asian Paints (India).
·
Finally, Water treatment is driven by companies like Veolia
(France), Suez (France), Dupont (US), Evoque Water (US), Ecolab (US), offering advanced
and sustainable solutions for water treatment technology. In 2024, chemical
industry will continue investments in technologies such as Forwards osmosis, UHP
RO, and Digitalization of water treatment solutions.
Markets and the key trends Likely to drive the demand
in the chemical industry in 2024:
