Artificial Intelligence (AI) in Chemical Market Size and Trends

The artificial intelligence (AI) in chemical Market size is valued at US$ 1.40 Bn in 2024 and is expected to reach US$ 12.51 Bn by 2031, growing at a compound annual growth rate (CAGR) of 36.7% from 2024 to 2031. Artificial intelligence (AI) is being widely adopted by the chemical industry to improve processes and discoveries. AI is helping chemists in various ways ranging from basic research to production. In research, AI techniques like machine learning and deep learning are augmenting human insights. Chemical companies are using AI to speed up drug discovery and materials development. AI analyzes huge databases of molecules and reactions to identify promising candidates. This is helping scientists explore chemical space far more efficiently than before.

Artificial Intelligence (AI) in Chemical Market Trends

Adoption of machine learning and deep learning techniques: The chemical industry has increasingly turned to artificial intelligence technologies like machine learning and deep learning in years. By analyzing vast datasets containing properties, structures, and reactions of chemicals, machine learning algorithms can discover complex patterns that aid in research and product development. For example, machine learning has helped pharmaceutical companies design new drug compounds more efficiently. Rather than trial-and-error in labs, AI helps predict which molecular structures are most likely to be safe and effective medicines. This has significantly accelerated drug discovery timelines. Similarly, materials companies developing new polymers, catalysts or specialty chemicals have witnessed machine learning recommend optimal formulations. By examining huge libraries of past formulations, experiments and outcomes, machine learning identifies correlations that help formulate new products with targeted properties. For instance, in 2021, according to a survey conducted by the American Chemistry Council, over 80% of large U.S. chemical firms are either actively implementing or piloting AI projects, up from just 30% five years ago .

Increased investments in AI startups by major chemical companies: Major chemical companies have recognized the potential of artificial intelligence to transform various aspects of their business and drive efficiencies. They are actively scouting for and investing in AI startups that are developing technologies focused on chemical industries. This shift towards funding and partnering with external innovators signal these large corporations are open to explore new ideas from outside. By investing in promising AI startups early, chemical giants are aiming to stay ahead of the curve in commercializing newest AI applications. The increased investments are also an acknowledgement of the success many AI startups are achieving in solving industry-specific challenges.

This trend of deeper involvement of large chemical players in the AI startup ecosystem is positively impacting the developing AI in chemicals market. It is providing fillip to more targeted research and development in the sector as startups get access to both funding and real-world industry data & problems from their new partners.