The global advanced process control (APC) software market in the chemical industry to reach USD 367.8 million by 2020, growing at a CAGR of close to 7%, according to Technavio’s latest report.

APAC: largest APC software market in the chemical industry

The APC software market in the chemical industry in APAC was valued at USD 113.4 million in 2015 and is expected to reach USD 174.2 million by 2020. The demand for chemicals in APAC is rising in the wake of rapid industrial development in emerging economies such as India. This has led to the development of many chemical plants in the region, leading to intense competition among chemical vendors. These operators are working to optimize processes to reduce manufacturing costs. Consequently, they are implementing APC software in their production plants to produce chemicals at low costs. Vendors are also upgrading their APC solutions to offer more features to end-users in a bid to sustain in the market.

“APAC constituted close to 43% of the global APC sales in the chemical industry in 2015 because of the widespread use of APC software in chemical industries. Sinopec, which is headquartered in China, have implemented APC solutions such as Profit Suite R400 from Honeywell to boost competitiveness, achieve technological and scientific progress, and reap economic benefits,” says Bharath Kanniappan, one of the lead analysts at Technavio for automation research.

APC software market in the chemical industry in EMEA

The Middle East is one of the major producers of chemicals worldwide owing to the presence of huge reserves of oil in the region. The chemical industry in the region exports its products to countries such as China. However, vendors in the region are facing tough competition from chemical manufacturers in North America following the shale gas revolution. Therefore, they are integrating automation solutions such as APC and manufacturing execution system (MES) in their chemical plants to optimize production processes.

The chemical markets in Europe, however, are experiencing slow growth due to the economic slowdown in European countries. Also, the high cost of feedstock and fluctuating energy prices in the manufacturing of chemicals have reduced the demand for chemical products in Europe. This has lowered the investments in the chemical industry in Europe, leading to sluggish demand for APC software.

APC software market in the chemical industry in the Americas

Chemical companies in the Americas use ethane, a natural gas liquid derived from shale gas, as a feedstock in numerous applications. The low price of ethane offers a competitive advantage to many US manufacturers over other competitors worldwide that rely on naphtha, which is an expensive oil-based feedstock. Growth in domestic shale gas production motivated petrochemical manufacturers either to expand their existing production capacities or to build new plants.

Several chemical projects are likely to come up during the forecast period, stemming from the availability of low-cost feedstock and energy surpluses that have issued from the shale gas revolution. Over 215 new chemical projects worth USD 135 billion were announced until September 2015. “As the chemical market in the Americas is highly competitive and vendors’ chemical plants are already equipped with APC software, we expect the market to grow through the demand for upgrades and renewal of APC licenses over the next four years,” asserts Bharath.