Industrial Internet of Things (IIoT): Unlocking efficiency in chemical manufacturing

Industrial Internet of Things (IIoT): Unlocking efficiency in chemical manufacturing

By: Dr. Bijal Shanghvi

Last updated : October 07, 2025 8:44 pm



McKinsey’s research suggests that IIoT can raise productivity in process industries by up to 20% while cutting maintenance costs by as much as 40%


The chemical industry has always fascinated me for its ability to transform raw materials into products that shape everyday life whether it be fertilizers for our farms, polymers for packaging, or specialty chemicals for advanced applications. Yet behind this innovation lies a constant challenge that is risk.

Hazardous gases, volatile liquids, corrosive substances—these are part and parcel of chemical manufacturing. The stakes are high, and unfortunately, history shows it. Studies indicate that nearly three out of every ten major industrial accidents worldwide are linked to the chemical sector. That’s a sobering reminder of why we must constantly evolve our safety and efficiency practices.

This is exactly where the Industrial Internet of Things (IIoT) is stepping in as a game-changer.

Moving Beyond Conventional Monitoring

Traditionally, plants have depended on manual checks and legacy systems to manage operations. These methods, while reliable in their time, are mostly reactive. A leak is noticed when it’s already visible, or equipment wear is caught only when failure is imminent.

Today, IIoT-enabled analyzers and smart sensors are changing that reality. Imagine gas analyzers that don’t just measure composition but also alert teams of unsafe levels well before danger looms. Or pH and hydrocarbon analyzers in water systems that keep track of compliance continuously, not sporadically.

It’s not about replacing humans—it’s about giving them intelligent oversight that helps prevent issues rather than respond to them.

The Rise of Smart Factories in Chemicals

The term “smart factory” used to sound futuristic. Now, it’s becoming part of everyday conversation in chemical circles.

With IIoT, machines, sensors, and control systems are no longer isolated. They communicate, share data, and collectively make sense of what’s happening in the plant. The benefits are real:

Predictive Maintenance: Equipment like pumps and reactors can now “tell” us they need attention, reducing costly downtime.

Process Optimization: Digital twins of entire plants allow us to simulate, test, and optimize processes without risking live operations.

Enhanced Safety: Integrated dashboards provide early warnings for leaks or overpressure, ensuring timely intervention.

McKinsey’s research suggests that IIoT can raise productivity in process industries by up to 20% while cutting maintenance costs by as much as 40%. Numbers like these underline why adoption is accelerating.

When AI Joins Hands with IIoT

If IIoT is about collecting data, Artificial Intelligence (AI) is about making sense of it. Together, they create an incredibly powerful duo.

Predicting Hazards: AI can analyze patterns in analyzer readings, pressure surges, and temperature shifts to predict potential leaks or reactions gone wrong.

Optimizing Reactions: Machine learning models fine-tune catalysts, temperature, and concentrations, improving yield while reducing waste.

Workforce Safety: AI-powered video analytics monitor whether protective gear is being used correctly and even identify overcrowding in sensitive zones.

This combination transforms chemical plants into self-learning ecosystems—adapting, improving, and safeguarding continuously.

Everyday Scenarios Where IIoT Is Making a Difference

The power of IIoT becomes clear when we look at real-world applications:

Storage Tanks: Smart level sensors stop hazardous materials from leaking or overflowing.

Effluent Treatment: Online analyzers track BOD and COD levels, ensuring compliance without manual delays.

Industrial Yards: IoT-enabled cameras flag congestion in high-traffic areas before it becomes a safety issue.

Water Safety: Hydrocarbon monitors detect contamination at ppm levels, preventing environmental damage.

Each of these examples shows how digital tools aren’t abstract concepts—they’re practical enablers of safer, cleaner, and more efficient operations.

The Road Ahead: Towards Resilient and Autonomous Plants

The journey doesn’t stop here. We are only at the early stages of digital transformation in the chemical industry. What lies ahead is even more exciting:

Edge Computing: Faster decision-making by analyzing data right at the source.

Cybersecurity: Protecting connected networks will become as important as physical plant safety.

Sustainability: IIoT data will help measure and reduce emissions, aligning with global climate and ESG goals.

Human–Machine Synergy: Operators will use AR dashboards and real-time data overlays to make more informed decisions.

The vision is of resilient, adaptive, and autonomous chemical plants—plants that can almost “think” for themselves.

Conclusion: Why IIoT and AI Are a Boon for Chemicals

Chemical manufacturing has always balanced opportunity with risk. With IIoT and AI, the balance is shifting—toward greater safety, higher productivity, and stronger environmental stewardship.

Instead of waiting for problems, plants can now predict them. Instead of working in silos, systems can now collaborate. Instead of relying on hindsight, decision-makers have foresight.

For an industry that powers economies and impacts lives daily, IIoT and AI are not just incremental improvements. They are, without doubt, a boon for the chemical industry’s future.

Industrial Internet of Things chemical manufacturing

First Published : October 07, 2025 12:00 am