Digitalization in the chemical industry is typically in response to market challenges, particularly when it comes to demand and competition. It’s generally geared towards improving the chemical companies’ competitiveness in business areas from operations and R&D to customer relations.

We have previously covered in another post how we think AI and machine learning are changing research in chemistry. It is even helping us in the way that we do scientific communication.

But what is digitalization, specifically, and what does it mean for enhancing the way the chemical industry works?

Let’s take a look.

What is Digitalization?

Digitalization is almost synonymous with computerised automation – in fact, “automation” was probably your first thought when you started reading this article. But it’s more than that. Digitalization is also about collecting and processing large amounts of data, and then the outcomes or actions of what that data tells us.

An action can be automated as instructed by specific algorithms and executed by machines, like adjusting pressure or heat, for example. It could also be a strategic policy created by human decision-makers, like a plant manager who decides to request parts for replacement if data shows extreme wear and tear on their equipment.

It’s true that in most cases, digitalization involves data that triggers an automated response. This can be:

• Sensors and devices – the input interface components that measure, scan, or receive information directly from the source. For example, an electronic pressure gauge or a radio frequency identification (RFID) scanner that identifies objects, employee IDs, and equipment
• Edge computing – data processing on the “edge,” which involves speed or safety. The computing happens in the device itself or across various devices. A distributed system controls safety components like a compressor anti-surge loop or a safety integrity loop
• Connectivity – how devices, edge computing, and the Cloud are tied together into a homogenous system despite different specifications and standards. This is about compatibility and communication
• Analytics – the various applications that provide an analytical approach for understanding the results of diagnostics, logistics, inventory, and general trends
• The Cloud – a secure database where data can be stored, accessed, and used by either operators or programs

What Is the Status of Digitalization in the Chemical Industry?

Not all companies have full digitalization infrastructure in place – that’s typically because it’s such a huge investment of time, money, and resources. According to one study, just 4 out of 10 chemical companies expect that their business is more digital than their competitors.

Of all the companies in this survey that are digitalized:

• 40% are using digitalization to become more efficient
• 32% say they are applying digital technology to drive growth
• 11% are using digitalization to meet strategic goals

What Types of Challenges Does the Future Hold?

Despite the drive to modernise, the chemical industry is facing various challenges beyond competition. There are external challenges with complex implications such as those posed by the economy and new regulations.