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In response to global market uncertainty, chemical companies are continuously striving to reduce costs and rationalize their portfolios. This move aims to strengthen their core business and ensure the sustainability of operations amidst increasingly complex economic challenges.
According to the Deloitte 2025 Chemical Industry Outlook, cost reduction is not just about cutting expenditures but also improving operational efficiency through digitalization and process automation. Technologies such as big data analytics and artificial intelligence (AI) are becoming crucial tools to identify areas for savings without compromising product quality. Additionally, companies are increasingly leveraging cloud-based solutions to enhance data integration across the value chain.
Portfolio rationalization allows companies to focus their resources on high-margin segments. Many chemical companies are beginning to invest in high-value markets such as semiconductors and batteries, which offer significant growth opportunities. This strategy often includes divesting from business units that no longer align with long-term strategies or are underperforming. By doing so, companies can strengthen their competitiveness in an increasingly competitive market.
Adapting to evolving customer demands is also a key priority. Deloitte highlights that the demand for sustainable, high-performance products is driving companies to invest in product, process, and ecosystem innovation. By narrowing their focus on core business areas, chemical companies can offer more relevant and high-value solutions to their customers. Moving forward, this efficiency and focus will be crucial in maintaining stability and growth in the global chemical industry.
Semiconductors and Batteries: High-Growth Areas for the Chemical Industry
The chemical industry has entered a new era where innovation is a primary driver of growth, particularly in high-value sectors such as semiconductors and batteries. The demand for semiconductor technology continues to rise with the growth of the Internet of Things (IoT), cloud computing, and electric vehicles (EVs). Batteries, particularly lithium-ion batteries, are key components in the global energy transition.
According to a recent analysis by McKinsey, the global market for chemical materials used in battery manufacturing is projected to grow by more than 20% annually until 2030. In China, the government is actively supporting this industry through various subsidies and incentives to drive battery material production. For example, China has launched fiscal policies to promote the development of the EV battery supply chain and strengthen domestic manufacturing capacity in chemicals such as lithium and cobalt. This creates significant opportunities for chemical companies to invest in research and development (R&D) and strengthen partnerships with high-tech producers.
However, challenges remain. Sourcing raw materials such as lithium and cobalt is a key concern due to dependency on certain countries. To address this, chemical companies are seeking more sustainable alternatives, including recycling raw materials and using new, more environmentally friendly materials.
Investing in this sector not only strengthens companies' positions in the global market but also supports long-term sustainability. With a focus on innovation and collaboration, the chemical industry can become a key pillar in supporting technological revolutions across various sectors.
Demand for Sustainable Products: Driving Innovation in Processes and Ecosystems
The global trend toward sustainability is driving chemical companies to increase investments in sustainable products. Consumers are increasingly demanding products that are not only high-performing but also environmentally friendly. This requires innovation not only in products but also in the processes and ecosystems that support them.
An Accenture report shows that more than 70% of consumers in developed countries choose brands that demonstrate a commitment to sustainability. Chemical companies are beginning to adopt green technologies, such as low-emission production processes and bio-based raw materials, to meet these expectations. In China, several chemical companies have launched concrete initiatives, such as building renewable energy-based production facilities and developing environmentally friendly chemicals for electric vehicle (EV) batteries. For example, CATL, a leading battery manufacturer, has partnered with local chemical companies to create new, more efficient, and sustainable materials, strengthening their position in the global energy transition. On the other hand, the development of collaborative ecosystems between companies, research institutions, and governments has become a key strategy to accelerate the adoption of new technologies.
Innovation in processes also includes the use of new catalysts to improve energy efficiency and reduce waste. For instance, BASF has launched catalyst technology that enables up to a 30% reduction in energy consumption in ammonia production, a critical chemical in the global industry. This success demonstrates how innovation can have a tangible impact in achieving sustainability targets.
By making sustainability a core element of their strategies, chemical companies can bridge the gap between consumer demand and environmental needs. These initiatives will not only strengthen their market positions but also contribute positively to global challenges such as climate change and environmental degradation.