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Chemical industry comprises companies that operate by trading and production of chemicals. The global chemical industry has seen great optimistic expectations due to the strong demand in emerging markets. The chemical industry has been an important contributor to the global employment sector and a major driving force in boosting economic stability. With addition of several small industries, there are hundreds of segments covered as the main three applications of the businesses include exploration or buying of raw materials such as oil/gas, refining it into chemicals and the production and distribution.
Some of the segments have specialty divisions, as in the purchasing of basic chemicals is done and then they are processed into products that are related to specific functionalities. Majorly, this process is done in large size but some are focused on niche markets. The global chemical industry is valued at more than $3 trillion and with the demand in huge numbers increasing; the newer markets are projected to be highly influential in generating large revenue. Different demographics perform differently in the market, and there are different sizes of demand depending upon the potential and prospective growth projected. In recent years, Finland has become one of the largest exporters of chemicals to a global scale after the decline of electronic and forestry sector. Companies are constantly improving and innovating with the use of advanced technology that helps in better and efficient operations and productions, there are more products and services introduced nowadays than ever before.
The European chemical industry is facing major issues and challenges as there are few records of migrations of value chains towards east for better economic growth and opportunities; however, Europe is a global leader in Key Enabling Technologies (KET) R&D with a global share of more than 30% in patent applications, so the future is steady as four of the six main KETs identified to be critical to strengthening Europe’s industrial and innovation capacity are core businesses of the sector: advanced materials, industrial biotechnology, nanotechnology and advanced manufacturing. The chemicals sector benefits from a structured network of small, medium and large companies that can translate dominant research and development (R&D) base into the production of goods and services needed to stimulate growth and jobs.
Although Asian market is proving to be a more competitive demographic with more emerging chemical industry giants and state controlled players that have had a strong establishments, it is still understanding the right strategic options to thrive in the competitive environment and more importantly, manage volatility on a stage where trade flows gradually change their course in a fragile economic conditions. The global chemical industry has grown by 7% annually, reaching $3.2 trillion. Most of the growth in the past 25 years has been driven by Asia, which now accounts for approximately half of global chemical sales. As the current scenario continues, global chemical markets are expected to grow at an average 3% in the next 20 years majorly influenced by Asia and Middle East. Going by some predictions, Asian players are positioned to own 2/3rd of the market by 2030.