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7 Reasons Why IoT is Revolutionizing the Chemistry Industry

7 Reasons Why IoT is Revolutionizing the Chemistry Industry

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Emily Newton

- Last Updated: September 3, 2025

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Emily Newton

- Last Updated: September 3, 2025

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The chemical industry is a cornerstone of the global economy, supplying essential materials for everything from pharmaceuticals to agriculture. Now, IoT is helping the industry become more efficient and sustainable. How? It integrates laboratory instruments and systems to streamline workflows and operations in the chemical sector.

Digital transformation initiatives are leading to significant investments in smart sensors, live analytics, and connected devices. Learn more about how IoT is impacting the modern chemical industry.

1. Enhanced Process Efficiency and Automation

IoT in the chemical industry enables monitoring and control of chemical processes. Autonomous equipment with IoT sensors can detect dynamic conditions or obstacles in the lab, based on multiple inputs, and adjust its course of action in response. Smart sensors can detect pressure, temperature, pH, conductivity, level, or flow changes to optimize the company’s processes and resources.

IoT can make quick, safe decisions without human input by managing and analyzing massive amounts of data in real time. Better efficiency across operations can lead to higher yields, decreased energy consumption, and cost savings.

2. Predictive Maintenance and Asset Management

Unexpected problems cause downtime and added costs. When IoT sensors are utilized for equipment health monitoring, potential problems or failures can be detected early on. IoT in the chemical industry analyzes current and historic data to predict where future repairs are needed, helping labs pinpoint where to focus maintenance efforts and prioritize replacements.

For example, Texmark Chemicals uses an IoT-based predictive maintenance system to monitor equipment in real time and drive profitability. The sensors predict failures before they occur, improving equipment reliability and reducing unscheduled maintenance. They set a new standard for digital best practices in the sector.

3. Improved Safety and Regulatory Compliance

Handling chemicals can be dangerous without proper safety measures. The U.S. Chemical Safety and Hazard Investigation Board reports that more than 500 serious chemical incidents have occurred in the United States since 2020. In addition to injuries and fatalities, these incidents resulted in approximately $1.8 billion in property damage.

Hazardous conditions — such as leaks or temperature spikes — can be better detected with IoT. Constant monitoring and safety alerts can help prevent accidents, which keeps workers safe from dangerous situations and keeps equipment in good condition. This risk assessment also ensures proper safety measures are in place to satisfy evolving regulations mandated by government agencies like OSHA and the EPA.

4. Supply Chain Visibility and Inventory Optimization

IoT makes end-to-end tracking of raw materials and finished products possible. The technology can automate stock replenishment to prevent under- or over-ordering materials. During production and shipping, GPS trackers and RFID tags can monitor the location of goods in real time and detect bottlenecks in the supply chain. Innovative IoT technology can reduce human error by delegating these tasks to equipment.

Even without the budget for new equipment, labs can integrate IoT functions into older machines to further optimize their supply chain. Adding upgrades to existing high-quality used equipment cost-effectively leverages new technology, increasing your return on investment faster.

5. Sustainability and Environmental Monitoring

Sustainability is becoming a prominent driving factor across many industries, but chemical production processes are energy-intensive. They contribute about 10% of global energy consumption, and an estimated 1,250 million tons of CO2 are emitted each year. 

IoT is crucial for advancing sustainability by identifying and rectifying inefficiencies — such as the overuse of electricity or steam — in real time. This capability can reduce emissions, improve waste management, and optimize resource utilization. 

Furthermore, leveraging IoT for sustainability initiatives enables chemical plants to achieve their Environmental, social, and governance objectives and comply with evolving regulatory standards regionally and globally.

6. Data-Driven Innovation and R&D Acceleration

Leveraging IoT data can accelerate experimentation and refine processes. Integrating IoT with artificial intelligence or machine learning can yield advanced operational insights, empowering research and development teams to drive innovative changes based on data and recommendations. This speeds up product development cycles and frees time and resources for further innovations. 

For instance, the chemical company Nouryon leveraged smart instrumentation and industrial IoT to adopt a data-driven, condition-based calibration approach. Through a certified cloud ecosystem, live data regarding status and health is readily available, eliminating the need to disassemble equipment for calibration and enabling more efficient operations. 

7. Empowering Workforce and Enhancing Collaboration

IoT can enhance collaboration throughout a company by providing real-time data access and feedback to teams across departments and locations. It can keep everyone updated and on the same page, speeding up information sharing and decision-making regarding chemical operations. Additionally, this digital connectivity helps attract and retain tech-savvy talent.

Experts can troubleshoot problems without being physically present thanks to remote monitoring and mobile alerts. These notifications are crucial for many industrial sectors, and they’ve only grown in adoption since 2020. Since then, 91% of manufacturers have invested in digital factories to enable remote work and maintain business continuity. 

Challenges of Adopting or Scaling IoT

When implementing or scaling IoT in the chemical industry, consider the following challenges and how to mitigate them:

  • Cybersecurity risks: Chemical plants and their interconnected digital systems must be secured to prevent data breaches.
  • Integration: Choose new technologies that can be integrated into existing systems and infrastructure.
  • Sensor durability: IoT sensors and other physical technology must withstand extreme temperatures and corrosive materials.
  • Costs: IoT is a substantial investment, so cost-benefit analysis and evaluating the return on investment are essential when budgeting and making decisions.
  • Skills gap: Current personnel will need to be adequately trained to maintain and troubleshoot complex IoT systems, or companies will need to add a new IoT department to their staff. 

Implement IoT in the Chemical Industry

The chemistry industry is experiencing a rapid increase in IoT adoption, which can create more efficient outputs, save time and money, reduce emissions, and bring even more advantages. Regulations are evolving and worldwide competition is growing, so companies in the chemical industry should assess their current infrastructure and identify high-impact areas for IoT integration.

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