Resilience through innovation and strategic restructuring is laying the groundwork for a recovery in the chemicals industry. As companies pivot toward high-growth markets and adapt to global challenges, 2025 is expected to bring renewed optimism. Key trends to watch in 2025 include:
- Global chemical production is projected to grow by 3.5% in 2025, slightly outpacing the expected global GDP growth rate of 3.2%. This growth will be supported by stabilizing demand and improved supply chains. Regional recovery will vary, with North America and Asia expected to perform better than Europe.
- Specialty chemicals are forecasted to grow by 5% in 2025, outpacing overall chemical production. This growth will be fueled by increasing demand across the energy storage, healthcare, and semiconductor sectors. The accelerating adoption of advanced technologies in these fields is driving a strong interest in high-purity materials and advanced components..
- A 15% increase in EV production in 2025 will significantly drive demand for battery materials, lightweight composites, and advanced coatings. As automakers increasingly focus on energy efficiency and sustainability, the chemical industry will be vital in advancing electric vehicle (EV) technology. This includes supporting innovations in EV battery production and the development of lightweight materials.
- Following a slowdown in 2024 caused by high interest rates, capital expenditures are expected to rise by 4-6% in 2025. Investments in carbon capture, bio-based materials, and chemical recycling will drive growth. This is because companies are prioritizing circular economy initiatives in response to regulatory pressures and increasing consumer demand for sustainable products.
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