LONDON--(BUSINESS WIRE)--A somewhat diluted European chemical industry is hoping that digital technology will provide the formula it needs to regain some of its strength in the global market, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The 2024 ISG Provider Lens™ Chemical Industry Services and Solutions report for Europe finds that for a chemical industry plagued by a potent mix of environmental concerns, diminished demand and escalating costs, technology-driven innovation and digital transformation may prove to be the best solutions. In addition to impediments on the home front, the market is under pressure from the influx of inexpensive chemical imports from China, the ISG report says.
“Europe’s chemical companies are looking to build more resilient and efficient manufacturing processes,” said Julien Escribe, partner, ISG SEMEA. “Technology and service providers in the region are responding with solutions that enhance supply chain transparency, traceability and security.”
For major players in the European chemical industry, digitalization is considered a crucial element for improving supply chain planning in response to the volatility caused by recent geopolitical disruptions and fluctuating energy prices, the ISG report says. According to the report, digital tools have also proved beneficial for tasks such as demand estimation, tracking raw materials to their sources, real-time order tracking, warehouse and port automation for sorting and safety and optimizing supply networks.
Despite facing tough market conditions that have led to layoffs and plant closings, Europe’s chemical industry maintains its strength in innovation, the ISG report says. In the coming years, that innovation will play a pivotal and potentially advantageous role, particularly with the development of new technologies in recycling, renewables, electrification and high-tech plastics, ISG says.
One of the factors that could aid in both innovation and planning is GenAI. According to the ISG report, GenAI holds the potential to support various applications in the industry, including creating new products, designing processes, optimizing current processes, improving safety measures and reducing environmental impact.
“Major players in the European chemical industry are actively exploring and implementing GenAI solutions,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Their principal goal is to enhance their operational efficiency.”
The report also examines how the chemical industry is contending with stringent regulatory compliance set by the European Union.
For more insights into some of the challenges facing Europe’s chemical industry, including an aging infrastructure and more stringent regulations, along with ISG’s advice for addressing them, see the ISG Provider Lens™ Focal Points briefing here.
The 2024 ISG Provider Lens™ Chemical Industry Services and Solutions report for Europe evaluates the capabilities of 26 providers across three quadrants: Digital IT/OT Services, Supply Chain and Logistics and Sustainability and Innovation.
The report names Accenture, Capgemini, Deloitte, HCLTech, IBM, Infosys, TCS and Wipro as Leaders in all three quadrants, while Genpact and Tech Mahindra are named as Leaders in one quadrant each.
In addition, EY, Genpact and Tech Mahindra are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.
The 2024 ISG Provider Lens™ Chemical Industry Services and Solutions report for Europe is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI and automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.
