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Markets
Industrial
Rasyad Halim
Head of Engineering - Industrial Malaysia, Kuala Lumpur contact form+60327058574
Manufacturing is in the middle of a fourth industrial revolution.
Characterised by the introduction of AI, automation, Internet of Things and other technologies bridging the divide between physical and digital, Industry 4.0 promises supercharged efficiency, streamlined operations, and smarter decision-making. But it will not be felt in a consistent way across all sectors.
Industrial chemical production is the backbone of the global manufacturing industry – supplying raw materials for everything from clothing to pharmaceuticals, household goods and agriculture. But it is also a uniquely challenging industry. Both the inputs and outputs (as well as many of the byproducts) of chemical production can be hazardous, and manufacturing processes can create hot, humid, or otherwise technologically hostile environments. These challenges are carefully managed, particularly to ensure staff safety, but they also inevitably impact the sector’s ability to innovate.
Dealing with data
Digitalisation significantly increases the volume of available data, creating a foundation for complex technologies like AI, and enabling more informed decision-making. But more data can be a mixed blessing. A 2015 McKinsey study found that an oil rig with 30,000 sensors was only using 1 percent of the data it produced, and if managed improperly, all this data can be expensive to collect and hard to use.
The harsh conditions of chemical production can make it challenging to collect this data in the first place. For example, in many facilities all mobile devices, sensors and wireless gateways will need to be ATEX or IECEx-certified, to ensure they are intrinsically safe for use in hazardous areas (or more simply, don’t pose an explosion risk). This drives up the cost of implementation and can limit vendor options.
Nonetheless, there are significant benefits on offer if these technologies can be intelligently deployed. For example, three areas that promise to yield excellent return of investment across speciality and fine chemicals are:
- Equipment monitoring for predictive maintenance
- Quality control for maintenance and asset management
- Asset tagging for onsite diagnostics
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The information provided by Virtua Research cited herein is provided “as is” and “as available” without warranty of any kind. Use of any Virtua Research data is at a user’s own risk and Virtua Research disclaims any liability for use of the Virtua Research data. Although the information is obtained or compiled from reliable sources Virtua Research neither can nor does guarantee or make any representation or warranty, either express or implied, as to the accuracy, validity, sequence, timeliness, completeness or continued availability of any information or data, including third-party content, made available herein. In no event shall Virtua Research be liable for any decision made or action or inaction taken in reliance on any information or data, including third-party content. Virtua Research further explicitly disclaims, to the fullest extent permitted by applicable law, any warranty of any kind, whether express or implied, including warranties of merchantability, fitness for a particular purpose and non-infringement.
The consensus estimate provided by Virtua Research is based on estimates, forecasts and predictions made by third party financial analysts, as described above. It is not prepared based on information provided by AtkinsRéalis and can only be seen as a consensus view on AtkinsRéalis' possible future results from an outside perspective. AtkinsRéalis has not provided input on these forecasts, except by referring to past publicly disclosed information. AtkinsRéalis does not accept any responsibility for the quality or accuracy of any individual or average of forecasts or estimates. This web page contains forward-looking statements based on current assumptions and forecasts made by third parties. Various known and unknown risks, uncertainties and other factors could lead to material differences between AtkinsRéalis' actual future results, financial situation, development or performance, and the estimates given here.
Implementing artificial intelligence
AI also has significant potential across the industrial chemical production sector, with leading use cases including predictive maintenance, yield prediction and optimization, inferring unmeasured process variables and energy optimization.
However, AI adoption is being slowed by skills gaps, with process engineers often lacking training in data science, while data scientists lack chemical domain knowledge. Distrust of AI can also be a blocker, particularly given common perception of AI as a black box system. Consequently, we expect to see AI primarily leveraged in new and complex facilities in the short term, where there are fewer adoption challenges to overcome and benefits may be more clearly identified.
Greenfield v brownfield
The CD was first made publicly available in 1982 and is commonly reported as having overtaken tape cassettes in popularity by 1991. Yet the last Sony cassette player was only produced in 2010, and the medium continues to be uses to this day.
While we tend to focus on new, transformative technologies, older tech often survives for a long time after being surpassed, protected by factors like compatibility, cost of replacement, and personal preference.
The average industrial chemical facility has a lifespan of between 30-50 years. This means that while they are often built with cutting-edge technology, many older plants now run on legacy technology and software. The decision to retrofit generally depends on a cost-benefit analysis, with upgrades targeted to areas that will give a high return on investment. But given many plants run continuously, 24 hours a day and seven days a week, upgrades can be prohibitively expensive in lost production time. This makes new technology adoption patchy, with existing facilities often opting for selective retrofits over full digitalisation.
New build facilities don’t face the same challenges, but given the rate of replacement, technologies can still take up to fifty years to become standard across an industry, and the fourth industrial revolution may take some time to scale and mature.
The future of industrial chemical?
Industry 4.0 will be transformative, allowing for significantly increased efficiency and productivity. Combined and scaled, these technologies offer a path to autonomous, self-optimizing plants with digital supply chains. But in practice, as facilities upgrade piecemeal, building on their existing technology, the changes are likely to be felt as a steady and incremental evolution.
Ultimately, the real revolution will not be in which technology we are using, but the way we approach data and digital innovation.
The next frontier of innovation – Industry 5.0 – has already been identified. Building on the fusion of physical and digital that characterises 4.0, Industry 5.0 closes the loop between innovation and societal improvement, focusing on outcomes like resilience, agility, and ethical and social responsibility.
Please note that you are now leaving the AtkinsRéalis website (legal name: AtkinsRéalis Group inc.) and entering a website maintained by a third party (the "External Website") and that you do so at your own risk.
AtkinsRéalis has no control over the External Website, any data or other content contained therein or any additional linked websites. The link to the External Website is provided for convenience purposes only. By clicking "Accept" you acknowledge and agree that AtkinsRéalis is not responsible, and does not accept or assume any responsibility or liability whatsoever for the data protection policy, the content, the data or the technical operation of the External Website and/or any linked websites and that AtkinsRéalis is not liable for the terms and conditions (or terms of use) of the External Website. Further, you acknowledge and agree that you assume all risks resulting from entering and/or using the External Website and/or any linked websites.
BY ENTERING THE EXTERNAL WEBSITE, YOU ALSO ACKNOWLEDGE AND AGREE THAT YOU COMPLETELY AND IRREVOCABLY WAIVE ANY AND ALL RIGHTS AND CLAIMS AGAINST ATKINSRÉALIS, AND RELEASE, DISCHARGE, INDEMNIFY AND HOLD HARMLESS ATKINSRÉALIS, ITS OFFICERS, EMPLOYEES, DIRECTORS AND AGENTS FROM ANY AND ALL LIABILITY INCLUDING BUT NOT LIMITED TO LIABILITY FOR LOSS, DAMAGES, EXPENSES AND COSTS ARISING OUT OF OR IN CONNECTION WITH ENTERING AND/OR USING THE EXTERNAL WEBSITE AND/OR ANY LINKED WEBSITES AND ANY DATA AND/OR CONTENT CONTAINED THEREIN.
Such waiver and release specifically includes, without limitation, any and all rights and claims pertaining to reliance on the data or content of the External Website, or claims pertaining to the processing of personal data, including but not limited to any rights under any applicable data protection statute. You also recognize by clicking “Accept” that the terms of this disclaimer are reasonable.
The information provided by Virtua Research cited herein is provided “as is” and “as available” without warranty of any kind. Use of any Virtua Research data is at a user’s own risk and Virtua Research disclaims any liability for use of the Virtua Research data. Although the information is obtained or compiled from reliable sources Virtua Research neither can nor does guarantee or make any representation or warranty, either express or implied, as to the accuracy, validity, sequence, timeliness, completeness or continued availability of any information or data, including third-party content, made available herein. In no event shall Virtua Research be liable for any decision made or action or inaction taken in reliance on any information or data, including third-party content. Virtua Research further explicitly disclaims, to the fullest extent permitted by applicable law, any warranty of any kind, whether express or implied, including warranties of merchantability, fitness for a particular purpose and non-infringement.
The consensus estimate provided by Virtua Research is based on estimates, forecasts and predictions made by third party financial analysts, as described above. It is not prepared based on information provided by AtkinsRéalis and can only be seen as a consensus view on AtkinsRéalis' possible future results from an outside perspective. AtkinsRéalis has not provided input on these forecasts, except by referring to past publicly disclosed information. AtkinsRéalis does not accept any responsibility for the quality or accuracy of any individual or average of forecasts or estimates. This web page contains forward-looking statements based on current assumptions and forecasts made by third parties. Various known and unknown risks, uncertainties and other factors could lead to material differences between AtkinsRéalis' actual future results, financial situation, development or performance, and the estimates given here.
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