Chemical Licensing Market - Forecasts from 2023 to 2028

The chemical licensing market was evaluated at US$23,479.5 million in 2021 and will grow at a CAGR of 4.91% to be worth US$32,845.936 million by 2028.

Chemical licensing covers providing companies with proprietary technologies for carrying out any oil & gas-related manufacturing procedures or activities. Chemical product licensing guarantees the safety and environmental friendliness of the machinery used in industrial processes. The need for chemical licenses is anticipated to develop, which will speed up the expansion of the chemical license industry in the forecast period. Key drivers of this demand are predicted to be the growing population, expanding manufacturing sector, and increased regulatory requirements in the chemical industry which are predicted to accelerate chemical licensing market growth.

Rising use of C2 derivative in chemical licensing

With applications ranging from films, tubes, plastic components, and laminates, polyethene and EDC-PVC production processes are in high demand. EDC is additionally employed in textiles as a chemical solvent. metal cleaning, and adhesive industries. Solvent markets often are mature due to environmental restrictions, and diminishing in the case of perchloroethylene. The C2 derivatives segment will therefore be driven by this as a result. Additionally, C2 derivatives are widely employed in a variety of industrial fields, including applications in the automotive, display, battery, detergent, bathroom products, IT, fibre, and construction industries. These factors are expected to increase the chemical licensing market share.

Rising use in the chemical industry

The development and growth of the industrial sector depend heavily on the chemical industry. The value added is higher in the chemical sector than it is in the majority of other industrial sectors. Additionally, licensing bulk organic chemicals and petrochemicals is a significant way for chemical businesses to profit from process advancements. Today, petrochemical products permeate nearly every aspect of daily life, including clothes, housing, construction, furniture, cars, household goods, agriculture, gardening, irrigation, wrapping, medical appliances, electronics, and electrical, among many other things. The requirement for chemical licensing in the chemical sector will grow during the projection period as a result of the extensive use of petrochemicals.

Increasing use of chemical licensing pharmaceutical industry

The number of licensing agreements signed each year covering pharmaceutical developments has grown even faster than the pharmaceutical industry's global turnover; thus, it appears worthwhile to look closely at the reasons for licensing activities in the pharmaceutical sector, especially because, in various fields of technology, the gap between the growth of the respective sector's overall worldwide turnover and the number of licensing agreements signed each year has grown even faster. India is the world's largest producer of generic medications, according to the India Brand Equity Foundation which is increasing the chemical licensing market size.

A growing need in the oil and gas industry

The chemical licensing market is expanding as a result of the increased demand and ongoing innovation in the oil and gas sector. Chemical licenses are essential to the oil and gas industry and are required for new plant installations. Such oilfield operations carried out in potentially hazardous locations may require express authorization such as statutory permits and licenses, by the Republic of Azerbaijan's Law, "On Licenses and Permissions" of March 15, 2016 ("Law"). The goal of governmental oversight of oil and gas operations is to guarantee that businesses are technically qualified and have the necessary training to provide oilfield services to the utmost extent.

Asia Pacific is projected to dominate the chemical licensing market

During the projected period, the Asia Pacific region is anticipated to lead the chemical licensing market. The demand is rising among developing nations like India, China, and Thailand as a result of fast industrialization and the expansion of manufacturing businesses. Energy demand is highly correlated with economic growth in India; as a result, more oil and gas are expected to be needed, which will make the industry very attractive to investors. The market will be driven by the Indian government's initiatives, which include its aim to build 5,000 compressed biogas (CBG) facilities by 2023.

Risk of licensing

The licensee may "cannibalize" the licensor's sales, causing the licensor to lose more money in lost sales than it gains from royalties. Because it might have lower production costs or be more efficient, the licensee might be more aggressive or enter the market before the licensor. Additionally, the licensee may unpredictably ask for contributions like technical support, staff training, additional technical information, etc. The cost of everything can simply be prohibitive for the licensee. The license agreement must expressly outline the rights and obligations of each party so that any potential disputes can be settled swiftly and efficiently in the future.

Market product launches

• In April 2021, ISSAR Pharmaceuticals, a leader in peptide technology and medicine research, released a statement addressing the licensing of its peptide-based New Chemical Entities (NCEs) and the US patent. This partnership is anticipated to assist ISSAR Pharmaceuticals in designing and creating innovative peptide-based medications that can be utilised to treat a variety of emerging ailments.
• In May 2021, Enviro Tech Chemical Services, Inc. granted PeroxyChem a license to use its peracetic acid intervention techniques in the chill tanks and poultry processing system. This license gives PeroxyChem and its affiliated companies the right to employ the method(s) covered by the '321 patent in the United States without infringing on the '321 patent. Enviro Tech has additionally provided indemnification to PeroxyChem's end-user customers for any infringement of the '321 patent during the life of this license. The '321 patent, which is also referred to as a reservoir, covers intervention techniques employing peracetic acid at a pH that is alkaline in a cooling tank for a poultry processing system.

Segmentation:

By Type

• Inorganic Chemicals
• Organic Chemicals

By Application

• Oil and Gas
• Petrochemicals
• Pharmaceuticals
• Others

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Thailand
• Others