“Pessimism is when I’ve made my best bets” - this quote by Warren Buffett seems particularly suited to the chemical industry.  
 
Recent industry headlines have been predominantly negative, from tariffs to high energy prices to large groups exploring exit from Europe. This also means that 2026 may be a year where contrarian thinking pays. While the industry faces headwinds and challenges to its competitiveness, several opportunities are worth close attention. 

1. M&A will reward operational transparency & Compliance 

Cost pressure is forcing companies to carefully review their portfolio, which implies putting more plants and divisions on the market. Sabic 1 has recently announced their exit from Europe, with other major players like Dow and LyondellBasell, divesting assets.  

The reasons are multiple but are all related to Europe’s competitiveness. As professional organization CEFIC summarizes, Europe’s competitiveness remains well below average, driven by weak demand and high energy prices: Compared to the U.S., European gas prices have been nearly three times higher in early 2025. 

This situation is already creating a wave of sales, with buyers paying up for assets that show not only efficiency but clear operational visibility. The situation can create opportunities on both the sell-side and the buy-side.  

On the sell side, a key dimension in selling assets at a high price is demonstrating operational transparency and accelerating due diligence. The ability to demonstrate reliable asset data, for example, through validated EAM and Asset Performance solutions, has become a differentiator. Several sellers have accelerated digitalization before launching sales, which allowed them to secure a premium. 

On the buy side, many players, such as private equity or oil and gas companies looking to diversify, are ready to buy in the hope of rapidly improving an ailing firm’s profitability.  

Corporate buyers that manage to develop a “lift-and-shift” approach, where they can rapidly modernize and digitize operations at newly acquired plants, could find bargain-priced opportunities to grow. 

2. Regulation will channel investment into new facilities and avenues 

This is also a time for realignment and there are currently two market forces that should keep going strong in 2026. 

The first is the development of “clean chemicals”. PFAS and microplastics were already making headlines in 2025, and the long-tail impact of the public outcry that has taken place in many European countries is starting to take shape. 

The European Commission is advancing a broad PFAS ban with exemptions only for essential uses. Cosmetics, packaging and textiles are targeted. For example, PFAS in food-contact packaging will be banned from August 2026. This will push companies to reconfigure production lines and build new capacity for fluorine-free polymers and coatings. 

Microplastics are another focus: under the REACH regulation, the EU is mandating a gradual ban on intentionally added particles, with 2026 being the first year manufacturers have to report on the estimated quantity of microplastics used in their products and how to ensure safe handling and disposal. This will force reformulation and require investment in pilot facilities and validation processes to qualify new inputs. Cosmetics and pharma firms will also pay the cost of wastewater treatment, which creates a clear economic case to shift capital projects toward biodegradable substitutes. 

This is an area where the challenge will double as a significant opportunity. One example is the emergence of “clean fashion”, which seeks sustainable alternatives to PFAS for waterproofing, heat resistance or stain immunity. Growing public consciousness on these issues could also drive consumer spending in areas like cookware, household products or toiletries. This is also a domain that governments and EU institutions will encourage through fiscal incentives and tax measures. 

3. Circularity and CCUS will be stress-tested at scale 

The other long-standing trend that should have its moment in 2026 is circularity, which is increasingly moving into large-scale execution.  

The use cases are incredibly diverse, from Dow’s chemical recycling of end-of-life mattresses to Perstorp capturing CO₂, renewable hydrogen and biomethane to produce methanol at industrial scale. Levels of maturity and economic certainty also vary, as proven by the recent cancellation of a power-to-methanol project in Antwerp. 

However, there are two reasons to believe that 2026 will be the year circularity becomes a competitive advantage. 

First, regulatory and financial incentives are tightening and expanding: the EU’s Carbon Border Adjustment Mechanism will kick into full gear on January 1, and Carbon pricing under the EU ETS will materially increase the cost of fossil-based feedstocks by 2026. This regulatory context should make 2026 a year of acceleration and maturation for carbon capture, utilization and storage (CCUS). 

Second, digitalization is beginning to deliver tangible gains and reduce uncertainty. For example, digital twins can virtually model recycling and remanufacturing loops, which allows companies to optimize designs before committing capital. They can also provide the lifecycle view companies need, with Perstorp offering a case in point.   

This data foundation can help seize the opportunities AI can offer in terms of process optimization, material substitution and design or yield forecasting. 

For operators, this means 2026 is the year to decide where to allocate resources. Facilities that can prove economic viability at scale will become reference points and attract further capital, while those that cannot may consolidate or exit. And while increasing traceability requirements, such as the EU’s digital product passport (DPP), are demanding, they will put companies that have already invested in interoperability and data standardization at an advantage. 

4. Productivity investments and AI will define the long game 

This plays into a larger trend: the market is changing and, while pessimism is here to stay, there is a strong case for investing into technologies that provide long-term productivity and efficiency gains. 

Recent research shows that there is still significant potential for driving greater efficiencies in how facilities are run and workers execute their daily tasks. A 2025 Hexagon survey found that three in four chemical executives in EMIA cited delayed or out-of-date information, missing asset data or legacy software as a major drag. Sixty percent said their companies still use paper frequently. The result is poor transparency and a higher risk in both projects and operations. 

AI adoption has also been slower than in other industries. As of 2024, about one in four petrochemical professionals said they used AI in their work, with automated workflow and workplace collaboration (25 percent), safety and inspection improvements (24 percent) and data analytics to optimize energy production (22 percent) as leading use cases. 

The uptake of successful AI adoption could therefore be significant: Several large chemical companies have reported cutting unplanned downtime by up to 20% as a result of AI adoption while reducing their maintenance spend. AI in project controls, using approaches such as Enterprise Project Performance, can also help control the costs and timelines of capital projects so that companies can adapt to market changes and adjust their manufacturing footprint - a critical advantage, should 2026 prove as uncertain and agitated on the trade front as 2025.  

 
With these four opportunities, 2026 will be a year where bets are worth placing and one that will redraw the competitive map.  

There’s a significant chance it will see large acquisitions and once-faltering companies that manage to turn their fortunes around. We believe they will do so by transforming their manufacturing capabilities, integrating AI into their operations and improving productivity through integrated, cloud-native digital backbones that cut across projects and operations.  

We also believe, to conclude, that Buffett’s line will apply well: If 2025 was a time of great pessimism, 2026 will be a time of great opportunities. 

Paolo Amodeo, Manager, Presales

Paolo has been working in the last 22 years in asset management space, focusing on different industries but with specific heart in the chemical sector. He drove different transformation projects and built strong customer-oriented mindsets. Paolo is currently managing Hexagon presales organization for EAM & APM in Europe. 

Maurizio Granata, Executive EMIA Industry Consultant

Maurizio brings 40+ years of experience equally spit between both design and O&M of industrial facilities, among the energy and both the chemical and petrochemical segments. He is currently serving Hexagon EMIA presales organization being Industry Focal Point for Chemical Industry.