Oil & Gas Automation Market By Solution (Supervisory Control and Data Acquisition, Programmable Logic Controller, Distributed Control Systems, Safety Automation, Advanced Process Control, and Manufacturing Execution System), Instrument (Field Instruments, Control Valves, Leakage Detection System, Flow Computer, and Communication), and Process (Upstream Process, Midstream Process, and Downstream Process), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023 - 2032
Market Perspective
The global Oil & Gas Automation Market is expected to experience significant growth between 2023 and 2032, with a compound annual growth rate of roughly 7.25%. The market was worth around USD 19.24 billion in 2022, and it is predicted to grow to around USD 38.73 billion by 2032.
The increasing use of automation and instrumentation in the exploration process is driving the growth of the global oil and gas automation and instrumentation market. Industry participants recognize the importance of using automation and instrumentation in the oil and gas sector to achieve faster operations and higher performance.
The oil and gas industry has traditionally been labor-intensive and prone to human error, which can lead to safety hazards and increased costs. Automation and instrumentation technology can help address these challenges by enabling real-time monitoring and control of processes, reducing the need for manual intervention, and improving safety and operational efficiency.
Key factors driving the growth of the oil and gas automation market include the increasing demand for energy, the need to optimize production and reduce operational costs, and the growing trend of digitalization in the oil and gas industry. However, the market may face challenges such as high installation costs and the need for skilled personnel to operate and maintain the automation systems.
Key Insights
- Based on the Solution, the distribution control systems segment held the largest market share
- Based on Instrument, the control valves segment dominated the market
- Based on process, the upstream Process segment generated the highest revenue
- On the basis of region, North America accounted for the largest market share
Increasing Exploration of Oil & Gas to Drive Market Growth
One of the aspects driving the market's explosive expansion is the rise in oil and gas exploration operations. Automation has become a necessity as more oil and gas exploration activities are conducted. Inefficient procedures in the oil and gas industry are another factor driving the market.
In this industry, integrated automated technologies save energy, time, and money. A linked enterprise created by technological breakthroughs helps the oil and gas sector achieve operational excellence. A window into real-time production data can be accessed through the cloud, mobility, and analytics. High capital expenditures, however, can temporarily restrain market expansion.
Technological Advancements to Encourage Market Growth
The primary driver of the market expansion for oil and gas automation and control systems is the ability of oil and gas producers to integrate information, control, authorize, and provide security solutions in response to dynamic needs. Also, drilling in the oil and gas sector is quite expensive and comes with significant risks for the workers. Automation can greatly lower these hazards, accelerate the entire drilling process, and decrease variable costs by automating the human components of this operation, such as pipe handling and pressure drilling. The pressure has increased on oil and gas firms to remain competitive by cutting production costs.
Recent Development
March 2020: The optimal pH measuring solution can now be easily chosen and managed due to a new color-coded sensor line from ABB. The sensors will simplify the process of determining the pH of water.
Segmentation Analysis
Based on the solution, the market is categorized into supervisory control and data acquisition, programmable logic controller, distributed control systems, safety automation, advanced process control, and manufacturing execution system. As per Solution, the Oil & Gas Automation Market is dominated by the distributed control systems segment. The (DCS) Distribution Control Systems segment is likely to dominate the market share in 2022. DCS is a control architecture that includes a supervisory level of control that oversees several interconnected sub-systems that manage the intricacies of a localized operation. Increased usage of renewable and nuclear energy for power generation, as well as the adoption of the industrial internet of things (IoT) for real-time decision-making, are some of the primary drivers of DCS. In addition, supervisory control and data acquisition (SCADA) is one of the leading segments.
On the basis of the Instrument, the market is categorized into field instruments, control valves, leakage detection systems, flow computers and, communication. The control valve segment dominates the market share. It is used to regulate or control the flow of fluids like oil, steam, water, and gas. Typically, processing plants have thousands of interconnected control loops that work together to create a finished product that will be sold. Every control loop is planned and structured to keep crucial processes like flow, pressure, temperature, and level within a specific operating range that is necessary to guarantee the quality of the finished product.
The oil and gas business depends heavily on valves. They are used to steer and direct the refining of crude oil, control flow rates, and isolate and safeguard equipment. In the oil and gas business, these valves specifically offer a method to manage the process overflow rate, temperature, and pressure. These valves may be controlled remotely due to their autonomous functioning, which eliminates the need for an operator to continuously monitor and make adjustments.
By process, the market is categorized into the upstream process, midstream process, downstream, and process grade. The upstream process segment is expected to witness substantial growth during the forecast period. The upstream process segment is a critical segment in the market, and it involves activities such as exploration, drilling, and production of crude oil and natural gas. This segment is witnessing substantial growth due to the increasing demand for oil and gas across the globe. The growth in the upstream process segment is primarily driven by the rising need for energy and the depletion of existing oil reserves.
The demand for oil and gas is expected to increase significantly in the coming years due to the growing population and industrialization in emerging economies such as India, China, and Brazil. The increasing demand for oil and gas is expected to boost the growth of the upstream process segment, as it is responsible for the exploration and production of crude oil and natural gas.
North America is Dominating the Market
The oil and gas automation and control system market is witnessing significant growth globally, and North America is leading the charge. The U.S. is one of the major consumers of crude oil and natural gas, accounting for almost 20% of world consumption, and is expected to become the top oil and gas producer in the next few years, which is a significant driver for the growth of the oil and gas automation market in the region.
Over the past decade, the oil and gas industry's dependency on automation has increased significantly. The announcement of multiple rounds of industrial layoffs has reduced the number of skilled workers at oil and gas companies. As a result, U.S. oil companies have become increasingly reliant on automation to complete processes without delay.
U.S. natural gas producers have been using automation to reduce and maintain costs. SCADA, a widely used automation technology in the midstream, upstream, and downstream oil and gas industries in the U.S., plays a critical role in supporting remote data transmission in the upstream sector.
Asia Pacific is Second Largest Region in the Global Oil and Gas Automation Market
China, India, and Indonesia are the top three oil producers in the Asia-Pacific region, accounting for more than half of all oil produced in the region. China also imports more oil to suit domestic demand. The region's burgeoning motorization and industrial expansion have resulted in rising oil and liquefied natural gas (LNG) consumption, making it the ground zero for the expansion of the world's energy and commodity markets.
Competitive Landscape
- Endress+Hauser Group Services AG
- JOHNSON CONTROLS
- Eaton
- General Electric
- SLB
- Mitsubishi Electric Corporation
- Emerson Electric Co.
- Siemens
- ABB
- SCHNEIDER ELECTRIC
The global Oil & Gas Automation Market is segmented as follows:
By Solution
- Supervisory Control and Data Acquisition
- Programmable Logic Controller
- Distributed Control Systems
- Safety Automation
- Advanced Process Control
- Manufacturing Execution System
By Instrument
- Field Instruments
- Control Valves
- Leakage Detection System
- Flow Computer
- Communication
By Process
- Upstream Process
- Midstream Process
- Downstream Process Grade
By Region
- North America
- The U.S.
- Canada
- Mexico
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Nordic countries
- Denmark
- Finland
- Iceland
- Sweden
- Norway
- Benelux Reunion
- Belgium
- The Netherlands
- Luxembourg
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- New Zealand
- Australia
- South Korea
- Southeast Asia
- Indonesia
- Thailand
- Malaysia
- Singapore
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- Kuwait
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
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Oil Gas Automation Market By Solution
- March-2023
- 148
- Global
- automotive
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