The Global Oil & Gas Automation Market accounted for US$ 18,979 Mn in 2021 and is estimated to reach US$ 33,336 Mn by 2030, with a significant CAGR of 6.7% from 2022 to 2030.
In the coming decades, the oil and gas industry will continue to grow. Obtaining oil and gas in both regular and unconventional ways will become increasingly difficult. This concentrated requirement will put a lot of strain on financial and technological resources. Because the oil and gas industry's future supplies are expected to grow, advanced technologies will become increasingly vital in gaining access to more difficult traditional and non-traditional resources. As a result of the hostile and inaccessible environment, modern technology will be costly to operate. Some examples of automation in the oil & gas industry include receiving, transmitting, storing, and retrieving information about the status of equipment utilizing technology and software tools, as well as to object management for attaining a predetermined goal.
Market Growth Drivers:
· Growing digitalization in the oil & gas industry
· Surging oil & gas exploration activities
· Growing energy consumption due to inefficient processes
· Rise in investments in emerging economies
· Growth of conventional energy businesses
|Market||Oil & Gas Automation Market|
|Market Size 2021||US$ 18,979 Mn|
|Market Forecast 2030||US$ 33,336 Mn|
|CAGR||6.7% During 2022 - 2030|
|Analysis Period||2018 - 2030|
|Forecast Data||2022 - 2030|
|Segments Covered||By Technology, By Component, By Process, And By Geography
|Regional Scope||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa|
|Key Companies Profiled||ABB Ltd., Alstom, Baker Hughes Inc., BP Plc, Eaton Corp PLC, Emerson Electric Co., Siemens AG, Sigit Inc, Tyco International Ltd, Weatherford International Ltd, and Yokogawa Electric Co.|
||Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Regulation Analysis|
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Growing digitalization in the oil & gas industry is the leading factor driving the global oil & gas automation market growth. Oil and gas have played a critical part in the world's economic change for more than a century, but the industry is about to enter a new age. Digital transformation may improve operational efficiency and workplace safety while also reducing the industry's environmental effect. The automation solutions offer numerous benefits such as increased productivity and efficiency; provide safety and reliability and save time and capital. These benefits are creating awareness among oil & gas businesses to shift their focus on automation systems.
The growing number of oil & gas exploration activities is also one of the trends that have skyrocket the market growth. The more the number of oil & gas exploration activities will be carried out the more the requirement for automation will be needed. The market is also driven by the growing energy consumption in the oil & gas sector due to inefficient processes. Integrated automated technologies in this sector save not only energy but also time and money. Technology advancements have resulted in a linked enterprise, which aids the oil and gas industry in achieving operational excellence. Cloud, mobility and analytics provide a window into real-time production data that may be used to make decisions. However, high capital investments could hold back the market growth for a brief period of time.
Technology, component, process, and region are all used to segment the worldwide oil & gas automation market.
Market by Technology
· Distributed Control System (DCS)
· Enterprise Resource Planning (ERP)
· Supervisory Control and Data Acquisition (SCADA)
· Machine Execution System (MES)
· Product Lifecycle Management (PLM)
· Programmable Logic Controller (PLC)
· Other Technologies
Based on our analysis the distributed control systems (DCS) segment is likely to achieve a considerable market share in 2021. Distributed control systems (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 (IIoT) for real-time decision making, are some of the primary drivers of DCS. In addition, the supervisory control and data acquisition(SCADA) is one of the leading segments that generated a noteworthy market share during the projected years 2022 – 2030.
Market by Component
Among the Component, the hardware segment generated a significant market share in 2021. The hardware segment consists of critical instruments such as field instruments, control valves, leakage detection systems, flow computers, and communication devices. Businesses can build safe production procedures using automation and instrumentation technologies. The difficulties of shale gas exploration, as well as the demand for enhanced machinery, are expected to boost the oil & gas automation &instrumentation industry. Software and services, on the other hand, are likely to register an impressive growth rate in the coming years.
Market by Process
All the processes are critical for the oil & gas automation industry. The goal in the upstream segment is a quick return on investment. Participants want to discover and produce products in the quickest, safest, and most cost-effective manner possible. In midstream oil and gas operations, the framework is frequently more accessible, and the situations are less severe. As a result, automation solutions have advanced significantly. Furthermore, the downstream segment of the oil industry is in charge of product distribution and marketing.
Oil & Gas Automation Market Regional Overview
· Rest of Europe
· Rest of Latin America
· South Korea
· Rest of Asia-Pacific
The Middle East & Africa
· South Africa
· Rest of the Middle East & Africa
Tremendous growth in shale gas development fuels the North America market
Based on the regional segmentation, the North America region gathered the maximum amount of share in 2021. The United States is North America's largest oil and gas market. The high growth in the country is credited to the growing export of crude oil, liquefied natural gas (LNG), and refined products. However, the Asia-Pacific region is likely to attain the fastest growth rate throughout the forecast period 2022 – 2030. The expansion of the conventional energy business is expected to create opportunities for market participants due to an increase in energy demand in Asia-Pacific.
Some of the top vendors offered in the professional report include ABB Ltd., Alstom, Baker Hughes Inc., BP Plc, Eaton Corp PLC, Emerson Electric Co., Siemens AG, Sigit Inc, Tyco International Ltd, Weatherford International Ltd, and Yokogawa Electric Co.
The estimated value of global oil & gas automation market in 2021 was accounted to be US$ 18,979 Mn.
The projected CAGR of oil & gas automation market during the analysis period of 2022 to 2030 is 6.7%.
The prominent players of the global oil & gas automation market involve ABB Ltd., Alstom, Baker Hughes Inc., BP Plc, Emerson Electric Co., Eaton Corp PLC, Tyco International Ltd, Sigit Inc, Siemens AG, Weatherford International Ltd, and Yokogawa Electric Co.
North America held the dominating share for oil & gas automation during the analysis period of 2022 to 2030.
Asia-Pacific region exhibited fastest growing CAGR for oil & gas automation during the analysis period of 2022 to 2030.
Growing digitalization in the oil & gas industry, surging oil & gas exploration activities, and growing energy consumption due to inefficient processes drives the growth of global oil & gas automation market.
Based on technology, DCS segment held the maximum share for oil & gas automation market in 2021.