PUBLISHER: The Business Research Company | PRODUCT CODE: 1464142
PUBLISHER: The Business Research Company | PRODUCT CODE: 1464142
Oil and gas automation involves the integration of digital technologies across the oil and gas industry with the aim of enhancing competitiveness, reducing costs, and improving overall efficiency. This approach focuses on improving operational efficiency by streamlining processes, minimizing manual interventions, and optimizing the utilization of resources within the oil and gas sector.
The key components of oil and gas automation encompass hardware, software, and services. Hardware refers to the physical and electronic components of a computer system, contrasting with the software that provides instructions. The technologies associated with oil and gas automation include distributed control system (DCS), enterprise resource planning (ERP), supervisory control and data acquisition (SCADA), machine execution system (MES), product lifecycle management (PLM), and programmable logic controller (PLC). These technologies are applied across various processes in the oil and gas industry, including midstream, upstream, and downstream operations. The applications span multiple sectors, including chemical and petrochemical, paper and pulp, water and wastewater treatment, energy and utilities, oil and gas, pharmaceuticals, and others.
The oil and gas automation market research report is one of a series of new reports from The Business Research Company that provides oil and gas automation market statistics, including oil and gas automation industry global market size, regional shares, competitors with oil and gas automation market share, detailed oil and gas automation market segments, market trends, and opportunities, and any further data you may need to thrive in the oil and gas automation industry. This oil and gas automation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The oil and gas automation market size has grown strongly in recent years. It will grow from $20.63 billion in 2023 to $22.24 billion in 2024 at a compound annual growth rate (CAGR) of 7.7%. The growth observed in the historical period can be attributed to several factors, including the rising global demand for energy, a necessity for cost reduction measures, heightened safety concerns within the industry, and challenges associated with exploration and production processes. These factors collectively contributed to the adoption and growth of automation in the oil and gas sector during the historic period.
The oil and gas automation market size is expected to see strong growth in the next few years. It will grow to $28.49 billion in 2028 at a compound annual growth rate (CAGR) of 6.3%. The anticipated growth in the forecast period can be attributed to several factors, including a heightened focus on operational efficiency, the increasing complexity of oil and gas operations, a growing adoption of digitalization initiatives, an emphasis on environmental sustainability, and a notable shift towards remote operations. Key trends expected in the forecast period include an increased adoption of advanced analytics, the expansion of Industrial Internet of Things (IoT) integration, the rise of autonomous operations, a shift towards cloud-based solutions, and an increased emphasis on cybersecurity within the oil and gas automation sector.
The growth of the oil and gas automation market is expected to be propelled by the increasing activities in oil and gas exploration. Oil and gas exploration involves the systematic process of searching for underground deposits of oil and natural gas resources. Automation in the oil and gas industry is instrumental in delivering efficient, cost-effective, and safe solutions. It aligns with industry objectives for optimized and sustainable exploration practices through the use of advanced analytics. In 2021, according to the U.S. Energy Information Administration (EIA), the annual U.S. crude oil production was expected to average 11.1 million barrels per day (b/d). The EIA anticipated an increase in crude oil production in 2022 by 0.4 million b/d due to increased drilling activities as prices remain at or near $50 per barrel. This surge in oil and gas exploration activities contributes to the growth of the oil and gas automation market.
Leading companies in the oil and gas automation market are focusing on the development of technological solutions, such as actuator solutions, to address environmental concerns and provide advanced features to customers. Actuator solutions are designed to eliminate carbon footprint by implementing advanced technologies that reduce or eliminate emissions of greenhouse gases associated with industrial processes, transportation, and energy production. For instance, Automation Technology Inc., a U.S.-based valve automation manufacturer, introduced a zero-emission actuator solution in August 2023. This electro-hydraulic package aims to provide a comprehensive method for reducing emissions without relying on a pipeline. Unlike traditional pipeline actuators that use pipeline gas to generate electricity, ATI's self-contained zero-emission electro-hydraulic system connects the power supply and actuator in a compact package, eliminating the need for gas as a power source.
In September 2021, Rockwell Automation Inc., a U.S.-based automation company, acquired Plex Systems Inc. for an undisclosed amount. This acquisition was part of Rockwell Automation's strategy to expand its portfolio of industrial automation and digital transformation solutions. Plex Systems Limited, based in the UK, is a software company that offers Software as a Service (SaaS) solutions tailored for the oil and gas industry.
Major companies operating in the oil and gas automation market report are BP Plc, Robert Bosch GmbH, Siemens AG, General Electric Company, Mitsubishi Electric Corporation, Honeywell International Inc., ABB Ltd., Schlumberger Limited, Johnson Controls International plc, Baker Hughes Inc., Eaton Corp PLC, Texas Instruments Inc., Cognizant Technology Solutions Corp., Alstom SA, Tyco International Ltd., Jacobs Engineering Group, Parker Hannifin Corporation, Emerson Electric Co., Rockwell Automation Inc., Dassault Systemes SE, SNC-Lavalin Group Inc., Weatherford International Ltd., Black & Veatch Holding Company, TETRA Technologies Inc., Yokogawa Electric Corporation, Kongsberg Gruppen ASA, Petrofac Limited
North America was the largest region in the oil and gas automation market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the oil and gas automation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the oil and gas automation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The oil and gas automation market consists of revenues earned by entities by providing services such as implementation of advanced technologies to streamline operations, reduce downtime, optimize resource use, and enhance safety and performance in the oil and gas industry. The market value includes the value of related goods sold by the service provider or included within the service offering. The oil and gas automation market also includes sales control systems, actuators, valves, sensors, and software solutions tailored to optimize operations and enhance efficiency in the oil and gas industry. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from goods and/or services sold within the specified market and geography through sales, grants, or donations in terms of currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values - that is, they are revenues generated by organizations in the specified geography within the specified market, irrespective of where they are produced. It does not include revenues from resales either further along the supply chain or as part of other products.
Oil And Gas Automation Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on oil and gas automation market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for oil and gas automation ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The oil and gas automation market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.
2) 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)