Product Code: 49430
The Oil & Gas Automation and Control System Market was valued at USD 29.65 billion in 2019 and is expected to reach USD 51.94 billion by 2025, at a CAGR of 9.8% over the forecast period 2020 - 2025. According to Forbes, the dependence of the oil and gas industry on automation has increased in the last decade, and this is expected further to double by 2020. Automation gives operators immediate access to important performance, condition and technical information which speeds up decision-making, troubleshooting, and performance efficiency.
- Drilling is an expensive process in the oil & gas industry, and it involves considerable safety risks for the workers. Automating manual portions of that process, like pipe handling and pressure drilling, can significantly reduce safety risks, and speed up the overall drilling process.
- Moreover, automation helps in diagnostics and inspections of the machinery as well. Unmanned drones or submersible devices help to monitor and aid the inspection process. These vehicles are controlled remotely, and can even broadcast live video feeds and data back to a central location.
- However, on the flip, strict restrictions that are imposed to curb the adverse effects on the environment along with, the rigid regulations imposed on oil & gas drilling activities restrict the growth of oil & gas automation and control system market.
Scope of the Report
The oil and gas industry operates in a very volatile environment. Automation is providing cost-saving investments for the oil &gas industry. It helps in improving the entire process from boiler diagnosis to actual drilling, supply, and trading, and retail services. Moreover, the parts of the downstream business that could benefit most from more automation are in back-office work processes, predictive maintenance, drone inspections of vessel internals, tanks and flare stacks, and discerning systemic root causes from safety incidents.
Key Market Trends
Upstream Industries Offers Potential Growth
- The upstream industry finds and produces crude oil and natural gas. The upstream is sometimes also known as the exploration and production (E&P) sector. Upstream profitability largely depends on production and surface operations efficiency. With the substantial number of offshore production platforms, incremental improvements in operational efficiency yield meaningful financial gains.
- Further, with the use of autonomous underwater vehicles and unmanned vehicles, it is possible to monitor pipelines and avoid any mishap.
- Moreover, the implementation of 3D printing helps to optimize and compress supply chain operations. This leads to the exchange of digital blueprints, allowing operators to print replacement parts on-site and reduce downtime costs. It also helps in prevent ing obsolescence by allowing for instant printing of parts no longer in production, thus improving the profitability of upstream assets.
- For instance, Shell has used 3D printers to prototype its Stones Oil and Gas station in the Gulf of Mexico, the deepest oil and gas drilling station in the world. They used a 3D printer to produce a scaled-down plastic version, including all components, in only four weeks. This version helped them understand how to improve components before building the real-life buoy in the construction yard and even helped to work out the most efficient assembly sequence for the buoy. Shell saved USD 40 million by highlighting design flaws at an early stage.
- Carefully targeted automation can cut costs and, more importantly, can also improve the reliability of production equipment, which in turn extends an asset's economic life and improves profitability.
- With the increasing demand for crude oil in different industries such as transportation, industrial activities, and electric power drives the need for more upstream activities which in return will create a market for oil & gas automation and control system market.
North America Holds a Significant Market Share
- The United States is the largest market for oil and gas in North America. The country's newfound shale resources and government policies that aim at making the country the top oil and gas producer in the next few years is expected to drive the demand for sensors market in the oil and gas industry.
- For instance, with the United States Department of the Interior (DoI) planning to allow offshore exploratory drilling in about 90% of the outer continental shelf (OCS) acreage, under the National Outer Continental Shelf Oil and Gas Leasing Program (National OCS Program) for 2019-2024, the oil and gas sector in the region is expected to open up new opportunities to the market.
- Further, according to the U.S. Energy Information Administration, the United States will become a net energy exporter in 2020 and will remain so throughout the projection period as a result of large increases in crude oil, natural gas, and natural gas plant liquids (NGPL) production coupled with slow growth in U.S. energy consumption.
- Therefore, as the new opportunities in the oil and gas sector are coming up in this region it is expected that it will have a positive outlook on the oil & gas automation and control system market.
The oil & gas automation and control system market is fragmented and competitive in nature. Fall in crude oil prices followed by project cancellation from 2014 to 2016, multiple rounds of industry layoffs were announced that left companies with a reduced number of skilled workers. This increased the dependence of oil companies on automation to complete processes at every level such as upstream, midstream, and downstream. This creates a competitive environment among the players. Some of the players are Honeywell International Inc., Siemens AG, ABB Ltd, Rockwell Automation Inc.
- August 2018 - Rockwell Automaton added five companies to its Machine Safety System Integrator program. Created in 2014, this program helped industrial companies to identify system integrators with current safety standards expertise and have a proven track record in designing safety systems.
- January 2018 - Siemens AG founded "MindSphere World", a worldwide user organization for the cloud-based open IoT operating system. It works by equipping the customer's machinery with sensors that collect thousands of data points. Collecting and analyzing the data gathered could be complex and expensive, but with the help of MindSphere, machinery, plants, and control systems (irrespective of the vendor) from various locations can be connected using Siemens's software and hardware tools.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client's requirements
- 3 months of analyst support
Table of Contents
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Introduction to Market Drivers and Restraints
- 4.3 Market Drivers
- 4.3.1 Rising Demand for Safety Systems in the Oil and Gas Industry
- 4.3.2 Increasing Oil Consumption
- 4.4 Market Restraints
- 4.4.1 Rigid Regulations Imposed on Oil and Gas Drilling Activities
- 4.5 Industry Value Chain Analysis
- 4.6 Industry Attractiveness - Porter's Five Force Analysis
- 4.6.1 Threat of New Entrants
- 4.6.2 Bargaining Power of Buyers/Consumers
- 4.6.3 Bargaining Power of Suppliers
- 4.6.4 Threat of Substitute Products
- 4.6.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 By Oil and Gas Industry Activity
- 5.1.1 Upstream
- 5.1.2 Midstream
- 5.1.3 Downstream
- 5.2 Geography
- 5.2.1 North America
- 188.8.131.52 United States
- 184.108.40.206 Canada
- 5.2.2 Europe
- 220.127.116.11 Germany
- 18.104.22.168 United Kingdom
- 22.214.171.124 France
- 126.96.36.199 Russia
- 188.8.131.52 Rest of Europe
- 5.2.3 Asia-Pacific
- 184.108.40.206 China
- 220.127.116.11 Japan
- 18.104.22.168 India
- 22.214.171.124 South Korea
- 126.96.36.199 Rest of Asia-Pacific
- 5.2.4 Latin America
- 5.2.5 Middle East and& Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 Mitsubishi Electric Corporation
- 6.1.2 Schneider Electric SE
- 6.1.3 Emerson Electric Co
- 6.1.4 Eaton Corporation
- 6.1.5 Dassault Systemes SE
- 6.1.6 Honeywell International Inc
- 6.1.7 ABB Ltd
- 6.1.8 Rockwell Automation Inc
- 6.1.9 Yokogawa Electric Corporation
- 6.1.10 Siemens AG
- 6.1.11 Robert Bosch GmbH
- 6.1.12 Texas Instruments Inc
- 6.1.13 Johnson Controls Inc
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS