What Fueled The Previous Growth In The Oil And Gas Automation Market?
The oil and gas automation market has seen considerable growth due to a variety of factors.
• The size of the oil and gas automation market has witnessed significant expansion over the past few years. It is projected to expand from $22.24 billion in 2024 to $23.9 billion in 2025, following a compound annual growth rate (CAGR) of 7.5%.
This growth over the historical period could be linked to factors such as the escalating demand for energy, the urgency to cut costs, safety considerations, and challenges in exploration and production.
What Is The Expected Growth In The Oil And Gas Automation Market Size Evolve over the Forecast Period?
The oil and gas automation market is expected to maintain its strong growth trajectory in upcoming years.
• Anticipated robust growth is on the horizon for the oil and gas automation market, with projections estimating a surge to $30.15 billion by 2029, reflecting a compound annual growth rate (CAGR) of 6.0%.
This growth during the forecasting period can be attributed to an escalating focus on operational efficiency, the burgeoning complexity of operations, a rise in the embracement of digitalization, an emphasis on environmental sustainability, and a shift toward remote operations. Key trends forecasted during this period include an enhanced adoption of advanced analytics, growth in industrial Internet of Things (IoT) integration, an emergence of autonomous operations, a shift to cloud-based solutions, and a tighter focus on cybersecurity.
What Main Forces Are Fueling Expansion In The Oil And Gas Automation Market?
The escalation in oil and gas exploration activities is anticipated to drive the expansion of the oil and gas automation market in the future. These exploration activities involve the methodical search for subterranean deposits of oil and natural gas resources. Introducing automation into the oil and gas sector aids in efficient, cost-effective, and safe solutions. This sophisticated analytics-equipped automation aligns with the industry's objectives for streamlined, sustainable exploration processes. For example, in March 2024, the Energy Information Administration, a U.S government agency, highlighted a 9% growth in U.S. crude oil production in 2023 against 2022, reaching an unprecedented 12.9 million barrels a day. This rise has instigated further crude oil exports, even though U.S. refineries are still geared towards processing denser crude oils. Hence, the escalating activities in oil and gas exploration are fuelling the expansion of the oil and gas automation market.
What Are The Primary Segments In The Global Oil And Gas Automation Market?
The oil and gas automation market covered in this report is segmented –
1) By Component: Software, Service
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)
3) By Process: Midstream, Upstream, Downstream
4) By Application, Chemical And Petrochemical, Paper And Pulp, Water And Waste Water Treatment, Energy And Utilities, Oil And Gas Pharmaceutical: Other Applications
Subsegments:
1) By Software: Supervisory Control And Data Acquisition (SCADA) Systems, Distributed Control Systems (DCS), Advanced Process Control (APC) Software, Asset Management Software, Safety And Security Software
2) By Service: Consulting Services, Integration Services, Maintenance And Support Services, Managed Services, Training And Education Services
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What Trends Are Shaping The Oil And Gas Automation Market?
Major automation firms within the oil and gas industry are focused on creating technological advancements such as actuator solutions that aid in significantly reducing or even eliminating carbon footprint and simultaneously enhancing customer service through their innovative features. Such actuator solutions are employed to lower the carbon footprint by incorporating state-of-the-art technologies that diminish or eradicate the release of greenhouse gases related to industrial operations, transportation, and energy generation. For example, in August 2023, Automation Technology Inc., a valve automation manufacturer located in the US, introduced a non-emission actuator solution. This electro-hydraulic package with zero emissions offers a comprehensive method to curtailing emissions, and it doesn't necessitate a pipeline. Pipeline actuators utilize pipeline gas to produce electricity, which subsequently escapes into the environment. ATI's self-sufficient electro-hydric system with zero emissions links the power source and the actuator in a compact package. The solution constitutes the actuator, pump, motor, manifold, reservoir, and all the necessary controls, thus eliminating the reliance on gas as an energy source.
Who Are the Key Players In The Oil And Gas Automation Market?
Major companies operating in the oil and gas automation market 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 Systèmes SE
• SNC-Lavalin Group Inc.
• Weatherford International Ltd.
• Black & Veatch Holding Company
• TETRA Technologies Inc.
• Yokogawa Electric Corporation
• Kongsberg Gruppen ASA
• Petrofac Limited
What Is The Most Dominant Region In The Oil And Gas Automation Market?
North America was the largest region in the oil and gas automation market in 2024. 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.
