Increasing use of oil and gas is driving the demand in global oil and gas sector. However, the current rate of production in the industry is not able to curb this rising demand, which is a serious cause of concern. Decreasing oil and gas reserves is also a serious trouble for many industrial operations across the globe. As a result, finding a balance in this conflict has become a major challenge for the industry manufacturers. The disparity in the industry is the strongest driver for the automation and instrumentation processes. Rising adoption with increasing number of drilling operation across the globe is driving the oil and gas automation market.
Overview of Oil and Gas Automation Industry
The strongest advantage of automation of oil and gas extraction is that it derives oil from the already decommissioned fields and assists deep water drilling. Hence, automation and instrumentation are cited to be future of the global oil and gas market, which is expected to grow the use of automated products in order to gain high output. Automated technology and machinery is the easiest tool available for oil & gas production functionality. Automation also assists is refining of these products, which make them highly recommended on the global platform.
Various automated products available in oil and gas automation market include SCADA, transmitters, PLC, DCS, flow computers, analyzers, leakage detection systems and other products. Tremendous growth in demand for oil and gas and increasing operations in this industry are the strongest drivers for the global industry for automation and instrumentation of the oil & gas market. Increasing desire to reduce the operational costs is also a strong driver for the industry. Owing to all these facts, the global industry is poised to make steady growth.
According to the market research reports, oil and gas automation market is expected to grow at an anticipated CAGR of 8.23% from 2013 to 2020. Over the span of next six to seven years, the industry is expected to reach $31.24 billion by the end of 2020. Based on demand across different geographic regions, the market is expected to be driven by Middle East, which is followed by rest of the world and Americas. The rest of the world region will be driven by Russia, while United States of America will dominate the Americas. The rest of the regions like Europe and Asia Pacific will cover small yet significant market share.