Industrial Automation Oil and Gas Market

Global Industrial Automation Oil and Gas Market Size (2023 to 2028)

The global industrial automation oil and gas market size is expected to reach USD 23.86 billion by 2028 from USD 18.52 billion in 2023, registering a CAGR of 5.2% from 2023 to 2028.

Oil and gas exploration is a multi-stage process where several companies work integrated or on contract. The activities involve exploration, drilling, extraction, production and transportation. Automating the oil and gas industry helps in tracking geographical data of oil reserves and analyzing the feasibility of the operations, performing Comprehensive surveillance helps in increasing productivity, improving efficiency, and reducing costs. Automation also helps reduce operation failure and optimize resources.

Global Industrial Automation Oil and Gas Market Drivers:

The rapid adoption of automation in the oil and gas industry is majorly propelling global market growth. The oil and gas industry is adopting automation to reduce the cycle time of the operational process. The Internet of Things and artificial intelligence help monitor and analyse real-time information to enhance operations and make the oilfield a safer place to work. Also, with the increase in demand for oil and gas, businesses are putting money into enabling technologies that monitor operations proactively to improve efficiency and reduce costs. Further flourishing manufacturing industry and ongoing advancements in the oil and gas industry are driving the industrial automation oil and gas market growth.

The industrial automation oil and gas market is anticipated to have lucrative opportunities during the forecast period. The industry is adopting technologies such as the Industrial Internet of Things (IIoT), Big data analytics, cloud technology, predictive maintenance, manufacturing execution systems and artificial intelligence to carry out oil and gas industrial activities. Further, the industry is adopting vital data management and analysis tools that significantly improve overall operational efficiency and reduce production cuts. Moreover, to reduce human intervention and make the work area safer, enabling technologies are being adopted during this period. This is providing great opportunities for the industrial automation oil and gas market.

Global Industrial Automation Oil and Gas Market Restraints:

The lack of a skilled workforce in automating the oil and gas industry is a significant restraint to the growth of the global market. The oil and gas industry is adopting artificial intelligence and the Industrial Internet of Things (IIoT) for exploration, drilling, extraction, production, and transportation activities. The automation deployment requires a skilled workforce to carry out data analysis of oil and gas activities. Thus, the lack of a skilled workforce is a major restraint in the industrial automation oil and gas market. Further factors, such as a lack of resources for operation, also impede the industrial automation of the oil and gas market.

Impact of COVID-19 on the industrial automation oil and gas market:

COVID-19 has emerged as a global pandemic and disrupted various industries around the world. Transportation has been halted worldwide, and virus containment and treatment have become top priorities. Globalization and interconnected economies are affected due to supply and demand mismatch. Several businesses were not operating at full capacity abiding by the pandemic restrictions. This outbreak has an economic impact and implications on markets, including the industrial automation oil and Gas market. Government limitations on oil and gas exploration have negatively impacted the industry. Further, the slowdown of manufacturing and supply chain disruptions have impacted the industrial automation oil and gas market.

REPORT COVERAGE:

This research report on the global industrial automation oil and gas market has been segmented and sub-segmented into the following categories.

Industrial Automation Oil and Gas Market - By Component:

• Industrial Robots
• Control Valves
• Field Instruments
• HMI
• Industrial PC
• Process Analyzer
• Intelligent pigging
• Vibration Monitoring

The field instruments segment is expected to hold the largest market revenue share during the forecast period. Field instruments comprise various types of transmitters used for instrumentation. Pressure transmitters are used in the oil and gas sector. With automation, these valves can be controlled and monitored remotely. These adoptions of automation are driving the industrial automation oil and gas market. The following control valves segment is projected to hold the second-largest market growth. These are mechanical devices that are used to regulate or control the flow of fluids like water, steam, oil, and gas. Typically, processing plants have thousands of interconnected control valves that work together. This wide application in the oil and gas industry is driving the industrial automation oil and gas market.

Industrial Automation Oil and Gas Market - By Solutions:

• SCADA
• PLC
• DCS
• MES
• Functional Safety
• PAM

The Plant Asset Management (PAM) segment is expected to record the largest revenue share during the forecast period. It helps in managing long-term and short-term operations. It also reduces the cycle time of the operational process by planning the production, treatment, transportation, maintenance, and realization of hydrocarbon products sequentially. This increases efficiency and profitability and reduces operational costs. Thus, PAM efficient solutions are driving the industrial automation oil and gas market.

Industrial Automation Oil and Gas Market - By Region:

• North America
  • The United States
  • Canada
  • Rest of North America
• Europe
  • The United Kingdom
  • Spain
  • Germany
  • Italy
  • France
  • Rest of Europe
• The Asia Pacific
  • India
  • Japan
  • China
  • Australia
  • Singapore
  • Malaysia
  • South Korea
  • New Zealand
  • Southeast Asia
• Latin America 
  • Brazil
  • Argentina
  • Mexico
  • Rest of LATAM
• The Middle East and Africa
  • Saudi Arabia
  • UAE
  • Lebanon
  • Jordan
  • Cyprus

The Asia-Pacific region is significantly contributing to the growth of the industrial automation oil and gas market during the forecast period. China is the largest producer in Asia and accounts for more than half of total production. Further Industrial automation deployments in the oil and gas industry are expected to grow rapidly in countries like China, India, Indonesia and Malaysia. Moreover, the rise in consumption of oil and gas, booming motorization and industrial growth are driving the market growth.

KEY MARKET PLAYERS:

ABB Ltd., Endress+Hauser AG, Emerson Electric Co., General Electric, Rockwell Automation Inc., Schneider Electric SE, Siemens AG, Mitsubishi Electric Corp., Honeywell International Inc. and Yokogawa Electric Corp. are some of the major companies in the global industrial automation oil and gas market.

RECENT HAPPENINGS IN THE MARKET:

• In 2023, Rockwell Automation leverages IoT, gamification and digital twin technologies to implement a robotic supervision system (RSS) for total energies. These autonomous operations are being adopted by the oil and gas sector concerning working conditions in onshore and offshore projects.
• In 2022, Omega Simulation Co., a subsidiary of Yokogawa Electric Corporation, announced a joint project with the Nippon Foundation for the promotion of decarbonization in the field of offshore oil and natural gas.