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Oil and Gas Automation Market Segmentation 2020

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Cheryl Hutcherson

(Daily Market Journal via Comtex) -- The oil and gas automation market is expected to register a CAGR of more than 6.47% during the forecast period, 2019-2024. In the processes of the oil and gas industry, there is always a strong demand for safety and reliability. The supply chain of this industry creates a great need for automation, industrial expertise and a vast network of partners. Process automation helps oil and gas producers to integrate information, as well as control, power and provide security solutions, to meet dynamic global demand.

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From the past, we observe that even if oil prices fluctuate, demand for oil and gas has remained stable.The price of a barrel of oil has reached a record high of over 140 USD, as well as a low at 20 USD, but average energy consumption is steadily increasing worldwide. In 2017, it was estimated that the world had consumed more than 98 million barrels of oil per day, which indicates a growth of almost 2% compared to 2016. This consumption rate was mainly boosted by the fall in prices of crude oil and increasing demand for automobiles.

In addition, since low crude oil prices hit the market in early 2014, major consumer groups in Asian and European countries have mainly benefited from these changes.In fact, according to British Petroleum estimates, the regions have experienced a considerable increase in refinery capacity and throughput. The refining capacity and throughput of the Asia-Pacific region increased by 1.3% and 8.6%, respectively, between 2013 and 2016. It is estimated that the region was able to refine more than 27,000 million barrels of oil every day in 2016, thanks to cheaper crude oil.

 

The low crude oil price situation occurred in late 2014 as a result of the excess supply of crude oil worldwide. New shale resources in North America and high production in the Middle East have lowered prices on the world market.

To rebalance the situation, the Organization of the Petroleum Exporting Countries (OPEC) took the initiative to minimize the production of crude oil until prices returned to normal. This has seriously affected the demand for automation in the industry.

Although oil prices have returned to their usual prices, the cuts in the name of developing reserves and the OPEC decision should create supply constraints. Reducing oil production in order to balance the oversupply situation may be a wise choice. But the prolonged cuts, until the end of 2018, raise fears that this situation will plunge the world into a supply shock.Recovering from the oversupply situation is a crucial step for the global oil and gas industry. However, an improvement over a supply shock can lead to unexpected results, thus affecting all industries.

Scope of the report
Oil and gas, a dynamic global industry, often face challenges in managing costs, extracting high value from existing assets and maximizing uptime. Technological advances have led to a connected business, which helps the oil and gas industry to move closer to operational excellence. The cloud, mobility and analytics provide a workable view of production data in real time.

Key Market Trends
Enterprise Resource and Planning (ERP) is Expected to Register a Significant Growth
ERP systems offer an integrated real-time view of core operations, such as product planning, development, manufacturing, sales, and marketing. At workstations, these ERP systems enable the scheduling and management of the workflow, while implementing a well-organized product cycle, which is done by monitoring the progress of various processes, as well as providing analytical data that aids decision-making. The features reduce excessive inventory costs. Oil and gas industries are among the early adopters for the ERP system, as the operations are highly dependent upon workflow management and market analysis. ERP providers are designing solutions specific to the upstream, midstream, and downstream activities.

As SCADA systems are capable of integration with ERP solution, real-time asset performance can be monitored and their maintenance schedules can be automated, thereby, avoiding sudden / unplanned downtime. The need for reducing the machine downtime expenses across the upstream and downstream companies supports the growth of the ERP segment in the market studied. SCADA, integrated with ERP, is becoming popular in the oil and gas industry, owing to the focus on safety. In the downstream companies, such integration is allowing companies to correctly map business processes, risk factors, and control mechanisms, thus, streamlining the resource utilization and maintenance capabilities.

 

Due to the growing importance of synchronizing and supplementing an organization's business processes, the demand for ERP solutions is expected to increase during the forecast period. However, the availability of open source applications, tough competition, and higher implementation costs are expected to challenge the market's growth.

United States is Expected to Hold Major Share
The dependence of the oil and gas industry on automation has increased over the past decade, and multiple rounds of industry layoffs were announced that left oil and gas companies with a reduced number of skilled workers. This led to the increasing dependence of US oil companies on automation, in order to complete processes without any delay. In 2017, US exports of crude, as well as liquefied natural gas (LNG) and refined products, continued to rise, which aligned perfectly with the new administration's motto of "energy dominance" for the United States.

Although the US is still a net importer of crude, the growing place as an energy exporter and low-cost supplier could fundamentally change its position in the global energy landscape. As a result, automation is increasingly being adopted in the oil and gas sector in the United States. In terms of cost reductions, US natural gas producers have lowered and sustained costs, especially in the Marcellus and Haynesville gas plays, with the aid of automation.
For instance, SCADA is widely applied in the upstream, midstream, and downstream oil and gas sectors in the United States. In the upstream sector, its role is often stereotyped as being largely in support of remote data transmission. However, due to the wide and varied use of SCADA in other industrial sectors, this is expected to change. In addition, owners and operators in the United States recognize how IT-based automation can productively address the unique challenges of the upstream oil and gas sector.

Competitive Landscape
The oil and gas automation market is highly competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. These major players with prominent shares in the market are focusing on expanding their customer base across foreign countries. These companies are leveraging on strategic collaborative initiatives to increase their market share and increase their profitability. The companies operating in the market are also acquiring start-ups working on oil and gas automation to strengthen their product capabilities. In August 2018, Rockwell Automaton added five new members to its Machine Safety System Integrator program. Created in 2014,

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Table of contents

1 INTRODUCTION
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 Increasing Oil Consumption
4.3.2 Increasing Scarcity of Skilled Workers
4.4 Market Restraints
4.4.1 Volatile Oil Price Situation
4.5 Value Chain / Supply Chain Analysis
4.6 Industry Attractiveness - Porters Five Forces 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 Offering
5.1.1 Hardware
5.1.2 Software
5.1.3 Service
5.2 By Technology
5.2.1 Supervisory Control and Data Acquisition (SCADA)
5.2.2 Programmable Logic Controller (PLC)
5.2.3 Distributed Control System (DCS)
5.2.4 Machine Execution System (MES)
5.2.5 Product Lifecycle Management (PLM)
5.2.6 Enterprise Resource Planning (ERP)
5.2.7 Human Machine Interface (HMI)
5.2.8 Other Technologies
5.3 By Process
5.3.1 Upstream
5.3. 2 Midstream
5.3.3 Downstream
5.4 Geography
5.4.1 North America
5.4.1.1 US
5.4.1.2 Canada
5.4.2 Europe
5.4.2.1 Germany
5.4.2.2 UK
5.4.2.3 France
5.4.2.4 Rest of Europe
5.4.3 Asia-Pacific
5.4.3.1 China
5.4.3.2 Japan
5.4.3.3 India
5.4.3.4 Rest of Asia-Pacific
5.4.4 Latin America
5.4 .5 Middle East & Africa

6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Mitsubishi Electric Corporation

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The post Global Oil and Gas Automation Market to Register a CAGR of more than 6.47% by 2024: Orbis Research appeared first on Dailymarketjournals.

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