Frost & Sullivan: Spiralling Energy Needs to Spur Uptake of
Automation and Control Solutions in Oil and Gas Industries
- Heightened oil and gas infrastructure investments and
stricter process safety regulations to boost market
prospects
LONDON, Nov. 22, 2012 /PRNewswire/ -- The automation and
control solutions (ACS) market in the European oil and gas
industries is expected to witness moderate growth over the next 3-4
years. The demand for oil and gas is expected to boost investments
in upstream and mid-stream oil and gas segments which, in turn,
will result in greater demand for ACS.
New analysis from Frost & Sullivan
(http://www.industrialautomation.frost.com), Automation and
Control Solutions Market in the European Oil & Gas
Industries, finds that the market earned revenues of
$1,556.6 million in 2011 and is
estimated to reach $1,904.1 million
in 2016.
"With an extremely volatile geopolitical landscape in the
Middle East and North Africa, the European oil and gas
industry is expected to witness greater investments in greenfield
projects over the forecast period," noted Frost & Sullivan
Senior Research Analyst Karthik
Sundaram. "Although European oil and gas reserves are
restricted to the North Sea basin, new upstream exploration and
investments in on-shore fields are expected to meet growing energy
needs. Such trends will offer significant growth potential for
ACS."
Another key factor driving market growth will be the need for
improved asset utilisation and reduced downtime. As Europe has limited sources of crude oil and
natural gas, it will be imperative for end-users to invest in
advanced ACS that can maximise process output and limit
wastage.
Major accidents in oil and gas installations like the Deepwater
horizon spill and the Gulf of
Mexico incident have highlighted the need for process safety
in major oil and gas installations. Such accidents are influencing
the regulatory landscape and will encourage end-user investments in
ACS, especially, safety systems.
"European Commission regulatory initiatives have been aimed at
enforcing exclusive safety standards and regulations governing all
segments of the oil and gas industry," explained Sundaram. "In
effect, the emphasis on the highest levels of process safety will
persuade end-users to adopt and implement high-end safety systems
and safety programmable logic controllers (PLCs) in their oil and
gas installations."
While these are positive trends, major market participants
concede that the current economic uncertainty has the potential to
dampen new investments and delay project orders, affecting revenue
margins and profitability in the short-term.
"However, overall automation needs in the oil and gas domain are
expected to be high, and an early resolution of the Euro zone
crisis is likely to promote investments and, subsequently, aid the
long-term growth of the ACS market," concluded Sundaram.
If you are interested in more information on this study, please
send an e-mail with your contact details to Julia Nikishkina,
Corporate Communications, at julia.nikishkina@frost.com.
Automation and Control Solutions Market in the European Oil
& Gas Industries is part of the Industrial Automation
& Process Control Growth Partnership Service programme,
which also includes research in the following markets: European
Process Safety, European Programmable Logic Controllers, European
Smart Grid Automation and European Advanced Management Solutions.
All research included in subscriptions provide detailed market
opportunities and industry trends that have been evaluated
following extensive interviews with market participants.
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Contact:
Julia Nikishkina
Corporate Communications – Europe
P: +7 (499) 918 6146
E: julia.nikishkina@frost.com
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