Global Automation Solutions Market in Shale Gas Industry 2016-2020

Outlook of the automation solutions market in shale gas industry

Technavio’s market research analysts have predicted the global automation solutions market in the shale gas industry to grow at a slow but modest CAGR of more than 1% over the forecast period. The availability of unconventional forms of energy resources like shale gas, tight gas, and oil shale, among others is one of the key factors driving the growth of this market globally. To meet the rising energy demand from countries like India, China, and the US, the oil and gas industry has initiated the exploration of unconventional energy resources, such as shale gas, tight gas, oil shale, and others. According to EIA’s World Energy Outlook, the global demand for energy will grow by more than a third by 2035. The forecast also estimates that these countries may account for a 60% increase in global energy consumption. In the recent years, crude oil production in the US has expanded rapidly which is powered by oil extracted from the shale reserves such as Bakken, Permian Basin, and the Eagle Ford reserves. Shale gas production in the US rose from 5 Bcf per day in 2007 to 33 Bcf per day in 2013 at a rate of more than 550%. Therefore, the expansion of shale gas and shale oil exploration demands better infrastructure and improved methods for controlling, monitoring, and real-time sharing, thereby, propelling the growth prospects for the automation solutions market in the shale gas industry.

In this industry research report, the analysts have estimated factors such as the increasing adoption of analytics in the shale gas industry will spur this market’s growth in the coming years. The computational analysis of data is a valuable asset that drives the decision-making process across most industries, including the shale gas industry. Most vendors in the automation solutions market are increasingly using analytics to enhance their business and boost value propositions. Moreover, analytics and statistical methods can be customized as per the market and industry requirements. The use of analytical methods also promotes decision-making with the least margin of errors, helps foresee problems, and identify the cause of errors. For instance, Siemens collaborated with SAP using the HANA cloud platform to offer voluminous data analysis and interpretation technologies. This collaboration has helped Siemens store critical data and offer effective plant data services. Additionally, analytics can be used to identify the need for maintenance and servicing, thus improving the overall efficacy of various operations and aiding in the growth of the automation solutions market until the end of 2020.

Segmentation by type and analysis of the automation solutions market in shale gas industry

• Distributed controller system (DCS)
• Supervisory control and data acquisition (SCADA)
• Programmable logic controller (PLC)
• Manufacturing execution system (MES)

During 2015, the distributed controller system (DCS) dominated the global automation solutions market in the shale gas industry and accounted for more than 47% of the market share. A DCS is an automated control system distributed across the entire organization instead of being centralized. This distribution ensures that each component of a manufacturing plant is controlled by one or more controllers, providing instructions to individual components of the manufacturing unit. Therefore, the DCS solutions allow effective and efficient management of the entire manufacturing unit by controlling and coordination each sector individually. Factors such as growing demand for natural gas, particularly from the US, and advancements in technology will impel the growth of the DCS segment until the end of 2020.

Geographical segmentation and analysis of the automation solutions market in shale gas industry

• Americas
• APAC
• EMEA

The Americas dominated the market and accounted for a market share of more than 86% during 2015. In the US, natural gas is preferred over coal-fired power plants as it a cleaner source of energy. Moreover, the high availability and low price of shale gas have also led to the increasing adoption of natural gas as a feedstock for power plants. Therefore, with more power plants in the US shifting to natural gas, will continue to propel the growth prospects for the automation solutions market in the Americas.

Competitive landscape and key vendors

The global automation solutions market in shale gas industry is quite consolidated with the presence of large international vendors such as ABB and Emerson. The vendor competition is intense and they compete in terms of product features, price, customized solutions, and services offered. With increased competition, the market consolidation is increasing, and small entities are being acquired by or merged with major players.

The key leading vendors are -

• ABB
• Emerson Electric
• Honeywell International
• Schneider Electric
• Siemens

Other prominent vendors analyzed in this market research are Adept Technologies, Beckhoff, Bosch Rexroth, CG Automation Solutions USA, EYELITE, GE, Idec, Keyence, Koyo Electronics, Mitsubishi Heavy Industries, Omron, Panasonic, Rockwell, Toshiba, Unitronics, and Yokogawa Electric.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the global automation solutions market in shale gas industry?
• What are the key market trends impacting the growth of the global automation solutions market in shale gas industry?
• What are the challenges to market growth?
• Who are the key vendors in the global automation solutions market in shale gas industry?
• What are the market opportunities and threats faced by the vendors in the global automation solutions market in shale gas industry?
• Trending factors influencing the market shares of the Americas, APAC, and EMEA.
• What are the key outcomes of the five forces analysis of the global automation solutions market in shale gas industry?

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