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The oil and gas pipeline and transportation automation market is projected to reach a value of USD 10.18 billion with at a CAGR of 3.16% between 2023 and 2028. The growth trajectory of the market hinges on multiple factors, notably the expanding footprint of oil terminals, the inherent advantages of pipelines compared to alternative modes of oil and gas transportation, and evolving exploration policies fostering industry innovation. However, the market faces formidable challenges in the form of increasing adoption of alternative energy sources, posing a threat to traditional oil and gas transportation models. Moreover, technical hurdles in the transportation of crude oil and natural gas, coupled with the substantial costs linked to maintaining pipeline transportation infrastructure, compound the industry's challenges. Despite these obstacles, the market's resilience lies in its ability to adapt to changing dynamics, leveraging technological advancements and strategic investments to mitigate risks and seize opportunities in an increasingly complex energy landscape. Strategic collaborations and innovative solutions are pivotal in navigating challenges and sustaining growth amidst evolving market dynamics. Our report examines historical data from 2018-2022, besides analyzing the current market scenario.
Market Forecast 2024-2028
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This report extensively covers market segmentation by application (pipeline, LNG, and terminal), solution (SCADA, DCS, and PLC), and geography (North America, APAC, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges.
The pipeline segment is estimated to witness significant growth during the forecast period. Pipelines are integral components of the oil and gas midstream sector and are highly preferred for oil and gas transportation. Pipelines are highly complex systems that transport high volumes of fluids and are governed by several key performance indicators, such as material flow, pressure, temperature, material density, and viscosity.
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The pipeline segment was the largest and was valued at USD 7.37 billion in 2018. The demand for automation in pipelines is led by the increasing regulatory control over the oil and gas industry and the construction of new pipelines. Natural gas pipelines would lead to the demand for new pipelines during the forecast period owing to the high demand for natural gas. Although crude oil and other products can be transferred through marine vessels and rail and road mediums, the pipeline remains the best solution for the transportation of natural gas, apart from LNG. Hence, such factors are expected to drive the growth of the pipeline segment in the market in focus during the forecast period.
Based on the solution, the market has been segmented into SCADA, DCS, and PLC. The SCADA segment will account for the largest share of this segment. SCADA solutions provide real-time monitoring, control, and data acquisition capabilities, allowing operators to oversee and manage various aspects of the pipeline infrastructure. There are several key market players with a focus on offering SCADA solutions. For instance, Schneider Electric SE provides a comprehensive range of SCADA solutions for the oil and gas industry. Their SCADA systems offer real-time monitoring, control, and data acquisition capabilities for pipeline operations. Siemens AG offers SCADA solutions specifically tailored for the oil and gas sector. Their SCADA systems enable remote monitoring, control, and visualization of pipeline operations. Hence, such factors will drive the growth of the SCADA segment in the market during the forecast period.
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APAC is estimated to contribute 30% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. Another region offering significant growth opportunities to market players is North America. North America is the second-largest consumer of crude oil worldwide, owing to the high demand for fuel in the US, Canada, and Mexico. The high cost of oil and gas production and the extensive use of advanced oilfield technologies such as transportation automation.
In addition, due to technological innovations in drilling, including hydraulic fracturing and horizontal drilling, and the rebound of crude prices have boosted the production of crude oil in the US. To cope with the transportation bottleneck, some significant investments in pipeline infrastructure have taken place, which would see the commencement of new pipelines. Such factors are expected to drive the regional market during the forecast period.
In the landscape of oil and gas automation, Programmable Logic Controllers (PLCs) are pivotal components, orchestrating operations at extraction sites and refineries. Enhanced by sensors and control systems, PLCs ensure seamless functionality, supported by software algorithms and real-time data analytics for optimized performance. Automated valve control and predictive maintenance algorithms further bolster reliability along vast pipelines and LNG facilities. Distributed control systems and SCADA systems enable comprehensive process automation, while communication networks facilitate remote monitoring, mitigating risks of human errors and downtime. Compliance with stringent regulations and standards is upheld through predictive analytics and integration of IoT, artificial intelligence, and robotics. Collaborative efforts drive efficiency in pipeline and transportation projects, leveraging machine learning and advanced automation solutions to enhance safety and security across the industry. Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
Oil terminals support the oil and gas supply chain by holding crude oil and petroleum products. In addition, they serve as centers for oil and gas transportation. The rising energy demand has resulted in an increase in new oil terminal and pipeline constructions, especially in APAC and Africa, where the continuous need for energy is demanding new infrastructure.
For instance, In July 2021, India's petroleum regulator authorized 33,764 km of natural gas pipeline network for the country's gas grid002E. Hence, such new exploration and production activities, along with improved and efficient pipelines for transportation, will drive the growth of the market during the forecast period.
The growing demand for automation solutions has intensified the competition among established market players. Therefore, to differentiate themselves and increase their market presence, automation vendors are increasingly focusing on after-sales services and software solutions. Some automation solution providers are increasing their product lines by adding automation software and systems, whereas major automation software providers are integrating with automation service providers. Market players are also focusing on horizontally integrating with system integrators.
For example, in 2016, Rockwell Automation acquired Maverick Technologies, a systems integrator company, with an aim to expand its information and control solutions portfolio. The broader automation industry is expected to witness further merger and acquisition activities during the forecast period. Thus, value chain integration by automation solution providers is one of the trends that is anticipated to drive the growth of the market in focus during the forecast period.
Though the long-term benefits of proper maintenance outweigh the costs, end-users are reluctant to deploy preventive maintenance solutions, citing high costs. Automation of some processes and the upgrade of automation technologies require considerable time, which leads to the halting of operations, thereby resulting in a lack of interest among end consumers. As the oil and gas industry is capital-intensive, companies often prefer to deploy new solutions only when there is a major breakdown, which may result in significant downtime.
Moreover, the growth of the market is also hindered by the lack of an effective skillset required for handling new and upgraded technologies. These factors reduce the business opportunity for vendors, which can become a major challenge for the growth of the market in focus during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
ABB Ltd., Andritz AG, Azbil Corp., Beckhoff Automation GmbH and Co. KG, Eaton Corp. Plc, Emerson Electric Co., Endress Hauser Group Services AG, FANUC Corp., Furukawa Electric Co. Ltd., Honeywell International Inc., INTECH Process Automation Inc., Mitsubishi Electric Corp., OMRON Corp., Robert Bosch GmbH, Rockwell Automation Inc., Schneider Electric SE, Siemens AG, Toshiba Corp., Valmet Corp., and Yokogawa Electric Corp.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2023 for the following segments
The market is driven by a confluence of technological advancements and industry imperatives. From extraction sites to refineries, automation components like sensors and control systems optimize operations, aided by software algorithms and predictive maintenance algorithms. Real-time insights from Machine Learning (ML), IoT and artificial intelligence bolster safety and efficiency, while robotics and automated valve control streamline processes. However, challenges persist, including supply chain disruptions, accidents, and human errors, necessitating Advanced software packages like machine learning and advanced sensors. Regulatory compliance and safety remain paramount, prompting investment in safety and security measures and predictive analytics. Embracing communication networks and efficient transportation solutions, the industry moves towards seamless operations, whether through onpremise deployment, cloudbased deployment, or hybrid deployments, ensuring resilience in the face of evolving demands and regulatory landscapes.
In the realm of oil and gas pipeline and transportation automation, cutting-edge technologies play a pivotal role in ensuring safety, efficiency, and regulatory compliance. Real-time data analytics enable oil demand forecasting and optimize operations, while pipeline and transportation projects rely on supervisory control and data acquisition systems for seamless monitoring. Machine learning enhances predictive maintenance, mitigating risks of leaks and spills while maximizing the utilization of reserves of oil and gas. Distributed control systems streamline operations, adhering to stringent regulations and standards governing the oil industry and natural gas industry. Advanced analytical and reporting tools provide actionable insights, facilitated by wireless systems and supported by on-premise, cloud-based, or hybrid deployment options. Collaborative efforts between oil and gas companies and technology providers ensure the continuous evolution and optimization of automation solutions in this critical sector.
Oil And Gas Pipeline And Transportation Automation Market Scope |
|
Report Coverage |
Details |
Page number |
180 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.16% |
Market Growth 2024-2028 |
USD 1.46 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
2.5 |
Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 30% |
Key countries |
US, Canada, Saudi Arabia, China, and Russia |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Andritz AG, Azbil Corp., Beckhoff Automation GmbH and Co. KG, Eaton Corp. Plc, Emerson Electric Co., Endress Hauser Group Services AG, FANUC Corp., Furukawa Electric Co. Ltd., Honeywell International Inc., INTECH Process Automation Inc., Mitsubishi Electric Corp., OMRON Corp., Robert Bosch GmbH, Rockwell Automation Inc., Schneider Electric SE, Siemens AG, Toshiba Corp., Valmet Corp., and Yokogawa Electric Corp. |
Market dynamics |
Parent market analysis, market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Solution
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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