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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 of the market depends on several factors, such as the growing expansion of oil terminals, the benefits of pipelines over other modes of oil and gas transportation, and new exploration policies. Our report examines historical data from 2018-2022, besides analyzing the current market scenario.
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.
Oil and Gas Pipeline and Transportation Automation Market Forecast 2024-2028
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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. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
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 (including oil and gas pipeline and transportation automation), especially in APAC and Africa, where the continuous need for energy is demanding new oil and gas 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 oil and gas exploration and production activities, along with improved and efficient pipelines for oil and gas 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 oil and gas pipeline and transportation automation vendors, which can become a major challenge for the growth of the market in focus during the forecast period.
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.
The COVID-19 pandemic led to a reduction in oil and gas prices, which has intensified the pressure on oil and gas companies to boost productivity and minimize production costs in 2020. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown and travel restrictions, which led to the resumption of supply chain activities. As a result, the demand for oil and gas surged since the beginning of 2021, which is anticipated to drive the market growth in 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 oil and gas pipeline and transportation automation market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
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 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 forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
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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