Market Trends of Industrial Automation Industry
Oil and Gas Industry to Witness Significant Growth
- The oil and gas industry has been a dominating segment in adopting industrial automation solutions. However, the growth prospects for industrial automation in this industry are limited compared to other developing industries, and therefore, the growth rate is expected to slow in this industry.
- Oil and gas automation, also known as oilfield automation, is a set of processes, many leveraging digital technologies, aimed at enhancing the competitiveness of energy producers in global markets. While certain sectors within the industry are more primed for automation, key areas include drilling, production operations, logistics, safety, and retail operations. Oil and gas automation predominantly relies on IoT-based sensors, predictive systems, and AI-driven expert systems to boost productivity and bridge skill gaps arising from labor shortages.
- The oil and gas industry's hazardous environments are increasingly being navigated through automation. Robots and automated systems handle tasks like drilling, inspection, and maintenance, significantly reducing human exposure to risks.
- The industry is bolstering safety with automated features like emergency shutdown systems, guaranteeing swift responses to difficult situations. By deploying sensors and automated tools, companies are ensuring compliance with regulations and curbing their environmental footprint.
- The oil and gas industry is a vital component of the global economy. As per IEA, global production of liquid fuels will increase by more than 0.8 million b/d in 2024, slowing from the 1.8 million b/d increase in 2023, as OPEC+ voluntary production cuts are offset by supply growth outside of OPEC+. Although OPEC+ crude oil production in 2024 decreases by 0.9 million b/d compared with last year, forecast production outside of OPEC+ increased by 1.8 million b/d, led by the United States, Guyana, Brazil, and Canada. With significant surge in oil production and surging digitization, oil and gas companies have increasingly relied on digital technology and automation.
Understand The Key Trends Shaping This Market
Download Sample
Asia-Pacific is Expected to Register the Fastest Growth
- Asia-Pacific is home to some of the world's largest manufacturing economies, including China, Japan, South Korea, and Taiwan. The ongoing expansion of manufacturing industries in automotive, electronics, aerospace, and medical devices creates a significant demand for industrial automation.
- Initiatives by emerging countries like India to expand their manufacturing footprint and become self-reliant further propel the market growth. Manufacturing emerged as one of the high-growth sectors in India. The 'Make in India' program places India on the global map as a manufacturing hub and globally recognizes the Indian economy. According to IBEF, India can export goods worth USD 1 trillion by 2030 and is on the road to becoming a significant global manufacturing hub.
- The government of India aims for a USD 5 trillion economy by 2025, of which manufacturing would be worth USD 1 trillion. The convergence of flagship programs, such as Make in India with Skill India and Digital India, would be vital to achieving this goal, thereby driving the region's market growth.
- The ongoing initiatives to build a battery manufacturing plant for faster adoption of electric vehicles are further driving the market growth. For instance, in August 2023, Recharge Industries announced its plans to build a factory with an annual capacity of 30 gigawatt-hours to supply batteries for roughly 300,000 EVs. Construction is expected to begin around May 2024, with production slated to start in 2025.
- The region is the biggest semiconductor and electronics product manufacturer due to the presence of companies like Taiwan Semiconductor Manufacturing Company. Taiwan produces over 60% of the world's semiconductors and over 90% of the most advanced ones. Most of the semiconductors are manufactured by TSMC.
Get Analysis on Important Geographic Markets
Download Sample
