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Oil & Gas Automation Market Size (2024 - 2029)

The Oil & Gas automation systems market is experiencing growth driven by increasing global demand and the industry's shift towards digitization and automation. This transition is enhancing efficiency, reducing costs, and improving internal communication through advanced digital technologies and IoT solutions. The market's expansion is further supported by the need to comply with rising government regulations and the industry's response to resource shortages exacerbated by the COVID-19 pandemic. As companies invest in digital platforms and proactive machine monitoring, the market size is expected to grow, reflecting the sector's commitment to innovation and improved operational safety.

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Market Size of Oil & Gas Automation Industry

Oil & Gas Automation Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 5.90 %
Fastest Growing Market Middle East and Africa
Largest Market North America
Market Concentration Low

Major Players

Oil & Gas Automation Market Major Players

*Disclaimer: Major Players sorted in no particular order

Oil & Gas Automation Market Analysis

The Oil & Gas automation market is expected to register a CAGR of 5.9% over the forecast period. Despite fluctuating oil prices, there has been a steady demand for Oil & Gas. Nevertheless, energy usage worldwide is gradually rising, which is expected to further fuel market expansion.

  • The Oil & Gas industry began the move toward digitization with more sensors accumulating data from rigs worldwide. Adopting digital technologies can improve internal communication and simplify plans by allowing engineering teams to work more efficiently with Oil & Gas companies to manage data and project requirements. Automation in the Oil & Gas industry can improve efficiency and reduce costs.
  • Automation and digitalization are advancing quickly in the oil industry. Instead of being reactive, machine monitoring is now proactive. Businesses are putting money into digital platforms, basing judgments on data, and building a cutting-edge virtual workspace focused on a good worker experience. Baker Hughes, an industrial innovation company, and AQI, the Abu Dhabi National Oil Company's (ADNOC) combined partnership with Group 42 (G42), signed a strategic partnership deal in November 2021 to develop advanced analytics services for the worldwide Oil & Gas sector.
  • Increasing global Oil & Gas demand is expected to boost the demand for automation to compete in the market. The International Energy Agency said that by 2040, the world's demand for oil will go up by 21%, making it the source of 35% of all energy, and the demand for natural gas will go up by 31%, making it the source of 17% of all energy.
  • The Oil & Gas sector may be able to apply automation technology at reduced prices in order to increase production and get rid of any potential bottlenecks in the business model. The Oil & Gas sector is benefiting from the deployment of Internet of Things (IoT) solutions, from downhole monitors to surface-control valves broadcasting real-time information into boardrooms for analysis. This enhances operations and makes the entire oilfield a safer place to work.

The COVID-19 outbreak boosted the demand for automation in the Oil & Gas industries due to a shortage of resources. The Oil & Gas automation industry was anticipated to be severely impacted in the post-COVID situation as the government's limitations were entirely abolished and output and explorations were conducted at maximum capacity. Furthermore, increasing government regulations in the Oil & Gas industry have also contributed to the adoption of automation solutions.

Oil & Gas Automation Industry Segmentation

Oil & Gas is a dynamic global industry that faces challenges in cost management, extraction of high value from current assets, and maximization of the up-time. Technological advancement has led to the establishment of connected enterprises that are helping the oil and gas industry move closer to operational excellence. Hence, the industry has been deploying various automation solutions to optimize operations.

The Oil & Gas Automation Market is segmented by Process (Upstream, Midstream, Downstream), by Technology (Sensors & Transmitters, Distributed Control Systems (DCS), Programmable Logic Controllers (PLC), Supervisory Control and Data Acquisition System (SCADA), Safety Instrumented Systems (SIS), Variable Frequency Drive (VFD), Manufacturing Execution System, Industrial Asset Management) and by Geography (North America, Europe, Asia Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

By Process
Upstream
Midstream
Downstream
By Technology
Sensors & Transmitters
Distributed Control Systems (DCS)
Programmable Logic Controllers (PLC)
Supervisory Control and Data Acquisition System (SCADA)
Safety Instrumented Systems (SIS)
Variable Frequency Drive (VFD)
Manufacturing Execution System
Industrial Asset Management
Other Technologies
By Geography
North America
United States
Canada
Europe
United Kingdom
Germany
France
Rest of Europe
Asia-Pacific
China
India
Japan
Rest of Asia-Pacific
Latin America
Middle-East and Africa
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Oil & Gas Automation Market Size Summary

The Oil & Gas automation systems market is poised for significant growth, driven by the increasing demand for energy and the industry's shift towards digitization and automation. As global energy consumption rises, the sector is embracing digital technologies to enhance efficiency and reduce operational costs. This transition involves the integration of advanced sensors and IoT solutions, which facilitate real-time data monitoring and analysis, thereby improving decision-making and operational safety. The market is characterized by a competitive landscape, with key players like ABB Ltd, Honeywell International Inc, and Rockwell Automation Inc continuously innovating to meet the evolving demands of the industry. Strategic partnerships and technological advancements, such as those by Baker Hughes and AQI, are further propelling the adoption of automation solutions across the globe.

In North America, particularly the United States, the demand for automation is fueled by the region's stable economy and the widespread acceptance of automated technologies in oilfield operations. The presence of leading technology vendors and joint investments in research and development activities are also contributing to market growth. The fragmented nature of the market sees companies like ANYbotics and TWMA introducing solutions that enhance automation and data monitoring capabilities. Additionally, the COVID-19 pandemic has accelerated the adoption of automation due to resource shortages, prompting the industry to invest in digital platforms and automation technologies to maintain productivity and compliance with increasing government regulations. As the sector continues to evolve, the integration of automation systems is expected to play a crucial role in optimizing processes and boosting production efficiency.

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Oil & Gas Automation Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Consumers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Intensity of Competitive Rivalry

      5. 1.2.5 Threat of Substitute Products

    3. 1.3 Industry Policies

    4. 1.4 Technology Snapshot

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Process

      1. 2.1.1 Upstream

      2. 2.1.2 Midstream

      3. 2.1.3 Downstream

    2. 2.2 By Technology

      1. 2.2.1 Sensors & Transmitters

      2. 2.2.2 Distributed Control Systems (DCS)

      3. 2.2.3 Programmable Logic Controllers (PLC)

      4. 2.2.4 Supervisory Control and Data Acquisition System (SCADA)

      5. 2.2.5 Safety Instrumented Systems (SIS)

      6. 2.2.6 Variable Frequency Drive (VFD)

      7. 2.2.7 Manufacturing Execution System

      8. 2.2.8 Industrial Asset Management

      9. 2.2.9 Other Technologies

    3. 2.3 By Geography

      1. 2.3.1 North America

        1. 2.3.1.1 United States

        2. 2.3.1.2 Canada

      2. 2.3.2 Europe

        1. 2.3.2.1 United Kingdom

        2. 2.3.2.2 Germany

        3. 2.3.2.3 France

        4. 2.3.2.4 Rest of Europe

      3. 2.3.3 Asia-Pacific

        1. 2.3.3.1 China

        2. 2.3.3.2 India

        3. 2.3.3.3 Japan

        4. 2.3.3.4 Rest of Asia-Pacific

      4. 2.3.4 Latin America

      5. 2.3.5 Middle-East and Africa

Oil & Gas Automation Market Size FAQs

The Oil & Gas Automation Market is projected to register a CAGR of 5.90% during the forecast period (2024-2029)

ABB Ltd, Honeywell International Inc, Rockwell Automation Inc, Mitsubishi Corporation and Schneider Electric SE are the major companies operating in the Oil & Gas Automation Market.

Oil & Gas Automation Market Report Snapshots

Oil & Gas Automation Systems Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)