MARKET OVERVIEW- GLOBAL SCADA OIL AND GAS MARKET
SCADA stands for Supervisory Supervisory Control and Data Acquisition, which is a software communication system that enables communication between oil and gas production sites. SCADA software for oil and gas provides operators with the ability to monitor pipelines and gas well production. This software enables automatic notifications and alerts in case of problems, and this also helps to improve the performance of the oil and gas industry to remain competitive by maximizing their resources and processes. Supervisory Supervisory Control and Data Acquisition is also helping to monitor and controlling real time data and helps to keep the flow of products moving. This system also helps to reduce waste and improve efficiency and is particularly useful for processes that can be monitored and controlled remotely. SCADA is used for its industrial automation in applications such as electricity generation and distribution, oil and gas refining operations, telecommunications infrastructure, fabrication and other industrial processing, food and beverage processing and more.
MARKET DRIVERS
The increasing industrial automation, not only in the oil and gas industry but also in many applications such as electricity generation and distribution, oil and gas refining operations, telecommunications infrastructure, transportation and shipping infrastructure, fabrication and other industrial processing, food and beverage processing, chemical manufacturing, utility infrastructure, including water and waste control will drive the market’s growth over the forecast period. In addition, the increasing use for transmission of electricity, transportation of gas and oil in pipelines, water distribution, and traffic lights will also propel market growth. In addition, the increasing emergence of cloud-hosted solutions is becoming popular in various industries and cloud-hosted SCADA is accessible from any internet-connected device, has a low maintenance cost, and provides great flexibility will expand the market growth in the coming period.
MARKET OPPORTUNITIES
The rapid urbanization, change in lifestyle, and surge in investments coupled with governments are incorporating supervisory control and data acquisition (SCADA) for many applications will drive the growth opportunities in the coming period. The growing development of wireless sensor networks and their adoption in SCADA and the use of 5G technology in industrial environments and big data analytics in SCADA systems extend profitable opportunities to the market players. In addition, the emerging technologies such as Cloud-hosted SCADA which is accessible from any internet-connected device, has low maintenance cost, and provides great flexibility will expand the growth opportunities over the forecast period. Furthermore, the use of 5G technology in industrial environments and big data analytics in SCADA systems will be favourable for market growth.
MARKET RESTRAINTS
The lack of significant initial investment is the major limiting factor for the market and for SCADA remote monitoring systems. The system is also vulnerable to how many remote sites you have and what you need, and sometimes, technicians have a hard time trying to justify the need for a SCADA system, since these systems don't actually generate any kind of profit. In addition, operating and implementing SCADA system is expensive and impersonal, and many companies don't afford to send all their technicians to training courses for SCADA system. The lack of training and tech support and operating SCADA systems without the proper knowledge defeats the purpose of having visibility and practical control over your remote sites. These are some restraining factors in the market.
MARKET GROWTH CHALLENGES
The oil and gas industries are going through the challenges of integrating automation and developing cases for automation in the oil and gas industry. Oil and gas exploration and production companies must increase productivity via integrated operations, and the development of infrastructure needed for a field or region will be streamlined and less bespoke. Lower returns in all sectors of the market will place a premium on integration. In addition, vulnerability to cyber-attacks is projected to challenge supervisory control and data acquisition (SCADA) market.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of the global SCADA Oil and Gas market, market size, and compound annual growth rate (CAGR) for the forecast period of 2022-2028, considering 2021 as the base year. The increasing demand for various SCADA Oil and Gas in various applications and the increasing industrial automation in the oil and gas field for monitoring the data and operations to increase product efficiency are expected to propel growth at a specific CAGR from 2021-2028.
SCADA OIL AND GAS MARKET SEGMENTAL OVERVIEW
The global SCADA Oil and Gas market comprises different market segments like Architecture, Sector and geography.
SCADA OIL AND GAS MARKET BY ARCHITECTURE
By architecture, SCADA Oil and Gas includes key segments of
The hardware segment is the dominant segment in the SCADA oil and gas market. The hardware is crucial for monitoring and control of industrial equipment. SCADA system consists of communication equipment, network interfaces, input/ output devices and software and enables the operation of industrial processes remotely or locally, monitoring and processing, and real-time data gathering. In addition, it also enables direct interaction with devices like valves, motors, pumps, valves using Human Machine Interface (HMI) software. Therefore, the hardware segment is likely to lead the market over the forecast period.
SCADA OIL AND GAS MARKET BY SECTOR
The SCADA Oil and Gas market is divided by sector such as
- Upstream
- Midstream
- Downstream
The upstream segment is anticipated to gain a major market share in the future. The upstream industry includes companies that search for deposits of oil or gas (exploration) and then extract them through drilling or other methods. Upstream firms deal primarily with the exploration and initial production stages of the oil and gas industry, which rely on the SCADA system for successful operation and monitoring data. In the upstream sector, its role often is stereotyped as being largely supportive of remote data transmission. SCADA’s ability to collect data at remote oil and gas sites reduces personnel visits and leads to route and dispatch optimization and is hence largely used in the upstream segment.
SCADA OIL AND GAS MARKET BY GEOGRAPHY
The global SCADA Oil and Gas market is studied for the following region
- North America
- Europe
- Asia-Pacific
- Rest of the world (RoW)
North America is expected to dominate the market during the forecast period. The United States is the world’s top producer of oil and natural gas and the region is well known for investing in gas exploitation activity, which is likely to boost market growth for the SCADA oil and gas industry. Another contributing factor such as the country’s economy runs on these fossil fuels. In recent years, the United States has reclaimed its position as the world’s largest producer of oil and gas. These factors are attributed to the region’s growth during the forecast period.
COVID-19 IMPACT ANALYSIS ON THE GLOBAL SCADA OIL AND GAS MARKET
Axiom MRC provides a 360-degree analysis of micro and macro-economic factors in the global SCADA Oil and Gas market. In addition, a complete analysis of changes in the global SCADA Oil and Gas market expenditure, and economic and international policies on the supply and demand side is provided in this exclusive report. The report also studies the impact of a pandemic on global economies, international trade, business investments, GDP, and the marketing strategies of key players present in the market.
The sudden economic breakdown caused by the COVID pandemic has caused certain disruptions in every industry. The lockdown restrictions due to the widespread COVID had caused the traveling restriction and closing of food and restaurant to shut down which resulted in the declining demand for oil and gas which has had a ripple impact on the oil and gas industry which also has an impact on SCADA System. Despite the decline in the demand, in the wake of COVID-19 many upstream industries like critical infrastructure like pipelines, power generation and transmission equipment, and chemical processing facilities, which are often highly interconnected and mutually dependent were focusing on automation and operational and technological personnel are working with understaffed teams and new demands on resources, leaving SCADA potentially vulnerable. Cybercriminals are targeting critical infrastructure to take advantage of this disruption in normal business operations. Post COVID the market will be seen new surge due to the increasing demand from other industries as well and will show positive growth in the coming period.
COMPETITIVE LANDSCAPE ANALYSIS
The SCADA Oil and Gas market has leading operating players that are majorly focused on expanding the global growth of the SCADA Oil and Gas industry with new product innovation, business expansion, and the increasing presence of a range of manufacturers operating in the SCADA Oil and Gas sector has led to the growing demand for the market. Besides, the market offers a range of products in different applications to fulfill the required demand of consumers which is further contributing to healthy growth in the market.
The key players studied in the market are
- ABB Ltd.
- Honeywell International Inc.
- Schneider Electric SE
- Emerson Electric Co.
- Siemens AG
- General Electric Company
- Rockwell Automation Inc.
- Yokogawa Electric Corporation
- Mitsubishi Electric Corporation
- Omron Corporation
RECENT DEVELOPMENT:
March 2023: ABB India, is a subsidiary of ABB Ltd has announced the 130-kilometer Indo-Bangla Friendship Pipeline (IBFPL), through integrated automation and control solutions.
Oct 2021: Emerson Electric Co has expanded its industrial automation control and software footprint with the acquisition of Progea Group. Emerson’s embedded software and control portfolio for manufacturing, infrastructure and building automation applications support Progea’s capabilities in analytics, industrial visualization and IIoT.
