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Frost & Sullivan: Spiralling Energy Needs to Spur Uptake of Automation and Control Solutions in Oil and Gas Industries
Heightened oil and gas infrastructure investments and stricter process safety regulations to boost market prospects

LONDON, Nov. 22, 2012 /PRNewswire/ -- The automation and control solutions (ACS) market in the European oil and gas industries is expected to witness moderate growth over the next 3-4 years. The demand for oil and gas is expected to boost investments in upstream and mid-stream oil and gas segments which, in turn, will result in greater demand for ACS.

New analysis from Frost & Sullivan (http://www.industrialautomation.frost.com), Automation and Control Solutions Market in the European Oil & Gas Industries, finds that the market earned revenues of $1,556.6 million in 2011 and is estimated to reach $1,904.1 million in 2016.

"With an extremely volatile geopolitical landscape in the Middle East and North Africa, the European oil and gas industry is expected to witness greater investments in greenfield projects over the forecast period," noted Frost & Sullivan Senior Research Analyst Karthik Sundaram. "Although European oil and gas reserves are restricted to the North Sea basin, new upstream exploration and investments in on-shore fields are expected to meet growing energy needs. Such trends will offer significant growth potential for ACS."

Another key factor driving market growth will be the need for improved asset utilisation and reduced downtime. As Europe has limited sources of crude oil and natural gas, it will be imperative for end-users to invest in advanced ACS that can maximise process output and limit wastage.

Major accidents in oil and gas installations like the Deepwater horizon spill and the Gulf of Mexico incident have highlighted the need for process safety in major oil and gas installations. Such accidents are influencing the regulatory landscape and will encourage end-user investments in ACS, especially, safety systems.

"European Commission regulatory initiatives have been aimed at enforcing exclusive safety standards and regulations governing all segments of the oil and gas industry," explained Sundaram. "In effect, the emphasis on the highest levels of process safety will persuade end-users to adopt and implement high-end safety systems and safety programmable logic controllers (PLCs) in their oil and gas installations."

While these are positive trends, major market participants concede that the current economic uncertainty has the potential to dampen new investments and delay project orders, affecting revenue margins and profitability in the short-term.

"However, overall automation needs in the oil and gas domain are expected to be high, and an early resolution of the Euro zone crisis is likely to promote investments and, subsequently, aid the long-term growth of the ACS market," concluded Sundaram.

If you are interested in more information on this study, please send an e-mail with your contact details to Julia Nikishkina, Corporate Communications, at julia.nikishkina@frost.com.

Automation and Control Solutions Market in the European Oil & Gas Industries is part of the Industrial Automation & Process Control Growth Partnership Service programme, which also includes research in the following markets: European Process Safety, European Programmable Logic Controllers, European Smart Grid Automation and European Advanced Management Solutions. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organisation prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Automation and Control Solutions Market in the European Oil & Gas Industries
M848-10

Contact:
Julia Nikishkina
Corporate Communications – Europe
P: +7 (499) 918 6146
E: julia.nikishkina@frost.com

http://www.frost.com

SOURCE Frost & Sullivan

About PR Newswire
Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

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