Industrial Automation Oil & Gas Market Forecasts to 2030 - Global Analysis By Process (Upstream, Midstream and Downstream), Component, Technology, Application, End User and By Geography

According to Stratistics MRC, the Global Industrial Automation Oil & Gas Market is accounted for $19.3 billion in 2024 and is expected to reach $28.4 billion by 2030 growing at a CAGR of 6.7% during the forecast period. Industrial automation in the oil and gas sector is the use of advanced technologies to enhance efficiency, safety, and reliability in extraction, processing, and distribution processes. This involves the integration of control systems, sensors, and software to monitor operations, manage equipment, and optimize resource usage. By automating routine tasks and real-time data analysis, companies can reduce human error, lower operational costs, and improve overall productivity, ensuring a more sustainable and effective approach to managing oil and gas resources.

According to EIA, in 2021, the U.S. shipped petroleum to 176 nations and 4 U.S. territories at a rate of around 8.54 million b/d. About 2.96 million barrels per day (b/d) of crude oil made up 35% of all gross petroleum exports from the United States in 2021.

Market Dynamics:

Driver:

Growing demand for operational efficiency

The growing demand for operational efficiency in the oil and gas industry is driving advancements in industrial automation. Companies are increasingly adopting automated systems to streamline processes, enhance productivity, and reduce costs. This shift not only optimizes resource management but also improves safety and environmental compliance. As competition intensifies and global energy needs rise, the focus on automation becomes crucial for achieving sustainable growth and maintaining a competitive edge in the market.

Restraint:

Lack of skilled workforce

The lack of a skilled workforce in the industrial automation sector of oil and gas can severely hinder operational efficiency and innovation. Insufficient expertise may lead to increased downtime, suboptimal system performance, and heightened safety risks. Without qualified personnel to manage and maintain advanced automation technologies, companies may struggle to implement effective solutions, resulting in higher costs and reduced competitiveness. This skills gap ultimately impedes the industry's ability to adapt and thrive in a rapidly evolving landscape.

Opportunity:

Increased exploration activities

Increased exploration activities in the oil and gas sector are significantly fueling the demand for industrial automation. As companies seek to access new reserves and enhance extraction efficiency, automated technologies play a vital role. Advanced tools and systems facilitate real-time monitoring, data analysis, and predictive maintenance, enabling organizations to navigate challenging environments effectively. This push for innovation not only maximizes output but also ensures safer and more environmentally responsible exploration practices.

Threat:

Shift towards renewable energy

The shift towards renewable energy can negatively impact the industrial automation sector in oil and gas by reducing investment in traditional fossil fuel operations. This decline may result in decreased demand for automation technologies, leading to stagnation in innovation and job losses. As companies pivot to renewables, they might neglect the development and maintenance of existing infrastructure, ultimately compromising operational efficiency and safety in oil and gas production while navigating a complex transition.

Covid-19 Impact:

The COVID-19 pandemic significantly impacted the market, disrupting supply chains and delaying projects. Many companies faced reduced workforce availability and operational constraints, which hindered automation initiatives. Conversely, the crisis accelerated the adoption of remote monitoring and automation technologies, as businesses sought to enhance safety and efficiency. This dual effect highlighted the industry's need for resilience and adaptability, shaping future strategies in a post-pandemic landscape.

The internet of things segment is projected to be the largest during the forecast period

The internet of things segment is projected to account for the largest market share during the projection period. This technology enhances operational efficiency, predictive maintenance, and resource management, allowing companies to monitor equipment and processes remotely. IoT applications improve decision-making and safety while reducing costs, driving innovation and sustainability in the industry as companies leverage data-driven insights for optimized performance.

The service providers segment is expected to have the highest CAGR during the forecast period

The service providers segment is expected to have the highest CAGR during the extrapolated period. They help companies implement advanced automation technologies, optimize processes, and ensure compliance with safety regulations. By delivering tailored solutions, these providers enhance operational efficiency and reduce downtime. Their continuous innovation and technical support enable oil and gas firms to adapt to evolving industry demands and leverage automation for sustainable growth.

Region with largest share:

North America region is projected to account for the largest market share during the forecast period driven by the need for enhanced operational efficiency. Major players are investing in automation solutions to optimize extraction, processing, and distribution processes. The region's focus on safety and environmental compliance further propels the adoption of advanced technologies. As energy demands rise, the region remains a critical hub for innovation and investment in industrial automation within the oil and gas sector.

Region with highest CAGR:

Asia Pacific is expected to register the highest growth rate over the forecast period driven by increasing demand for efficiency, safety, and reliability in oil and gas operations. This growth is largely attributed to advancements in digital technologieswhich enhance operational efficiency and safety across various processes such as drilling, production, and logistics. The integration of advanced analytics and cloud-based solutions is also pivotal for optimizing operations and reducing environmental impacts in the sector.

Key players in the market

Some of the key players in Industrial Automation Oil & Gas market include Emerson Electric, General Electric, Rockwell Automation, Honeywell International, Teradyne, PakEnergy, Eaton Company, ABB, Schneider Electric, Siemens AG, Cognite, Mitsubishi Electric Corp., Yokogawa Electric, Aveva Group and Baker Hughes.

Key Developments:

In September 2024, Honeywell announced the completion of its acquisition of Air Products' liquefied natural gas (LNG) process technology and equipment business for $1.81 billion in an all-cash transaction. This further expands the comprehensive suite of top-tier solutions Honeywell offers its customers for managing their energy transformation journey.

In May 2024, Honeywell and Weatherford announced a partnership to deliver a comprehensive emissions management solution for the energy industry. The agreement combines Honeywell's emissions management suite with Weatherford's Cygnet SCADA platform, providing customers with a powerful tool to monitor, report, and take measures to help reduce greenhouse gas emissions.

Processes Covered:

• Upstream
• Midstream
• Downstream

Components Covered:

• Hardware
• Software
• Services

Technologies Covered:

• Internet of Things
• AI and Machine Learning
• Cloud Computing

Applications Covered:

• Process Automation
• Discrete Automation
• Safety and Security Systems
• Other Applications

End Users Covered:

• National Oil Companies (NOCs)
• International Oil Companies (IOCs)
• Service Providers
• Equipment Manufacturers
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances