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The distributed control systems (DCS) in the oil and gas market size is estimated to grow at a CAGR of 4.51% between 2023 and 2028. The market size is forecast to increase by USD 833.28 million. The growth of the market depends on several factors such as the rise in adoption of automation systems, the increase in complexity of offshore field operations, and the emergence of new refinery projects.
The report includes a comprehensive outlook on the Distributed Control Systems (DCS) in the Oil and Gas Market, offering forecasts for the industry segmented by Application, which comprises oil processing, oil transport, oil drilling, and others. Additionally, it categorizes Component into software, hardware, and services, and covers Geography regions, including North America, Middle East and Africa, Europe, APAC, and South America. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD million for each of the mentioned segments.
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Distributed Control Systems (DCS) in the Oil and Gas Market Forecast 2024-2028
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Refineries are the major end-users of DCS in the oil and gas industry. DCSs are widely deployed in refineries to process real-time data during refinery operations. Refineries consist of several processing units that are controlled independently by DCS. Moreover, with the increasing complexity of the refining processes, the demand for advanced control systems for safety has increased. Such factors have increased the demand for DCS from refineries which will drive distributed control systems (DCS) in the oil and gas market growth.
Moreover, the construction of new refineries and refinery modernization projects has led to a rise in the demand for DCS across the globe. In addition, in the DCS in the oil and gas market, the need to produce low carbon-emitting fuels has increased investments in refinery upgrade programs, which have led to the emergence of brownfield projects in the refinery sector. Therefore, such factors will drive the growth of the market during the forecast period.
Automation control systems such as DCS can be virtualized with software such as hypervisors, which creates virtual machines. Virtualization can be applied to components in an industrial premise, including servers, storage systems, desktops, files, and networks. Moreover, the virtualization of DCS in the oil and gas industry is slowly gaining momentum with the development of such technologies by DCS in the oil and gas market players and the increasing awareness about the benefits of virtualization among end-users.
In addition, leading DCS in the oil and gas market players such as ABB, Emerson Electric Co, Honeywell International Inc., and Rockwell Automation, Inc. have started offering virtualization for automation control systems, including DCS. The future prospects for virtual DCS look promising as end-users are demanding more flexibility in operating automation software. Thus, such factors will drive the growth of the market during the forecast period.
The need for continuous monitoring of high-value assets throughout the upstream, midstream, and downstream industries makes the oil and gas industry highly dependable on DCS. Therefore, the slowdown in the oil and gas industry due to price volatility can adversely affect the growth of the distributed control systems in the oil and gas market.
Moreover, with falling demand and increasing supply, daily price changes for the US benchmark crude oil West Texas Intermediate (WTI) have become extremely volatile. Nowadays, oil and gas companies are reluctant to invest in big projects and are waiting for oil prices to stabilize fully. Consequently, oil and gas upstream investments are anticipated to be slower. Therefore, such factors will adversely impact the growth of the market during the forecast period.
The oil processing segment will account for a major share of the market's growth during the forecast period. In oil processing, the DCSs are used to monitor and control the refining process, ensuring efficient production and quality management. The growing focus on safety and regulatory compliance is also fueling the demand for DCS systems in the oil industry.
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The oil processing segment was valued at USD 1,326.16 million in 2018. DCS systems offer features such as emergency shutdown, alarm management, and critical control to ensure operational safety and compliance with industry standards. Therefore, the oil processing segment will grow in the global distributed control systems in the oil and gas market during the forecast period.
Based on component, the market has been segmented into software, hardware, and services. The software?segment will account for the largest share of this segment.? The DCS software market in the oil and gas industry is witnessing strong growth due to system upgrades in legacy DCS and new capacity additions. Prominent distributed control systems in the oil and gas market players have introduced new updates for DCS software to make it more robust as per changing end-user requirements. Thus, rising updates of the existing software and the launch of new DCS software would further drive market growth during the forecast period.
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North America is estimated to contribute 30% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. The distributed control systems in the oil and gas market in North America is mainly driven by the US, where increasing shale drilling has led to high investments in the oil and gas industry. Furthermore, in Canada, the decline in crude oil prices affected oil sand drilling activities.
However, with government-mandated production cuts in 2018, the investments in oil sands are expected to rise in Canada. Besides, the upstream oil and gas industry in North America has also been an early adopter of automation control systems. In addition, investments in liquefied natural gas (LNG) liquefaction facilities are expected to be a major driver for the DCS market in the oil and gas industry in North America.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
ABB Ltd., Azbil Corp., General Electric Co., Hitachi Ltd., Hollysys Automation Technologies Ltd., Honeywell International Inc., Hyosung Heavy Industries Corp., Ingeteam Corp. S.A., Mitsubishi Electric Corp., Rockwell Automation Inc., Schneider Electric SE, Siemens AG, SUPCON Technology Co. Ltd., Toshiba Corp., Valmet Corp., Yokogawa Electric Corp., and Zhejiang CHINT Electrics Co. Ltd.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The distributed control systems (DCS) in the oil and gas market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
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Distributed Control Systems (DCS) In The Oil And Gas Market Scope |
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Report Coverage |
Details |
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Page number |
179 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.51% |
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Market Growth 2024-2028 |
USD 833.28 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
3.95 |
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Regional analysis |
North America, Middle East and Africa, Europe, APAC, and South America |
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Performing market contribution |
North America at 30% |
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Key countries |
US, Saudi Arabia, Australia, China, and Russia |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ABB Ltd., Azbil Corp., Emerson Electric Co., General Electric Co., Hitachi Ltd., Hollysys Automation Technologies Ltd., Honeywell International Inc., Hyosung Heavy Industries Corp., Ingeteam Corp. S.A., Mitsubishi Electric Corp., Rockwell Automation Inc., Schneider Electric SE, Siemens AG, SUPCON Technology Co. Ltd., Toshiba Corp., Valmet Corp., Yokogawa Electric Corp., and Zhejiang CHINT Electrics Co. Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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