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The oil and gas pipeline and transportation automation market size is forecast to increase by USD 1.47 billion at a CAGR of 3.16% between 2023 and 2028. The market is experiencing significant growth due to several key trends. The expanding infrastructure of oil terminals is driving market demand, as automation technologies are being increasingly adopted to optimize operations and enhance efficiency. Another significant trend is the increasing use of the Internet of Things (IoT) in midstream oil and gas operations. IoT enables real-time monitoring and predictive maintenance, reducing downtime and improving safety. Furthermore, the transition towards alternative energy sources is also impacting the market, as automation solutions are being implemented to optimize renewable energy transportation and distribution. Overall, these trends are fueling market growth and creating opportunities for market participants to innovate and provide advanced automation solutions to meet the evolving needs of the oil and gas industry.
The market is witnessing significant growth due to the increasing adoption of automation solutions in extraction sites and refineries. The integration of sensors, control systems, software algorithms, and distributed control systems (DCS) with programmable logic controllers (PLCs) and SCADA systems is driving the market. Remote monitoring, automated valve control, predictive maintenance algorithms, real-time data analytics, and pipeline safety and security are key areas of focus in the market. The use of IoT, artificial intelligence (AI), robotics, machine learning, and communication networks is revolutionizing pipeline operations, reducing human errors, and minimizing downtime. Predictive analytics plays a crucial role in the market by enabling preventive maintenance and ensuring regulatory compliance.
Regulations and standards are stringent in the oil and gas industry, and automation solutions are helping companies meet these requirements while improving efficiency and productivity. The market is expected to grow further with the integration of advanced technologies such as AI, machine learning, and real-time data analytics in pipeline operations, LNG transportation, and distribution. The implementation of these technologies is expected to lead to significant cost savings, improved safety, and enhanced operational efficiency.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The pipeline segment is estimated to witness significant growth during the forecast period. The oil and gas pipeline and transportation sector relies heavily on advanced automation technologies to ensure the safe and efficient transportation of resources from extraction sites to refineries and end-users. Sensors, control systems, software algorithms, and automation components play a crucial role in monitoring and managing pipeline operations. Real-time data analytics, predictive maintenance algorithms, and automated valve control are essential automation solutions that help prevent accidents, leaks, and spills. The oil and gas industry, which includes both crude oil and natural gas, operates under complex conditions with varying operating environments and fluid types. The transportation of these resources through pipelines is subject to several key performance indicators, such as material flow, pressure, temperature, material density, and viscosity.
To ensure the reliability and safety of pipeline infrastructure, remote monitoring, predictive analytics, process automation, and distributed control systems are employed. Automation technologies, such as IoT, artificial intelligence, robotics, machine learning, and programmable logic controllers, are increasingly being used to optimize pipeline operations. These technologies enable real-time data analytics, human error reduction, and efficient transportation solutions. However, regulations and standards are essential to ensure the safe and secure operation of pipelines, as well as to mitigate the impact of supply chain disruptions and downtime. In the context of the oil and gas industry, pipelines are considered the safest mode of transportation, but proper maintenance and monitoring are necessary to prevent accidents and ensure high reliability.
Advanced sensors, communication networks, and SCADA systems are used to monitor pipeline conditions and detect anomalies in real-time. Predictive maintenance algorithms and automated valve control help prevent leaks and spills, while distributed control systems and programmable logic controllers ensure efficient and reliable pipeline operations. Despite the benefits of automation, safety and security remain paramount in the oil and gas pipeline and transportation sector. Proper implementation and maintenance of automation technologies are essential to prevent accidents, leaks, and spills, and to ensure regulatory compliance. The use of automation technologies, such as machine learning and artificial intelligence, can help predict potential issues and prevent downtime, ultimately leading to more efficient and cost-effective pipeline operations.
In conclusion, the oil and gas pipeline and transportation sector is a complex and critical component of the midstream sector, requiring advanced automation solutions to ensure safe and efficient transportation of resources. Proper monitoring, maintenance, and implementation of automation technologies, such as sensors, control systems, software algorithms, and communication networks, are essential to prevent accidents, leaks, and spills and to ensure regulatory compliance. The use of advanced technologies, such as machine learning, artificial intelligence, and robotics, can help optimize pipeline operations and prevent downtime, ultimately leading to more efficient and cost-effective transportation solutions.
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The pipeline segment was valued at USD 7.38 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 30% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The North American market is experiencing significant growth due to the region being the second-largest consumer of crude oil globally. The US, Canada, and Mexico have a high demand for fuel, leading to increased investments in advanced oilfield technologies such as transportation automation. Wireless systems, advanced software packages, and various deployment models including on-premise, cloud-based, and hybrid, are transforming the market. The market is further driven by investments in offshore fields in the Gulf of Mexico, enhancing operational efficiency and reducing costs.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing expansion of oil terminals is the key driver of the market. The global oil and gas industry is witnessing significant growth due to increasing energy demand, leading to an expansion of oil terminals and pipelines, particularly in Asia Pacific and Africa. In September 2021, Saudi Aramco announced the extension of its exploration program, Aramco Namaat, with 22 new Memorandums of Understanding (MoUs) and one joint venture (JV) agreement, focusing on advanced materials, technology, industrial and energy services, and sustainability. Similarly, India's petroleum regulator approved the development of a 33,764 km natural gas pipeline network for the country's gas grid in July 2021.
In addition, Saudi Aramco resumed work on three offshore crude expansion projects in April 2021, providing an additional 1.5 million barrels per day. Oil terminals play a crucial role in the oil and gas supply chain by storing crude oil and petroleum products and serving as transportation hubs. The rise in new terminal and pipeline constructions is driven by the need for efficient transportation solutions and the increasing demand for energy. These projects incorporate advanced automation technologies, including sensors, control systems, software algorithms, and distributed control systems (DCS), to ensure safety and security, predictive maintenance, and real-time data analytics. Automation components, such as Programmable Logic Controllers (PLCs), SCADA systems, communication networks, and automated valve control, are essential for process automation and reducing human errors.
Advanced sensors, IoT, artificial intelligence (AI), machine learning (ML), and robotics are integrated into oil and gas pipelines and terminals to monitor and control operations, detect leaks, spills, and accidents, and optimize transportation and logistics. However, the implementation of automation solutions in the oil and gas industry comes with challenges, including regulations and standards, supply chain disruptions, and the need for efficient transportation solutions. The integration of predictive analytics and safety and security measures is crucial to mitigate risks and ensure the safe and efficient transportation of oil and natural gas.
Increasing adoption of IoT in midstream oil and gas operations is the upcoming trend in the market. The oil and gas midstream sector plays a pivotal role in connecting extraction sites with refineries and end-users, while optimizing the supply chain. With the downturn in oil prices in 2015, oil companies have been prioritizing cost reduction strategies. One such area of focus is pipeline and transportation automation to enhance reliability and efficiency. Advanced automation technologies, including sensors, control systems, software algorithms, IoT, artificial intelligence, robotics, and machine learning, are being integrated into midstream operations. Real-time data analytics, predictive maintenance algorithms, and automated valve control are essential components of these automation solutions. These technologies enable remote monitoring, predictive analytics, and process automation, reducing human errors, downtime, and safety risks.
Distributed Control Systems (DCS), Programmable Logic Controllers (PLC), SCADA systems, and communication networks are integral parts of these advanced automation systems. Regulations and standards, such as those related to safety and security, are driving the adoption of these technologies in the oil and gas industry. In the natural gas sector, LNG terminals are also implementing automation solutions to ensure efficient transportation solutions and minimize accidents, leaks, and spills.
Increasing use of alternative energy sources is a key challenge affecting the market growth. The market is witnessing significant growth due to the increasing adoption of automation technologies in extraction sites, refineries, and pipelines. The implementation of sensors, control systems, software algorithms, and advanced sensors for automated valve control and real-time data analytics is driving market growth. The integration of Internet of Things (IoT), artificial intelligence (AI), robotics, machine learning (ML), and predictive maintenance algorithms is enabling remote monitoring and predictive analytics for process automation and distributed control systems. Safety and security are key concerns in the oil and gas industry, leading to the deployment of automation solutions for pipeline and LNG terminal operations.
The use of SCADA systems and communication networks for human error reduction and downtime minimization is also gaining popularity. Regulations and standards are being implemented to ensure efficient transportation solutions and prevent accidents, leaks, and spills. Despite the challenges posed by supply chain disruptions and increasing oil demand, the market is expected to continue its growth trajectory, offering significant opportunities for automation components suppliers.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
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.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is witnessing significant growth due to the increasing demand for efficient and safe transportation solutions in the extraction sites and refineries. Automation technologies, including sensors, control systems, software algorithms, IoT, artificial intelligence, robotics, and machine learning (ML), are being increasingly adopted for remote monitoring, automated valve control, predictive maintenance algorithms, real-time data analytics, and safety and security. The automation of pipelines, LNG terminals, and oil and gas transportation systems is crucial for addressing challenges such as oil demand, supply chain disruptions, and ensuring compliance with regulations and standards. Advanced sensors and distributed control systems, such as programmable logic controllers and SCADA systems, are essential components of automation solutions.
Further, automation technologies help prevent accidents, leaks, and spills by enabling predictive analytics and process automation. Communication networks play a vital role in ensuring the seamless flow of data between various components of the automation system. Human errors and downtime are minimized, leading to cost savings and improved efficiency. The oil and gas industry, as well as the natural gas industry, are investing heavily in automation solutions to enhance safety and security, reduce operational costs, and improve overall performance. The market is expected to grow significantly in the coming years as automation technologies continue to evolve and become more sophisticated.
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Market Scope |
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Report Coverage |
Details |
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Page number |
180 |
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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 3.16% |
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Market growth 2024-2028 |
USD 1.47 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
2.5 |
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Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 30% |
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Key countries |
US, Canada, Saudi Arabia, 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., Andritz AG, Azbil Corp., Beckhoff Automation GmbH and Co. KG, Eaton Corp. Plc, Emerson Electric Co., Endress Hauser Group Services AG, FANUC Corp., Furukawa Electric Co. Ltd., Honeywell International Inc., INTECH Process Automation Inc., Mitsubishi Electric Corp., OMRON Corp., Robert Bosch GmbH, Rockwell Automation Inc., Schneider Electric SE, Siemens AG, Toshiba Corp., Valmet Corp., and Yokogawa Electric Corp. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, 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 market 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 Solution
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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