The Middle East’s oil and gas automation and instrumentation market is set to witness significant growth over the next few years, according to industry experts gathering this week in Abu Dhabi for the ISA Automation Conference & Exhibition 2015.
According to a market research report by marketsandmarkets.com, the global process automation and instrumentation market in the oil & gas sector is expected to reach up to $31.24 billion by 2020, at an estimated CAGR of 8.23% from 2013 to 2020.
With 810 billion barrels in proven reserves (50% of global total) and 28 million barrels-per-day in production (30% of global total), Middle East is set to drive 50% of this growth. It is estimated that the region’s oil and gas automation market is set to witness approximately 4% growth annually.
Commenting on the report, Neil Enright, the regional sales director, Middle East, Rockwell Automation said: “Low oil prices are driving operational efficiency and productivity to the top of the agenda for the industry. While this could be a short term concern, the growing population, increase in industrialisation and consumerism have transformed the Gulf states and the region into key energy consumers.”
“As the industry continues the search for new reserves, addresses capacity issues, and upgrades ageing plant and infrastructures, it is increasingly seeking to implement advanced control and automation solutions to optimize production processes and enhance business performance,” he added.
The outlook is positive as recent findings state that the ICT spending in the Middle East is also predicted to top $96 billion next year, making it one of the top three fastest-growing markets in the world.
Just last week, Adnoc announced that it is on track to hit the emirate’s target of raising oil production to 3.5 million barrels per day (bpd) in 2017, with plans to expand refining capacity to 920,000 bpd.
The company is also backing its growth with increased investments of Dh119 billion ($32.3 billion) in 2017, Dh72 billion ($20 billion) in 2018 and Dh66 billion ($18 billion) in 2019.
In line with the growing need for automation excellence, International Society of Automation (ISA) and DMS Global will hold the 3rd ISA Automation Conference & Exhibition 2015 on 26 & 27 May at St. Regis Saadiyat Island, Abu Dhabi, UAE.
Mohammed Loch, the president & CEO, DMS Global said: “Today, most of the businesses recognize the need to achieve greater efficiency as one of their prime goals. Employing the right networks, tools and consulting expertise can go a long way in helping firms achieve and maintain operational efficiency.”
“This is what we aim to assist companies and the industry achieve through the expo,” he added.
The ISA is a full-scale conference and tradeshow in the Gulf Region dedicated for process automation. The comprehensive industry exhibition will showcase latest automation technologies and products from the vendors across the world.
Source: Trade Arabia