Hazardous area equipment sales decline due to oil and gas market

IHS reported that sales of hazardous area equipment declined by over 11% from 2014 to 2015 due to a decline in the oil and gas market.

07/10/2016


Figure 1 shows a comparison between the three major regions of the world from 2014 to 2020 for hazardous area equipment sales. Courtesy: IHS TechnologySales of hazardous area equipment declined by 11.1%, 2014 to 2015. Revenues are estimated to have fallen from $8.6 billion in 2014 to $7.7 billion in 2015, according to a recent IHS report. The report predicts that it will take until 2019 for world sales revenues to recover to their 2014 level. Figure 1 shows a comparison between the three major regions of the world from 2014 to 2020.

The report was compiled following consultations with major suppliers of equipment, standards authorities, and industry specialists. It covers many aspects of the industry and the markets it serves, as well as providing background information on the relevant legislation and approval bodies.

The underlying message is that it is the companies that supply the oil and gas, and related, industries that have suffered revenue declines. Most of the reduced revenues were from sales to up-stream operators in response to the forecast viability of some wells and to questions on the potential value of exploration. 

The response to the fall in the price of oil was somewhat different from manufacturers supplying industries where oil is their raw material. They include the chemical, pharmaceutical, and plastics industries and even refineries. These industries suffered less; in some cases, their revenues even grew as their finished products became more competitive, resulting in increased revenues and profits.

John Morse is a senior analyst for industrial automation, at IHS Technology. IHS Technology is a CFE Media content partner. Edited by Chris Vavra, production editor, CFE Media, cvavra@cfemedia.com.

- See additional stories linked below. 

ONLINE extra

See additional stories from IHS linked below.



No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Big Data and IIoT value; Monitoring Big Data; Robotics safety standards and programming; Learning about PID
Motor specification guidelines; Understanding multivariable control; Improving a safety instrumented system; 2017 Engineers' Choice Award Winners
Selecting the best controller from several viewpoints; System integrator advice for the IIoT; TSN and real-time Ethernet; Questions to ask when selecting a VFD; Action items for an aging PLC/DCS
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.
Motion control advances and solutions can help with machine control, automated control on assembly lines, integration of robotics and automation, and machine safety.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Future of oil and gas projects; Reservoir models; The importance of SCADA to oil and gas
Big Data and bigger solutions; Tablet technologies; SCADA developments
SCADA at the junction, Managing risk through maintenance, Moving at the speed of data
Automation Engineer; Wood Group
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
click me