SCADA market growth expected to continue

IHS projects continued growth in the supervisory control and data acquisition (SCADA) market with the Americas generating a lot of revenue through the oil and gas markets as well as strong domestic consumption in the food and beverage and power markets.

01/22/2015


IHS projects continued growth in the supervisory control and data acquisition (SCADA) market with the Americas generating a lot of revenue through the oil and gas markets as well as strong domestic consumption in the food and beverage and power markets. CCompared with the industrial automation hardware business, the market for supervisory control and data acquisition (SCADA) software automation products is expected to experience higher growth in the future. This is partly because SCADA products are mostly used in large investments in the energy business-such as in oil and gas and power facilities-an area that is performing better than other sectors. SCADA's strong growth is also due to an increasing number of customers becoming aware of the importance of such software, which can enhance their production lines' efficiency.

As the most important market for industrial automation investments, the Americas region generated the most SCADA sales revenue worldwide in 2013. The biggest contributor is the United States, which accounted for most of the revenue in the Americas region. The major factors driving the scale and growth of the Americas region are investments in the oil and gas markets, as well as the strong domestic consumption in the food and beverage and power markets. Canada and the Latin American countries also contribute copious opportunities in the oil and gas industry.

Europe was the second largest market for SCADA in 2013, only slightly smaller than the Americas. The market driver for Europe is its strong machinery and manufacturing industries. Germany is the key SCADA user in the region mainly due to the country's cornerstone automotive industry. 

Russia and the Middle East were the main contributors for global oil and gas production, which is suffering from the declining price of crude oil. This price decrease is diminishing the investment opportunity.

Europe as a whole is slowly dragging itself out of recession. With tight fiscal policies and credit conditions in several countries, excess industrial capacity, and relatively weak export demand, there are few signs of a strong upturn for the region in the near future.

Asia-Pacific, which had been one of the fastest growing regions in the past few years, is undergoing a major deceleration. China is the major cause for that. China's leadership has identified financial stability as its most important objective with only moderate stimulus applied. Because of that, many investments have been delayed. Thus, the overall Asia market had a lower growth in 2013 compared with past years. However, Asia still experienced the highest rate of expansion of all worldwide regions due to its small revenue base and plentiful investment opportunities. Extensive investments are being made in industries related to basic domestic consumption, such as food and beverage and water and wastewater.

Another important country in Asia is Japan. Since 2012, the Japanese government pushed forward strong economic incentive plans by applying fiscal stimulus, engaging in monetary easing and implementing structural reforms. But when measured in U.S. dollars, the market showed a decline in growth in 2013 because the currency had depreciated by more than 10% in terms of exchange from the yen to the U.S. dollar.

IHS, Inc.

www.ihs.com 

- Edited by CFE Media. See more Control Engineering DCS and SCADA stories.



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.
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
Robot advances in connectivity, collaboration, and programming; Advanced process control; Industrial wireless developments; Multiplatform system integration
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