MCCA report estimates Process Instrumentation and Automation market to reach $17B by 2023
The process instrumentation and automation market is projected to grow 4.4% by 2023, according to a report from the Measurement, Control and Automation Association (MCAA).
The report, prepared by Global Automation Research LLC analysts, focuses on the Process Instrumentation and Automation (PI&A) markets in the United States and Canada.
Three industries accounted for more than 50% of the 2018 total process automation market: chemicals, oil refining and electric utilities. These three industries, plus food and beverage, and pharmaceuticals will be the fastest growing segments over the five-year forecast period.
The report shows that oil and gas process automation spending recovered strongly in 2018, with most of the growth in the midstream segment. And U.S. steel industry spending is growing, as companies expand capacity to meet tariff-related domestic demand.
Analystscautioned that a slowing global economy could reduce demand for plastics, creating an excess in ethylene production and oil refining capacity causing delayed or canceled projects. A U.S. recession would reduce demand for process industry products across the board, undermining the forecast growth in process automation spending, according to the report.
Process control systems and process control valves continue to dominate the market value, accounting for 60% of the total for 2018. The fastest-growing product categories were electronic flow, electronic level and remote I/O. The report shows that the displacement of some older technologies (e.g., mechanical flowmeters, mechanical level meters and data acquisition instruments) continue as electronic flow and level meters and expanded DCS, PLC and SCADA capabilities are adopted by the process industry.
The report valued the Canadian Process Automation Market at $1.3 billion and forecast it to grow to $1.5 billion by 2023, a five-year compound annual growth rate (CAGR) of 3.4%. Five industries — food and beverage, chemicals, pharmaceuticals, oil refining and electric utilities — will grow above average.
Manufacturers report plans for increased staffing, concern over tariffs
MFG.com recently released its MFGWatch 2019 Manufacturing Report, which forecasts outlook and challenges for manufacturers in 2019. The survey was completed by both sourcing professionals and custom manufacturers.
Among the survey highlights:
- Suppliers plan to increase staff in 2019 to keep up with demand, with more than 44% saying they will invest in their workforce and acquire new technology. While 34% of buyers will focus more on technology infrastructure and not the workforce, an almost equal number (33%) plans to increase both this year.
- Half of suppliers agreed that the availability of materials is an issue, with 44% citing tariffs as a stumbling block. On the buyer side, tariffs and shipping costs (i.e., logistics) were key areas affecting their supply chain strategies, both coming in at around 42%.
- Almost 90% of buyers and sourcing professionals cited the United States as their company’s primary sourcing destination for manufacturing their products. However, of those that are sourcing overseas, 79% have made no change to bring production back to North America from lower-cost countries.
- Almost two-thirds of responding supplier companies said they received more work in 2018 than in the previous year — a jump from 2016 results of 40%. Over 50% said their available capacity increased in 2018 while over one-third said it stayed the same year over year. Similarly, 61% of suppliers said they experienced an increase in requests for quotes (RFQs) in 2018, suggesting that the trend continues for buyers actively looking to source custom parts through American suppliers. Only 12% of suppliers surveyed saw a decrease in RFQs.
Nearly 58% of sourcing professionals also indicated that their companies experienced growth in 2018, a jump from 47% in the previous report. Slightly more than 40% of buyers increased their supplier base in 2018 while 38% kept the same number of suppliers year over year.
Oil and gas valves market expected to reach $16B by 2029
The global oil and gas valves market is expected to reach $11 billion by the end of 2019. That’s compared to a market of $10 billion in 2014, according to Future Market Insights. The oil and gas valves market is projected to grow at a CAGR of more than 3% during the forecast period of 2019-2029, and reach a value of nearly $16 billion by the end of 2029.
Among all the regional markets, the oil and gas valves market in North America is estimated to account for more than one-fourth of the global oil and gas valves market share throughout the forecast period, due to continuous advancements in the North American oil and gas and shale industry. With a booming oil and gas industry in the Western Africa and Northern African countries, the oil and gas valves market in the Middle East and Africa is estimated to record the second-largest market share throughout the forecast period. The oil and gas valves markets in China, India and Brazil are estimated to be emerging markets due to the growing energy needs, new oil and gas projects, improved economic conditions and continuous industrialization and urbanization in these countries.
High demand propels pressure relief valve market growth over next decade
The global pressure relief valve market, valued at around $4.2 billion in 2017, is expected to expand at a CAGR of 3.5% between 2018 and 2028, according to a report by Persistence Market Research.
Growing production of pharmaceuticals, chemicals, fertilizers, pesticides, textiles and oil and gas, among others, has resulted in a drastic growth in the demand for pressure relief valves, which are used to protect a pressure vessel from over-pressure in steam, gas, air and liquid lines. This explains the projected growth of the pressure relief valve market during the forecast period, according to researchers.
East Asia is expected to be a prominent region in the global pressure relief valve market throughout the forecast period, because of the increasing production and consumption of pressure relief valves in China. Besides East Asia, South Asia, which includes India and countries in the southeast Asia region, is also projected to be an attractive region for the global pressure relief valve market. Increasing disposable income of the population, developing economies and industrialization in this region are some of the major factors driving the growth opportunities in the pressure relief valve market there.