- Summary
- Table Of Content
- Methodology
SCADA Oil & Gas Market Size:
SCADA Oil & Gas Market size is estimated to reach over USD 7,038.34 Million by 2031 from a value of USD 4,473.94 Million in 2023 and is projected to grow by USD 4,654.96 Million in 2024, growing at a CAGR of 5.8% from 2024 to 2031.
SCADA Oil & Gas Market Scope & Overview:
SCADA enables gathering of real time information from industrial processes by using field controllers for monitoring, controlling, and analyzing. This is accessible to workers on a digital interface, called a HMI (Human Machine Interface). It integrates hardware and software to gather data from sensors by sensing condition. These collected data are used to provide actionable insights for operational efficiency. SCADA's benefits include improved process automation, remote process control, reduced downtime, and enhanced safety. It is widely used in oil and gas sector to optimize performance and ensure reliability. It helps organizations in decision making due to stored historical data and minimize risks, in turn driving the market growth.
SCADA Oil & Gas Market Dynamics - (DRO) :
Key Drivers:
Increasing Investments for Oil & Gas Infrastructure Development Propels the Market Growth
Rising investment in the oil and gas sector is driving advancements in technology, infrastructure development, and exploration activities. Increase in investment is directed towards enhancing producing efficiency, expanding pipeline networks, and adopting digital solutions like SCADA and IoT for real time monitoring and automation. This surge in investment is also fueling research into sustainable practices and reducing carbon emissions as companies strive to meet environmental standards amid rising global energy demand. These investments are crucial for maintaining supply security, ensuring operational efficiency, and driving overall development of the oil and gas industry.
- In October 2024, IndianOil and Nepal Oil Corporation collaborated and invested for a business to business framework agreement for developing petroleum infrastructure in Nepal.
Thus, the analysis shows that the rising investments and collaboration for oil & gas infrastructure development is driving the SCADA oil & gas market growth.
Key Restraints :
High Cost Associated with SCADA Deployment Obstructs the Market
The high cost associated with SCADA deployment is a significant obstacle for restraining the SCADA oil & gas market demand. SCADA systems rely heavily on software for real time data analysis and hardware components like servers, storage, and network infrastructure, driving up the overall cost. This high investment can be a barrier, particularly for smaller companies with limited budgets.
Therefore, high costs associated with the implementation and expansion of SCADA systems are restraining the growth of SCADA oil & gas market.
Future Opportunities :
Adoption of Cloud Computing Solutions Open New Doors
Cloud computing is significantly transforming the SCADA technology by providing a flexible, scalable and cost effective alternatives to traditional on-site server solutions. By adopting cloud-based SCADA systems, organizations can effectively store and process large volumes of procured data without the need for extensive hardware infrastructure. Additionally, these systems allow for remote access, enabling operators to monitor and control industrial processes from any location with internet connectivity. This feature is particularly beneficial for industries with distributed operations, such as oil and gas. Furthermore, the integration of analytics and machine learning into cloud based systems enhances their functionality and is driving the market opportunity.
- In August 2024, PaKEnergy LLC, a digital business automation supplier in the energy industry acquired Plow Technologies, a provider of cloud and SCADA software.
Thus, the growing adoption of cloud based solutions in the SCADA system drives the global SCADA oil & gas market opportunities.
SCADA Oil & Gas Market Segmental Analysis :
By Component:
Based on component, the market is segmented into hardware, software and services.
Trends in the Component:
- The oil and gas industry is witnessing a growing trend in SCADA software, leveraging AI and machine learning to optimize predictive maintenance and improve operational efficiency.
- The trend towards remote monitoring and controlling of various equipment in industries is boosting the need for SCADA oil & gas software solution.
The hardware segment accounted for the largest revenue share of 59.32% in 2023.
- The systems include physical components like remote terminal units (RTUs), programmable logic controllers (PLC), and essential network components for data acquisition and control.
- It ensures reliable data collection, processing, and communication, supporting efficient real-time monitoring and control.
- It is widely used in oil and gas industry for pipeline monitoring, well management, and refinery process automation.
- In September 2023, Siemens launched Simcenter SCADAS RS, with added features including IP 66 and 67 ratings, higher operating temperature range, and others.
- In conclusion, the rising advancements in hardware sector is driving SCADA oil & gas market share.
The services sector is anticipated to register the fastest CAGR during the forecast period.
- The services include system integration, maintenance, support, and upgrading to ensure continuous and efficient operation.
- It improves operational efficiency, reduces downtime, and enhances system reliability through regular maintenance, optimization, and troubleshooting of SCADA oil & gas systems.
- Services are essential for oil and gas companies in areas like pipeline integrity managements, remote monitoring and controlling, and ensuring compliance with safety and regulatory standards.
- For instance, Emerson, a SCADA service provider, acquired Zedi's software and automation business for cloud based remote control and monitoring.
- Thus, the increasing investment in SCADA services is expected to boost the SCADA oil & gas market trends.
By Stream:
Based on stream, the market is segmented into upstream, midstream, and downstream.
Trends in the Stream:
- The downstream oil and gas system is used for refining/receiving crude oil at different plants for turning oil into many products such as LPG, gasoline, LNG, and others.
- In the midstream sector, SCADA systems enable real-time monitoring and automation of pipeline networks for improving leak detection and enhancing regulatory compliance.
The midstream sector accounted for the largest revenue share in the overall SCADA oil & gas market share in 2023.
- In the oil and gas midstream segment, SCADA system is used to manage to movements of petroleum products through pipelines, ensuring efficient and reliable transportation and distribution.
- The systems improve the safety, efficiency, and reliability of midstream, operations by enabling real-time monitoring, leak detection, and remote control of pipeline networks.
- It is used in midstream sector for pipeline monitoring, flow control, leak detection, and inventory management across terminals.
- For instance, in May 2021, EOT launched AI Edge Controller SCADA system, integrated with machine learning models to obtain real time predictions which is implemented in closed-loop.
- Therefore, the rising advancements in SCADA system drives the SCADA oil & gas market growth.
The upstream sector is anticipated to register the fastest CAGR during the forecast period.
- In upstream oil and gas, SCADA systems are used for monitoring and controlling extraction processes, including wellheads, drilling rigs, and field equipment.
- It enhances operational efficiency, decision making by providing real time data, safety, automation, and remote monitoring in upstream operations.
- They are used in upstream oil and gas for wellhead monitoring, drilling control, and reservoir management, optimizing production and reducing operational risks.
- According to India Brand Equity Foundation (IBEF), government approved 100% FDI (Foreign Direct Investment) in upstream and refining projects in private sector.
- According to the analysis, the rising investments in oil & gas sector is set to boost the SCADA oil & gas market trends.
Regional Analysis:
The regions covered are North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
Asia Pacific region was valued at USD 1,180.64 Million in 2023. Moreover, it is projected to grow by USD 1,230.93 Million in 2024 and reach over USD 1,903.17 Million by 2031. Out of this, China accounted for the maximum revenue share of 36.1%. According to the SCADA oil & gas market analysis, factors such as increasing investments in oil and gas infrastructure, driven by the need for enhanced operational efficiency, are key aspects expected to fuel the market growth, particularly in countries like China, India, and Japan. The rapid development and rising requirement for SCADA systems for industries like oil & gas accelerate the SCADA oil & gas market expansion
- For instance, in April 2024, Wing Wah, a Chinese oil company, signed an amended production sharing contract with Chinese government, the oilfield aims to reach 80,000 barrels per day from 45,000 barrels per day.
North America is estimated to reach over USD 2,290.98 Million by 2031 from a value of USD 1,435.35 Million in 2023 and is projected to grow by USD 1,495.24 Million in 2024.
The growth is driven by the increasing adoption of advanced technologies such as cloud computing and machine learning, which require scalability and flexibility of the oil plants. Hence, the remote monitoring and controlling feature, contribute to the SCADA oil & gas market.
- In May 2024, Honeywell, based out in US, collaborated with Weatherford's Cygnet SCADA platform to monitor and report by providing insights to reduce greenhouse gas emissions.
The regional trends analysis depicts that the strict carbon emission laws of Europe increase the adoption of sustainable SCADA solutions, in turn driving the SCADA oil & gas market demand. Further, as per the market analysis, the primary factor driving the market in the Middle East and African region include increasing investment and technological advancement to reduce the production cost related to oilfields. The rising investments in refining project is accelerating the market growth in the Latin America region.
Top Key Players & Market Share Insights:
The SCADA oil & gas market is highly competitive with major players providing services to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in the global SCADA oil & gas market. Key players in the SCADA oil & gas industry include -
- General Electric (United States)
- ABB (Switzerland)
- Rockwell Automation, Inc. (United States)
- Siemens (Germany)
- Mitsubishi Electric Corporation (Japan)
- Schneider Electric SE (France)
- Larsen & Toubro Limited (India)
- Yokogawa Electric Corporation (Japan)
- Emerson Electric Co. (United States)
- Honeywell International Inc. (United States)
SCADA Oil & Gas Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2018-2031 |
| Market Size in 2031 | USD 7,038.34 Million |
| CAGR (2024-2031) | 5.8% |
| By Type |
|
| By Stream |
|
| By Region |
|
| Key Players |
|
| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage |
|
Key Questions Answered in the Report
How big is the SCADA oil & gas market? +
SCADA Oil & Gas Market size is estimated to reach over USD 7,038.34 Million by 2031 from a value of USD 4,473.94 Million in 2023 and is projected to grow by USD 4,654.96 Million in 2024, growing at a CAGR of 5.8% from 2024 to 2031.
What specific segmentation details are covered in the SCADA oil & gas market report? +
The SCADA oil & gas market report includes specific segmentation details for type, stream and region.
Which is the fastest segment anticipated to impact the growth? +
In the type segment, the service sector is the fastest-growing segment during the forecast period due to the requirement of system integration, maintenance, and support.
Who are the major players in the SCADA oil & gas market? +
The key participants in the SCADA oil & gas market are General Electric (United States), ABB (Switzerland), Schneider Electric SE (France), Rockwell Automation, Inc. (United States), Siemens (Germany), Mitsubishi Electric Corporation (Japan), Larsen & Toubro Limited (India), Yokogawa Electric Corporation (Japan), Emerson Electric Co. (United States), Honeywell International Inc. (United States)
