Strong SCADA Outlook for Oil and Gas Industry

New technologies and changing market conditions will drive the SCADA market in oil and gas to $1.3 billion in 2012, study says.

The worldwide market for supervisory control and data acquistion (SCADA) systems for the oil and gas industry is expected to grow at a compounded annual growth rate (CAGR) of 9.3 percent over the next five years, says a new study from ARC Advisory Group Inc. (, Dedham, Mass. The market was nearly $850 million in 2007 and is forecasted to be more than $1.3 billion in 2012, the study says.

The latest SCADA systems encompass a new generation of technology components. “These new generations of SCADA components are easier to integrate and provide vastly improved capabilities and functionalities. SCADA systems are now being considered in a wide range of applications and true business processes for a variety of purposes, including business performance management,” says Russ Novak, ARC director of research and principal author of the study, titled “SCADA Systems Worldwide Outlook for the Oil & Gas Industry.”

Market drivers

The worldwide SCADA market for the oil and gas industry is expanding as upstream development and new production occurs in remote and newly developed regions, and the existing oil and gas infrastructure makes use of the enhanced functionalities of SCADA to improve its core business processes of managing global disparate assets, ARC says.

Global demand for energy in the form of oil and gas is driving both exploration and production activities. New SCADA technology enables energy companies to conduct their business in remote and increasingly hostile environments. Exploration activities and new production fields are developed, monitored, controlled, and optimized globally using advanced technologies including SCADA.

Geographic linking

The oil and gas industry in developed regions is using SCADA as a core technology to support new business processes in response to changing industry dynamics. Developing regions are seeing increased exploration and production activities for which SCADA is used to link the geographically separated facilities. SCADA will be at the core of technology adoptions as the world economy strengthens, and as the industry moves to improve business processes to meet growing energy demand and economic challenges. In both the upstream and midstream portions of the oil and gas industry, SCADA will play an increasingly important role in the real-time dissemination of knowledge and management control of assets, ARC says.

North America, Europe, the Middle East, and Africa dominate the existing market. The market focus is being drawn to developing regions of the world, where numerous major greenfield energy projects are occurring at a pace that exceeds that of the developed regions.

ARC Advisory Group Inc.

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