Process instrumentation, automation market reports minimal growth in 2015
The Measurement, Control & Automation Association’s (MCAA) Annual Market Forecast for 2016 focused on the Process Instrumentation and Automation (PI&A) markets in both the United States and Canada. The PI&A market in the United States experienced minimal growth in 2015, at $11.6 billion. This was an increase of 0.3% over the 2014 level, which was $11.1 billion. Twelve industry segments and product categories were examined in-depth, with a five-year forecast extending to the year 2020.
Lack of growth was attributed to a decline in oil prices as well as a downturn in mining and mineral spending due to falling commodity prices. Another factor is surplus capacity in the metals, cement, and pulp & paper sectors that is suppressing demand for those products. A strong dollar and weaker economies in China, Russia, and Brazil have also reduced U.S. domestic demand for PI&A products and services.
Five industries within the U.S. are expected to experience above average growth for the period 2015 to 2020: Electric utilities, pharmaceuticals, chemicals, refining, and food & beverage. These industries are projected to account for $7.8 million in 2015 and expand to $9.4 million in 2020.
In Canada, process industries will grow slightly slower than in the United States. Mining and oil production comprise nearly 20% of the Canadian economy. The drop in oil and gas and mining and minerals spending resulted in a 4% drop in the PI&A growth rate for 2015.
Canadian process industries are positioned for growth over the forecast period. Metals, cement, water/wastewater, and chemicals are all expected to profit from increased government spending on infrastructure.
Measurement, Control & Automation Association (MCAA)
– Edited by CFE Media. See more Control Engineering process sensor and actuator stories.