Process instrumentation market projected to reach $16 billion by 2022
The 2017 process instrumentation and automation market is projected to grow 3.7% by 2022 to a total of $16 billion according to the Measurement, Control & Automation Association (MCAA).
The 2017 process instrumentation and automation market in the United States, valued at $13.4 billion, is projected to grow 3.7% by 2022 to a total of $16 billion according to the Measurement, Control & Automation Association (MCAA). The MCAA, which published its Annual Market Forecast for 2018, stated growth will be concentrated in five industries: Chemicals, electric utilities, oil refining, food & beverage, and pharmaceuticals. The cumulative market gain will be $2.7 billion over the forecast period. The chemicals industry market gain will be the largest. The market gain of the remaining slow-growing industries will equal about $484 Million.
Paul Rasmusson, president, Global Automation Research LLC, said, “The drop in the U.S. and Canada oil & gas industry spending has ended, with a small positive recovery in 2017. Growth will gradually increase over the next 5 years bringing process automation spending to the 2010 level.”
Mr. Rasmusson added, “The chemical industry is experiencing exceptional growth, driven largely by investments in ethylene/propylene and poly-ethylene/propylene new plant construction or major plant expansions. We are forecasting almost 5% annual growth in the U.S. chemicals process automation spending, but with ethylene prices at all time lows, combined with major capacity additions in China and the Middle East, it is possible that some of the projects now under consideration may be delayed or cancelled, as the global ethylene/polyethylene markets play out over the forecast period.”
Process control systems and process control valves continue to dominate the market value, accounting for 60% of the total for 2017. These two product categories will gain $1.4 billion in market value over the forecast period. The fastest growing product categories are electronic flow, electronic level, and remote I/O.
Rasmusson said, “Technology displacement remains the primary characteristic in the process automation market. Down markets, such as that just experienced in the oil & gas sector, tend to accelerate displacement of older technologies because, as customer spending recovers, companies look for opportunities to reduce future costs, increase product output or quality, reduce environmental problem or increase safety through new technology options.”
Measurement, Control & Automation Association (MCAA)
– Edited from an MCAA press release by CFE Media. See more Control Engineering process manufacturing stories.