The Process Instrumentation and Automation (PI&A) market in the United States did experience growth in 2015, however that growth was minimal. At $11.6 billion, the increase was 0.3 percent above the 2014 level of $11.1 billion, according to the latest Annual Market Forecast from the Measurement, Control & Automation Association (MCAA).
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- 2020: electric utilities, pharmaceuticals, chemicals, refining and food & beverage. These industries will account for $7.8 billion in 2015, expanding to $9.4 billion in 2020.
In Canada, process industries will grow slightly slower than in the United States. Mining and oil production comprise nearly 20 percent of the Canadian economy. The drop in oil & gas and mining & minerals spending resulted in a 4 percentage point 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.
The MCAA examines 12 industry segments and product categories for its annual report, with a forecast timeline extending to the year 2020.