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Energy Sectors Boost Instrument Sales

Dec. 12, 2008
Gains in Oil and Gas, Refining, Utilities and Pharma Keep Instrumentation and Automation Numbers Good through 2010

Without above average performance from the oil and gas, refining, utilities and pharmaceutical industry sectors, the annual growth rate (CAGR) for the process instrumentation and automation industry would be much lower than the 3.8% average forecasted this month by Global Foresight Group (Rasmusson & Willey). The forecast was prepared exclusively for the Measurement, Control & Automation Association, which published the report to its members last week. The “MCAA Annual Market Forecast for Process Instrumentation and Automation in the United States and Canada” reports the 2007 market value and the three-year future annual market forecast for 12 MCAA product categories and 12 industry segments.

The product segments are gas analytical instruments, liquid analytical instruments, pressure instruments, electronic flowmeters, mechanical flowmeters/primary elements, electronic level, mechanical level/tank gauging, temperature instruments, control systems, remote I/O, data acquisition systems, final control devices. also included are discussions of the trends in two emerging technologies, wireless transmitters and asset management.

The industry segments used are oil and gas (production and transmission), petroleum refining, chemicals, food and beverage, bio-pharmaceutical, pulp and paper, electric utilities, municipal water and wastewater, primary metals, mining, stone, clay and glass, and all other (semiconductor, textiles, etc.).

The 2007 total market value for the twelve PI&A product categories covered in this report is $7.0 billion for the United States and $812 million for Canada. In the United States, the annual growth rate is forecasted to be 3.8% per year and 2.8 % per year in Canada, over the forecast period. Five products are forecasted for above-average growth in the United States—electronic flow, mechanical flow, electronic level, remote I/O and pressure transmitters. In Canada, electronic flow, electronic level, remote I/O and control systems will experience above average growth rates. The oil and gas, refining, utilities and pharmaceutical industry segments are reported to expect above average growth in the United States, while in Canada, pharmaceuticals, utilities, food and beverage, and chemicals will experience that above-average trend over the forecast period.

The MCAA report provides a trademarked Global Foresight Group ReMaP Assessment for the United States and Canada, which was prepared for the 2007 report and will be updated in 2010. The ReMaP Assessment provides the past three-year growth rates in the market potential between selected product and regions within the United States and Canada.

In the United States the ReMaP assessment shows the 2003 annual market value (base year) and the regional annual percent growth by industry segment over the three-year period, 2003 to 2006. Canadian results show the distribution of the 2006 market value and future reports will build a historical base for the Canadian market.

In the United States, several regional variations in growth rates stand out in the period 2003 to 2006. For example, in the Northeast, the market for field instruments grew above average in the petroleum group (oil and gas and refining) due to the increased activity in oil and gas drilling and refining in Pennsylvania and New Jersey. A more detailed discussion of changes in the five United States regional markets is included in the full report.

Global Foresight Group Rasmusson & Willey LLC prepared the report for the MCAA members, which they receive at no cost within their membership. Canadian Process Control Association members will also be able to obtain a copy of the report at no cost through their association. Non-members of the association can purchase the report for from MCAA.