June 17, 2016-‚Äê The Measurement, Control & Automation Association (MCAA) has published its Annual Market Forecast for 2016. The report focuses on the Process Instrumentation and Automation (PI&A) markets in both the United States and Canada. Twelve industry segments and product categories are examined in-‚Äêdepth, with a forecast timeline extending to the year 2020.
The 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.
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-‚Äê 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-‚Äêpoint 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.
