ARC says SCADA Market for Oil & Gas to reach $1.1 Billion

  • July 18, 2007
  • ARC Advisory Group
  • News
Dedham, Massachusetts; July 18, 2007: The far-reaching impact of technology and quantum change in the way companies are restructuring and streamlining business processes are transforming the global Su-pervisory Control and Data Acquisition (SCADA) market. The worldwide market for SCADA Systems for the Oil & Gas industry is expected to grow at a compounded annual growth rate (CAGR) of 8.9% over the next five years. The market was $745 million in 2006 and is fore-casted to be over $1,141 million in 2011, according to a new ARC Advi-sory Group study. The latest SCADA systems encompass a new generation of technology components. “These new generations of SCADA components are easier to integrate and provide vastly improved capabilities and functionalities. SCADA systems are now being considered in a wide range of applications and true business processes for a variety of purposes, including business performance management,” according to Research Director Russ Novak (rnovak@arcweb.com), the principal author of ARC’s “SCADA Systems for the Oil & Gas Industry” (www.arcweb.com/res/scadaog).Enhanced Functionality Fuels Oil & Gas ARC has analyzed the SCADA market by geographic region, project size, and component type, including hardware, software, and services. The worldwide SCADA market for the oil & gas industry is expanding as up-stream development and new production occurs in remote and newly developed regions, and the existing oil & gas infrastructure utilizes the enhanced functionalities of SCADA to improve its core business processes of managing global disparate assets. The market presently exceeds $745 million. SCADA Links Both Midstream and UpstreamNew SCADA technology enables energy companies to conduct their busi-ness in remote and increasingly hostile environments. Exploration activities and new production fields are developed, monitored, controlled, and optimized globally using advanced technologies, including SCADA. The oil & gas industry in developed regions is using SCADA as a core technology to support new business processes in response to changing industry dynamics. Developing regions are seeing increased exploration and production activities for which SCADA is used to link the geographically separated facilities. SCADA will be at the core of tech-nology adoptions as the world economy strengthens, and as the industry moves to improve business processes to meet growing energy demand and economic challenges. In both the upstream and midstream portions of the oil & gas industry, SCADA will play an increasingly important role in the real-time dissemination of knowledge and management control of assets. Developing Regions Host Greenfield Growth North America and Europe, the Middle East, and Africa continue to dominate. The market focus is also drawn to developing regions of the world, where numerous major Greenfield energy projects are occurring at a pace that exceeds that of the developed regions. About ARC: Founded in 1986, ARC Advisory Group has grown to become the Thought Leader in Manufacturing and Supply Chain solu-tions. No matter how complex your business issues, our analysts have the expert industry knowledge and first-hand experience to help you find the best answer. We focus on simple yet critical goals: improving your return on assets, operational performance, total cost of ownership, project time-to-benefit, and shareholder value. Learn More

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