Opportunities in Oil & Gas Reinforce Stable Growth Within the Process Level Sensors Market, According to New Research By VDC
Natick, MA (PRWEB) September 23, 2014 -- The oil & gas industry will demand more process level sensors than any other vertical market through 2018, according to a new report from VDC Research (click here for more info). Oil production has become more evenly distributed across the globe as new drilling techniques allow for oil & gas extraction in previously unexplored areas. The food and beverage industry also boasts a healthy market as manufacturers move from batch processes to a continuous manufacturing model with a larger emphasis on process control. As plants become more sophisticated, so too will the sensors with new features such as remote calibration and wireless communication playing an increasingly important role. Requirements for SIL-rated sensors will also increase over the forecast period as enterprises aim to protect assets and mitigate potential safety hazards.
“The most compelling story right now is Mexico,” says Frank Bertini, lead analyst in VDC’s Industrial Automation & Sensors practice. “Since the government has denationalized its oil industry there has been a deluge of investment in the area. We expect this to continue as players like Exxon Mobil, Petrobras, and Chinese oil explorers invest alongside Pemex to improve infrastructure. Suppliers are reporting a slight headwind due to industry specific business cycles within oil & gas. Investment was fervent in recent years but has been waning as proprietors look to recoup cash flow before entering another investment cycle.”
According to the report, mechanical level sensors have been steadily losing ground to their electronic counterparts and now make up only 7% of the process level sensor market. As part of the research, VDC surveys and interviews end users as well as suppliers to build a confident understanding of the latest developments within the process level sensing marketplace. “There are still opportunities in emerging markets and for replacement business for mechanical, but the long term prospects for mechanical level sensors remains anemic,” says Bertini. “Unit costs have been coming down steadily for radar-based systems; as this continues more process applications will switch over. This will benefit the larger manufacturers such as Emerson, Endress+Hauser, and Siemens.”
About VDC Research Group
VDC Research is a leading technology market analyst firm covering the connected world. Founded in 1971, the firm provides market intelligence to the world's leading technology vendors, who rely on VDC analysts for winning market strategies and technology adoption decisions. With unmatched domain expertise and rigorous primary research methodologies, VDC enables clients to find new opportunities for growth and make critical decisions with confidence. Based on a unique blend of quantitative and qualitative analysis that offer granularity and breadth of coverage, VDC is organized around five practice areas, each with its own focused area of coverage. For more information, visit http://www.vdcresearch.com.
Frank Bertini, VDC Research Group, Inc, http://www.vdcresearch.com, +1 (508) 653-9000 Ext: 129, [email protected]
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