Russia’s automation and control solutions (ACS) market is poised to look up over 2013-2016 thanks to the increased investments, government regulations and the exploration of new oil and gas deposits according to a research by Frost & Sullivan.
However, the market faces major challenges in the form of Russia’s unstable economic and political landscape and end-user perceptions of ACS being non-critical in the manufacturing process. The market earned revenues of USD 1,107.9M in 2011 and this could reach USD 1,822.0M by 2016. As demand for oil and gas soars, oil and gas companies have started implementing ACS to make the industrial process more effective and save on production costs. “ACS systems can be used to improve efficiency, decrease operating costs and boost the productivity of oil and gas manufacturing processes over the long-term”, explained Frost & Sullivan Industrial Automation & Process Control Research Analyst Maryna Osipova. “Besides ensuring performance optimisation and technological control and planning, ACS also promotes safe operations.
This will be in line with stricter government regulations related to safety in oil and gas manufacturing processes.” Such trends have resulted in oil and gas customers recognising ACS as a strategic investment. At the same time, one of the major restraints to market expansion has been the end-user perception of these solutions being non-critical in the manufacturing process. Vendors, on their part, need to generate greater awareness about newer technological offerings and their benefits. Oil and gas companies need to be educated about the basic features of ACS and the advantages and opportunities that it can offer.