The European oil and gas industry Automation and Control Solutions (ACS) market is expected to grow moderately over the next 3-4 years. The increase in demand for oil and natural gas will lead to an increase in the upstream and midstream oil and gas sectors, which will increase the ACS market.

According to Frost & Sullivan, the European automation and control market for the oil and gas industry in 2011 was US$155.66 billion, and in 2016 it is expected to reach US$45.76 billion.

Due to the unstable geopolitical situation in the Middle East and North Africa, new projects in the oil and gas industry in Europe are expected to require greater investment. Frost & Sullivan Senior Research Analyst KARTHIK Sundallam said, “Although Europe's oil and gas reserves are confined to the North Sea Basin, it is expected that new upstream exploration and investment in the shore area will meet the increasing energy demand. This trend is ACS will provide significant growth potential."

Another key factor driving market growth is that factories want to increase asset utilization and reduce downtime. As Europe has a limited source of crude oil and natural gas, it will be for end users to invest in advanced ACS, which can maximize process output and limit waste.

Oil and gas facilities, such as the major accidents of the Deepwater Horizon spill and the events in the Gulf of Mexico highlighted the need for safety in the major oil and gas facilities during the process. Such accidents affect the regulatory environment and encourage end-user investment, especially in the ACS's security system.

"European Commission's regulatory measures have targeted various sectors of the oil and gas industry that are uniquely enforced by safety standards and regulations," Sundallam explained. "The emphasis on the highest level of safety in the process will persuade end-users The field of oil and gas facilities uses high-end security systems and secure programmable logic controllers (PLCs)."

However, the major market participants acknowledge that these positive development trends under the current economic uncertainty may inhibit new investment and delay orders for projects, and in the short-term will also affect revenue margins and profitability.

"However, the overall automation demand in the oil and gas sector is expected to hit new highs, and an early settlement of the eurozone crisis may promote investment and subsequently help the ACS market grow in the long term," Sundaram said.

The automation and control solutions market in Europe's oil and gas industry is a growth partner service plan for industrial automation and process control, which also includes process safety studies in the following markets: Europe, European programmable logic controllers, European smart grid automation and Part of Europe, advanced management solutions. All studies included in the subscription provide detailed market opportunities and industry trends were evaluated after extensive interviews with market participants.