Keywords: Pressure Transmitter, Field Devices, Process Industry, Multivariable Transmitter, Smart Pressure Transmitter, Automation Expenditures, Pressure Measurement
Despite a few setbacks, the global pressure transmitter market remained on a growth track in 2014. Pressure transmitter shipments grew at an extraordinary rate during 2011, largely due to pent up demand from the recession. Since then, the growth rate continues to decline year after year. The trend continued in 2014 and market grew at lower than the 2013 growth rate. Unfortunately, ARC expects a similar downward trend to continue in 2015. Becoming a major point of concern in the latter half of 2014, the decline in oil prices continues to remain a concern in 2015. However, the decline did not have significant impact on 2014 pressure transmitter shipments.
Softening demand in new orders reported by many suppliers toward the end of 2014 and first half of 2015 is expected to dampen the growth of pressure transmitter shipments throughout 2015, according to the new ARC Advisory Group “Pressure Transmitters Global Market Research Study”. “The ongoing low oil price will keep capital investment low in the oil and gas industry. Other industries are also expected to remain extremely wary of their expenses,” commented ARC Analyst Inderpreet Shoker, the principal author of the study.
Low Oil Prices
Upstream oil & gas companies around the world are struggling to realign their operations in the face of the precipitous decline in West Texas Intermediate (WTI) and Brent crude oil prices. Many integrated oil companies, oilfield service providers, and independent E&P players have reduced budgets in 2015 by anywhere from 10 to 70 percent. Companies are reducing staff, canceling or delaying projects, and reducing their capex budgets. As many oil & gas projects are long-term, the slowdown did not have much impact on automation expenditures in 2014. However, it is highly likely to have significant impact in the near future. How quickly the oil prices can recover will be a major factor deciding the fate of the oil and gas industry.
Growing Chemical and Refining Industry
While hurting the upstream and midstream oil & gas industry, the decline in oil prices is helping many other industries including chemical, refining, and automotive. The typically low-margin downstream refining companies are benefiting from improved margins and profitability due to lower feedstock and energy costs. Suffering from reduced capex expenditures in recent years, the refining industry is in excellent position now to repair and upgrade plant automation. Owing to the shale gas revolution, the chemical and petrochemical businesses in North America have been on a growth track since the last few years. Due to the low oil prices, chemical businesses in Europe and Asia are also likely to observe good growth. In the near future, growth in the pressure transmitter market will be driven primarily by the chemical and refining industry. As oil prices recover, capital expenditures in the oil and gas industry is likely to resume as well.
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