MCAA Forecasts Growth of the Process Instrumentation and Automation Market in the US to hit $16 Billion by 2022

June 22, 2018

The  2017  Process  Instrumentation  and  Automation  market  in  the  United  States,  valued  at  $13.4  Billion,  is   projected  to  grow  3.7  percent  by  2022  to  a  total  of  $16  Billion.    

The  Measurement,  Control  &  Automation  Association  (MCAA)  has  published  its  Annual  Market  Forecast  for   2018.  The  report,  prepared  by  the  analysts  at  Global  Automation  Research,  focuses  on  the  Process   Instrumentation  and  Automation  (PI&A)  markets  in  both  the  United  States  and  Canada.  Twelve  industry   segments  and  product  categories  are  examined  in-­‐depth,  with  a  forecast  timeline  extending  to  the  year   2022.    

Growth  will  be  concentrated  in  five  industries:  Chemicals,  electric   utilities,  oil  refining,  food  &  beverage,  and  pharmaceuticals.  The   cumulative  market  gain  will  be  $2.7  Billion  over  the  forecast   period.  The  chemicals  industry  market  gain  will  be  the  largest.   The  market  gain  of  the  remaining  slow-­‐growing  industries  will   equal  about  $484  Million.      

Paul  Rasmusson,  President,  Global  Automation  Research  LLC,   said,  “the  drop  in  the  U.S.  and  Canada  Oil  &  Gas  Industry   spending  has  ended,  with  a  small  positive  recovery  in  2017.   Growth  will  gradually  increase  over  the  next  5  years  bringing   process  automation  spending  to  the  2010  level.”    

Mr.  Rasmusson  added  that  “the  chemical  industry  is  experiencing  exceptional  growth,  driven  largely  by   investments  in  ethylene/propylene  and  poly-­‐ethylene/propylene  new  plant  construction  or  major  plant   expansions”,  but  he  cautioned,  “we  are  forecasting  almost  5  percent  annual  growth  in  the  U.S.  chemicals   process  automation  spending,  but  with  ethylene  prices  at  all  time  lows,  combined  with  major  capacity   additions  in  China  and  the  Middle  East,  it  is  possible  that  some  of  the  projects  now  under  consideration  may   be  delayed  or  cancelled,  as  the  global  ethylene/polyethylene  markets  play  out  over  the  forecast  period.”    

Process  control  systems  and  process  control  valves  continue  to  dominate  the  market  value,  accounting  for   60  percent  of  the  total  for  2017.  These  two  product  categories  will  gain  $1.4  Billion  in  market  value  over  the   forecast  period.  The  fastest  growing  product  categories  are  electronic  flow,  electronic  level,  and  Remote   I/O.      

Paul  Rasmusson,  said,  “technology  displacement  remains  the  primary  characteristic  in  the  process   automation  market.  Down  markets,  such  as  that  just  experienced  in  the  Oil  &  Gas  sector,  tend  to  accelerate   displacement  of  older  technologies  because,  as  customer  spending  recovers,  companies  look  for   opportunities  to  reduce  future  costs,  increase  product  output  or  quality,  reduce  environmental  problem  or   increase  safety  through  new  technology  options.”    
 
The  Market  Forecast  also  includes  information  for  the   Canadian  Process  Instrumentation  and  Automation   Market  which  is  valued  at  $1,234  million  and  forecast  to   grow  to  $1,454  million  by  2022,  a  five-­‐year  CAGR  of   3.3%.  Oil  &  gas  spending  has  recovered  along  with   growth  in  the  Canadian  chemical  industry.  Five   industries—F&B,  chemicals,  pharmaceuticals,  electric   utilities,  and  oil  refining,  —as  a  group,  will  grow  above   average,  adding  $153  million  in  market  value  over  the   forecast  period.      

The  Industry  Market  Forecast  is  available  to  all  MCAA   members  at  no  charge.  Non-­‐member  organizations  may   purchase  the  report  from  www.TheMCAA.org  or  by   calling  (757)  258.3100.