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Frost & Sullivan sees spend on automation and control systems increasing

3rd October 2014

By: Zandile Mavuso

Creamer Media Senior Deputy Editor: Features

  

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The emergence of new techniques, such as hydraulic fracturing, or fracking, in the oil and gas industry of sub-Saharan Africa is set to increase capital spending on automation and control systems (ACSes), says global growth consulting firm Frost & Sullivan.

The firm mentions that, within sub-Saharan Africa, there has been greater urgency among end-user businesses to find new tools to decrease the rate at which oil and gas are being depleted and improve efficiency in these operations. This benefits ACSes, as the services catering for these systems are required to facilitate efficient production, effective transportation and operation safety.

Frost & Sullivan Industrial Automation & Process Control Research analyst Tom Harris points out that, with the Southern Africa region aiming to bridge the gap between crude oil production and refining activities, there will be a large market for ACSes, especially in the segments of distributed control systems (DCSes) and manufacturing execution systems.

According to an analysis done by Frost & Sullivan, titled Automation and Control Solutions in Sub-Saharan Africa’s Oil and Gas Industry – An Analysis of 3 Leading Countries, last month, the ACSes market earned revenues of $151.8-million in 2013 and Frost & Sullivan estimates that it will to reach $273.9-million in 2019.

Further, the analysis highlights that DCSes, the preferred ACS technology in the oil and gas industry, accounted for the bulk (41%) of sub-Saharan Africa’s ACSes market revenue in 2012. There was also significant demand for supervisory control, data acquisition and safety-instrumented solutions.

With trends of growth being evident, Harris notes that, in the medium term, expenditure on ACSes technologies will be accounted for by investment in exploration and production, and pipeline and storage-terminal infrastructure.

Other key drivers of growth in the oil and gas sector include an increased interest in unconventional fossil fuel resources, the development of regional pipeline and storage infrastructure, and the move toward commercial production.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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