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21 April, 2015 17:08 IST
`Increase in manufacturing in middle east to boost demand for control systems`
Source: IRIS International | 14 Dec, 2012, 10.31AM
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Rising investments in the oil and gas, power generation, chemicals and petrochemicals, and water and wastewater industries in the Middle East have expanded the regional market for distributed control systems (DCS). The market will gain considerably from the revival of projects that were deferred during the economic downturn and the greater need for power and water due to rapid industrialization in the region.

New analysis from Frost & Sullivan, Analysis of the Middle East Distributed Control System Market, finds that the market earned revenues in excess of USD 700 million in 2011 and expects this to cross USD 1 billion by 2016.

''As the population of the Middle East increases, the demand for power and water will rise concurrently,'' said Frost & Sullivan Industry Analyst for Industrial Automation & Process Control Practice. ''Consequently, the power generation and desalination, and water and wastewater industries are likely to witness significant demand, stoking the growth of the DCS market.''

Further, the consistently high average price of oil due to increasing global demand and the need to sustain existing oil reserves in the region will compel oil exploration companies to consider more efficient exploration processes. DCS will play a major role in optimising the entire process and enhancing the overall operation.

The Middle East DCS market will also benefit from industrial plants' need to replace outdated and inefficient control systems. New systems facilitate better asset management, tighten production cost control, increase process efficiency and productivity, as well as lower labor and raw material costs. Many plant owners are expected to invest in capital/technology such as DCS that allows them to reduce production costs and increase profit margins.

''However, the market also has to contend with project delays caused by the political instability in the region,'' said Frost & Sullivan Analyst. ''Automation vendors have to focus on the Gulf Cooperation Council (GCC) countries namely Saudi Arabia, the UAE, Kuwait, and Qatar, which are politically stable and offer strong potential for growth.''

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.

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