Middle East manufacturing activity boost demand for distributed control: Study

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), according to new research from Frost & Sullivan.

A new study found 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.

The report also found that the market earned revenues in excess of US$700 million in 2011 and expects this to cross $1 billion by 2016.

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 optimizing 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The Middle East DCS market will also benefit from industrial plants’ need to replace outdated and inefficient control systems.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. 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.